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Nobody enjoys paying tax. That includes us also. People perceive them as an unnecessary burden on societies. The problem is exacerbated because certain societies pay more and others pay less. Why therefore pay more when you can pay less. It is exactly at this juncture that we come into the picture. 

All companies registered in Malta are subject and liable to tax. Without entering into the implications and complications of how the Income Tax Act and the Income Tax Management Act work, it suffices to say that tax is levied at 35 % on the Chargeable (another word for "taxable") Income. That is the standard and only rate applicable to companies. Personal and Permanent Residents pay a completely different structure of tax rates. Shipping companies are exempt. Holding companies can also be fully exempt. 
Maltese tax legislation is based on the Full Imputation system. Local and resident shareholders can effectively claim full refund for tax paid by the company through a system of Dividends. A parallel provision applies for companies with non-resident shareholders. In these cases, shareholders can avail themselves of the Tax Refund system whereby they can opt to receive back 6/7 (six sevenths) of the tax paid. As a result, shareholders opting for this Tax Refund system experience a reduced rate of tax on Taxable Profits amounting to 5 % only. Why pay more when you can pay less!!! 
Naturally, all this has to follow strict rules and procedures. Firstly, the company has to submit its Annual Audited Financial Statements to the Commissioner of Inland Revenue. For 31st December accounting dates, the due by date is 30th September. Secondly, by this date also, the whole 35 % tax on the Chargeable Income should have been paid also. This Office avails itself of electronic lodgment of all Income Tax Returns. 
This Office shall immediately prepare the relative Tax Refund Form so that within the stipulated time the Commissioner of Inland Revenue shall pay the company's claim of 6/7 (six sevenths) of the tax paid. An accompanying Dividend Certificate is issued in support of the claim for Tax Refund. 
This brief information is not intended to explain the various intricacies involved. As in every piece of tax/fiscal legislation anywhere in the world, difficulties and complications arise all the time. It is impossible to give a meaning to the whole mosaic of situations. We advise prospective clients to seek professional opinion and guidance. We shall be proud to assist you in your queries. 
Finally, prospective clients should consult Double Taxation Agreements which their country of residence might have with Malta. Although in most cases these DTAs do confer Tax Relief, yet it is advisable that the relative DTA be studied and a solid opinion is formed, if this is the case. 
Where taxation is concerned there are two maxims that have to be fully respected. The first is that tax has to be paid. In full and without delay. The second is that you can always have a choice. The good news about the latter is that the choice is now yours. Why pay more when you can pay less. And still remain on the "good" side of the fence.