With only a small variety of foreign firms registered annually, Malta is the key pearl of the oyster of international company formation. Malta’s politicians and statesmen have developed a system that permits for five% corporate tax with the Euro zone. The system that permits for this to occur is the tax refund scheme.
Maltese firms are charged an organization tax of 35% on all their revenue. Nonetheless, the tax that’s suffered is subject to plenty of extenuating circumstances. To most individuals on the earth, essentially the most interesting of those is the 6/7 tax refund offered to foreign shareholders.
The unbelievable 6/7 refund works like this: The corporate pays 35% tax on it’s revenue. The foreign shareholders apply for a tax refund of 6/7 of the 35 % tax suffered. 6/7 of 35 is 30 and hence the magic formula gives you a net tax sufferance of near 5%. Following other deductions offered to the corporate, the true tax burden will be +/- a few points in each direction.
What’s fur sure is that for those who are a small, medium or large sized company that resides outside of Europe and is searching for to ascertain a presence in Europe, Malta is the place to establish business.
What’s much more sure is that for those who are dealing in online trade of mental property, done accurately Malta is a tax heaven.
In Malta there are several firms that may also help arrange an organization in Malta. A not so known solution for small size businesses is a shell company. This can be a company that leaves the management to a different Malta-based corporate services company. In practice which means that a Maltese company answers the phone in your name in case someone calls and that post and packages are forwarded to a foreign address of your alternative. In this fashion the corporate appears to be 100% operating from Malta, even when not one of the executives reside within the country.