Digital currencies such as bitcoin, have made a lot of buzz in the media over the past few years. However, it is only now that these cryptocurrencies have begun to be understood by ordinary citizens let alone to be trusted. Malta has not chosen to fall behind in accommodating the new currency. The state already set up a tax scheme for revenues that involve cryptocurrency investments.
Value added tax is the tax that is charged progressively according to the increase in product value. It is important to note that all entities in Malta, partnerships included and natural persons are obliged to register with the VAT office in order to comply with the Maltese VAT legislation of 1998.
The Maltese Government has designed different programs and schemes in order to provide tax incentives or tax deductions for foreign investors. Some of these incentives are also part of the process of opening a company in Malta.
Subsidiaries are legal entities with capital that is partially or totally owned by foreign companies. However, the management of the subsidiary is not conditioned by the foreign capital, and the entity is able to handle business contracts, hire employees or issue and transfer shares.
Although corporate taxation in Malta is not low, shareholders are entitled to claim back part or even the whole tax paid by the Malta company. This is why the Maltese taxation system is unique and very ingenious.