Company tax in the EU – Malta
The company tax rate for Malta is 35%.
When you set up your business entity, you should ensure that you do the following:
- Register for company tax - Registration may now be carried out online through the Registry's portal. Prior to registration, an applicant must register for an account and obtain a personal Digital Certificate by registering for an e-ID. The MFSA would then vet the application within 5 working days. MFSA communicates C-number with the Inland Revenue Department (IRD) and IRD then creates an Income Tax Number. This normally happens within a couple of hours. IRD will then communicate this number to the company through email without the entrepreneur having to make a separate visit to the IRD.
- Keep accounting records - Each company incorporated in Malta is required by the Companies Act to keep a standard set of statutory books as well as proper accounting records. The books should be updated regularly and the records must be consistent from year to year. The records have to include details of all purchases and sales, receipts and payments, and assets and liabilities. Companies must maintain details of stock held at year-end and all records used to derive the physical stock held at the end of the accounting period.
- Prepare a company tax return
- Pay company tax by your deadline - The payment is to be done when submitting the tax return.
- File your company tax return by your deadline - The deadline for filing the companies' tax returns is 9 months after the closing date of the accounts, the earliest is March of the following year.
What profits do you pay company tax on?
Taxable profits include the money your company or association makes from:
- Doing business
- Selling assets for more than they cost (chargeable gains)
If your company is based in Malta, it pays company tax on all its profits from Malta and abroad.
If your company isn't based in Malta but has an office or branch there, it only pays company tax on its profits from its activities in Malta.