Malta

Overview

Last reviewed - 15 July 2020

Malta, an archipelago located in the Mediterranean, became a British Crown Colony in the early 19th century and remained so until 21 September 1964, when it became an independent sovereign state. In 1974, Malta was declared a Republic. Malta is a member of the Commonwealth of Nations and the United Nations. Soon after independence, Malta was admitted to the Council of Europe.

The mid-1980s saw the transformation of Malta into a flourishing economic hub. Malta began to be seen by the international community as an attractive freight trans-shipment point, financial centre, and tourist destination. The manufacturing industry also continued to expand. It was around this time when Malta began demonstrating interest in becoming a member of the European Community. Malta eventually joined the European Union (EU) in May 2004, and its adoption of the euro (EUR) took place a few years later, on 1 January 2008. The capital city of Malta is Valletta, and the official languages are Maltese and English.

The Maltese financial services industry has grown substantially in recent years (especially following EU membership) and is one of the faster growing sectors, taking advantage of a number of key attributes that Malta offers, including a highly-skilled workforce, excellent service, competence, technical infrastructure, and robust legislative and regulatory frameworks, including tax efficiency.

PwC is the largest practice of accountants and auditors in Malta, with around 700 staff members. We are currently responsible for serving a large and diverse client portfolio comprising some of Malta's top companies. Our client list includes a number of public companies and institutions; private companies both large and small, foreign and local; and government related companies. Our Tax and Legal Services Unit is staffed by a pool of accountants and lawyers with considerable experience with individual and corporate clients both on local and international tax matters. Our head office is located at Mill Street, Qormi.

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%)

35

Corporate income tax (CIT) due dates
CIT return due date

On the later of nine months from the end of the accounting period or 31 March following the year of assessment (although the Maltese Revenue authorities typically extend this deadline by one or two months in case of electronic submissions).

CIT final payment due date

Together with the deadline for the submission of the tax return (the extension in case of electronic submission does not apply for the tax payment).

CIT estimated payment due dates

Tax on account (provisional tax) is paid every four months: 30 April, 31 August, and 21 December.

Personal income tax (PIT) rates
Headline PIT rate (%)

35

Personal income tax (PIT) due dates
PIT return due date

By the end of June.

PIT final payment due date

By the end of June.

PIT estimated payment due dates

Provisional tax payments are divided into three instalments: 30 April (20%), 31 August (30%), and 21 December (50%). It should, however, be noted that the percentages may vary across the different months depending on the financial year-end of the company.

Value-added tax (VAT) rates
Standard VAT rate (%)

18

Withholding tax (WHT) rates
WHT rates (%) (Div/Int/Roy)

Resident*: 0 or 15 / 0 / 0;

Non-resident*: 0 / 0 / 0

* See Malta's corporate tax summary for more information.

Capital gains tax (CGT) rates
Corporate capital gains tax rate (%)

See Malta's corporate tax summary for capital gain rates.

Individual capital gains tax rate (%)

See Malta's individual tax summary for capital gain rates.

Net wealth/worth tax rates
Headline net wealth/worth tax rate (%)

NA

Inheritance and gift tax rates
Inheritance tax rate (%)

NA

Gift tax rate (%)

NA

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.