Malta Accounting and Tax Considerations

Malta accounting and tax service

Many international clients engage Tetra Consultants for Malta accounting and tax services after Malta company registration. Tetra Consultants will timely complete your firm’s financial statements, corporate tax returns and manage auditors on your behalf and without the need to travel.

By outsourcing accounting and tax obligations to Tetra Consultants, our international clients can reduce overhead costs while being ensured of timely reporting and filings. Our accounting team will explain to our clients all the required deadlines and expectations before the start of the engagement.

Thereafter, our team will prepare the required fillings in advance to ensure we meet all stipulated deadlines. Tetra Consultants will send a weekly or bi-weekly update to our clients, ensuring all parties are aware of upcoming deadlines. It is important to meet the deadlines stipulated by the Malta Commissioner for Revenue. Failure to comply will result in late penalties and fines.  Contact us now for a free consultation. Our team of experts will revert within the next 24 hours.

Annual Reporting Requirements

• Your business is required to file annual financial statements and tax returns within 9 months from the end of the financial year.
• Companies with their fiscal year ending between 1st January and 30th June will have the stipulated deadline of 31st March of the following year for tax return submission.
• Companies with their fiscal year ending 31st July onwards will have the stipulated deadline of 9 months following the end of year.
• Depending on your annual turnover and number of employees, you may be subject to audit. Contact us to confirm if your business is exempted.
• The General Accounting Principles for Small and Medium Sized Entities (GAPSME) and the Maltese Companies Act will apply.

Corporate Income Tax

• Businesses in Malta face a corporate tax rate of 35%. However, there are a few refund routes which can reduce the effective corporate tax rate to 10%. Contact us to explore further.
• The return due date and the final payment due date for corporate income tax falls within 9 months after the date of the company’s financial year end, or 31 March of the following year of assessment.
• The estimated due dates for corporate income tax on account would be once every 4 months, where provisional tax is paid on 30th April, 31st August and 21st December.

GST

• In Malta, the standard Value Added Tax (VAT) is 18%. However, there are certain products which are subjected to lower rates of 0% to 7%. You are required to file VAT on a quarterly basis.

Withholding Taxes

• There is no withholding tax for dividends, interest and royalties for both residents and non-residents.
• However, exceptions apply pertaining to dividends received by residents.

Other tax considerations

• The headline personal income tax rate for Malta is charged at 35%.
• The return due date and the final payment due date for personal income tax falls on the end of June.
• For personal income tax, three payments should be made per fiscal year, where the provisional tax payment is split accordingly:
  • 30th April: 20%
  • 31st August: 30%
  • 21st December: 50%
• However, the above mentioned statistics may vary depending on each company’s fiscal year.
• Capital gains are subjected to corporate income tax in Malta.

Contact us now for a free consultation. Our team of experts will revert within the next 24 hours.