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※ International Tax - Full Imputation System
Malta has one of the most attractive tax regimes within the European Union and is considered to be one of the fastest growing financial services centres in the world. Many business investors have already shifted their business to Malta to take advantage of the full imputation system of taxation, allowing shareholders in receipt of dividends to claim a credit for tax paid at source on such profits.
Malta is the only EU member state that allows a full imputation system.
Through the versatility of the full imputation system, Malta is able to provide several tax refund mechanisms, allowing shareholders of a Maltese company to claim refunds of part of the tax paid by the company, significantly reducing the effective tax rate paid in Malta. In respect of trading profits, a 6/7ths refund is available, resulting in an effective tax rate of only 5%.
Malta also boasts an extensive double taxation treaty network with over fifty double tax treaties.