What is the corporate tax rate in Malta?

## The headline and the reality

Maltese corporate income tax is 35% on the worldwide income and capital gains of Maltese companies. That figure is not the end of the story. Under the full imputation system, shareholders can reclaim part of the company tax when a dividend is paid.

## The refunds

A shareholder can claim 6/7ths of the tax on trading profits, which leaves about 5% effective Malta tax. The refund is 5/7ths where the dividend comes from passive interest or royalties, leaving about 10% effective. It is 2/3rds on foreign-income-account profits where double tax relief was claimed, and 100% where profits come from a participating holding. The refund can never exceed the tax the company actually paid.

## The 15% alternative

From year of assessment 2025, a company may elect the Final Income Tax Without Imputation, a flat 15% final tax, instead of the 35% system. The election locks in for 5 consecutive years.

## Fiscal units

A parent with subsidiaries of 95% or more can form a fiscal unit, filing one consolidated return and achieving the refund benefit at source.

## What Finn does

Finn estimates tax at 35% and always shows the position after refunds, or models the 15% election where it has been made. Planning decisions go to a licensed practitioner.