MALTA - Your Ideal E-Business Partner!

May we take this opportunity to introduce you to Malta as an important International Finance and Trade Centre having established itself as an ideal Tax Planning Jurisdiction. Its history, culture, multilingual population, geographical position, hospitality facilities and tourist attractions, offshore companies with "onshore status", relatively low costs for management and administration, and its advanced communication systems, gives the added advantage over other jurisdictions.

We would like to point out that Malta's strategic location is allowing it to develop as an international e-business centre! In actual fact the country is well placed to offer a complete e-commerce package to anyone wishing to set up shop on the Island. The Government is committed to develop Malta further as an e-commerce centre, and is currently introducing legislation to further stimulate this sector.

The Government has recently published regulations amending the Public Lotto Ordinance to regulate online betting centres and by doing so it is expected to net millions of US Dollars from such operations. Operators may either opt to establish processing operations with back office activities and in which case no licence is required and company may then benefit from the ITC corporate vehicle, or in case the betting company wishes to establish a call centre to receive bets together with a processing operation, it will also benefit from the ITC corporate vehicle and will be subjected to a licence by the Gaming Board.

Until a few weeks ago, betting companies in the United Kingdom paid a 6.75 per cent tax on their turnover while Ireland applies tax at 5.3 per cent. Companies operating from Malta only pay 0.5 per cent! Although the British Government has now decided to allow tax-free betting in the UK and introduced a tax on gross profits, Malta still appears to be more competitive! The 0.5 per cent tax on each transaction (applicable in Malta) in reality works out to be around 12 per cent of gross profits, well below the 19 per cent that will be charged to bookmakers in the UK. A few of the online betting companies who took advantage of the present incentives include Unibet.com, Luvbet.com, Stanley Leisure plc, Firstake.com, Heathorns International, Totalbet.com and Bet On Sports.com.

Card processing facilities for Visa, MasterCard and EuroCard for online internet merchants (local or foreign based) and other Payment and Banking Solutions are available through one of the local Banks. The bank can process all types of transactions even high risk, including lottery, casino, betting, travel, etc... except for adult internet sites! Authorisation on a card transaction may be obtained either manually i.e. through telephone, fax or e-mail or electronically i.e. through a leased line or dial-up connection to the Bank's authorisation system. This depends on the volume of transactions and the urgency in which confirmation is required. The Card Services Centre offers a manned 24-hour service, 7 days a week. Processing can be done in multi-currency and settlement will be effected on a 2-day value date basis from processing date. Settlement can be in any currency.

We pride ourselves for providing clients a really Personalised Service! We realise that clients have individual needs and requirements and it has always been our policy to provide a service that is tailor-made to each individual both initially when setting-up a company and on an on-going basis year after year. We believe that we have the expertise to show your prospective clients how to take advantage of all the benefits Malta has to offer. At your request we can provide any bonafide client instant facilities of domiciliary service which include the following:

Registration of Companies
Nominee Shareholders, Directors & Company Secretary
Registered Office Facilities, Re-Mailing & Office Residence
Telephone, Fax and Email Service - Secretarial Services
Accounting & Feasibility Studies
Tax Planning & other Consultancy

The "onshore" companies registered in Malta for offshore trading are better known as International Trading Companies (ITC's) and International Holding Companies (IHC's). ITC and IHC Companies are in fact tax resident in Malta and incur Malta Income Tax at the normal rate of 35%. The advantage arises at shareholder's level for non-residents, which tax rate works out to 4.17% in the case of an ITC and 0% in the case of an IHC! Tax refunds would be made in favour of the shareholder/s of the Malta Company and not the Malta Company itself. Tax refunds to shareholders are effected in a short prescribed time limit.

Malta offers various advantages as an e-commerce business partner. It is an ideal location for e-businesses wishing to operate in a low cost environment. Malta has a rapidly expanding Double Tax Treaty network, which is of particular importance to companies operating globally. Non-residents have various options to register a company in Malta. Depending on the kind of company the prospective beneficial owners are after, we can make our recommendations and guide you better.

For more information contact us at office@dierrepiconsulting.com


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European Jurisdictions