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International Holding
Companies
For
tax purposes, a Maltese international Holding company (IHC) may qualify
to hold a "participating Holding" in an overseas company. A "participating
holding" can take various forms. Primarily, a "participating holding"
means a holding of at least 10% of the equity shares of a company not resident
in Malta. If the shareholding percentage is less than 10%, its shareholding
still qualifies as a participating holding, provided that:
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the Maltese corporate
shareholder is entitled at its option to purchase or has the right of refusal
on a disposal of the balance of the equity shares of the overseas company;
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the Maltese corporate
shareholder is entitled to be represented on the board of the overseas
company;
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the shareholding value
exceeds LM500,000 liri (or, the equivalent sum in a
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foreign currency);
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the shares are held
in the overseas company for the furtherance of the business of the Maltese
company.
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International trading and holding companies
