Malta Accounting Questions Answered

What is the corporate tax rate in Malta?

The headline rate is 35% on worldwide income. Under full imputation, shareholders can reclaim 6/7ths of the tax on trading profits, leaving about 5% effective. A company may instead elect a flat 15% final tax.

How do Malta tax refunds work?

When a Maltese company pays a dividend, the shareholder can claim a refund of part of the tax the company paid. 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.

What is the 15% FITWI election in Malta?

FITWI is an election, from year of assessment 2025, to pay a flat 15% final tax on chargeable income instead of the 35% system with shareholder refunds. The tax is final, and the election locks in for 5 consecutive years.

When is the Maltese company tax return due?

The company tax return is due 9 months after the accounting year end, so 30 September for a December year end. Year ends from 1 January to 30 June all fall due on 31 March of the following year.

How does provisional tax work in Malta?

Provisional tax is paid in three instalments: 20% on 30 April, 30% on 31 August and 50% on 21 December of the provisional tax benchmark, which is normally the latest assessed tax.

When are Maltese VAT returns due?

VAT periods are quarterly. The return and payment are due by the 15th day of the second month after the period end, so the quarter ending 31 March is due on 15 May.

What are Article 10, 11 and 12 VAT registrations in Malta?

Article 10 is the standard registration with input VAT recovery. Article 11 is for small enterprises under a €35,000 annual turnover threshold, with no input recovery. Article 12 covers intra-EU acquisitions over €10,000 a year.

How does payroll and the FSS work in Malta?

Employers need a PE number and file an FS5 monthly by the last working day of the following month. The FS7 and FS3 are due by 15 February. Class 1 social security is 10% each from employee and employer, capped at €55.93 a week in 2026.

What annual filings does a Maltese company owe the MBR?

A Maltese company files an annual return within 42 days of each registration anniversary. Its annual accounts must be approved within 10 months of the year end, or 7 months for public companies, and delivered within a further 42 days.

What is the minimum share capital for a Maltese company?

A private limited company needs minimum share capital of €1,164.69 with at least 20% paid up. A public company needs €46,587.47 with 25% paid up. Incorporation fees start at €100 electronic.