MALTA TAX REFUND CALCULATOR.
Malta charges 35% corporate tax. Non-resident or non-domiciled shareholders can claim a refund on distribution under the full imputation system. This calculator estimates the effective rate after the refund.
On €500,000 of distributable profit, applying the 6/7 refund.
Important
This is an indicative calculation under Malta's full imputation system. The refund is paid to the shareholder after the company distributes a dividend, not directly to the company. Eligibility depends on shareholder residence/domicile status, the source and nature of the income, anti-abuse rules, and proper structuring (typically a Malta holding company over the trading company). Always seek formal advice before relying on these figures. Sources: Income Tax Act (Cap. 123), Commissioner for Tax & Customs.Want to know if this applies to your structure?
Book a free 30-minute call with a Fincrove partner. We will look at your shareholding, income mix and substance and tell you, in plain English, what your real Malta effective rate looks like.
Book consultationHow Malta's tax refund actually works.
Malta operates a full imputation system. A Malta company pays corporate income tax at 35% on its profits. When that profit is distributed as a dividend, eligible shareholders can claim a refund of part of the tax the company paid.
- 6/7 refund: applies to active trading income. Net effective rate is approximately 5%.
- 5/7 refund: applies to passive interest and royalties that do not qualify as trading income. Net effective rate is approximately 10%.
- 2/3 refund: applies where the company has claimed double tax treaty relief or unilateral relief on foreign-source income.
Most groups use a two-tier structure: a Malta holding company that owns a Malta trading company. The trading company pays the 35% tax, distributes a dividend to the holding company, and the refund is paid to the holding company within weeks. From the consolidated perspective, the effective Malta corporate tax burden on trading income is around 5%.
The system is fully OECD- and EU-compliant. It is not a special regime, does not require a ruling, and is available to any qualifying company with proper substance in Malta.