• International Trading Companies

• a company may request the Inland Revenue to confirm by means of an advance revenue ruling its status as an International Trading Company;
• the company is taxed at the normal company rate of tax which is currently 35%.

• taxed at a flat rate of 27.5% on the gross amount of the dividend and are credited with the amount of tax paid by the company on the profits out of which the dividend was paid.
• entitled to a refund under the provisions of the Income Tax Management Act of two-thirds of the Malta tax paid by the company on the same profits.  This refund is payable by the Revenue not later than the fourteenth day following the end of the month in which the refund becomes due.

International Trading Company 
 

Chargeable Income	1000
Less: Company income tax at 35%	350	3550
Profit after taxation available for distribution	650
Non resident shareholder or  Maltese company wholly owned be non-residents
Net divident received from international trading company		650
Add: Tax paid by international trading company
(full imputation system)	350
Chargeable income	1000
Tax thereon at 27.5%	275
Credit received by shareholder for tax paid by company	(350)
Refund to shareholder at assessment stage		75
Further refund of2/3 of the Malta tax paid by the company		233