Tax opportunities when doing business abroad

Read in Latvian

As promised in late 2010, PwC’s Academy continues to organise guest seminars explaining tax systems and business opportunities in other countries.  On 11 May, PwC tax partner Serge Saussoy and director Eric Paques from Luxembourg will present the business opportunities in their home country.  For more details of this event please go to www.pwc.lv/pwcacademy.

This is the fourth in our series of guest seminars and, of course, not the last one.  To recap, we learned about Germany and Russia in November 2010, and about Malta in March 2011.  This article provides an insight into the information presented at the seminar „Built-in benefits of the Maltese tax system” where you had the opportunity to become familiar with the main points you should know when considering doing business in Malta and to receive answers to your specific questions as well as hearing suggestions from a Maltese tax expert.  The presentation was given by Neville Gatt, PwC tax partner from Malta.

Malta is a small, independent democratic republic in the Commonwealth with a developed economic and industrial structure.  An EU member since 2004, Malta could be a proper base for international activities given its diversified economy and many other success factors.  The main built-in benefits of the Maltese tax system are as follows:

• A very flexible participation exemption regime;
• Foreign companies resident in Malta may be non-taxed on foreign-source income and capital gains;
• Tax refund system with net leakages of 0–10% on most sources;
• Base erosion possibilities, e.g. no sophisticated international anti-avoidance;
• Possibility of planning with trust structures, e.g. Maltese trusts can typically opt for either a look-through or corporate tax treatment;
• Upfront Revenue opinions/tax rulings;
• Withholding tax exemptions on dividends, interest and royalties to non-residents;
• Around 60 double tax treaties and access to EU tax directives; and
• Choice of share capital/tax payment currency.

And what are the built-in benefits of the Luxembourg tax system? 

If you are interested in a particular country, please let us know and we will consider inviting our colleagues from the country of your choice.  Please send in your suggestions and comments to pwc.kursi@lv.pwc.com.

We look forward to welcoming our next visitors.