Malta is a unicameral parliamentary republic. The country has a two-party political system and is led by a majority governing party.
The official languages of Malta are Maltese and English. All official notices, forms and legislation can be found in the English language.
A member of the European Union (EU) since 2004, Malta has an obligation to follow EU legislation and transpose EU directives into its domestic law.
There is no separate corporate income tax system in Malta, and a company is subject to tax in much the same way as an individual. The income tax system takes its origins from common law based on the income tax law in England up until around 1965.
The key sources of tax law in Malta are the Income Tax Act, the Income Tax Management Act, the Value Added Tax Act, and the Duty on Documents and Transfers Act, together with regulations issued under such Acts. In cases of interpretation of words and expressions not defined in Maltese law, the Income Tax Act makes specific reference to English law, which to a large extent includes English case law. For a link to Maltese legislation, see Section 1.4.
The Commissioner for Revenue is responsible for the administration and collection of tax in Malta. The Commissioner is empowered by article 6(4) of the Commissioner for Revenue Act and article 96(2) of the Income Tax Act to issue guidelines, explanations or instructions relating to the revenue acts or regulations. Subject to certain conditions and restrictions such guidelines, explanations or instructions have the force of law. For a link to the tax guidelines, see Section 1.4.
For information about VAT in Malta, see the VAT Navigator.