Why Malta? The World Economic Forum confirmed Maltas position as a - - PowerPoint PPT Presentation

1

alterDomus.com

Why Malta?

• The World Economic Forum confirmed Malta’s position as a leading financial jurisdiction. Indeed,

the 2013-14 Report ranked Malta amongst the top 20 world nations, out of 148, with regards to issues related to soundness of its banking institutions (14th). The regulation of Securities Exchanges (17th) and the strength and reporting standards (13th).

• Bloomberg Brief, in a detailed commentary in its Crisis Watch Section (2013) has declared Malta’s

banking sector as robust, sound and diversified with high rates of profitability, liquidity and solvency.

• Malta – A centre of excellence in the Mediterranean – Daily Telegraph, June 2010

2

alterDomus.com

Why Malta?

• EU Member with laws and regulations in line with other key EU players
• A “can do” business attitude to get things done
• A fast growing industry attracting big names, more talent from overseas
• Growing need/desire for substance means that more business is transacted in Malta. This also

means that investors will demand more services in Malta – banking, wealth management, etc...

• Operational advantages
• Close proximity
• English being the primary business language
• CET timezone
• Good value for resources

3

alterDomus.com

Focus on Asset Management

• Being an EU member one can set up Management Companies for UCITS, AIFMD with passporting

possibilities

• Other possibilities of non – regulated “management” companies
• Self managed funds – an attractive solution for smaller asset managers/promoters
• Operational arrangements which will still allow space for non Maltese banks, custodians, etc...
• Flexible regulatory options and requirements combined with attractive solutions for residence of

individuals make Malta an attractive proposition for asset managers

• Operational advantages discussed previously apply to asset managers

4

alterDomus.com

Basic tax features

• No withholding tax on interest and royalties paid to non-residents
• No tax on capital gains realised by non-residents on transfers of shares in Maltese companies
• Malta has no CFC legislation, no thin cap rules and no sophisticated transfer pricing rules
• No capital duty on share issues
• Exemption from stamp duty applies on share transfers
• Three main types of double taxation relief:
• Treaty Relief – over 60 treaties in place
• Unilateral Relief
• Flat Rate Foreign Tax Credit

5

alterDomus.com

Basic tax features

• Participation Exemption applies to dividend income and gains derived from qualifying foreign

shareholdings (e.g. min. 10% holdings or value of €1.164m) and income from Permanent Establishments overseas, subject to certain basic conditions

• Look-through treatment for trusts earning foreign source income and having non-resident

beneficiaries, such that effectively no Maltese tax would arise on such income

• Tax neutrality in respect of non-resident-owned funds investing outside Malta
• 15% flat tax rate applicable on Malta-source chargeable income and capital gains and on foreign-

source income received in Malta by expatriates taking up residence in Malta under a residence

• scheme. Foreign source capital gains are not taxed even if received in Malta.
• MIIP and other schemes make it attractive for individuals to reside in Malta

• Tel. + 356 21 48 08 28 / Fax +356 27 48 08 29

Domestica Building, 4th Floor Msida Valley Road Msida – MSD 9020 www.alterDomus.com

CHRIS CASAPINTA

Country Executive

chris.casapinta@alterDomus.com