The Malta Financial Services Authority (MFSA) is the sole regulator for investment services, insurance and banking. Maltese law shifts tax benefits status from ‘offshore’ to a new system based on INTERNATIONAL INCOME SOURCE.

i. Company Status
An International Trading or Holding Company is a Malta registered ONSHORE company whose objects are TRADING activities of an international nature, whilst an INTERNATIONAL HOLDING COMPANY is restricted to asset holding & administration thereof. All International trading and holding activities MUST be carried out FROM Malta with other persons not resident in Malta, and exclude Maltese movable or immovable property.

ii. Activity
A company may trade or carry out holding & administration activities FROM Malta at its registered office where all contracts and accounts must be kept in English. An ADVANCE REVENUE RULING may be obtained from the International Tax Unit of the Malta Financial Services Centre as to whether specific activities undertaken by a company qualify as trading or holding activities. It is important to note that business is allowed in ANY CURRENCY except Malta Liri, and accounts must be audited and annually submitted to the regulator.

iii. Tax liability for International Trading & Holding companies
Malta Trading & Holding companies are liable to Malta tax at the rate of 35% on its adjusted net profit. However once the IHC has foreign source revenue, then income tax on profits, is FULLY refunded, NOT TO THE COMPANY but to the client representative in Malta. Any claim for refund must be made within 4 years from the date when the amount of tax, is eligible for refund. Any refund due by the tax authorities is payable not later than the fourteenth day following the end of the month in which the refund becomes due and is recoverable as such.

iv. Confidentiality
A non resident shareholder is able to own full shareholding in a Malta Company, while REMAINING CONFIDENTIAL by acting through a licensed nominee CREDAL Holdings Ltd. The name of the beneficial shareholder is submitted only to the bank and to the Malta Financial Services Center to ensure the client’s interests are at all times safeguarded by an independent regulator.

v. Caution against money laundering activities
Under Maltese law, it is a serious offense to knowingly take part in, or attempt to participate in any activity of money laundering. Money laundering is defined as efforts to put into circulation funds obtained from criminal activity. Any related conviction / investigation shall result in shedding the veil of confidentiality, and possible confiscation of property derived from money laundering activity. Clients signing this agreement expressly commit themselves to provide the director with documentary evidence of origin of all related funds.