Income tax
The tax charged on a company's profit for the year — in Malta, thirty-five cents in every euro of chargeable income.
Malta charges companies thirty-five cents on every euro of chargeable income under article 56(6) of the Income Tax Act (Cap. 123), and charges it on profit as it is earned rather than as it is paid out. On the headline rate that is among the higher ones in the European Union.
The rate is not the whole picture, and the part that is missing sits with the shareholder rather than the company. Under article 48(4A)(a) of the Income Tax Management Act (Cap. 372), a shareholder receiving a dividend from a company registered in Malta may claim a refund of six-sevenths of the tax attaching to the distributed profits. That refund is claimed by the shareholder and does not reduce the charge in the company's own accounts, which is why the figure on this line stays at the full rate.
It also means this line cannot be used to compare a Maltese company with a foreign one without allowing for the difference in systems.
Where this figure comes from
Read from the income statement in the annual report.
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