Malta

Corporate taxation

The corporate tax rate is 35%.

A company incorporated in Malta is considered as both domiciled and resident in Malta and is consequently taxable on a worldwide basis. A non-Maltese incorporated company that is resident in Malta through management and control is subject to Maltese tax on income arising in Malta and on income received in/remitted to Malta.

Malta’s tax legislation provides for a number of tax benefits which can lead to reduced taxes. 

Transfer pricing

The arm’s length principle has been present in the Maltese Income Tax Acts for years, but up until recently there was no specific transfer pricing legislation or supporting guidance. This changed with Legal Notice 284 of 2022 effective from 1 January 2024. The arm’s length provision is contained in article 3, according to which any cross-border arrangement entered into with an associated enterprise must be at arm’s length.

Links

Transfer Pricing Case Law

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Cases involving Malta

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