Refund on Specific Corporate Income
Under the provision of this updated Act, shareholders of Malta registered companies may claim certain types of refunds.
Companies can currently claim a tax refund on income that is held with their Maltese Taxed Account (MTA) and their Foreign Income Account (FIA).
The MTA houses income that has already been taxed in Malta or which has been exempt from tax under any provision in Maltese law. The FIA is used to manage any profits that result from royalties, dividends, capital gains, interest, rent and other economic activity arising outside of Malta.
Income ineligible for Tax Refund
Tax refunds may not be claimed on income that is allocated to the Final Tax Account (FTA) and the Immovable Property Account (IPA).
The FTA refers to corporate income which has been subject to final tax, while the IPA refer to corporate profits or gains derived from the alienation of immovable property located in Malta.