The amount of tax deduction is calculated depending on the type of corporate income.
6/7 is deducted from 35% corporate tax if the income was derived from trade. The state keeps only 5% of the company’s income.
A 5/7 deduction of the standard income tax rate applies if the company income is received from passive sources such as royalties (corporate tax will be 10%).
1/3 deducted from 35% corporate tax goes to the Maltese treasury if the company has already benefited from double taxation treaty relief (the income tax in this case will be 11.67%).
Some income of foreign-owned companies is exempt from corporate tax if certain conditions are met. For more details, please contact our specialists.