Malta Tax Rebate 6/7

[Osleak]

this is a good sign that he not only advises but also uses it himself

sorry for misundersanding, he not has a company, he told me that he usually using BVI for their customers as holding with bank account, but he confirmed me that a lot of account do with UK ltd without bank account with no problems very smothly, bank account is just to take out dividend from malta.

have you asked about cfc?

yes he told me that CFC it will not affect me... Malta is very very permissive on that and he told me there is no problems for foreign company managed and controlled in Malta it's like a custom hold and control foreign trading company in Malta for NON DOM

How much were running costs for the previous year?

i don't remember sincerely maybe 500€ or something like that

 

[1nomad]

yes he told me that CFC it will not affect me... Malta is very very permissive on that and he told me there is no problems for foreign company managed and controlled in Malta it's like a custom hold and control foreign trading company in Malta for NON DOM

so I can run my Seychelles company as a Maltese non-dom without problems, right? I'm selling digital products (audio, video)

 

[GrumpyMess]

so I can run my Seychelles company as a Maltese non-dom without problems, right? I'm selling digital products (audio, video)

No one knows it for sure, it seems Malta is not enforcing non doms to pay tax for their offshore companies, but they have a right to do so and in this case the tax could be 35% so I would not start using this scheme without the pre approval from the tax commissioner

 

[blutbra]

https://cfr.gov.mt/en/inlandrevenue... for Individuals under the Income Tax Act.pdfVery interesting reading .The Maltese tax system (and not only) for individuals, explained by the Commissioner of Revenue. The definition of domiciliation is, in my opinion deliberately, very ambiguous.

 

[Osleak]

I’ve spoke with 2 other accountant, and both told me that for foreign holding to get refund 6/7 there is no problem also if UBO and director of the holding is resident in malta as non dom.

About CFC rule both accountant told me that Malta never charge tax for offshore company controlled and managed from malta, and one of them send me the threshold that i’ve posted above.

 

[GrumpyMess]

I’ve spoke with 2 other accountant, and both told me that for foreign holding to get refund 6/7 there is no problem also if UBO and director of the holding is resident in malta as non dom.

Thank you for sharing your experience with us. It seems you've spoken with all maltese accountants.

If Malta allows direct payment to the UBO a quite interesting option is to have a Belize corp as holding since privacy is achieved.

About CFC rule both accountant told me that Malta never charge tax for offshore company controlled and managed from malta, and one of them send me the threshold that i’ve posted above.

CFC has been introduced this year, therefore it is not surprising that this did not interest anyone before. But anyway a threshold for active income is quite high, so if you have 1 resident + holding and 1 offshore company you can optimize your taxes quite effectively.

If I used to lean towards Cyprus, now Malta looks much more attractive to me. If you will be speaking with accountants next time, can you please ask if it is possible to get a tax residency certificate without actually living there for 183 days?

 

[Osleak]

Thank you for sharing your experience with us. It seems you've spoken with all maltese accountants.

If Malta allows direct payment to the UBO a quite interesting option is to have a Belize corp as holding since privacy is achieved.


CFC has been introduced this year, therefore it is not surprising that this did not interest anyone before. But anyway a threshold for active income is quite high, so if you have 1 resident + holding and 1 offshore company you can optimize your taxes quite effectively.

If I used to lean towards Cyprus, now Malta looks much more attractive to me. If you will be speaking with accountants next time, can you please ask if it is possible to get a tax residency certificate without actually living there for 183 days?

Yes i’ve talk at lear with 8 accountants in malta more or less they told me same things....

Next time if I remember i will ask about that!

 

[Spinat]

If Malta allows direct payment to the UBO a quite interesting option is to have a Belize corp as holding since privacy is achieved.

Do you think they will allow that ?

 

[Jay Hastings]

Thanks for your research @Osleak , I think UAE would be a good g

What agent will you be using for the UAE setup if you don't mind telling?

I havent decided to move forward with the setup, but if you have any suggestions I'm open to anything

 

[Jay Hastings]

@Osleak how much did your accountant charge for all the refund paperwork? Could you recomend someone?

 

[Jay Hastings]

can anyone recomend a company formation agent in malta? thanks a lot

 

[Osleak]

can anyone recomend a company formation agent in malta? thanks a lot

There are a lot, i can recommend you csb group (is not cheaper) there are many. You can ask to altima malta aswell...

 

[Osleak]

@Osleak how much did your accountant charge for all the refund paperwork? Could you recomend someone?

About 300€ i think, I don’t remember sincerely but not to much!

 

[ontherun]

Yes me too last year they took 10 days to send me refund, i hope they will do it fastly this year aswell

that is really fast. It sometimes takes ~3 months

 

[Osleak]

that is really fast. It sometimes takes ~3 months

Yes last year very very fast have you company in malta? This year they are little slow...

 

[BlueMist]

I am scratching my head with what I just read from @Osleak . I have been incorporated in Malta for many years and it is the 1st time I hear such things... CSB Malta is quite popular among entrepreneurs, they are not cheap indeed. I don't use them though.

I would however wanted to warn of what has been written here and have everything written on paper from account or lawyer. I have other priorities being done now but I hope to get this checked at one point. Also if it has been your 1st year to get a tax refund, then yes it may have been 2 weeks indeed (I think this is Malta's incentive in 1st year without checking much....). I can assure you it will get worse in the next years. Mine 1st refund took 2 weeks as well but all others have taken progressively longer. This year I got tax refund exactly 180 days after paying the tax (in its last month due).

 

[Osleak]

I am scratching my head with what I just read from @Osleak . I have been incorporated in Malta for many years and it is the 1st time I hear such things... CSB Malta is quite popular among entrepreneurs, they are not cheap indeed. I don't use them though.

I would however wanted to warn of what has been written here and have everything written on paper from account or lawyer. I have other priorities being done now but I hope to get this checked at one point. Also if it has been your 1st year to get a tax refund, then yes it may have been 2 weeks indeed (I think this is Malta's incentive in 1st year without checking much....). I can assure you it will get worse in the next years. Mine 1st refund took 2 weeks as well but all others have taken progressively longer. This year I got tax refund exactly 180 days after paying the tax (in its last month due).

Yes i confirm that this year they are taking a lot of time to confirm the tax refund... but I don’t understand why you have paid in advance you have 1,5 years from the 31th December!

I’m waiting confirmation for refund of financial year end 31th December 2018, so i can make payment till june 2020

 

[BlueMist]

Yes i confirm that this year they are taking a lot of time to confirm the tax refund... but I don’t understand why you have paid in advance you have 1,5 years from the 31th December!

I’m waiting confirmation for refund of financial year end 31th December 2018, so i can make payment till june 2020

Previous years were also long, you were just plain lucky, I guess it's some Malta policy in 1st year of business to pay tax refund ASAP. Last year it took 4 months at least. Would have to check exactly. Maltese companies financial year are not exactly run as per calendar year, it's 18 month period from the month of incorporation for the 1st financial year end and as you say you have 18 months payment period. I don't pay in advance, in fact I wait until a week or two before deadline. Nevertheless it took exactly 6 months this year to get a refund.

 

[Osleak]

Previous years were also long, you were just plain lucky, I guess it's some Malta policy in 1st year of business to pay tax refund ASAP. Last year it took 4 months at least. Would have to check exactly. Maltese companies financial year are not exactly run as per calendar year, it's 18 month period from the month of incorporation for the 1st financial year end and as you say you have 18 months payment period. I don't pay in advance, in fact I wait until a week or two before deadline. Nevertheless it took exactly 6 months this year to get a refund.

Yes you are right, in my case i’ve till 31th may 2020 to pay taxes 18 months but i’ve sent last july the tax statement of 2018 with refund request... you mean that i will not get confirmation of refund before june 2020?

 

[BlueMist]

I am just sharing my experiences, yours may be different. Only your accountant can check the progress of tax refund, but it will change nothing, as no one knows when tax authority will review your files and issue the refund.