In this page:
Accounting Rules |
Tax Rates |
Intellectual Property |
Legal Framework |
- Tax Year
The financial year starts on 1st January and ends on 31st December of the same year.
- Accounting Standards
The account reports need to conform to the norms decreed by the IAS (International Accounting Standards).
- Accounting Regulation Bodies
Malta Institute of Accountants
- Accounting Reports
The annual accounts should give a clear view of the company's assets, liabilities, financial position and profits or losses. It must comprise: the balance sheet, the profit and loss account, and the notes to the accounts.
- Publication Requirements
According to the Companies Act of 1995, all Maltese companies are required to submit their account reports annually, showing correct and honest picture of the volume of the business done along with the justification of the various transactions performed.
- Professional Accountancy Bodies
- Certification and Auditing
The Maltese companies need to appoint one or more than one external auditors for validating the annual account statements which are presented during their annual general meetings. An auditor has to be competent enough to conduct such audits and should confirm to the requirements as given in the Chapter IX of the companies act (Companies Act of 1995). You can contact an external auditor: KPMG, Ernst & Young, PricewaterhouseCoopers and Deloitte.
- Accounting News
Business News Portal
- Nature of the Tax
Value Added Tax (VAT) - It-taxxa fuq (Local Name)
- Tax Rate
- Reduced Tax Rate
7% on hotels; 5% on books, medical, newspapers, admission to cultural events; 0% on foodstuffs and pharmaceuticals to countries outside the European Union.
- Other Consumption Taxes
Excise duty is applicable on the import of certain products like fuel, vehicles, cigarettes and alcohol. The exhaustive list of products subject to excise duty can be seen on the website of the Customs office.
More detailed information on excise duties is available concerning alcoholic beverages, tobacco products, energy products on the European Commission website.
Learn more about Service Providers in Malta on Globaltrade.net, the Directory for International Trade Service Providers.
- Company Tax
- Capital Gains Taxation
Companies are taxed on the transfer of securities, business goodwill, copyrights, patents, trademarks and trade names and on the assignment of ownership rights over such properties.
- Main Allowable Deductions and Tax Credits
The legislation provides incentives to qualifying companies that undertake certain target sector activities specified in the law (some manufacturing activities, R&D, production of films etc.). The principal tax incentives provide reduced taxation rates and investment tax credits. Expenses are deductible for depletion and depreciation, net operating losses, payment to foreign associates, some taxes...
- Other Corporate Taxes
Stamp duties and social security contributions.
- Other Domestic Resources
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.
Country Comparison For Corporate Taxation
|Number of Payments of Taxes per Year
|Time Taken For Administrative Formalities (Hours)
|Total Share of Taxes (% of Profit)
- Last Available Data.
|Income Tax - Single persons or married persons filing separately
||Progressive rate from 0% to 35%
|EUR 0 to 8,500
|EUR 8,501 - 14,500
|EUR 14,501 - 19,500
|EUR 19,501 and over
- Allowable Deductions and Tax Credits
Various deductions are allowed:
1/ Certain fees in connection with schools, child care, sports for children specified by the Minister of Finance and fees with respect to a registered private kindergarten.
3/ Homes for the elderly
4/ Interest paid on money borrowed is deductible from income generated by assets acquired through the application of the loaned funds.
5/ Interest on loans acquired by first-time buyers of immovable property.
6/ Alimony payments (including alimony payments ordered by foreign courts) paid by a taxpayer to an estranged spouse are allowed as a deduction, while the receipt of the alimony is taxable in the hands of the recipient.
No personal allowances are granted under Maltese law.
- Special Expatriate Tax Regime
The term 'expatriate' is not defined by the Income Tax Acts. Temporary residents and persons who are neither ordinarily resident nor domiciled in Malta pay income tax on income arising in Malta. A guide to taxation for expatriates can be found at the following website: The Malta Institute of Accountants
Learn more about Taxes and Accounting in Malta on Globaltrade.net, the Directory for International Trade Service Providers.
- National Organizations
The organization responsible for the protection of brands, industrial drawings and patents in Malta is the Industrial Property Registration Directorate.
- Regional Organizations
Malta is member of the UCC (Universal Copyright Convention) since 1968.
Malta signed the Convention of Paris for the protection of industrial property, the Convention of Berne for the protection of literary and artistic works and also the Universal Convention of authors' rights.
National Regulation and International Agreements
|Type of property and law
||International Agreements Signed
Patents Act 2002
Trademarks Act, 2001
|A trademark is granted for a period of ten years which is renewable.
|A design right is protected for a period of five years from the date of filling in the application and is renewable for one or more periods of five years up to a total term of 25 years.
Copyright Act 2000
|Protection lasts 70 years after the end of the year in which the author dies, irrespective of the date when the work is made available to the author.
WIPO Copyright Treaty
- Independence of Justice
The judiciary in Malta is independent.
- Equal Treatment of Nationals and Foreigners
Foreign nationals can expect an impartial trial form the country's judicial system.
- The Language of Justice
Maltese and English are the two judicial languages used in the country.
- Recourse to an Interpreter
Malta is country's national language. However, English is widely used and considered as a second language. Therefore, the recourse to an interpreter is easy.
- Sources of the Law and Legal Similarities
The main source of the law is the constitution of 1964 (amended many times). The country's legal system is based on English common law and Roman civil law (Napoleonic codes). English law has had since the early part of the last century, its fair share of influence on certain areas of criminal law and procedure (for example, the presumption of innocence). Malta being a member of the European Union, the national law in the country needs to comply with the conditions of the community legislation.
- Checking National Laws Online
Malta's main laws online (English and Maltese)
Learn more about Lawyers and Legal in Malta on Globaltrade.net, the Directory for International Trade Service Providers.
- General Information
Chamber of Commerce of Malta
- Opening Hours and Days
Shops are generally open from 9.00 am to 1.00 pm and again from 4.00 pm to 7.00 pm. In tourist zones, various shops remain open till 10.00 pm. Shops are normally closed on Sundays and on public holidays.
Bank timings are generally from 8.30 am to 12.30 pm from Monday to Friday and from 8.30 am to 11.30 a.m. on Sunday.
The working hours for public administration offices are: 8.00 am to 4.30 pm during winters and 7.30 am to 1.00 pm in summers (Monday to Friday).
Finally, the companies generally remain open from 8.30 am to 4.00 pm from Monday to Friday.
|New Year's Day
|St Paul's shipwreck
||Depending on the dates
|St Peter and St Paul
Periods When Companies Usually Close
|New Year holidays
||3 days to a week closure around Christmas and New Year's eve
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Last Updates: October 2014