Malta’s manufacturing sector is entering a new phase of growth and competiveness. Over the past years, the sector has undergone a transformation from large-scale production for mass markets to exclusiveness, added value and a focus on niche markets. In the present, Malta offers a prime location for companies specialising in high-technology products in areas such as electronics or precision engineering, as well as capital-intensive sectors such as life sciences and aircraft maintenance.
The manufacturing industry contributes 13% of value added of the Maltese Economy and employs approximately around 15% of the labour players.
- Malta’s geographic position makes it the perfect logistics hub for trade links to Europe, North Africa and the Mediterranean;
- Highly skilled workforce at a lower cost than in other European countries;
- Malta Freeport, services 115 ports worldwide. A recent investment in further cranes at the Malta Freeport means that now the same Freeport can handle over 18,000 TEU vessels on 2 berths;
- The International Airport has 37 partner airlines capable of serving 86 destinations;
- The Maltese Government is pro-business and in fact is always proposing incentives for attracting FDI;
- Reasonable rental rate for industrial premises;
- The legislative framework is in line with the main EU directives which makes it sufficiently flexible and easy to relate to different legal systems especially those within the EU.
Malta tax for the Industrial and Manufacturing sector
Malta Corporate Tax
Malta operates a full imputation tax system which completely eliminates the economic double taxation of company profits. While the corporate tax rate stands at 35%, upon a distribution of dividends, the shareholders are entitled to a refund of the Malta tax charged (generally 6/7ths).
Double Taxation Treaties
Malta has over 60 double taxation agreements, of which Maltese companies can avail themselves of.
The ICT industry in Malta enjoys a variety of fiscal incentives that address the needs of the Industry.
Tax on Intellectual Property
Expenditure on patents or patent rights may be amortised over the life of the patent or patent right. Any expenditure on intellectual property rights of a capital nature may be amortised over a period of three years, commencing on the period during which the expenditure was incurred. Furthermore Malta does not levy any withholding tax on outbound royalty payments, provided that certain conditions are met.
How we can assist you
We provide various services in this sector
- corporate structure planning and the development or expansion of any company in the ICT sector;
- application for and attainment of fiscal and financial benefits available to the industry;
- dealing with local authorities to find suitable industrial premises;
- transfer of technology (know-how, patents, trademarks and copyright) and the applicable agreements
- we provide advice in both direct and indirect tax
- we assist our clients in dealing with issues relating to the employment of expatriate personnel, including direct tax and work permit applications
- registration of trademarks both at national level and at the European Union level;
- we provide all necessary company compliance work to Maltese companies ranging from accounting, VAT returns preparation and submission to the audit of financial statements, submission of income tax returns as well as applications for tax refund.