Malta

All companies incorporated in Malta are considered to be both domiciled and resident in Malta. Other bodies of persons (including companies incorporated overseas) are considered to be resident in Malta when the control and management of their business are exercised in the country.

Permanent establishment (PE)

Although Maltese tax legislation contains a number of references to the term ‘permanent establishment’, the term is not defined by Maltese legislation. Indeed, in terms of Maltese domestic tax law, a non-resident is, in principle, subject to Maltese tax on income arising in Malta, irrespective of the existence or otherwise of a PE in Malta (subject to any double tax treaty [DTT] provisions that would apply if in conflict with Maltese tax law).

In the event that the Maltese Commissioner for Tax and Customs is required to interpret such a term, reference would typically be made to the definition contained in the Organisation for Economic Co-operation and Development (OECD) Model Convention.