At the core of Malta’s appeal as a destination for business and investment is its progressive taxation system called the Department of Inland Revenue (IRD), which is both competitive and compliant with international standards.

Let’s take a quick look at the IRD in the article by, your all in one place to find lawyers worldwide.

Administered by the IRD, Malta’s tax regime is designed to foster economic growth, attract global talent, and encourage investment, all while ensuring fairness and transparency in tax collection.

The system’s foundation is built on a territorial basis, meaning only income generated within Malta is taxed, creating an enticing proposition for foreign investors and multinational corporations. Corporate taxation in Malta stands at a headline rate of 35%.

However, the effective tax rate (as administered by the Revenue Department) can be substantially reduced through various refunds, credits, and incentives, aligning with the nation’s strategy to attract businesses while maintaining a robust and fair tax collection framework.

For individuals, the tax rates are progressive, ranging from 0% to 35%, depending on income levels. This structure is thoughtfully crafted to accommodate different income brackets, ensuring that taxation contributes to social equity and economic stability.

Moreover, Malta has established double taxation treaties with over 70 countries, safeguarding against the double taxation of income and fostering a conducive environment for international trade and investment.

The Inland Revenue Department‘s responsibilities extend beyond tax collection; it serves as a crucial advisor and regulator, ensuring compliance with tax laws and providing necessary support and guidance to taxpayers.

From conducting audits to offering tax planning advice, the IRD Malta plays a pivotal role in maintaining the integrity of Malta’s tax system, promoting a culture of compliance and transparency.

If you’re interested in the IRD and would like more information do not hesitate to visit for more information!