Login

Weather in Malta

23°C Partly Cloudy

Partly Cloudy

Time Zones:

New York

Malta

Shanghai

" Serving the world...

...from Malta "

Corporate Services

Corporate Services - Income Tax Returns / Audited Accounts

Under local tax legislation, all Maltese registered companies must submit annual audited accounts and an Income Tax return to the Inland Revenue Department by the 30th September of the year following that to which the accounts refer.

This applies to all companies, whether or not they own a vessel or a yacht, as well as to those companies that have not traded during that particular year.

May we point out that as from basis year 1998, the Inland Revenue Department has become more stringent in enforcing the law. In fact, heavy penalties will be served on those companies which file late or incomplete returns.  Penalties for late submission are levied and a best of judgement assessment is raised, on which interest at 1% per month is charged.  These penalties together with the interest will be waived once accounts are submitted.  However, a fine of €46.59 for late submission can neither be reduced nor withdrawn.

 

Companies owning vessels of 1000 NRT and over

Such companies are exempt from local Income Tax under a provision in the Merchant Shipping Act.  For this purpose, an application is submitted by us to the Ministry of Finance.

These companies are required to furnish us with a statement showing the transactions that took place during the previous year.  This has to reach us by not later than 31st May to enable us to forward same to our local auditors.  The auditors will then carry out an audit and submit final audited accounts to the local tax authorities. These are to be completed, signed and forwarded to us by not later than 31st May.

 

Companies owning vessels of less than 1000 NRT

Such companies are liable to tax at the rate of 35% on taxable profit. However, in certain cases, exemption is granted from payment of Income Tax.  Each case is treated on its own merit.

The same procedure (the submission of a profit and loss account and balance sheet) which applies to vessels of 1,000 NRT and over also applies to these companies.

 

Companies owning a pleasure yacht or no vessel at all

Although such companies are liable to tax at the rate of 35%, no profits are made and therefore no tax is due once no trading has taken place.

Such companies should submit a declaration instead of presenting accounts.  This declaration should state that no income was received by the company and no other expenses, other than local expenses, have been incurred during the year in question.  A specimen of such a declaration is attached herewith and should also be sent to us by 31st January of each year.  This will allow our auditors to submit the audited accounts in time.

 

Power of Attorney applicable to all companies

Whenever a local director is not appointed, a Power of Attorney signed by the board of directors as per attached specimen would be required each year.  This applies to all companies whether owning a vessel or a yacht as well as non-trading companies.

Corporate Services

Corporate Services - Income Tax Returns / Audited Accounts

Under local tax legislation, all Maltese registered companies must submit annual audited accounts and an Income Tax return to the Inland Revenue Department by the 30th September of the year following that to which the accounts refer.

This applies to all companies, whether or not they own a vessel or a yacht, as well as to those companies that have not traded during that particular year.

May we point out that as from basis year 1998, the Inland Revenue Department has become more stringent in enforcing the law. In fact, heavy penalties will be served on those companies which file late or incomplete returns.  Penalties for late submission are levied and a best of judgement assessment is raised, on which interest at 1% per month is charged.  These penalties together with the interest will be waived once accounts are submitted.  However, a fine of €46.59 for late submission can neither be reduced nor withdrawn.

 

Companies owning vessels of 1000 NRT and over

Such companies are exempt from local Income Tax under a provision in the Merchant Shipping Act.  For this purpose, an application is submitted by us to the Ministry of Finance.

These companies are required to furnish us with a statement showing the transactions that took place during the previous year.  This has to reach us by not later than 31st May to enable us to forward same to our local auditors.  The auditors will then carry out an audit and submit final audited accounts to the local tax authorities. These are to be completed, signed and forwarded to us by not later than 31st May.

 

Companies owning vessels of less than 1000 NRT

Such companies are liable to tax at the rate of 35% on taxable profit. However, in certain cases, exemption is granted from payment of Income Tax.  Each case is treated on its own merit.

The same procedure (the submission of a profit and loss account and balance sheet) which applies to vessels of 1,000 NRT and over also applies to these companies.

 

Companies owning a pleasure yacht or no vessel at all

Although such companies are liable to tax at the rate of 35%, no profits are made and therefore no tax is due once no trading has taken place.

Such companies should submit a declaration instead of presenting accounts.  This declaration should state that no income was received by the company and no other expenses, other than local expenses, have been incurred during the year in question.  A specimen of such a declaration is attached herewith and should also be sent to us by 31st January of each year.  This will allow our auditors to submit the audited accounts in time.

 

Power of Attorney applicable to all companies

Whenever a local director is not appointed, a Power of Attorney signed by the board of directors as per attached specimen would be required each year.  This applies to all companies whether owning a vessel or a yacht as well as non-trading companies.