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.

THE PARENT-SUBSIDIARY DIRECTIVE
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