Deductible expenses in Malta

Deducting expenses is particularly important in Malta, since the application of the tax refund to shareholders implies the distribution of company taxed profits. This is why it is important for the company to have available accounting profits for distribution to ensure the refund of paid taxes.

Expenses and changes that have been effectively and exclusively used for generating company revenue can be deducted when calculating the taxable profit. It is not sufficient to show that a specific expense is a company expense or that it is linked to income; there must be proof that the expense was in fact used to generate income.

Consequently, expenses generated before the start of activity or after the end of activity are not generally deducted.

The tax law contains a series of specific rules that govern deductions of various kinds of expenses.

Taxation in Malta

Social Security in Malta

Maltese workers’ Social Security contributions are paid by the employer and the employee, each paying 10% on the respective wages.

Taxation in Malta

Tax Accounts in Malta

According to Maltese tax legislation, a company registered in Malta must allocate its distributable profits to five (5) different tax accounts, depending on the source of the respective incomes. Learn more about the Tax Accounts in Malta.

Taxation in Malta

Creation of trusts

Whether for tax planning, succession planning, or other asset protection purposes, trusts are increasingly in demand in many respects.

Taxation in Malta

Accounting practices and obligations in Malta

Companies with head offices in Malta must comply with the requirements of the Commercial Companies Code and of relevant tax Codes. In this section we highlight some of the most relevant accounting practices and obligations for companies with head-office in Malta.

Set up a company

Moving to Portugal

Working in Portugal

Resources

NEWCO

Social Security in Malta

Tax Accounts in Malta

Creation of trusts

Accounting practices and obligations in Malta