Apart from the services traditionally offered, we specialize in offering bespoke tax advice both in connection with local legislation as well as any advice which one may require on an international level. This applies to both corporate structures as well as other vehicles.

Our services are tailored to guide the taxpayer throughout his activities. We are tax representatives of several corporate entities and as part of our services we guide them in benefiting from all the fiscal incentives that Malta has to offer. 

Our Direct Taxation department is likewise equipped with lawyers and accountants who also hold a specific diploma in relation to direct taxation. This expertise  ensures that our clients are provided with high end advice which they can trust.

We advise clients on matters relating to personal taxation. This involves completing personal tax returns, advising clients on their personal tax matters and assisting them with both local and international tax advice. 

Through Parker Russell International we assist clients with their personal taxation requirements throughout the jurisdictions where our network has a presence.  Our network is an expert in cross-border taxation where we have a thorough understanding of tax laws of all countries involved in order to help our clients with the worldwide tax services required.

We are also there to assist clients when they fall behind with their tax compliance requirements, and we are available to liaise with the Malta Inland Revenue Department to help our clients get back in line with their tax obligations.  We help our clients in entering into agreements with the tax authorities when this is required.

Our services also extend to helping our clients with the International Tax Unit, where we assist our international clients in obtaining their tax refunds and in fulfilling all their obligations in Malta. Malta’s Personal tax varies depending on one’s income, one’s status and residency.

In the case that a person is resident in Malta, he or she will be charged according to the following rates:

Please note that the status of one’s person is determined in the following manner:

  • If one is not married, or married but both spouses work and earn a similar pay he or she shall fall under the SINGLE RATE;

  • If one is married and only one spouse works regardless of whether the spouses have children or not, he or she shall fall under the MARRIED RATES;

  • If one is married with both spouses working and have children, or if one is not married but is a single parent he or she shall fall under the PARENT RATES,

On the other hand if one is a non-resident he or she shall be charged according to the following rates:

Malta is fast becoming a very attractive jurisdiction for individuals wanting to become residents here as well as for clients who decide to set up their corporate structures in our country.  This is why it is very important that our tax and regulatory policies are understood for the optimization of our clients’ growth and success.

Being part of the international network, Parker Russell International, Parker Russell Turner can offer a single reference point for international clients that are present and registered in Malta, but who have a presence in another jurisdiction.

It is very common for clients to require advise in more than one jurisdiction.  This can be as a consequence of their family life or professional situation.  At times, a taxpayer receives income from various jurisdictions and without the right advice, he may not be tax compliant. So we take pride in following up our clients closely and see that they are tax compliant not only in Malta but on an international level as well.

Malta can also be a party to the Parent-Subsidiary directive.  This directive covers income derived from a participating holding  or a disposal of such holding.

In accordance with current legislation, when dividends distributed from an EU participating holding to a company registered in Malta, are exempt from withholding tax under the Parent Subsidiary directive, the Participation exemption  will apply only when such profits are not deductible by the relevant subsidiary in the other EU member state.

What is a Participation Holding?
To have a participation holding, a company must satisfy at least one of the following conditions:-

1. The holding of at least 10% in a company registered outside Malta;
2. The holder of such shares is entitled to call for and acquire the entire balance of the equity shares not held;
3. The shareholder is entitled to the first refusal in the event of a disposal, cancellation or a redemption of all shares;
4. The shareholder is entitled to sit on the Board of Directors or appoint a person to sit on the Board as a Director;
5. The shareholder holds an investment of a total value of Eur 1,164,000 and the holding is held for an uninterrupted period of not less than 183 days;
6. The shareholder holds the shares for the furtherance of its business and not held as trading stock.

Cross-border structures are becoming increasingly attractive for tax planning and other reasons. They are the essence of the strategic management of several international scenarios that serve to help enterprises grow, especially if they trade on an international level. For this reason, the need at times arises where we carry out cross border mergers and acquisitions, in order to bring about and set up the most adequate structures for the client. Cross-border mergers and acquisitions involve the buying, selling, dividing and merging of two or more structures.

Parker Russell Turner ensures that all our clients are compliant with local VAT legislation. In Malta the standard VAT rate is 18%, but there are other reduced rates for certain supplies. We also liaise with foreign jurisdictions and foreign VAT practitioners when our clients need to be VAT registered abroad for their international trading requirements.

As part of our VAT advisory services, we assist clients during VAT investigations and when their accounting records need to be verified. 

  • Maltese VAT

  • VAT Return Compilation & Indirect Taxation Advice

  • VAT Investigations

  • Stamp Duty

  • Tax Planning

  • Tax Investigations

Maltese VAT

Malta is a full member of the European Union and consequently it forms part of the EU VAT system and has also adopted the relevant VAT directives. In Malta the standard VAT rate is 18%, but there are other reduced rates for certain supplies. 

At Parker Russell Turner, we ensure that all our clients are compliant with local VAT legislation. We also liaise with foreign jurisdictions and foreign VAT practitioners when our clients need to be VAT registered abroad for their international trading requirements. 

As part of our VAT advisory services, we assist clients during VAT investigations and when their accounting records need to be verified. 

Maltese Vat Return Compilation & Indirect Taxation Advice

Complimentary to our accounting services is the preparation and submission of the VAT Returns to the Value Added Tax Department, in Malta and if necessary abroad. 

Due to the harmonisation of VAT Legislation and the evolvement of the nature of the products and services which are being launched in the market, the VAT Legislation in Malta is being updated on a relatively frequent basis. Therefore one must ensure, that such important statutory document is being compiled according to the current VAT Laws. Furthermore, we ensure that the submission of the vat returns are in line with other necessary documents such as intrastat documentation, recapitulative statements and other online registrations. 

Our people are continuously updated and trained in this regard, therefore once this service is entrusted to us, we can assure the client of the professionalism by which such forms are handled. Futhermore, technical advice will also be provided on an ad hoc basis.

Our accountancy department, offers an array of services to the business client as follows:

  • Registration for VAT Numbers;

  • Advice on Indirect Tax Planning and Technical matters;

  • Compilation and Submission of VAT Returns;

  • VAT Health Check Reports;

  • Assistance in VAT Investigations.

VAT Integrations

Adhering to VAT Legislation is a complex and onerous task. When your accounting records are not handled by professional persons, errors may arise which could lead to hefty penalties and fines. Such circumstances create onerous situations if not handled professionally by competent persons. Our firm can assist you in the most transparant, efficient and timely manner. The firm is equipped with technical and professional persons backed by many years of experience in taxation matters.

We do not only carry out a thorough exercise on your accounting records to identify pitfalls, if any and the reasons for this, but we also represent you with the Value Added Tax and Indirect tax Tribunals. 

Stamp Duty

The stamp duty is currently at 3.5% on the first €150,000 of the immovable property price. This applies only on the purchase of one place of residence and subject to the purchaser having the intention to establish within the property his or her ordinary residence. (This does not apply for non EU citizens).

20% of the total stamp duty is payable on the promise of sale agreement, and the balance is payable on the deed of purchase. The balance is payable at the rate of 5%.

All Non-EU Nationals have to pay 5% in Stamp Duty on the value stated in the Final Deed of Sale. However EU citizens taking up permanent residence in Malta and who have sold their overseas properties and plan to use their Maltese home as their primary residence qualify to pay 3.5% on the first €150,000 instead of the 5%.

In 2014 the government launched an incentive for ‘ First-Time Buyers’ where an exemption from stamp duty on the first €150,000 is being offered. This means that a maximum of €5,250 may be saved. Both foreigners and Maltese nationals can benefit from this scheme provided certain criteria are satisfied. 

The criteria are as follows:

  • Property buyers who will acquire a home through transfer by inheritance, that will be used as the sole domestic residence;

  • Buyers who are purchasing their first house without ever having had any other property under their name; and

  • Non-residents who do not require a property acquisition permit.

The concession will apply for buyers who have registered a promise-of-sale agreement (konvenju) from July 2013 right up to the end of 2014.

For second home buyers, the stamp duty is that of 5%.

Tax Investigations

We are one of the few entities in Malta that are fully licensed to offer both fiduciary as well as trustee services. 

We believe that every person has a right to register a trust if the need arises. Our trustee services cater for all types of situations-be they commercial trusts or family/children trusts. 

We also offer the services of fiduciaries, meaning that we can hold shares in the name of the shareholder on the Memorandum and Articles of Association. 

When approached by a client we draft the trust deed after a thorough discussion is held in relation to the intentions and wishes of the client. As part of our fiduciary obligations, anonymity and confidentiality are part and parcel of our services. 

  • Expertise

  • Trust Services

  • Benefits of Trust

  • Fiduciary Services

  • Back Office & Directorship Services

We assist our clients with tax investigations. We act as advisors on cases opened by the Inland Revenue Department, the VAT Department and the Tax  Compliance Unit. 

Our team is made up of accountants who are highly experienced in procedural matters that are crucial in such investigations.

Our team also assists lawyers in the course of such investigations by analysing corporate documents and financial statements and giving the necessary feedback to the fiscal authorities. 

Tax Planning

We can assist clients with tax planning. We use our experience and knowledge of the various sectors that our clients would be working in, in order to assist them with their tax planning. Jointly with our international partners, we can assist our clients to evaluate international jurisdictions and structures in order to assist them with their tax planning matters. 

We also assist our clients taking advantage of available tax credits. From time to time, the Government issues various schemes that assist businesses by decreasing their tax burden through various tax credits. Such tax credits also incentivise businesses to invest more in the economy.