What is Corporate Income Tax (Malta)?
Maltese corporate income tax is 35% on the worldwide income and capital gains of Maltese companies. Under the full imputation system, shareholders can reclaim part of it on distribution, so the effective rate is often far lower.
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Current Rate (Calendar year, with a different accounting date allowed with the Commissioner's permission)
35% headline. About 5% effective on trading profits after the 6/7ths shareholder refund. 15% if the FITWI election is made
Example
A Maltese company with €100,000 of trading profit pays €35,000 of tax. When it pays a dividend, the shareholder can claim 6/7ths of that tax, which is €30,000, leaving €5,000 or 5% of the profit as net Malta tax.
How Corporate Income Tax (Malta) works in Malta
The 35% headline is never the whole story. The refund depends on the type of profit, and a flat 15% election is available as an alternative from year of assessment 2025.
The company return is due 9 months after year end. Provisional tax is paid in three instalments during the year. The tax authority is the Malta Tax and Customs Administration (MTCA), although some e-services still show the older CFR branding.
Finn estimates tax at 35% and shows the position after refunds, or models the 15% election where it has been made. Planning questions go to a licensed practitioner.
Related terms
Under full imputation, shareholders receiving a dividend can claim a refund of part of the Malta tax paid by the company. The refund is 6/7ths on trading profits, 5/7ths on passive interest or royalties, 2/3rds on foreign-income-account profits and 100% on participating holding profits.
From year of assessment 2025, a Maltese company may elect the Final Income Tax Without Imputation, a flat 15% final tax on chargeable income instead of the 35% tax and shareholder refunds.
A Maltese parent may form a fiscal unit with subsidiaries in which it holds at least 95%. The unit files one consolidated return and achieves the shareholder-refund benefit at source.
Provisional tax is paid during the basis year in three instalments of 20%, 30% and 50%, on 30 April, 31 August and 21 December.
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