What is an International Trading Company (ITC)
The international trading company (ITC) regime was introduced in Malta in 1994 and allowed shareholders of certain companies an effective tax rate of 4.17%. The regime was abolished and replaced as from 1st January 2007.
No Maltese company incorporated on or after 1st January 2007 can obtain the status of an International Trading Company. Companies with an ITC status as at 31st December 2006, may retain their current status until 31st December 2010. During this period, such companies will continue to be governed by the ITC regime and may continue to claim the tax refunds granted under the ITC regime until 2014. During the transitional period, ITCs may also opt to convert to the new regime. If this option is availed of, such companies may benefit from new tax refund system. Several conditions need to be fulfilled to convert an ITC to the new regime.
See Tax Refunds and Dividend Taxation in Malta
For more information, kindly contact: