Peter Griffiths
Managing & Tax Director
If you are looking for a tax advisor, first you need to determine out what you need them to do for you. But whether you’re building a tax strategy, or just looking to file back taxes, or make an audit, you should make sure that any accountant you’re considering working in specializes in that area as every cent you spend in taxes is a cent that you cannot invest.
For example, if you are building a wealth strategy, useless to hire a certified public accountant as not all CPAs handle tax issues, and most often CPAs specialize in areas specific to accounting, consequently it makes sense when you need audit services.
Our tax expert, Peter Griffiths, has a specialized education – Master of Arts in Financial Services and whilst studying at the University, his interest invariably focused on the area of international taxation, in fact he defended his dissertation on selected tax incentives in Malta, Cyprus and Luxembourg.
Mr. Griffiths is also licensed to act as an administrator of Private Foundations by the Malta Financial Services Authority. His education is complemented by extensive valuable professional experience:
- advisory on a series of international tax structures involving companies, trusts, foundations and foreign expatriates relocating to or from Malta;
- tax and estate planning advisory to HNWI;
- setting up and tax advisory on various international cross border structures, including analysis and estate planning implications;
- company formation and tax advisory services to international trading companies and international holding companies;
- mergers and corporate divisions in Malta; and
- VAT leasing structures for superyachts and other privately-owned vessels.
Mr. Griffiths is a fellow member of the Malta Institute of Accountants, Malta Institute of Taxation, and also a member of the Institute of Financial Services Practitioners, Confederation Fiscale Europeen, and the International Tax Planning Association.
Malta Tax services include:
Tax Planning
As tax practitioners we acknowledge that our clients require more than just tax advice to implement their business plans. The actual achievement of the desired goals may not be possible without professional guidance in terms of the fiscal implications involved. In this respect we assist our clients with the necessary tax planning in terms of the fiscal legislative framework to achieve the most tax efficient structure or transaction.
Tax Optimisation
Maltese tax system is fluid and hence it is fundamental to keep abreast of any changes in the legislation to ensure that a business maximizes its return from any incentives or benefits for which it may qualify. In this respect our team is constantly updated of any changes in the legislative framework by receiving the required training and resources to ensure that we are at the forefront when advising our clients of any legal updates, fresh incentives and schemes.
International Taxation
We perfectly understand, companies which have cross-border business activities and interests must be well advised on the potential pitfalls of international double or multiple taxation.
That is why Griffiths + Associates provides only high quality tax services to our clients involved in international trade and business transactions. Our purpose is tax optimization taking into account tax risks of the client and the jurisdictions within which he operates.
Tax Compliance
We act as the liaison of a client with the authorities, and also has the necessary expertise and knowledge to provide assistance in preparing and filing all the necessary documents and forms in order to be in line with the respective legal obligations.
Moreover, our firm can assist licensed online gambling operators, who are legally required to pay gaming taxes in Malta to the Malta Gaming Authority, to compute and prepare the respective forms and submissions to the said Authority.
Indirect Tax Services
One way or another, a large part of everyday transactions involves indirect taxes – VAT, customs duties, eco-contributions. The world of indirect taxes is complex and changing at a very fast speed, which needs specialists knowledgeable with the knowhow and experience to service a client operating internationally.
Our VAT team will assist in the process of VAT registration, as well as on-going VAT compliance including any necessary VAT refund application in terms of the 8th VAT Directive, “MOSS” registration and filing requirements, as well as regular completion and filing of the Recapitulative Statements.
Tax Preparation and Filing
We can help collate the necessary information and carry out the necessary tax computations in order to arrive at the taxable income and relative tax due in Malta.
For persons who are residing in Malta in terms of a Scheme, we could also provide the relative assistance in completing and filing the required documentation and forms in order to be compliant from a tax point of view.
We shall guide the client in any tax deductions or savings which may be had by taking into account the client’s personal circumstances and basis of taxation.
Griffiths + Associates provides a full range of tax compliance and tax services on a individual and corporate level to both local as well as international clients.
It is our priority to deliver strong tax services to give our clients a competitive advantage and ensure they are fully compliant with the applicable legislation and regulations.
We will project tax liability ahead of time and review the situation to uncover tax minimization strategies that can reduce client’s current or future tax liabilities.
Also, we will prepare tax computation and take care of the whole tax filing procedure.
Tax planning Malta 2024
The Maltese tax system comprises two main taxes: Income Tax (direct tax) and Malta Value Added Tax (indirect tax).
I. Indirect Taxes:
VAT
- VAT is a turnover tax which is charged on the supply of certain goods and the supply of certain services;
- VAT is a tax on consumption, paid in installments. It is a tax which is borne by the final consumer;
- VAT is a self-assessment tax. The taxable person (registered person) collects VAT from the customer and passes it to the VAT Department. VAT is neutral to the registered person thanks to the input tax deduction mechanism;
- VAT is administered by the Commissioner of VAT who exercises supervises the assessment system, raises assessments and collects unpaid VAT.
VAT Rates:
18% (Standard): all other taxable goods and services.
7% (Reduced): hotel accommodation; use of sporting facilities.
5% (Reduced): medical equipment for disabled persons; books (including e-books); newspapers and periodicals; admission to some cultural events; minor repairs of shoes and leather goods, bicycles, clothing, and household linens; domestic care services; supply of electricity.
0%: some supplies of food for human consumption (excluding some processed and pre-cooked foods); prescribed medicines; gold ingots and bars; live animals for human consumption; intra-community and international transport; domestic passenger transport (excluding road); cut flowers and plants for food production.
Import Duties:
Typically, import duties were mostly paid for by companies importing products from outside of the European Union.
Individuals too were subject to pay import duties, however only on importation of high value items from outside of the European Union.
Many small household items acquired over the internet such as many eBay purchases, books and other trivial items were exempt.
However, recent changes which became effective as of 2021 will capture many other less valuable items.
Import duties are charged at the rate of 10%.
Excise Duty:
Excise Duty is a National tax, imposed by the Excise Duty Act – Chapter 382 of the Laws of Malta, on certain goods and commodities which are consumed or made use of, as in the case of a service, in Malta.
Certain goods such as spirits, wines, and manufactured tabocco products are “Harmonised Goods” which means that the excise duty is taxed on these type of products in all of Europe, albeit at different rates. Other goods (like tyres, cement, mobile telephone services, etc) classified as “Non Harmonised Goods”.
Stamp Duty:
The most common type of stamp duty is levied on insurance policies, transfer of capital assets which fall within the remit of the duty on documents and transfers act, chapter 364 of the laws of Malta and transfers of immovable properties in Malta (5% for both residents and non-residents; a reduced rate of 2% in respect of transfers of immovable property situated in Gozo). The transfer of shares in Maltese companies are subject to stamp duty.
II. Direct Tax – Income Tax:
Tax on Income & profits and Passive Income:
Article 4(1)(a) to (g) – ITA:
ALL TYPES OF INCOME are subject to tax (Gains or profits from any trade, business, profession or vocation, Gains or profits from any employment or office, including the value of any benefit provided by reason of any employment or office, also including director’s fees or director’s salary; Passive income ‐ Dividends, premiums, interest or discounts; Any pension, charge, annuity or annual payment; Rents, royalties, premiums and any other profits arising from property).
Types of income expressly exempted by the ITA are not subject to tax (Article 12(1) –ITA).
Tax upon transfer of property:
Article 5A ‐ Governing only immovable property situated in Malta:
Tax at 8% withholding tax on the Transfer Value, being the greater of:
- The consideration (transfer price); and
- The market Value(irrespective of the gain made)
Exceptions:
- Transfer of property (not forming part of a project) ‐ transfer is done within 5 years of acquisition ‐ 5% on value of property.
- Promise of sale not registered before 17 November 2014 wrt property acquired before 1 January 2004 – 10% on value of property.
- Transfer of ordinary residence within the first 3 years of acquisition ‐ 2% on value of property.
- Transfer of property situated in Valletta acquired before 31 December 2018, which was restored and sold within 5 years from 31 December 2018 ‐ 5% on value of property.
Article 5 – Tax on Capital Gains:
- The transfer of the ownership or usufruct of any immovable property or the assignment or cession of any rights over such property.
- The transfer of the ownership or usufruct of or from the assignment or cession of any rights over any: Securities, Business, Goodwill, Business permits, Copyright, Patents, Trademarks & Trade names.
- Gains or profits arising from a transfer of the beneficial interest in a trust.
III. Tax Rates on Chargeable Income:
Comporate tax rate – 35%. However, Malta allows shareholders to claim a tax refund on some of the dividends they receive from Maltese companies.
Bodies Corporate – no tax is charged upon preparation of the tax return. Tax is charged at partner level Married persons filing jointly.
Individuals pay tax on income whether they are wage earners or self-employed. A person who meets the criteria to be considered a permanent resident, usually one who is resident for more than 183 days a year, will be taxed on their income in Malta and overseas. A foreign resident who is employed in Malta pays tax only on the income they earn in Malta.
As a general rule, a person employed but not residing in Malta and who spends a period of less than 183 days in Malta is taxed using non-resident rates.
Progressive tax rates are imposed on both residents and non-residents in Malta.
Employees earning less than €60,000 in a year should be granted tax refunds ranging between €45 and €95, depending on the amount of income earned.
Tax Rates on Chargeable Income - Resident Status: Basis 2021 – Year of Assessment 2023
(for single or married individuals who want a separate computation)
| From (€) | To (€) | Rate (%) | Deduct (€) |
|---|---|---|---|
| 0 | 9,100 | 0 | 0 |
| 9,101 | 14,500 | 15 | 1,365 |
| 14,501 | 19,500 | 25 | 2,815 |
| 19,501 | 60,000 | 25 | 2,725 |
| 60,001 | and over | 35 | 8,725 |
(for married persons filing jointly)
| From (€) | To (€) | Rate (%) | Deduct (€) |
|---|---|---|---|
| 0 | 12,700 | 0 | 0 |
| 12,701 | 21,200 | 15 | 1,905 |
| 21,201 | 28,700 | 25 | 4,025 |
| 28,701 | 60,000 | 25 | 3,905 |
| 60,001 | and over | 35 | 9,905 |
| From (€) | To (€) | Rate (%) | Deduct (€) |
|---|---|---|---|
| 0 | 10,500 | 0 | 0 |
| 10,501 | 15,800 | 15 | 1,575 |
| 15,801 | 21,200 | 25 | 3,155 |
| 21,201 | 60,000 | 25 | 3,050 |
| 60,001 | and over | 35 | 9,905 |
Tax Rates in Malta on Chargeable Income - Non-Resident Status
| From (€) | To (€) | Rate (%) | Deduct (€) |
|---|---|---|---|
| 0 | 700 | 0 | 0 |
| 701 | 3,100 | 20 | 140 |
| 3,101 | 7,800 | 30 | 450 |
| 7,801 | and over | 35 | 840 |
Exceptions:
Applicable to EU/EEA Nationals only.
Resident rates also applicable to certain non-residents – 90% Income Test.
- An EU/EEA National with at least 90% of his world wide income derived from Malta (even though not resident in MT) may apply the single rates.
- An EU/EEA National and his spouse (both not resident in MT) with at least 90% of their world wide income derived from Malta may apply the married rates.
When the 90% test is not satisfied, tax will be paid in MT and capped as follows:
Malta offers a favorable business environment for investors with a competitive tax regime, strategic location, skilled workforce, stable economy and political environment, and diverse investment opportunities.
Let’s find out more about tax double treaties as part relating directly to the competitive tax regime.
