BACK OFFICE ADMINISTRATION
The Concept
The Maltese authorities encourage the setting
up of foreign operations that offer back office administration and support
services to other foreign enterprises.
Back office services include routine
administrative and clerical service in relation to or in support of any
type of business or professional activity.
Qualifying activities may include the
processing and recording of invoices, sales transactions, and accounts
management information reporting. Any routine or administrative tasks that
is carried out in support of any business or professional activity
pertaining to a financial services concern may be hived off or out-sourced
in a way as to qualify as a back office activity as required by the MFSC.
Financial services activities include banking, insurance and investment
services.
Back office activities could therefore
include such a diverse range of administrative tasks and routine
services such as form-filling work in support of trust services, shipping
and maritime trade, processing
and filling of insurance claims forms, repetitive administrative work
involved in fund administration
business and other professional services. In other words, generally any
routine administrative, basic
book-keeping and analogous administrative support services.
This incentive is applicable to a wide sphere
of activities as back office services are widely defined as “routine
administration services”, with unlimited application to any business or
professional activity.
There are no restrictions as to the type or
nature of the back office services that may be accepted for the purposes
of this tax benefit. Thus it is possible for the entrepreneurial and
professional class to identify activities which could be classified as the
provision of back office administrative or support services.
The services may be, for example, in support
of companies engaged in airlines, hotel or hospitality industry, or
administrative tasks in support of trust services, shipping and maritime
trade, insurance or fund administration business. Indeed most
administrative tasks can be out-sourced in a way as to qualify as a back
office activity for purposes of law.
Benefits
-
Low rate of tax for back-office ITCs
-
An extensive range of double taxation
agreements which supports effective tax planning.
-
Training grants for approved programs are
offered to employees and management.
-
Factory and office space is available at low
rental costs.
Malta is in a good position to encourage
local set-ups of this nature because of a well-educated workforce and its
high number of professionally qualified and trained personnel.
|
Malta-Tax
Malta tax consultants:
Tax
consultants and accountants providing personal taxation, company
accounting and taxation, Value Added Tax consultancy and back
office services. |
