Anton Theuma, Director Paragon Europe.
What could be better than doing business with a group of islands – the Maltese Islands - in a relaxed atmosphere, in ideal climate conditions, genuine food and meeting hospitable people? Situated in southern Europe, in the middle of the Mediterranean Sea, the Maltese islands offer the above and much more. The islands have been members of the European Union since 2004 but they also have excellent business relations with neighbouring regions such as North Africa and the Middle East.
Paragon Europe: Your Business Partner
Set up in 2004, Paragon Europe (www.paragoneurope.eu) is a services -based company offering advanced expertise in project management, financial and tax services, capacity building and business advice. Paragon Europe’s main mission is ‘to help good organisations become great’ through its knowledge of European affairs and to provide ideal business opportunities through its EU and international networking. The greatest satisfaction of all for Paragon Europe is that through its activities it helps put organisations it works with, in excellent positions for international growth and business.
Relations between China and Malta
Malta and China have always had good relations. Political and cultural links between the two countries go back over 40 years when in 1972, Malta was the first Western country to establish diplomatic, social and economic links with China. In 1973, the Malta China Friendship Society was established with the aim of raising awareness of the cultural richness of the two nations. Subsequently, factories were inaugurated in Malta with the financial assistance of the Chinese government. In 1980 the Red China Dock was built in Malta and in 2003 the first Chinese cultural centre in Europe was opened in Malta’s capital city, Valletta. Trade and political as well as cultural and educational links between the two countries have been regenerated since 2012.
Malta Company Services
Malta has one of the lowest tax regimes within the EU area and is compliant with OECD standards. It is a white listed jurisdiction of high repute. Malta’s tax efficient structure is bases upon a full imputation system as well as a tax refund system that was approved by the European Union in 2006.
Double Taxation Agreements
Malta has negotiated numerous double taxation agreements. To date this amounts to 67 countries including major Asian markets such as China and Singapore. The double taxation agreement between Malta and China became effective in August 2011. Double taxation agreements enable businesses and in special circumstances individuals to benefit from favourable tax planning opportunities for:
• Trading income
• Passive income (interest, royalties, etc)
• Dividends from a participating holding
• Dividends from non-participating holdings
• Capital gain from disposal of a participating holding
How can you benefit from the favourable tax system in Malta?
International clients can set up a company in Malta to benefit from tax exemptions. The ‘Malta Company’ is an onshore company which pays tax at the rate of 35% with significant tax refunds to shareholders who can enjoy an effective tax rate between 0% and 10% depending on their circumstances. The tax paid by the Malta Company is available as a credit to shareholders when distributions are made.
Tax Refund is simple, fast and effective
Shareholders can make their claim for a tax refund and typically, 14 days after the end of the month in which the claim is made, the tax refund is paid to the shareholder. When dividends are paid out by a Malta Company, shareholders are entitled to 6/7ths refund of the Malta tax paid by the company. This gives an effective tax rate of 5%.In the case of dividends paid to a holding company, that holding company is entitled to 100% refund of the tax paid by the Malta Company.
Passive interest and royalties distributed to shareholders by a Malta Company are eligible to a 5/7ths refund of the tax paid resulting in an effective tax rate of 10%.
Paragon Europe – Your Partner in Malta, Europe and Beyond
Paragon Europe can assist you to take advantage of the favourable Malta taxation regime by setting up a Malta Company for you. We will draft the Memorandum and Articles of the company which will be filed with the Registrar of Companies. We will introduce you to local banks for the opening of a bank account, provide an address to be used as the official registered address, liaise with tax and VAT departments as well as provide accounting, back office and other services.
Our team of specialists will also introduce you to reputable audit firms who would carry out the audit of your company in order to have cost-effective and personal service.
Should you require vehicles for non-disclosure of shareholders, we can assist in the setting up of a Trust or the operation through a Fiduciary Services company.
We look forward to being of service.
Anton Theuma and the Paragon Team
