Malta Corporate Income Tax
Detailed corporate income tax rates and rules for Malta in 2026.
Malta's headline corporate tax rate is 35%, but its imputation system provides tax refunds to shareholders. When profits are distributed, shareholders receive a 6/7ths refund (for trading income), resulting in an effective tax rate of approximately 5%. This full imputation system eliminates double taxation and makes Malta one of Europe's most tax-efficient jurisdictions for international businesses.
Standard Rate
35%
Additional Notes
Different refund fractions apply: 6/7 for trading income, 5/7 for passive interest/royalties, 2/3 for profits subject to double taxation relief. Malta offers a participation exemption for qualifying holdings. The country has implemented EU Anti-Tax Avoidance Directives and Pillar Two minimum tax rules for large groups.
How Malta Corporate Tax compares
Malta’s corporate tax rate of 35% is the 2nd highest of 203 countries TaxAtlas tracks, above the global average of 22.2% and Europe’s regional average of 19%.
