In this blog we will explain you about  Tax Structure for Malta company registration

In order to pay various business taxes, companies registered in Malta must register with the tax authorities.

In Malta, business owners are required to pay the following taxes:

Income tax on corporations: Businesses in Malta have a CIT rate of 35%.
Tax on value-added: Products and services carry a standard VAT rate of 18%. However, a lower VAT rate of 7% and 5% applies to specific goods and services.
Taxes on wages: A company is required by the Final Settlement System (FSS) regulations to deduct social security and income tax contributions directly from the paychecks of its employees.
Contributions to social security: Social security contributions must be made by employers at a standard rate equal to 10% of each worker's wages.
Cost of registering a company in Malta When starting a business, an entrepreneur must consider the cost of registering a company in Malta.

When incorporating a company, businesses should think about the following costs:

Cost of business registration: In Malta, a business typically has to pay EUR 245 to register with the government. However, this may alter depending on the share capital level chosen by the business.
Costing in accounting: Monthly accounting expenses could cost around EUR 160.
Why should a company register in Malta?
Since English is one of Malta's official languages, 88% of the population speaks it.
Entrepreneurs in Malta have access to a pool of highly skilled professionals and a cutting-edge telecommunications network.
In terms of factors like GDP per capita, longer life expectancy, and social benefits, Malta performs better than its neighboring EU nations.
Malta is bounded by Gibraltar, Sicily, and North Africa in the middle of the Mediterranean Sea. Due to their excellent location in the country, the Maltese islands are widely recognized as a gateway to the markets of Europe, Africa, and the Middle East.
The culture of Malta encourages constant expertise and compliance with regulations. The island also has a lot going for it, like a tax-free marketplace that lets Maltese business owners sell their products and services all over the EU.
Benefits of registering a business in Malta The numerous benefits of registering a business in Malta include:

1. Double tax avoidance agreements Malta has approximately 70 double tax avoidance agreements with various nations that protect businesses from double taxation. As a result, foreign investors may find it appealing to establish their businesses in the nation.

2. Malta's tax system is appealing to international businesspeople looking to lower their taxable income and expand their investment options. In spite of Malta's 35 percent corporate income tax, the company's stockholders are entitled to a tax refund for any taxes they have already paid.

3. Highly qualified workforce Malta has a world-class educational system and relatively low living costs compared to other EU nations.

4. Visa-free zone Because Malta is a member of the Schengen region, there are no travel restrictions between Malta and other Schengen nations.

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