Corporate Income Tax is subject to a flat rate in Malta.
Whether you’re an individual or a company, receivers of dividends paid out of corporate income and subject to tax in Malta, are allowed to claim large tax refunds from the distributing company. The person receiving the dividend, claims against the local Inland Revenue department and recieves the refunded dividend within 14 days.
To avoid double taxation on income, Malta has entered into and ratified 57 treaties with others countries worldwide. If, however, a double tax treaty has not been signed, Maltese law gives alternate relief on foreign income derived from a Maltese resident, whether an individual or company.
This includes Income Tax relief on earnings from outside Malta, which has been taxed overseas. Otherwise, a flat Foreign Tax credit of 25% on the net foreign income is claimed by Maltese companies for income and gains derived from outside the country.