Malta: What Are The International Tax Planning Opportunities? Part 3

Malta: What Are The International Tax Planning Opportunities? Part 3

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Malta: What Are The International Tax Planning Opportunities? Part 3


In Part 1 of our overview of Malta’s tax system, we looked briefly at what Malta can offer when considering tax planning for your clients.

In Part 2, we examined some of those benefits in more detail.

Now, in our final part, we take a look at reliefs and investment incentives.

Relief From Tax Suffered Abroad

Besides the refund system which we have just discussed, Malta also has a number of mechanisms of relief from tax suffered abroad on foreign income. Thus income brought into Malta from dividends, interests, or royalties which have suffered tax at source can claim this tax by way of relief from Malta’s tax due.


In certain situations where it might not be possible to prove that tax has been suffered abroad, or even in situations where no tax has been suffered abroad, it is possible to apply what is known as the flat rate foreign tax credit (FRFTC), whereby a relief is applied on a notional tax rate suffered abroad even if that income has not suffered any tax at all.


This type of relief can also be applied where tax has been suffered abroad and it is deemed more beneficial to use the FRFTC as in the two examples shown above.

Investment Incentives
Besides tax advantages the Maltese Government also gives a number of extremely beneficial investment incentives for companies wishing to invest in Malta. All investment incentives have been incorporated under one authority in order to streamline operations and to remove any bureaucracy. In fact It is now possible for investors to know to which benefits they are entitled in a very short span of time. The main incentives can be listed under the following categories:

Investment Aid
Companies engaged in specific activities can benefit from tax credits on capital investment and job creation.

SME Development
Grants targeting the creation and development of innovative start-ups, and the development of forward looking small and medium-sized enterprises.

R&D and Innovation
Various incentives will be offered to stimulate innovative enterprises to engage in research & development.

Access to Finance
Companies may be assisted through loan guarantees, soft loans, loan interest subsidies or royalty financing in the case of highly innovative projects.

Enterprise Support
Assistance to businesses to support them in developing their international competitiveness, improving their processes and networking with other businesses.

Employment and Training
These incentives are administered by the Employment & Training Corporation. Enterprises are supported in recruiting new employees and training their staff.

Multinational companies and individuals seeking to lower costs and increase the return on their investment should seriously consider Malta in their international tax planning structure.

Malta encourages foreign investment and the Government has made it his goal to make Malta a financial centre of excellence within the EU. With this in mind bureaucracy has been reduced to a minimum and all efforts are being made to make the move to Malta as simple and cost effective as possible.

All related services have been grouped under one authority to improve efficiency and cut on bureaucracy and all professionals involved in the financial sector are heavily regulated and monitored to ensure a high level of professional service.

Ciantar Associates

Ciantar Associates

Biography Simon Ciantar is a qualified accountant and registered auditor with the Malta Accountancy Board . He is also a director in Sada Corporate Services a corporate services provider as well as Director and MLRO officer in CRV International LTD a licensed Fiduciary and Trustee company , licensed with the Malta Financial Services Authority. Mr Ciantar also has a Management degree from the University of Malta. Mr. Ciantar has more than 15 years experience in accounting, auditing, tax compliance and management consultancy, with a number of audit firms as well as in the industry, where in he has worked with a variety of companies in the beverages, health, and food sectors. In 2003 Mr Ciantar joined Horwath( Malta) and was trusted with leading the cost control team responsible for overseeing the construction of Malta's largest project at that time, the construction of Mater Dei Hospital. In 2007 Simon Ciantar joined the firm V. Mercieca & Co as Junior Partner. One year later he was appointed Senior Partner following the retirement of the Vincent Mercieca. Subsequently the Firm changed its name to Ciantar Associates. Ciantar associates also operate a related Licensed Trustee company namely “CRV International LTD” registered in Malta and licensed to carry out Trustee and fiduciary services in Malta. The company has three highly qualified and experienced directors, Including Mr Ciantar. The firm had been very successful in recent years with its focus on foreign investors looking to set up shop in Malta. Mr Ciantar is a member in a number of organizations including; • Malta Institute of Accountants • Institute of Financial Service Practitioners • STEP • Malta- Italian Chamber of Commerce • AGN International LTD • ANTEA * International Referral Firm Description Ciantar Associates is primarily an accounting and audit firm based in Malta targeting non resident shareholders and investors to either use Malta as part of their international structures or for using Malta as a gateway into the European Union and north Africa. Ciantar Associates ( formerly V.Mercieca and Co) have been in business since 1985 and have seen , throughout these years Malta grow into a financial centre of repute . We are proud to have contributed to this by doing our best to offer the best possible service to our clients throughout all these years. We are licensed by the Malta Institute of Accountants as Auditors and by the Malta Financial Services Authority (MFSA) as registered trustees and fiduciaries through our wholly owned subsidiary CRV International LTD ( Company Registration no C-18970) . We are also part of a number of international networks including AGN International LTD ( and ANTEA ( We cater and have solutions for a variety of enterprises and we would be able to assist you in Malta company formations, bank introductions and loan facilities, personnel selection, management cost controls and audi

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