types of taxes

Understanding the Maltese Double Taxation System

The Maltese government greatly supports the business sector in Malta and one of its primary goals is to create a more convenient atmosphere for both local and international businesses. In order to moderate one of the barriers which deter the growth of international companies, Malta strongly leverages the double taxation system. This move has proved rewarding to both Malta and foreign investors who have taken a keen interest in doing business with Malta. Over 70 DT agreements have been signed so far with more than 60 of them already into effect.


Registering for tax with the Maltese Tax Authorities

Registering for tax in Malta is no different from other countries and it actually comes with a number of benefits. Every business operating in Malta is mandated to register for tax with the Department of Inland Revenue in Malta in order to legally operate on the market. To be recognized as a taxpayer, you should obtain a Maltese PE number, which is also issued out by the department of inland revenue. This will allow you to legally retain and pay taxes for both your company and for your employees.


Dividend Tax charges in Malta

Malta’s taxation system is closely similar to that of Great Britain but there are some slight variations when it comes to aspects like the dividend tax. The government's strategy on dividend tax affects local companies and foreign businesses differently. Dividend tax is imposed on locals (domicile and tenant) companies — they are obligated to pay their taxes on returns from capital gains and other forms of income.


Maltese Cryptocurrency Tax

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.


Maltese Value added tax (VAT)

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.


Set up a partnership in Malta

Registration of partnerships in Malta follows the stipulations of the the Companies Act of 1995. The types of partnerships that can be formed in Malta are:

  • general partnerships (partnership “en nom collectif”) and,
  •  limited partnerships (partnership “en commandite”). 

All commercial partnerships are considered separate legal entities by law and they are regulated by the Trade Register.