A company incorporated in Malta is considered to be tax resident in Malta by virtue of its incorporation.
A company registered outside Malta is considered to be tax resident in Malta if its management and control is exercised in Malta.
Malta tax resident companies are taxed as follows:
- Companies incorporated in Malta: taxed on their worldwide income.
- Companies incorporated outside Malta but which are controlled and managed in Malta:
- taxed on income arising in Malta; and
- income arising outside Malta to the extent that such income is remitted to Malta; and
- gains realized in Malta (gains realized outside Malta would not be taxable in Malta even if remitted to Malta).
Non-Malta tax resident companies are taxed only on income generated in Malta.