🇲🇹 Malta Tax and Customs Administration (MTCA) & Income Tax Act
Malta Corporate Tax & Imputation Refund Calculator
Calculate the statutory headline 35% corporate tax and compute the effective 5% net Maltese tax burden resulting from the 6/7ths shareholder dividend tax refund.
⚡ Corporate Income Presets
Corporate Profit & Distribution
EUR €
Effective Final Tax Burden in Malta
€5,000.00
Effective Tax Rate: 5.0% (after €30,000.00 shareholder refund)
Tax & Shareholder Refund Mechanics
| Headline Corporate Tax Paid (35%) | €35,000.00 |
| Post-Tax Profit Available for Dividend | €65,000.00 |
| Statutory Tax Refund to Shareholder | + €30,000.00 (6/7ths) |
| Net Retained Cash to Shareholder | €95,000.00 |
| Net Retained Tax by Malta Treasury | €5,000.00 |
Frequently Asked Questions
How does the Malta Full Imputation Corporate Tax System operate? ▼
Under the Malta Income Tax Act (Cap. 123), companies pay a headline corporate income tax of 35% on taxable profits. When dividends are distributed to shareholders, shareholders are entitled to claim a refund of corporate tax paid by the company.
What is the standard 6/7ths shareholder tax refund in Malta? ▼
For active trading income, non-resident shareholders can claim a 6/7ths refund of the 35% corporate tax paid. This reduces the net effective tax burden on distributed profits to just 5% (35% - 30% refund = 5% net tax).
What tax refund applies to passive interest and royalties (5/7ths)? ▼
Where company income is derived from passive interest or royalties, the statutory refund is 5/7ths of the Malta tax paid, resulting in an effective tax rate of 10%.
What is the Participation Exemption for holding companies? ▼
Dividends and capital gains derived by a Maltese company from a qualifying participating holding (10%+ shareholding or €1.164M+ investment) in a foreign subsidiary are 100% tax-exempt in Malta.
How long does MTCA take to issue the shareholder tax refund? ▼
Under the Income Tax Management Act, tax refunds are legally mandated to be paid by the tax authorities to foreign shareholders within 14 days from the date when the refund claim is duly processed.