Fiscal Environment

Taxation:

Insurance companies are subject to the normal corporate tax rate of 35% on taxable profits.
There are, however, various fiscal incentives which provide tax refunds to the shareholders on tax paid by the Malta based company.

6/7ths Refunds:

On the declaration of a dividend, the shareholder is entitled to a dividend up tp 6/7ths of the tax paid by the company on the profits distributed.

Example

Company Taxable Profit €1,000,000
Malta corporate tax at 35% €350,000
Dividend distribution €650,000
Shareholder refund entitlement (6/7ths) €300,000
Effective Malta tax paid €50,000
Effective Malta tax paid as a % of taxable profit distributed 5%

Double Tax Treaties:

Malta has in place over 65 double taxation treaties including the UK, France, Germany, Italy, Canada, the USA China, India and the United Arab Emirates.

VAT

18%