Tax compliance in Malta involves several key obligations that companies must fulfill to remain in good standing with the Maltese tax authorities. Here’s a detailed overview of the company tax compliance requirements in Malta:

1. Corporate Income Tax

• Rate: The standard corporate income tax rate in Malta is 35%.
• Tax Year: Companies can choose their financial year, but once chosen, it must be adhered to consistently.
• Filing: Annual tax returns must be filed with the Commissioner for Revenue.
• Deadline: The tax return must be filed within nine months from the end of the financial year. For companies with a financial year ending on December 31, the deadline is typically September 30 of the following year.
• Payment: Any tax due must be paid by the same deadline. Advance tax payments may be required during the year.

2. Provisional Tax Payments

• Installments: Companies may need to make provisional tax payments in three installments: April 30, August 31, and December 21.
• Calculation: The payments are based on the estimated income for the year.

3. Value Added Tax (VAT)

• Registration: Companies conducting taxable activities in Malta must register for VAT.
• Rates: The standard VAT rate is 18%, with reduced rates for certain goods and services.
• Returns: VAT returns are generally filed quarterly, although the frequency can vary depending on the company's turnover.
• Deadline: Returns are due by the 15th day of the second month following the end of the VAT period.
• Payment: Any VAT due must be paid when filing the VAT return.

4. Withholding Tax

• Dividends: No withholding tax is generally applied on dividends paid to non-resident shareholders.
• Interest and Royalties: No withholding tax is applied on interest and royalties paid to non-residents under certain conditions.

5. Transfer Pricing and Documentation

• Regulations: Malta follows the OECD guidelines on transfer pricing.
• Documentation: Companies must maintain proper documentation to justify transfer pricing policies and ensure transactions between related parties are conducted at arm's length.

6. Economic Substance Requirements

• Compliance: Companies, especially those involved in holding and intellectual property activities, must demonstrate substantial activities in Malta.
• Reporting: Annual economic substance reports must be filed to show compliance.

7. Anti-Money Laundering (AML)

• Regulations: Companies must comply with AML regulations, which include customer due diligence, reporting suspicious transactions, and maintaining proper records.

8. Tax Refunds and Incentives

• Imputation System: Malta operates a full imputation system for dividends, meaning that the tax paid by the company can be credited to shareholders.
• Tax Refunds: Shareholders, particularly non-residents, may be eligible for a refund of part of the tax paid by the company, effectively reducing the tax burden.

9. Audited Financial Statements

• Requirement: All companies must prepare annual financial statements and have them audited.
• Submission: Audited financial statements must be filed with the Malta Business Registry within ten months from the end of the financial year.

10. Employment Taxes

• Social Security Contributions: Companies must register as employers and make social security contributions for their employees.
• Income Tax Withholding: Companies must withhold income tax from employees' salaries and remit it to the tax authorities.

11. Other Compliance Requirements

• Annual Return: Companies must file an annual return with the Malta Business Registry, updating details of directors, shareholders, and registered office.
• Beneficial Ownership: Companies must maintain and report information on beneficial owners.

Conclusion

Ensuring compliance with Malta’s tax regulations involves timely and accurate filing of tax returns, payment of taxes, and maintaining proper documentation. Many companies engage professional services, such as accountants and tax advisors, to navigate the complexities of tax compliance and take advantage of Malta’s favorable tax regime.