Europe · Tax guide

Malta

Malta taxes company profits at a headline 35%, but refunds to shareholders typically bring the effective rate to about 5% after the 6/7ths refund to shareholders. VAT is 18%, and Malta does not withhold tax on dividends, interest or royalties paid abroad. Taxes are administered by the Malta Tax and Customs Administration.

Updated 1 October 2026 · 4 of 4 figures checked against official sources

Check your obligations

At a glance

Corporate income tax
35%

Headline rate

Effective rate after refunds
about 5% after the 6/7ths refund to shareholders

Typical for trading profits

VAT
18%

Small business exemption up to €35,000

Corporate income tax and refunds

Companies pay 35%, but when profits are distributed, shareholders can claim refunds of most of the tax paid, so the effective rate on trading profits is typically about 5% after the 6/7ths refund to shareholders. Companies file within nine months of the year-end.

VAT

VAT is 18%, with reduced rates for items such as accommodation and some foods. Small businesses with turnover up to €35,000 can register under Article 11 and charge no VAT; others register under Article 10 and file quarterly.

Payments abroad

Malta generally does not withhold tax on dividends, interest or royalties paid to non-residents.

Key dates

  • QuarterlyVAT return (Article 10)
  • Within nine months of the year-endCompany tax return and payment

Figures and sources

4 figures
  • Corporate income tax rate35%
    Income Tax Act (Cap. 123) · Cap. 123, sub-article (6) (parent article not visible in the extract)
    Checked against the official source
  • Typical effective rate for trading profitsabout 5% after the 6/7ths refund to shareholders
    Income Tax Management Act (Cap. 372) · Cap. 372, Art. 48(4A)(a)
    Checked against the official source
  • Standard VAT rate (7%, 5% reduced)18%
    VAT Act (Cap. 406) · Cap. 406, Art. 19(1)
    Checked against the official source
  • Turnover up to which small businesses can stay VAT-exempt (Article 11)€35,000
    VAT Act (Cap. 406), Schedule 9 · Cap. 406, definition of 'Domestic threshold'
    Checked against the official source

Indicative only. This assessment is a high-level overview of tax obligations in Malta based on the information you provided and rules in force for 2026. It is not tax or legal advice. Consult a qualified tax adviser in Malta (a Maltese tax adviser) before making compliance decisions.