Direct Taxation

Zampa Debattista provides its clients with a wide array of Direct Taxation services, ensuring efficiency and adherence to the local legislation.

Within an international context, Malta is the only country in the EU offering a full imputation system. The purpose of the full imputation system is to prevent double taxation. As a result, corporate profits, which are primarily taxed in the hands of the Malta company, are not subject to further tax in the hands of the immediate shareholder upon a distribution of the said profits by the Malta company in favour of its shareholder.

Companies incorporated in Malta are chargeable to tax in Malta on a worldwide basis. Companies are taxed in Malta at the flat rate of 35%. However, the flat 35% tax rate is typically and effectively substantially reduced to a combined overall effective rate of 5%.

Pursuant to a distribution of dividends by a Maltese company, in favour of its shareholders and out of qualifying income, whether arising in or outside Malta; the recipient shareholders would generally be entitled to claim a refund of six sevenths (6/7) of the Malta taxation suffered by the Maltese company on the profits out of which the dividends were distributed. This effectively results in a combined overall effective taxation rate of 5%.

ZD offers the following services:

  • Tax advisory services tailored to client’s requirements
  • Assistance with the tax computations on business profits, capital gains and other income
  • Assistance with provisional and final settlement tax payments
  • Obtaining tax credits from Malta Enterprise
  • Preparation and submission of private and corporate Income Tax Returns
  • Liaison with the Maltese tax authorities on various tax issues and obtaining rulings as regards to complex transactions
  • Preparation of dividend warrants
  • Registration of shareholders for the purposes of tax refunds
  • Preparation of Malta Tax Refund application form, in terms of the Income Tax Management Act and submission thereof to the Inland Revenue Department

For further information, kindly contact Matthew.