INTERNATIONAL SOLUTIONS

Are you already trading Internationally? Or perhaps you may be planning to start! Whatever the case then it may be worthwhile for you to consider the underlying benefits of doing business from Malta.

International Trading Companies and International Holding Companies

::> International Holding Companies(IHC)
An IHC is a normal private limited liability company under Maltese law whose objects are restricted to the ownership, management and administration of share holdings in one or more overseas companies. It may also own and manage its own assets held outside Malta. (PDF file International Holding Companies )

::> International Trading Companies
An International Trading Company (ITC) is a company registered in Malta which is engaged solely in trading activities outside Malta with non-resident persons.  There are certain exceptions where trading with resident persons is allowed, in the case of purchases of goods manufactured in Malta for exports and trading with offshore trading companies and other ITC’s.( PDF file International Trading Companies )

::>Relief from Foreign Taxation

The Maltese fiscal regime provides four schemes of double taxation relief.

Relief  may be claimed:

   1 on Commonwealth income tax, or
   2 through Malta’s extensive double taxation relief treaty network with over forty countries (See table at the back).
   3 unilateral relief, and
   4 a flat-rate foreign tax credit.

(PDF File Double Taxation Reliefs )

::>Collective Investment Schemes
Collective Investment Schemes (CIS) are regulated by the Investment Services Act. The Act defines a collective investment scheme as:

 …any scheme or arrangement which has as its object, or as one of its objects, the collective investment of capital acquired by means of an offer of units for subscription, sale or exchange and which has any of the following characteristics:

• the scheme or arrangement operates according to the principle or risk spreading; and either
• the contributions of the participants and the profits or income out of which payments are to be made to them are pooled;
• at the request of the holders, units are to be re-purchased or redeemed out of the assets of the scheme or arrangement, continuously or in blocks at short intervals; or
• units are issued, or have been issued, or will be issued continuously or in blocks at short intervals.

(PDF file Collective Investment Schemes )

::> Redomiciliation

Foreign Companies incorporated outside Malta nmay transfer their domicile to Malta ithout winding up their foreign bussiness. Redomiciliation or continuation may be carried out under certai terms and conditions which allow the forign company set-up to remain in existence.

Foreign companies which choose to transfer their domicile to Malta may benefit from tax advantages available under International Trading Companies legislation.

(PDF File Redomiciliation Regulations and requirements )