Tax exposures / Fiscal incentives

Corporate profits in Malta are taxed at 35% but upon a distribution of taxed profits by way of a dividend, shareholders can claim a 6/7th refund of the Malta tax paid, thereby reducing Maltese tax leakage to around 5%. Malta also has a broad network of double tax treaties with more than 50 countries. Income derived from the lease or operation of aircraft used for international transport is considered to arise outside Malta and not taxed unless received in Malta. There is no withholding tax for non-residents earning income from the ownership, leasing or operation of aircraft used in international transport. Private use of a jet under management is not considered to be a taxable fringe benefit. Other fiscal attractions include competitive minimum depreciation periods for aircraft, tax deductions for finance lessors and capital allowances for aircraft lessees.