Malta 6/7 Tax Refund
Profits allocated to the right tax accounts, and each shareholder's refund claim prepared with its papers.
- Malta Institute of Taxation member
- Claims for shareholders abroad too
- Work with your advisors abroad
You will speak with Andrew Fenech
Why Borg Galea
Accounts and audit alongside
Your accounts, audit and corporate work through the same relationship as your tax.
A firm of 115+ people
We have grown from two people at the 2017 founding to 115+ at Borg Galea.
A team in Birkirkara
The team works from our office at Centris Business Gateway, Birkirkara.
“I have been a client of Borg Galea & Associates for 5 years and have always found their services to be extremely professional and approachable. They support me through many financial tasks, both on a personal level and in respect of my company. They also enlist the help of other professionals to ensure that informed decisions are made. I highly recommend their services.”
Daniel CutajarDino’s Motors- Borg Galea is a member of FinanceMalta, IFSP, MIA, MIT and MEA.
Where refund claims usually need work
- 01
Allocating the profits
Send us the year's accounts. We prepare the tax computation and allocate profits to the tax accounts, which decides the refund.
- 02
Filing the claim
Once the dividend is declared, we prepare the dividend documents and file each shareholder's claim with its supporting papers.
- 03
Shareholders outside Malta
They can claim too, once registered with the tax authorities. We review substance and work with your advisors abroad.
How a refund claim comes together
- 1
The company files and pays
The company files its tax return and pays tax at 35%.
- 2
The dividend is declared
Profits are allocated to the tax accounts and the dividend is declared from the relevant account.
- 3
The shareholder claims the refund
The shareholder files the claim with the documents, and the refund is paid to the shareholder, not the company.
What a Malta tax refund claim needs before it is filed
The shareholder makes the claim, but the work starts with the company. A refund claim is usually prepared once the audit of the financial statements has been concluded. The company must also have declared the dividend and paid the tax on the distributed profits before any refund is due.
The claim form is prepared by a tax professional and submitted to the International Corporate Tax Unit. Before that, we look at what the company does. Some activities, such as services directly related to immovable property, can rule a company out of the refund system. Where a holding company sits between the trading company and the shareholders, we review the income that flows through it and whether claiming the participation exemption or a refund suits it better.
To prepare the claim we need the year's accounts, the dividend documents including the dividend certificate, and each shareholder's tax registration details.
Who you will work with
Our tax team prepares the dividend documents and refund claims and deals with the tax authorities.
Christine Ann Galea
Tax Transformation Leader
Andrew Fenech
Nathaniel Borg
Audit Director & Co-Founder
Malta tax refund FAQ
How does the Malta tax refund work?
The company pays 35%, and after a dividend the shareholder claims part back. On EUR 100,000 of trading profit, the company pays EUR 35,000 and a 6/7 refund returns EUR 30,000, leaving 5%.
Which refund applies to which income?
Trading income generally gets 6/7, passive interest and royalties 5/7, and income with double taxation relief 2/3. Participating holding income can be exempt, or fully refunded if the exemption is not claimed, subject to conditions.
Is the refund automatic?
No. The shareholder claims it after a dividend, with supporting documents, within four years of the tax becoming eligible for refund, and the refund cannot exceed the tax the company actually paid.
Can a refund claim be refused?
Yes. Incomplete documents, a missing dividend certificate, tax the company has not paid or an arrangement caught by anti-avoidance rules can delay or prevent the refund. A complete claim reduces that risk.
Ask about your refund claim
Tell us the financial year involved and whether the dividend has been paid.
You will speak with Andrew Fenech