Maltese Resident (Non-Dom) + US LLC (Delaware)

[10101]

It doesn't matter where the work takes place, it matters where the company is managed from.

So what if the Maltese resident would manage the offshore company only during the 6 months they are traveling outside of malta?(staying only 183 days in malta to keep residency)
Just renting an office somewhere?

 

[lonizzita]

It's Malta that invented the resident non-domiciled company concept, i'm more than happy to give them 5K flat tax over 35K of foreign income + tax on income remitted to Malta.

If i'm the company director of an offshore company but i outsource operations to contractors outside of Malta i don't have anything to hide.

sorry for the trivial question, how do you outsource operations outside of Malta?

do you mean taking offices and employees? in that case if you take offices and employees in the U.S. you become a resident there, so you will pay taxes in the U.S.?

 

[Marzio]

how do you outsource operations outside of Malta?

How about hiring contractors on freelancing sites?

 

[lonizzita]

How about hiring contractors on freelancing sites?

if you use freelancers worldwide, when you indicate where you operate, for example, to open accounts.

you indicate Malta?

 

[eklia]

Guys are you declaring >35K or less? Are you paying the 5K + amount on money remitted in Malta?
Because I'm hearing about some people that don't want to pay and so always submitting declarations <35K.

I'm curious about it.

 

[Marzio]

if you use freelancers worldwide, when you indicate where you operate, for example, to open accounts.

you indicate Malta?

Bank accounts?

Payment processors accounts?

Which accounts are you talking about?

I'm hearing about some people that don't want to pay and so always submitting declarations <35K

Those are the ones that will likely know the meaning of CRS very soon.

 

[lonizzita]

Bank accounts?

Payment processors accounts?

Which accounts are you talking about?



Those are the ones that will likely know the meaning of CRS very soon.

I mean bank account, which country do you indicate?

 

[Marzio]

Can we get to the bottom line?

Why are you asking those questions?

Is it because US EMIs want proof of US operations to open you an account but you fear that this will trigger your company to become tax resident or what?

 

[lonizzita]

Can we get to the bottom line?

Why are you asking those questions?

Is it because US EMIs want proof of US operations to open you an account but you fear that this will trigger your company to become tax resident or what?

I knew that you have to create an active substance, such as offices and employees not to take a risk with Malta.

If I take freelancers around the world, am I wrong or is it not economic substance and therefore at risk with Malta

 

[Marzio]

risk with Malta

Risk of what?

Of your company becoming tax resident in Malta?

It is exactly what resident non domiciled companies are all about!

I highly suggest you to open a new thead, group your ideas and explain your context because i don't understand what you want to achieve.

 

[eklia]

@Marzio can you PM me?

 

[A1988]

I have confirmed this, as a maltese non dom resident myself, Malta applies a domicile rule for companies based on INCORPORATION and not from where it is controlled or managed. Hence, you can control and manage your offshore company from malta, you and your company will only pay tax on the money that is remitted to malta. CFC rule kicks in only if your turnover is above 750k a year. This is completely legal and I have verified with many law firms plus you will find plenty of literature on this with KPMG, DELOITTE AND E&Y MALTA OFFICE. In my opinion, malta provides multiple structuring and optimising opportunities. I am glad I left dubai.

 

[A1988]

As far as US LLC being managed and controlled from malta is concerned, I am in a similar situation, I verified that Malta treats US LLC as a corporation hence US LLC can also be used as a non dom company and you pay tax on the money you remit to malta. But please consult a good tax attorney in your case just to verify and dont take my advise as financial or tax advise. Goodluck.

 

[mapo]

As far as US LLC being managed and controlled from malta is concerned, I am in a similar situation, I verified that Malta treats US LLC as a corporation hence US LLC can also be used as a non dom company and you pay tax on the money you remit to malta. But please consult a good tax attorney in your case just to verify and dont take my advise as financial or tax advise. Goodluck.

Thanks for sharing your experience @A1988 !
By any chance you can also share links related to this literature please? I had no success in finding them myself.

 

[Mr Gus]

I have confirmed this, as a maltese non dom resident myself, Malta applies a domicile rule for companies based on INCORPORATION and not from where it is controlled or managed. Hence, you can control and manage your offshore company from malta, you and your company will only pay tax on the money that is remitted to malta. CFC rule kicks in only if your turnover is above 750k a year. This is completely legal and I have verified with many law firms plus you will find plenty of literature on this with KPMG, DELOITTE AND E&Y MALTA OFFICE. In my opinion, malta provides multiple structuring and optimising opportunities. I am glad I left dubai.

What do CFC rules have to do with this? Do you have a Maltese Holding company?

According to PWC: "All companies incorporated in Malta are considered to be both domiciled and resident in Malta. Other bodies of persons (including companies incorporated overseas) are considered to be resident in Malta when the control and management of their business are exercised in the country."

According to CFR: "It is worth noting that a company is considered to be resident for tax purposes in Malta when the management and control of the company is exercised in Malta."

Maybe link source of your claims as well? As far as I can see everything you described is not what is being claimed by CFR.

 

[A1988]

https://taxsummaries.pwc.com/malta/corporate/taxes-on-corporate-income

https://www.ccmalta.com/publications/malta-taxation-of-resident-non-doms-entities

https://corriericilia.com/publications/resident-non-domiciled-companies

https://cfr.gov.mt/en/inlandrevenue/corporatetax/Pages/Corporate-Tax.aspx - CFR explanation on corporate residence and Taxation of companies not incorporated in malta.

Hope those links are sufficient to prove my statement. Its important to understand that domicile of companies is being determined by where it is incorporated and where the income is arising and whether it is being remitted. Goodluck.

 

[A1988]

What do CFC rules have to do with this? Do you have a Maltese Holding company?

According to PWC: "All companies incorporated in Malta are considered to be both domiciled and resident in Malta. Other bodies of persons (including companies incorporated overseas) are considered to be resident in Malta when the control and management of their business are exercised in the country."

According to CFR: "It is worth noting that a company is considered to be resident for tax purposes in Malta when the management and control of the company is exercised in Malta."

Maybe link source of your claims as well? As far as I can see everything you described is not what is being claimed by CFR.

Dear Mr Gus, I have sourced PWC itself for you and the explanation of Non dom entity and its taxation and even sourced CFR for you, Kindly read the full statements on the websites before commenting with aggressive suspicion. Good day.

 

[Mr Gus]

https://taxsummaries.pwc.com/malta/corporate/taxes-on-corporate-income

https://www.ccmalta.com/publications/malta-taxation-of-resident-non-doms-entities

https://corriericilia.com/publications/resident-non-domiciled-companies

https://cfr.gov.mt/en/inlandrevenue/corporatetax/Pages/Corporate-Tax.aspx - CFR explanation on corporate residence and Taxation of companies not incorporated in malta.

Hope those links are sufficient to prove my statement. Its important to understand that domicile of companies is being determined by where it is incorporated and where the income is arising and whether it is being remitted. Goodluck.

Thanks!

Is there a definition on "income arising in Malta"?

And are there any sources on how LLC's are treated in Malta?

 

[Mr Gus]

Dear Mr Gus, I have sourced PWC itself for you and the explanation of Non dom entity and its taxation and even sourced CFR for you, Kindly read the full statements on the websites before commenting with aggressive suspicion. Good day.

Haha well it's not aggressive, you just have to be kind of careful with giving out advice like that. And you still didn't mention what CFC rules have to do with this..

 

[Mary P]

Hi offshoreguys!
I was wondering if I can face any tax problem in Malta if I'd like to run an online business through a Delaware LLC.
It seems to be too convenient to be true since I would end up paying no taxes (the LLC will be exempt in USA and this personal income will be exempt in Malta because it will be from a foreign source - I will not remit it in malta).

Can you please share your thoughts and, in case, your experience?

Thank you all!

there is a tax treaty between the US and Malta. This treaty helps to prevent double taxation on income earned by residents of one country in the other.

However, it's important to note that the specific tax implications of your situation can be complex and may vary depending on your individual circumstances