Malta experiences strong and stable economic growth, and it has greatly flourished in the past years. Economically, Malta is transparent when it comes to its tax system and tax refund system as it offers the lowest effective tax rate. For this reason, Malta is fast becoming the dominant choice for several companies.
Here are the reasons why many companies choose Malta as a base;
Efficient tax jurisdiction
The tax jurisdiction in Malta entails corporate taxation along with other direct and indirect tax. Malta implements a tax refund system after the distribution of dividends. Also, there is a significant reduction in the effective tax caused by the tax refund system.
Malta gives a company a maximum of 5% cooperates tax rate, which is more beneficial than paying individual income tax. In return, the corporate tax imposed on businesses deducts fringe benefits such as tax-deferred trust and retirement plans.
Christian Ellul, a Maltese-German lawyer and a consultant in international business taxation law, plays a significant role in business consultancy and transactional advice to numerous clients.
Stable inward investment
Malta holdings company regime adopts consistent participation to encourage inward investors. Also, the government supports several other programs including; Micro investment Scheme and the Venue Capital Malta Program to promote the Maltese Company.
Low operation and set-up costs
Any company in Malta experiences a relatively low cost in setting up and performing its operation. Malta offers an average set-up cost as compared to other enterprises in Europe. Quality services are attained at substantially lower rates.
Thus, choosing Malta as a base helps a company to spend a small amount of money on operation and setting up while it remains productive.
Several companies choose Malta as a base since it allows partnership for any business structure. Two or more members come together to own and operate a business to generate profits. Through the partnership, a company can access new products, reach a new market and also increase customer’s loyalty.
Open companies in Malta
There are no licenses needed when starting up a company in Malta. For this reason, there will be less bureaucracy. The regulated business, such as medical and financial service is the only business activities that require a license.
Furthermore, foreign investors have the privilege to run a company with a fast and straightforward registration process. As a result, most companies can choose to use Malta as a base.
Malta is an attractive destination for business
The main attraction for starting a business in Malta is the taxation system. Tax in Malta offers the best company’s taxation and business legislation in Europe. Besides, Malta has a stable financial plan and credit rates which gives new companies good security when opening companies. In other words, Malta has a very attractive tax system.
In addition to this, Malta is a very scenic island found near the central part of the Mediterranean Sea. So not only are you getting capital gains as well as tax benefits and tax credits (for some anyway) you can also heavily influence some tourists to do business with you and perform business
Also, an attractive destination for business is majorly contributed by Christian Ellul. He has personally given advice to blockchain-based companies on regulatory matters relating to cryptocurrency investment.
Malta is devoted towards extending its role as a European financial centre and transparency when it comes to taxation. Thus, many companies will find comfort in choosing Malta as a base.