Substance Considerations in Malta

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Many international organizations, such as the OECD, European Council and European Commission, are driving changes as to how businesses operate, with a focus on substance. The international arena is changing, and with the implementation of Base Erosion and Profit Shifting legislation (BEPS) measures, it is becoming increasingly important to demonstrate real substance and genuine activity. Emphasis is placed on the requirement for an operation to have substance in the country or countries where activities are carried out.

Within international tax planning, substance has become an important consideration when setting up a new corporate structure and/or when restructuring an existing corporate structure.

There are no specific economic substance rules in Malta, but there are a number of netherlands mobile database recommendations that you should consider when setting up a company, to ensure that the company will remain tax resident in Malta.

Members of the board of directors – a minimum 50% of the board members should be Maltese resident;
The decisions of the board of directors should be taken in Malta and the minutes recorded locally through regular board meetings;
Creation of economic substance in Malta, by renting an office and employing personnel.
Factors that Assist in Establishing Substance in Malta

There are a number of factors that assist companies to meet the recommended substance requirements in Malta:

There is a large, well-educated pool of English speaking individuals available for employment. In recent years, in particular, there has also been an increase in affordable flexible working spaces.