Overview Fact Sheet of using Malta, a legitimate low tax EU jurisdiction. 5% effective corporate tax rate, no withholding, capital gains or entry or exit taxes. No inheritance or wealth taxes.

1. Malta’s International Legal & Advisory
Boutique
Malta - The Benefits Malta’s Credit Ratings
Fitch - A+
 Individuals  Companies Moodys - A3
Standard & Poors - BBB+
 Low Taxation  Asset Holding & Structuring
Maltese, UK
100% EU & OECD Compliant—A Legitimate Low Tax EU Country
& International Lawyers
0 - 5% effective corporate tax rate
& Accountants
Why Malta? Newsflash
“Malta’s business legislation and tax systems are considered amongst the most fa- Do your clients use offshore
vourable in Europe and this is supported by its strategic location straddling the busiest ship- payroll structures?
ping lanes in the Mediterranean. Malta has a strong financial services sector, and a thriving We can provide alternative, le-
on-line gaming industry. Ongoing strategies include specific targeting of knowledge econ- gitimate corporate structures,
omy sectors including financial services, information technology companies, research and with substance; as well as payroll
development, and high end manufacturing.” UK’s Foreign & Commonwealth Office; 2012 services and add-ons
With an effective corporate tax rate of 0 to 5% - for trading companies and 100% tax ex- NO!!
emptions or additional low rates for passive income & royalties, Malta has one of the lowest
tax regimes in the EU. As an ex British colony, Malta’s commercial laws are modelled on  Wealth or Inheritance taxes
English law - providing comfort and peace of mind to the client and adviser alike.
 Property taxes
A full member of the EU since 2004, Malta uses the Euro as its currency and English is an
official language.  Capital Gains
Benefits for Commercial Clients  Outbound withholding tax
Malta is one of few countries left in the world that still has a full imputation system. Mean- on dividends, interest or
ing, with an effective corporate tax rate of 5%, following application of tax refunds, royalties (inbound withholding
shareholders are 0% taxed on any dividends that they receive. may be reduced via treaty net-
work)
Effective post refund tax MaltaHoldCo /  Duty on international share
burden of 5% Foreign Co/ or Refund = 30
 MaltaOpCo pays 35% tax Non Resident Indi- issues or transfers
vidual Shareholders
 Malta HoldCo receives  Transfer Pricing Rules or
Maltese Revenue
6/7ths refund of Malta thin capitalization
Dividend 35%
tax paid by Malta OpCo 65 MaltaOpCo
on distributed profits  Controlled foreign company
 Dividend of 65 laws
Trading Profits
= 100  Entry or exit taxes
 No further Malta tax on
transfer of profit
 Over 62 double taxation treaties worldwide
 Tax payment and refund
can be planned to occur  Tax refunds are legally guaranteed and paid within 2-3 weeks of application
within 2 -4 weeks  Use of IFRS functional convertible currency – for statutory capital, financials, tax and tax refund
purposes
 Revenue rulings are binding for 5 years or 2 years following a change in legislation

2. With- With
Malta’s tax system - the Company
out Foreign
refund system in figures Tax
Foreign Tax
Tax
Full Imputation System - tax paid at the corporate level is fully Net for- 800 800
imputated at the shareholder level, meaning shareholders’ divi- eign in-
dends are not taxed. come
Malta’s Tax System
Grossing - 42
Following the application of Malta’s tax refund system, depending on the refunds ap- up with
plied for, Malta’s corporate tax rate is substantially reduced from 35% to: foreign tax
 6/7ths refund for trading income = 5% tax rate
Chargeable 800 842
 5/7th refund for passive income = 10% tax rate income
 2/3 refund for certain passive income = 6.25% tax rate (i.e. royalties)
Tax at 35% 280 280
 100% tax exemption - patent royalties
Malta’s Corporate Tax Basis Credit – (42)
What income is taxed by Maltese authorities? double tax
relief
(DTA)
Malta tax 280 253
payable
Shareholder Tax Computation
Refund on 240 253
distribu-
tion (6/7)
of gross
tax
Effective 40 0
*Remittance System - for those who wish not to incor- tax leakage
porate in Malta, but use the jurisdiction as a tax base,
money not remitted to Malta is 0% tax rated. Note
that some tax treaties exclude this benefit. Effective
Malta Limited Company Facts rate of
Setting up a Malta Ltd company is surprisingly easy and speedy. With low statutory corporate 5% 0%
tax on net
registration fees starting at €245 and a low threshold minimum authorised share capi-
income
tal of €1,200 of which at least 20% must be paid up, so that only €240 need be depos-
ited into a bank account.
Participating Exemption - Malta as a Holding Jurisdiction
Malta Parent 100% tax exemp- Income derived from a participating holding or from the disposal of such holding will
tion on profits qualify for a participation exemption, which is intended to exempt from tax, divi-
derived from sub-
sidiaries and re- dends and gains derived from such holdings. The income derived from a participat-
mitted to Malta ing holding which qualifies for a participation exemption, may be altogether ex-
UK / Foreign
Company cluded from the tax return and as a result 0% tax will be due.
Acumum Legal Group: Maltese, UK & International Lawyers & Accountants
info@acumum.com | www.acumum.com | Skype ID: acumum
Malta Office +356 2778 1700 | Local Rate Numbers - UK 44 (0)20 7060 4277 & USA 1646 569 9003
Information for guidance purposes only © Acumum. All Rights Reserved

3. Sector Specific - Low Tax & Vat Rates
Yacht Registrations & Maritime
- Largest Shipping Registry in EU - Surpassing Greece
- 7th Largest Shipping Registry in the World
For ship owners, Malta is an attractive jurisdiction as it operates a tonnage tax system, as a result the actual income generated
by a shipping company is 0% taxed in Malta.
VAT Scheme for Yacht Finance Leasing
It is possible to reduce the VAT levied when vessels are under finance lease arrangements; provided that the vessel is owned by
a Malta registered company and the lease agreement is less than 3 years. Added to which, the lease agreement must contain
an option to purchase the yacht at the end of the lease and such agreement is approved by the Malta VAT authorities before-
hand.
The applicable Malta VAT rate levied is dependent upon the type of vessel and its deemed use within the EU. The applicable
Remote Gaming
As one of the first EU jurisdictions to license remote gaming, Malta’s single regulatory body, the Lotter-
ies Gaming Authority is particularly knowledgeable and responsive to new or established operations
either setting up or moving to Malta. Added to which are the low set - fees and costs both in respect of
initial costs and on going operations.
Aviation
Wanting to attract the aviation sector, Malta has introduced very beneficial fiscal regulations for the import and operation
of aircraft - for both private and commercial use. With 0% VAT and no import duties, Malta is a cost effective solution for indi-
viduals or companies wanting to bring aircraft into the EU. Further benefits include:
 Fractional ownership  Short wear & tear depreciation periods  No import duties for civil aircraft
 Step-Up’ of aircraft value from book  No stamp duty on any aircraft, as aircraft
 15% income flat tax rate for highly
value to fair market value upon mi- are not deemed chargeable assets under
qualified individuals
gration to Malta Maltese tax law
Key Facts—2012 Aside from the Big 4 Accounting & Audit
 Standard & Poor 2012 rating: long-term sovereign credit BBB+ Firms, Companies already in Malta:
 Moody, Sept 2012 Government Bond Rating: A3
 Fitch:, Sept 2012 Short-term IDR at 'F1' and Country Ceiling at AAA
 Mixed common & civil law system – corporate, commercial & trusts
laws based upon English statutes (Jersey)
 English an official language
 Currency: Euro
 GDP €6.4 billion
 GDP Growth 2.9%
 GDP per Capita €15,300
 Inflation rate 1.5%
 12th soundest banking system & 15th position in Financial Market
Development (World Economic Forum’s Global Competitiveness Re-
port 2011 – 2012)
 Single financial services regulatory body; MFSA
 Flight times UK - 3; Frankfurt - 2, Dubai - 7
Acumum Legal Group: Maltese, UK & International Lawyers & Accountants
info@acumum.com | www.acumum.com | Skype ID: acumum
Malta Office +356 2778 1700 | Local Rate Numbers - UK 44 (0)20 7060 4277 & USA 1646 569 9003
Information for guidance purposes only © Acumum. All Rights Reserved

4. Malta’s Credit Ratings
Malta’s International Legal &
Fitch - A+
Moodys - A3 Advisory Boutique
Standard & Poors - BBB+
- a viable alternative for clients with
assets located in Cyprus
Benefits for Private Clients
As a foreign resident of Malta you only pay tax on income received or remitted to Malta – 0% tax payable on worldwide in-
come; 15% if you enjoy permanent residence; or 35% tax if ordinarily resident and then only on income remitted or arising in
Malta.
With 0% capital gains tax on income outside of Malta, 0% wealth tax, 0% inheritance tax, Malta is a popular place to retire or
live.
Essentially a civil law system, Malta has modelled its commercial law – tax, company, trusts and financial services – on UK law
and is fully compliant with EU law.
Highly Qualified Rules - 15% Flat Income Tax Rate
Malta wants to attract the gaming, aviation and financial sectors. As such new income tax rules mean that certain individuals
earning €83,000 can enjoy a 15% flat rate income tax rate, fixed for 4 years for EU citizens
Wealth Management & Estate Planning
Through effective estate planning, a client’s personal affairs and wealth can be maintained and preserved. One of the most
effective tools is that of the
will and the trust. Obviously, Any law may govern a Malta trust Trusts are ‘looked through’ for tax purposes
difficult questions and prob-
lems may arise in international Benefits of UK modeled trust law Low service provider rates
asset and property structuring.
Upon settlor’s death or insolvency - ac- Can be treated as companies in order to
Fiscal benefits of using counts are not frozen enjoy Malta tax treaties
Malta trustees and
administrators May be re-domiciled to Malta Licensed and insured trustees
About Acumum Legal Group
Unique in Malta, we are Maltese, UK & international lawyers & accountants, managed by a UK barrister; registered in Malta –
all with extensive on location onshore & offshore experience, providing legal & advisory services to individuals, companies,
family offices and other institutions.
We also provide advocacy services through an associated international Barristers Chambers, representing law firms and clients
– individuals, corporations, institutions & Governments before UK, EU and International Courts & Tribunals in most Common-
wealth countries.
Our Lawyers & Accountants are highly knowledgeable specialists in their fields – committed to providing cost effec-
tive, excellent client service. Utilising a multi-disciplinary & multi – jurisdictional approach, we are engaged by both private indi-
Tax Private Client Financial Services
Corporate Formation & Services Trusts & Estate Planning Gaming
Aviation Maritime Malta, UK, Alderney, Caribbean,
USA
Intellectual Property - IP Holding Compa- Public & Private Law
nies & Royalty Routing Industry Support
Acumum Legal Group: Maltese, UK & International Lawyers & Accountants
info@acumum.com | www.acumum.com | Skype ID: acumum
Malta Office +356 2778 1700 | Local Rate Numbers - UK 44 (0)20 7060 4277 & USA 1646 569 9003