Tax Guide

Malta corporate taxes

Malta has a 35% headline corporate tax, but a full-imputation system with shareholder refunds — commonly 6/7 of the tax — brings the effective rate on distributed trading profit down to about 5%. VAT is 18%, the second-lowest in the EU. Every company files audited accounts. Filing runs through the Commissioner for Tax and Customs.

Currency EUR (€)Tax year Calendar year (basis year) taxed the following yearEU member stateLast reviewed 2026-07-12
35%
Corporate income tax
~5% effective after refunds
18%
VAT standard rate
Reduced: 12%, 7%, 5%
0–35%
Income tax
Progressive, by status
0%
Dividend WHT
Full imputation system
10%
Social security — each side
Employer and employee
All companies
Audited accounts
Statutory audit required

Company forms & registration

A company is incorporated with the Malta Business Registry; beneficial owners are filed in the UBO register.

Main legal formsLtd (private limited), public limited company (plc)[3][7]The private limited company is the default choice for most businesses.
Minimum share capitalPrivate: €1,165 (20% paid up); public: €46,588[3][7]
Registers a new employer meetsMalta Business Registry (incorporation, UBO) → Commissioner for Tax and Customs (tax, VAT, FSS) → Jobsplus[7][4]

Other statutory requirements

Obligations beyond filing a tax return that every operating company must satisfy.

Audited financial statementsRequired for every company, whatever its size[7]Like Cyprus, Malta requires a statutory audit of all companies (IFRS or GAPSME).
Annual returnFiled with the MBR on the anniversary of incorporation[7]
Beneficial ownersA person controlling more than 25%[7]
Document retention10 years[4]

Corporate income tax

Headline rate35%[1][4]A flat 35% is charged on company profits.
Shareholder refundCommonly 6/7 of the tax[1][4]On distribution, shareholders claim a refund of the tax — usually 6/7 on trading income — cutting the effective rate to about 5%. Other fractions (5/7, 2/3) apply to passive income.
Optional flat tax (FITWI)15% final, no refund[1][4]Since September 2025 a company may instead elect a 15% final income tax without the imputation/refund system (FITWI), binding for at least five years.
Return & paymentNine months after year end (electronic filers get extensions)[4]

Withholding taxes & dividends

DividendsNo withholding tax[1][4]Under full imputation, dividends carry the tax the company already paid; the shareholder then claims the refund.
Interest & royalties (non-residents)Generally 0%[1]Malta does not levy withholding tax on most outbound interest and royalties.

VAT

Standard rate18%[2][5]The second-lowest standard VAT rate in the EU.
Reduced rates12%, 7% and 5%[2][5]7%: hotel accommodation. 5%: electricity, books, medical accessories. 12%: certain services. 0% for exports and intra-EU supplies.
Registration threshold€35,000 (goods)[5]Lower thresholds apply to services; small undertakings may register as exempt.
VAT returnQuarterly, within 6 weeks of quarter end[5]

Payroll: income tax & social security

Income tax is progressive, with different bands for single, married and parent filers; the employer operates the Final Settlement System (FSS). Social security is a flat 10% each side.

Income tax0 / 15 / 25 / 35%[1][6]Bands differ for single, married and parent computations; a tax-free amount applies at the bottom.
Social security (Class 1)10% employer + 10% employee[6]Up to a weekly maximum; an additional maternity-fund contribution is due from the employer.
Minimum wage~€221.78/week (age 18+)[6]Set nationally and reviewed each year.
ReportingFS5 monthly; FS3/FS7 annually[6]

Other taxes companies meet

Duty on documents (stamp duty)2% on share transfers; 5% on property[4]
No municipal or wealth taxMalta levies no annual property tax or net-wealth tax[4]

Accounting & financial statements

Accounting standardsIFRS or GAPSME (smaller entities)[7]
AuditStatutory audit of every company[7]
FilingAccounts with the annual return to the MBR[7]

Forms & filings

Every recurring return and report a typical company deals with, what triggers it, and where it goes. Registration-time and one-off filings are marked “per event”.

FormWhat it isWho filesFrequencyDeadlineFiled with
Tax returnCorporate income tax return[4]Companiesannual9 months after year endCommissioner for Tax and CustomsCfTC online
VAT returnVAT return[5]VAT-registered personsquarterlyWithin 6 weeks of quarter endCommissioner for Tax and CustomsCfTC online
FS5Monthly payroll return (FSS)[6]All employersmonthlyEnd of the following monthCommissioner for Tax and CustomsCfTC online
Annual returnAnnual return with accounts[7]All companiesannualOn the incorporation anniversaryMalta Business RegistryMBR

Compliance calendar

The same filings grouped by rhythm — what recurs when.

monthly
  • FS5End of the following month
quarterly
  • VAT returnWithin 6 weeks of quarter end
annual
  • Tax return9 months after year end
  • Annual returnOn the incorporation anniversary

Sources

Numbered references cited throughout this profile. Laws link to consolidated texts in the official register.

  1. Income Tax Act (Cap. 123)Laws of Malta · law
  2. Value Added Tax Act (Cap. 406)Laws of Malta · law
  3. Companies Act (Cap. 386)Laws of Malta · law
  4. Corporate tax & refunds — guidanceCommissioner for Tax and Customs · authority
  5. VAT — guidanceCommissioner for Tax and Customs · authority
  6. Payroll (FSS) & social securityCommissioner for Tax and Customs · authority
  7. Malta Business Registry & beneficial ownersMalta Business Registry · register