INTERNATIONAL HOLDING COMPANIES

An International Holding Company (IHC) is a company resident in Malta formed with the object of holding overseas investments and to distribute that income to non-residents.  Non-resident shareholders of IHCs qualify for a full refund of the Maltese tax paid by the company on profits and gains arising from “participating holdings” when such profits are distributed.

Taxation

While IHCs are subject to the normal corporate tax rate of 35%, the extensive network of double taxation agreements, together with the full imputation system of taxation and provisions for tax refunds contained in the legislation make Malta a very tax efficient jurisdiction for non-resident shareholders.

Non-resident shareholders qualify for a full refund of the Malta tax paid by a company on profits and gains arising from “participating holdings” when such profits are distributed.