Malta corporate taxes

Malta has a 35% headline corporate tax, but a full-imputation system with shareholder refunds — commonly 6/7 of the tax — brings the effective rate on distributed trading profit down to about 5%. VAT is 18%, the second-lowest in the EU. Every company files audited accounts. Filing runs through the Commissioner for Tax and Customs.

Currency EUR (€)Tax year Calendar year (basis year) taxed the following yearEU member stateLast reviewed 2026-07-12

35%
Corporate income tax
~5% effective after refunds
18%
VAT standard rate
Reduced: 12%, 7%, 5%
0–35%
Income tax
Progressive, by status
0%
Dividend WHT
Full imputation system
10%
Social security — each side
Employer and employee
All companies
Audited accounts
Statutory audit required

Company forms & registration

A company is incorporated with the Malta Business Registry; beneficial owners are filed in the UBO register.

Main legal forms	Ltd (private limited), public limited company (plc)^[3][7]The private limited company is the default choice for most businesses.
Minimum share capital	Private: €1,165 (20% paid up); public: €46,588^[3][7]
Registers a new employer meets	Malta Business Registry (incorporation, UBO) → Commissioner for Tax and Customs (tax, VAT, FSS) → Jobsplus^[7][4]

Other statutory requirements

Obligations beyond filing a tax return that every operating company must satisfy.

Audited financial statements	Required for every company, whatever its size^[7]Like Cyprus, Malta requires a statutory audit of all companies (IFRS or GAPSME).
Annual return	Filed with the MBR on the anniversary of incorporation^[7]
Beneficial owners	A person controlling more than 25%^[7]
Document retention	10 years^[4]

Corporate income tax

Headline rate	35%^[1][4]A flat 35% is charged on company profits.
Shareholder refund	Commonly 6/7 of the tax^[1][4]On distribution, shareholders claim a refund of the tax — usually 6/7 on trading income — cutting the effective rate to about 5%. Other fractions (5/7, 2/3) apply to passive income.
Optional flat tax (FITWI)	15% final, no refund^[1][4]Since September 2025 a company may instead elect a 15% final income tax without the imputation/refund system (FITWI), binding for at least five years.
Return & payment	Nine months after year end (electronic filers get extensions)^[4]

Withholding taxes & dividends

Dividends	No withholding tax^[1][4]Under full imputation, dividends carry the tax the company already paid; the shareholder then claims the refund.
Interest & royalties (non-residents)	Generally 0%^[1]Malta does not levy withholding tax on most outbound interest and royalties.

VAT

Standard rate	18%^[2][5]The second-lowest standard VAT rate in the EU.
Reduced rates	12%, 7% and 5%^[2][5]7%: hotel accommodation. 5%: electricity, books, medical accessories. 12%: certain services. 0% for exports and intra-EU supplies.
Registration threshold	€35,000 (goods)^[5]Lower thresholds apply to services; small undertakings may register as exempt.
VAT return	Quarterly, within 6 weeks of quarter end^[5]

Payroll: income tax & social security

Income tax is progressive, with different bands for single, married and parent filers; the employer operates the Final Settlement System (FSS). Social security is a flat 10% each side.

Income tax	0 / 15 / 25 / 35%^[1][6]Bands differ for single, married and parent computations; a tax-free amount applies at the bottom.
Social security (Class 1)	10% employer + 10% employee^[6]Up to a weekly maximum; an additional maternity-fund contribution is due from the employer.
Minimum wage	~€221.78/week (age 18+)^[6]Set nationally and reviewed each year.
Reporting	FS5 monthly; FS3/FS7 annually^[6]

Other taxes companies meet

Duty on documents (stamp duty)	2% on share transfers; 5% on property^[4]
No municipal or wealth tax	Malta levies no annual property tax or net-wealth tax^[4]

Accounting & financial statements

Accounting standards	IFRS or GAPSME (smaller entities)^[7]
Audit	Statutory audit of every company^[7]
Filing	Accounts with the annual return to the MBR^[7]

Forms & filings

Every recurring return and report a typical company deals with, what triggers it, and where it goes. Registration-time and one-off filings are marked “per event”.

Form	What it is	Who files	Frequency	Deadline	Filed with
`Tax return`	Corporate income tax return^[4]	Companies	annual	9 months after year end	Commissioner for Tax and CustomsCfTC online
`VAT return`	VAT return^[5]	VAT-registered persons	quarterly	Within 6 weeks of quarter end	Commissioner for Tax and CustomsCfTC online
`FS5`	Monthly payroll return (FSS)^[6]	All employers	monthly	End of the following month	Commissioner for Tax and CustomsCfTC online
`Annual return`	Annual return with accounts^[7]	All companies	annual	On the incorporation anniversary	Malta Business RegistryMBR

Compliance calendar

The same filings grouped by rhythm — what recurs when.

monthly

FS5End of the following month

quarterly

VAT returnWithin 6 weeks of quarter end

annual

Tax return9 months after year end
Annual returnOn the incorporation anniversary

Sources

Numbered references cited throughout this profile. Laws link to consolidated texts in the official register.

Income Tax Act (Cap. 123)Laws of Malta · law
Value Added Tax Act (Cap. 406)Laws of Malta · law
Companies Act (Cap. 386)Laws of Malta · law
Corporate tax & refunds — guidanceCommissioner for Tax and Customs · authority
VAT — guidanceCommissioner for Tax and Customs · authority
Payroll (FSS) & social securityCommissioner for Tax and Customs · authority
Malta Business Registry & beneficial ownersMalta Business Registry · register

This guide is general information, not tax or legal advice. Rates and deadlines change — always verify against the linked laws and official sources, or ask a licensed advisor, before acting.