The provided information outlines the process and benefits of establishing a branch of a foreign company in Malta.

Here is a summary of the key points:

Establishment of Branch in Malta: Following recent amendments to the law, a foreign company has the option to establish a branch in Malta. Overseas companies setting up branches in Malta must register the branch with the Maltese Registry of Companies within one month from establishing a branch or place of business in Malta. The Maltese Companies Act defines a foreign or ‘overseas company’ as a body corporate constituted or incorporated outside Malta.

Registration Requirements: Section 385 of the Companies Act outlines the documents that must be submitted to the Registrar of Companies for registration within one month of establishing the place of business.

Taxation of Maltese Branch: A branch of an overseas company, managed and controlled outside Malta, is taxable in Malta only on income arising in Malta and on income arising outside Malta but remitted to Malta. The taxable income of a Maltese branch is subject to the same corporate tax system as Maltese companies, with the income taxed at the same rate as that of a Maltese company.

Tax Refunds and Double Tax Agreements: Non-resident shareholders of overseas companies may qualify for refunds of tax. Subject to conditions in specific double tax treaties, branches of foreign companies can utilize the provisions of relevant Malta double tax treaties with other jurisdictions.

No Withholding Taxes: Profits of a branch office are not subject to withholding taxes at the time of transfer or later. Branch profits are only subject to the corporate tax charge at the domestic rate.