How to open an offshore company in Malta?

Ukraine, like many countries that have problems with the "leakage" of money to offshore zones, regularly publishes its list of offshore companies. Unofficially, Malta is indeed considered such a zone. However, this is not the first year in a similar list approved by the State Cabinet of Ministers, this island state does not appear. Thanks to this, domestic businessmen can register companies in Malta without any fear.

Features of the tax legislation of Malta

Conventionally, Malta has a fairly high tax rate: 35% of profits. However, it can be significantly reduced if the company's charter contains a decision to pay dividends to shareholders in the format of a part of income. In this case, the company can return a significant part of the amount spent within a month, that is, the real tax rate will be only a few percent of the income received. To receive a refund, shareholders must submit an appropriate application, usually the transaction takes no more than three weeks.

The specific amount of refundable amounts depends on the specifics of taxes paid:

• 6/7 of the payment made is refunded from the trading activity tax.
• From the tax on passive royalties and interest that are not directly related to the economic activity of the company, 5/7 of the amount is returned.
• The entire amount is refunded from the tax on income received from the shares of a foreign company owned by a Maltese company.

An exception to this rule is income derived from real estate located in Malta. Such taxes are non-refundable. In this case, we are talking only about profits, real estate itself, like all property in general (including capital), is not subject to tax payments. Therefore, this island state is also attractive in terms of acquiring real estate.

It is also worth noting that there is no practice of advance provision of tax payments in the country. In addition, several dozen international agreements protect Maltese offshore companies from double taxation.

Accounting requirements

For a company registered in Malta, you will need to systematically maintain tax and accounting records. Appropriate reporting must be submitted to the regulatory authorities at the end of each year. We are talking about the annual tax return, the annual report of a certain format, submitted to the Register of Companies, and the annual financial report based on the results of the audit.

Benefits of offshore in Malta

• Data on the actual owners of the company, as well as on financial transactions performed by it, are disclosed only if there is a corresponding court decision.
• There are no restrictions on the activities of the company in the trading field. If it is assumed that the company will provide insurance, banking or investment services, or engage in gambling, then you will need to obtain a license.
• The authorized capital of the company can be formed in any currency, and taxes can later be paid in the same currency.
• A limited liability company (offshore companies in Malta are most often registered in this form) can have from 2 to 50 shareholders.
• Shipping companies in this state are 100% exempt from income tax. Instead, such firms must pay an appropriate fee once a year, the size of which depends on the tonnage of the ship.
• A significant part of the assets in Malta is managed by the banks of the key highly developed countries of the world. In addition, island banks are distinguished by a high level of liquidity and capitalization. Thanks to this, the state can boast of a stable and dynamically developing economy.

Malta Corporate Law