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Dividend Tax in Malta

Dividend Tax in Malta

The dividend tax in Malta is applied to companies with domiciliation and residency in the country. In other words, enterprises which are domiciled and resident in Malta are subject to the income tax on the global profit and also capital gains. For a better understanding of the requirements related to the dividend tax in Malta, we suggest you address your questions to our Maltese team of company formation agents.

Foreign companies and dividend tax in Malta

Dividends in Malta are levied with a 35% rate which is the same with the corporate tax. One should know that under the participation exemption policies, the dividend profits resulting from a foreign participating holding can be exempted from taxation in Malta, and additionally, the stockholder is entitled to request a credit for the tax paid by the enterprise on the allocated revenue. 

Withholding tax on dividends

Under the full imputation tax system in Malta, the levies imposed on profits of companies in the country (resident and domiciled) which are allocated as dividends are entirely credited against the Maltese tax liability of the stockholder. The good part is that there is no withholding tax on dividends in Malta distributed to stockholders who are non-residents.

The taxation system in Malta has similarities with the one established in the United Kingdom, but for a better understanding of the ways in which dividends are taxed, we strongly recommend you talk to our specialists in company formation in Malta. The same team can also help local and foreign investors register companies in Malta.

Stockholders of companies in Malta and tax refunds

The reimbursement of taxes applied to dividends in Malta can be solicited by foreigners who are shareholders in a Maltese enterprise under certain conditions. For instance, tax refunds can be demanded by all companies which have been registered in compliance with the Companies Law in Malta, or by enterprises incorporated in the country but controlled from overseas.

If you want tax advice and more details about the dividend tax in Malta, please feel free to contact our team of local company incorporation advisors in Malta