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3.1 National Taxes

3.1.1 Corporate Tax Rates

Current rate: 35 percent

The standard corporate tax rate in Malta is 35 percent.

3.1.2 Alternative Tax Regime

There are no minimum tax payments for corporate taxpayers.

3.1.3 Special Reduced Rates or Regimes

Shipping

Qualifying shipping companies are exempt from the income tax system. A tonnage tax system applies instead where tonnage tax is paid annually depending on the size and characteristics of the ship in operation.

Tax refund system

Under Malta’s tax refund system, qualifying shareholders of Maltese companies can claim a refund of tax paid by the company on the distributed profits, thus resulting in a lower effective tax rate. For more information, see Section 2.5.

3.1.4 Special Additional Taxes or Levies

No special additional taxes or levies apply.

3.2 State, Cantonal, Provincial or Other Local Taxes

3.2.1 Main Rates

Income tax applies to the island of Malta, the island of Gozo and the other islands of the Maltese archipelago.776

Corporate and personal income taxes are only imposed at the national level. There are no separate income taxes imposed at political subdivision levels.

There is only one standard corporate tax rate in Malta, see Section 3.1.1.

3.2.2 Reduced Rates

See Section 3.2.1.

3.2.3 Income Tax Base

See Section 3.2.1.

3.2.4 Income Tax Deductions

See Section 3.2.1.

3.2.5 Incentives

See Section 3.2.1.

3.2.6 Non-Income Taxes in States

See Section 3.2.1.

3.3 Taxes Imposed as a Penalty

For information on additional tax for omission of income, see Section 2.8.4.
For information on additional tax for the late payment of provisional tax, see Section 2.9.4.

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