sep 19 2010

Malta Holding

Fidelitas7 @ 16:03

Malta Holding Company

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Topic Details
Establishing HoldCo  
Are advance rulings available? Yes, but not necessary
Are there restrictions on activities? No
Are there substance requirements? No
Is capital duty payable? No
Is there a special tax regime for holding companies? No
Is there CFC or equivalent legislation? No
Number of jurisdictions with active income tax treaties (minimum) 52
What is the effective corporate tax rate? 0%
Tax Treatment of Disposal of HoldCo  
Is any tax payable in HoldCo country on disposal of HoldCo shares by a nonresident corporate shareholder? No
Tax Treatment of Payments by HoldCo  
Dividends: What is the (non-treaty / treaty) rate of withholding tax on dividends paid to nonresidents? 0% (non-treaty, treaty and EU)
Interest: Are there thin cap limits or other restrictions on interest deductibility? No
Interest: Is interest on loans to acquire subsidiaries deductible against HoldCo’s profits? Yes
Interest: What is the (non-treaty / treaty) rate of withholding tax on interest paid to nonresidents? 0% (non-treaty, treaty and EU)
Liquidation payments: Is there withholding tax on liquidation payments? No
Taxation of HoldCo Income  
Dividends: Does the foreign subsidiary have to meet any substance requirements? No
Dividends: Does the foreign subsidiary have to pay tax locally? No
Dividends: How are dividends taxed? Exempt/taxable with credit for foreign tax
Dividends: What is the required holding period? N/A
Dividends: What is the required percentage ownership? 10% or acquisition cost of at least EUR 1.2 million (or other criteria)
Gains on disposal of participations: Are capital losses deductible? Yes, but only against capital gains
Gains on disposal of participations: Does the foreign subsidiary have to meet any substance requirements? No
Gains on disposal of participations: Does the foreign subsidiary have to pay tax locally? No
Gains on disposal of participations: How are gains on the sale of a subsidiary taxed? Exempt/ Taxable with credit for foreign tax
Gains on disposal of participations: Is relief available for the write-down in value of subsidiaries? No
Gains on disposal of participations: What is the required holding period? N/A
Gains on disposal of participations: What is the required percentage ownership? 10% or acquisition cost of at least EUR 1.2 million (or other criteria)
Is joint taxation for groups available? No