“Famous proverb in Malta: Id-dinja tghallmek aktar minn imghallmek, meaning: The world teaches you more than your task-master.”
Malta is an island country, located in the Mediterranean Sea,
which is a member of the European Union.
Every year it attracts thousands of tourists, that want to see the beauty themselves.
But what about business sector, you would probably be curious?
In 2013, Malta began to be criticized for its financial sector, which remarkably resembled Cyprus,
and which was fatal for Cyprus. Malta’s financial sector is eight times greater than
the performance of its economy. Economists fear that if there will be more problems in the banking sector,
Malta will loose reputation of a tax haven.
Against comparisons with Cyprus objected central bank governor, who said that unlike
the Maltese Cypriot banking sector was strongly linked with Greek bonds.
According to his words,the standard rate of tax on corporate income in Malta will go up to 35%,
which would not be attractive for foreign companies. Therefore, there is a system of tax refunds,
where shareholders may request a refund of up to 6/7 of paid taxes. Then, the effective
tax rate reaches up to 5%, which is more than half of the rate than that was offered by Cyprus.
In addition, Malta offers a wide range of tax-deductible expenses. At present, Malta is increasingly
strengthening its position in the field of tax havens, mainly at the expense
of the Netherlands and Cyprus.
Malta still offers good tax conditions at significantly lower cost of establishing
and managing the company. It helps to even long-term economic and political stability
arising from EU membership and versatility of Maltese society for international tax planning.