How corporate tax works in Malta
Maltese companies are generally taxed at a flat 35% on worldwide income and capital gains. A foreign company managed and controlled in Malta can also fall into the Maltese tax net on Malta-source income and income remitted to Malta.
Malta's full imputation system means company tax is not always the end of the story. When taxed profits are distributed, shareholders may be entitled to refunds of part or all of the tax paid at company level, depending on the underlying income and shareholder profile.
In 2025, Malta introduced the Final Income Tax Without Imputation regime, allowing qualifying entities to elect a 15% final tax on chargeable income. The election is binding for five years and is not refundable or creditable.
Companies should still model VAT, social security contributions, transfer pricing, provisional tax and filing deadlines. In 2026, Malta also enacted a 175% deduction for qualifying R&D and innovation expenditure.
Tax rates at a glance
- Standard corporate income tax
- 35%Main rate
- Elective final income tax
- 15%
- Dividend withholding tax
- 0% in most cases
- Foreign company income
- Malta-source / remitted income
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
FoundersHolding companiesInvestorsRegional operatorsEU businesses
Watch out for
- The 35% headline rate is real, but so is the refund system. You should not model Malta company tax like a simple flat-rate jurisdiction.
- The 15% elective final tax is a separate regime with its own consequences, including no access to the standard refund mechanism for those profits.
- VAT registration, payroll social security, transfer pricing and substance still matter even when the company is just a holding vehicle.
Frequently asked questions
Does Malta have corporate income tax?
Yes. The standard rate is 35% on worldwide income and capital gains, but Malta's imputation and refund system can materially reduce the effective burden for some structures.
What is the Malta corporate tax refund system?
Under Malta's full imputation system, shareholders can receive refunds of part or all of the company tax paid on distributed profits, depending on the type of income and the shareholder's profile.
Is there a 15% company tax in Malta?
Yes, for some entities. Malta's 2025 Final Income Tax Without Imputation regime allows qualifying entities to elect a 15% final tax instead of the standard 35% imputation system.