"Malta and China have signed a Reciprocal Promotion and Protection of Investments agreement in 2009 "
Forward-thinking Chinese entrepreneurs are becoming increasingly conscious of the advantages of steering away from the more obvious tax jurisdictions and towards less visible but equally advantageous regimes. Finding the right jurisdiction with the help of the right experts to guide you can open up a land of opportunities.
The EMCS International offers a one-stop-shop to foreigners seeking to do business from or within Malta. Services include corporate and tax structuring, personal tax planning including assistance with re-locating to Malta and acquiring property in Malta, ship and aviation registration, back office and accounting, trustee services, assistance with setting up a remote gaming company in Malta and financial services advisory, including the setup of professional investor funds and asset management companies. A team of tax and legal specialists, accountancy and management consultants offer advice and bespoke solutions to an international client base with clients as far afield as Australasia and the Americas.
Malta has growing appeal to the foreigner for various reasons, at the forefront of which is full EU membership and a very advantageous tax regime ideal for international tax planning opportunities, particularly as an exit route for non-European investors investing within Europe due to the combined application of the participation exemption and absence of outbound withholding taxes. Furthermore, Malta and China have signed a Reciprocal Promotion and Protection of Investments agreement in 2009 as well as a new double taxation agreement which further strengthens the very good relationship between the two countries. The new double taxation treaty reduces the withholding tax rate for dividends with respect to holdings of at least 25% to 5% from the previous 10%. Withholding taxes on particular types of royalties has been reduced to 7%.
Remote Gaming in Malta
The remote gaming sector is the most dynamic and the fastest growing gaming sector in Malta and a number of key industry players are based and licensed in Malta, example Betfair and Betsson. The highly regulatory framework aims to provide both a secure on-line environment to players and a competitive edge to remote gaming operators. One may apply for four types of class licences including casino type and skill games, online lotteries, pool and spread betting, P2P, poker networks etc.
Remote/online gaming operators based in Malta can enjoy the following benefits:
- Well regulated and stable jurisdiction
- Very attractive fiscal regime resulting in an effective tax rate of 5% on profits and no outbound withholding taxes
- Efficient and inexpensive licensing process
- Well established and regulated financial services institutions
Yacht & Aircraft Registration
Malta adopted a Commercial Yacht Code in 2006 and since then Malta has one of the largest super yacht registrations in the world.
The main advantages, of the Maltese Commercial Yacht Registration system are:
- An EU member state, internationally recognised and reputable jurisdiction
- No tax levied on any income derived from the use of such Commercial Yacht
- VAT Exemption on commercial yachts
- Low registration costs
Based on Malta’s success as an international yacht register, Malta recently amended its Aircraft Registration Act, which seeks to create one of the largest aircraft registers in Europe. Furthermore, the Act implemented the Cape Town Convention on International Interests in Mobile Equipment and the Aircraft Protocol thereto (the “Convention”) which facilitates asset-based financing and consequently enhances Malta’s attractiveness as an aviation centre.
By Geraldine Schembri & Rachel Saliba EMCS INTERNATIONAL MALTA