Malta has been a member state of the EU since 1.5.2004. The tax system has been adapted to the EU requirements. Individuals are subject to income tax. The tax rates above a basic allowance are between 15% and 35%. There is no special corporate income tax for corporations. Like natural persons, they are subject to income tax.
For them, the tax rate for retained and distributed dividends is 35 %. Malta has a full credit system so that there is no double burden at company and shareholder level. There is no external tax law. The DBAs generally follow this OECD MA. A wealth tax does not exist any more than one Property tax or an inheritance and gift tax. the value added tax follows the requirements of the EU. The normal tax rate is 18 %, the reduced tax rate is 5 %.
Malta tax system
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