Assistance to Family Businesses
Malta has recently introduced legislation to encourage good governance in the management of family businesses, to assist family businesses to operate their business in an efficient way and to assist such family businesses to transfer their business from one generation to the other. Malta is the first European Union Member State to enact such a legislation, the incentives of which are not only applicable to Maltese businesses but also to foreign owned businesses which are established in Malta.
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Such incentives include:
(a) Reduced stamp duty on the transfer of immovable property forming part of a business to be transferred from one generation to the other. The first Eur500,000 will be charged to stamp duty at a rate of Eur3.5 for every Eur100 or part thereof instead of Eur5
(b) Exemptions from the payment of stamp duty on the transfer of shares in a company from one generation to the other – the first Eur150,000 will not be taken into account
(c) Parents transferring their business to their children during the year2017 will benefit from a reduced stamp duty of Eur1.5 for every Eur100 or part thereof
(d) Loan guarantees – enhanced capping on maximum guarantee
(e) Tax credits – enhanced tax credits
(f) Positive consideration of lease renewal of property leased from the Government
(g) Education and Training for owners and employees
(h) Funding for professional advice relating to transfer of the business
(i) Mediation through arbitration to establish the fair value of a business to be transferred
(j) Investment aid – waiver of the condition that assets must be acquired from unrelated entities – this will allow greater access to family businesses.
How can we help?
We offer a wide range of consultancy, tax, compliance and accountancy services to assist you throughout in each step of the application process. Our multi-disciplinary team of professionals will not only assist you during pre-licensing process but will be able to provide you with the on-going support you may need with respect to regulatory compliance, accounting and tax matters.
ACT is a well-known and respected boutique tax advisory firm providing high-quality tax advice to Multinational Enterprises, SMEs including family owned and other owner-manged companies, family offices, trusts, foundations, employees and high net worth individuals.
Maltese companies are subject to tax at the rate of 35% on their worldwide income and capital gains. Malta grants various fiscal incentives to both companies and their shareholders upon the distribution of a dividend.
Malta has recently seen an increase in the number of Electronic Money Institutions (EMIs) looking to set up their operations in Malta. This has been largely due to the growth in the e-commerce and the i-gaming industries.