As an entrepreneur, you want to extend your business and enhance your lifestyle. You might want to open a holding company but are not sure about the best possible location for it to gain the maximum benefits of the idea.
Considering the benefits, Malta holding company is the right option in an international structure. Ideally, owning a holding company in a jurisdiction like Malta enables you to benefit from a double tax treaty network so that you can minimize the withholding tax on your company’s dividends.
The taxation system in Malta does not charge capital gain tax if you want to dispose of subsidiaries. Also, it does not impose withholding tax if you desire to distribute from the holding company to shareholders.
Likewise, you do not need to pay any tax on any profits that your non-resident shareholders get by selling shares in the holding company. The Maltese tax system does not require paying capital duty if you decide to transfer your company’s shares.
Malta boasts a network of double tax treaties, comprising over seventy countries. A holding company on the island may own more than ten percent of the issued share capital of an international subsidiary. It also reduces the rate of withholding tax by five percent on dividends received by the Maltese company from a treaty partner. Since Malta is a member of the European Union, a Maltese holding company can benefit from a reduced withholding tax on dividends from several EU nations.
According to the Budget Implement Act of Malta, there is a significant change in the way to treat shareholders. It reduces the applicable taxation rate from five to ten percent.
Malta holding companies are an attractive option for people belonging to various overseas trading groups. If you are interested in setting up a holding company in Malta, contact a reliable consult. They can help you form a holding company, register an office facility, get the provision of a serviced office, and lots more.