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Recent amendements make Malta more attractive for foreign shareholders


Recent amendments geared towards making it more attractive for foreign shareholders to do business in Malta have been made to the Income Tax Act, the Income Management Act, and the Duty on Documents and Transfer Act. Taxand Malta reviews the new amendments and how these will impact multinationals structuring operations, or looking to operate, in Malta.

These new amendments, which seek to clarify and fine tune the tax regime will do the following:

  • Widen the definition of participating holding
  • Extend the applicability of the participation exemption
  • Create an exemption on royalty income
  • Step up provisions
  • Create incentives to employees of investment service companies
  • Increase anti-abuse provisions with respect to accumulated profits from the sale of immovable property

Taxand's Take

Multinationals that already have Maltese structures in place should look at the new amendments to determine if they qualify for the participation exemption under the new legislation. Similarly, businesses that are contemplating setting up Maltese structures should consider the benefits of the step-up provision. Individuals who are employed at investment services firms should review their benefits packages in order to take advantage of exemptions from fringe benefits and potential reduced tax rates on their employment income.

Your Taxand contacts for further queries are:
Walter Cutajar
T: + 356 2730 0045

Maryanne Inguanez
T: + 356 2730 0045

Diana Debono
T: + 356 2730 0045

Read the full analysis from Taxand Malta here:

Taxand's Take Author