The following overview details Malta’s corporate tax regime for companies in 2025, including principal rates and notable features. This guide aims to offer a concise, data-focused summary of the essential information available for corporate taxpayers in Malta.
Corporate Tax Rate and Assessment in Malta
Malta maintains a flat corporate tax rate on standard corporate profits. The basis of assessment is strictly corporate, meaning corporate entities are taxed independently from personal shareholders. The corporate tax rate remains unchanged for 2025, applying uniformly to resident companies as well as non-resident companies on Malta-source income.
| Tax Type | Rate (EUR, %) | Assessment Basis | Currency |
|---|---|---|---|
| Standard Corporate Tax | 35% | Corporate | € (EUR) |
This 35% flat rate applies broadly, regardless of profit thresholds or business sector, making Malta’s approach clear and predictable. No progressive tax brackets are set for corporate entities. All profits are generally subject to taxation at this rate unless a special provision applies.
Surtaxes and Sector-Specific Rates
Malta applies one notable surtax within its corporate tax framework. Specifically, petroleum profits arising from contracts signed prior to 1 January 1996 attract a 15% surtax, resulting in a total effective tax rate of 50% on those profits. This measure is highly specific and applies only to qualifying petroleum operations under pre-1996 contracts.
| Surtax Condition | Surtax Rate (EUR, %) | Total Rate (EUR, %) |
|---|---|---|
| Petroleum profits (contracts signed before 1 January 1996) | 15% | 50% |
No other general or sector-specific surtaxes are enforced at the corporate level according to currently published information for 2025.
Tax Brackets and Holding Periods
Malta’s system in 2025 does not feature progressive brackets for corporate income tax; instead, every euro of corporate profit is taxed at the flat rate of 35%. No data is published regarding any holding period requirements or adjustments for capital gains, reinvested profits, or shareholdings at the corporate level.
Corporate Tax Summary Table – Malta 2025
| Key Aspect | Summary |
|---|---|
| Tax Rate | 35% (flat) |
| Currency | € (EUR) |
| Tax Brackets | None (flat rate applies) |
| Surtax | 15% on specific petroleum profits (pre-1996 contracts), total 50% |
| Assessment Basis | Corporate |
| Minimum Holding Period | Not specified |
| Maximum Holding Period | Not specified |
Pro Tips for Managing Corporate Tax in Malta
- Consider sector-specific rules if your activity involves petroleum: Profits from legacy petroleum contracts may face significantly higher tax rates.
- Plan for the flat rate: All taxable corporate income, regardless of amount, will be assessed at 35% unless a statutory exemption or specific regime applies.
- Stay informed on administrative changes: While the core rate is stable, businesses should monitor updated guidance from Maltese authorities for compliance and reporting obligations. Official information can be referenced on the Maltese government’s finance portal (https://finance.gov.mt).
- Monitor holding period rules for new investments: While no holding periods are specified at the corporate tax level, future amendments or sector-specific conditions may be introduced.
Malta’s corporate tax system in 2025 is characterized by its flat rate and straightforward assessment. The uniform 35% rate keeps compliance relatively clear, though the petroleum profits surtax remains an important sectoral exception. With no tax brackets or holding period criteria presently mandated, companies can anticipate predictable treatment of ordinary profits. As always, businesses should remain vigilant for possible yearly adjustments or clarifications from the Maltese tax authorities.