Tax Advisory

Tax outlays whether of a direct or indirect nature is one of the largest yearly financial outlays for all undertakings.  Lamima Consultancy Services Limited through its professional tax team can provide valuable assistance with tax advisory services to manage transactions with the respective tax authorities in an efficient and transparent manner in accordance with both local and international law.

 

Key components of tax planning advice include:

 

• Managing the business cashflow in meeting tax deadlines;

 

• Managing the most effective tax rate;

 

• Exploring double taxation possibilities for international clients;

 

• Transfer pricing strategies for international clients;

 

• Managing refunds for tax payable on dividends;

 

• Provision of tax services to expatriates; and

 

• Provision of specific advice according to undertakings particular needs.

 

It goes without saying that in a globalised capital market, the need for accounting compliance procedures, for taxation purposes or otherwise is increasing across all economic sectors beyond consideration of their size.

 

Whilst recognising the burden of compliance regulations and procedures we at Lamima Consultancy Services Limited also recognise their importance. Through information received in compiling accounting compliance statutory reports governments:

 

• Reduce the possibility of market failure;

 

• Ensure a fair and stable market place; and

 

• Disseminate business information to users in a clear and standard format for users to make informed decisions.

 

A.  Tax Returns:

 

Lamima Consultancy Services Limited provides advice and compliance services to any business entity and high net worth individual in the provision of calculating and submitting all forms of taxation, such as but not limited to, returns related to income tax, corporate taxation, capital gains, value added tax and duty on documents and transfers.

 

Apart from managing your tax plan and advising how to become tax efficient Lamima Consultancy Services Limited also provides supporting services with compliance checks made from time to time by the competent financial authorities.

 

During compliance checks our staff can provide assistance services by:

 

• Attending interviews with the relevant competent authorities;

 

• Compile additional documentation requested by competent authorities; and

 

• Assist you in fulfilling any following outcomes, if required.

 

B. Expatriates:

 

Expatriates tax savings on income when providing services to investment and insurance companies.  

Foreigners who are engaged in providing a service to either an investment or insurance company and are liable to pay tax in Malta are entitled to benefit from an exemption from Maltese Income tax related to certain expenditure incurred for their direct benefit made by the investment services and insurance company. The expenses identified at law are the following:

 

• Removal costs in respect of relocation to or from Malta;

 

• Travel costs in respect of visits by either the expatriate and his/her immediate family to or from Malta;

 

• Provision of a car for the use of the expatriate in Malta;

 

• A subvention not exceeding €600 per month;

 

• Medical expenses and medical insurance policy expenses; and

 

• School fees in respect of the expatriate’s children.

 

Furthermore, the law concedes that expatriates providing a service to investment and insurance companies are not subject to tax on:

 

• Investment and royalty income; and

 

• Gains or profits derived from the transfer of:

 

1. Shares in a company which in exclusively not a property undertaking;
2. Shares in a Collective Investment Scheme;
3. Units and similar instruments related to longer tem business of insurance ; and
4. Interest in a partnership that is not a property partnership.

 

The criteria on which an expatriate providing a service to an investment or insurance company in Malta can benefit from an exemption of tax on income in are twofold, namely the expatriate was:

 

• Not ordinarily resident and not domiciled in Malta; or

 

• Not resident in Malta for a minimum period of three years prior being employed by an investment/insurance company and provided that during said three years the person engaged in a similar position outside Malta.

 

C.  Double taxation treaties:

 

To facilitate trade across borders the successive governments entered into double taxation agreements with various countries in both the developed and emerging markets. The original objective was to encourage industrial trade produced mainly by foreign direct investment enterprises located in Malta. While this objective is still of importance, tax protocols between nation states also apply to the service industry which nowadays accounts for more than sixty per cent of Malta’s economic value added.  

Over sixty Double Taxation Agreements are currently in force and the requisite to increase their number will continue. Most of the models are based upon an international co-operational framework recommended by The Organisation for Economic Co-operation and Development, (OECD). The legal procedure adopted in Malta is that once a tax treaty is signed it becomes law by means of a tax treaty.  

 

Countries with which a double taxation agreement is currently in force:

 

Albania	France	Kuwait	Poland	Syria
Australia	Georgia	Latvia	Poland	Tunisia
Austria	Germany	Lebanon	Portugal	Turkey
Bahrain	Greece	Libya	Qatar	UAE
Barbados	Guernsey	Liechtenstein	Russia	United Kingdom
Belgium	Hong Kong	Lithuania	Romania	United States of America
Bulgaria	Hungary	Luxembourg	San Marino	Uruguay
Canada	Iceland	Malaysia	Saudi Arabia
China	India	Mauritius	Serbia
Croatia	Ireland	Mexico	Singapore
Cyprus	Isle of Man	Moldova	Slovakia
Czech Republic	Israel	Montenegro	Slovenia
Denmark	Italy	Morocco	South Africa
Egypt	Jersey	Netherlands	Spain
Estonia	Jordan	Norway	Sweden
Finland	Korea	Pakistan	Switzerland

 

An updated list of such agreements can be accessed from the Malta Financial Services Authority website:

http://www.mfsa.com.mt/pages/viewcontent.aspx?id=196

 

D.  Transfer Pricing

 

Related firms operating in different countries across the globe are most often subject to transfer pricing.

 

Transfer pricing in some circles referred to as transfer cost is by definition the transacted price at which divisions of a company invoice each other. Transactions may vary according to the nature of the business but generally it includes the intra-departmental trade of supplies, services, intangible assets labour and financing. Beyond doubt these transactions may influence the company’s net earnings and therefore its accounting complexity has garnered increasing importance within the accounting profession, tax authorities and operating firms.

 

Lamima Consultancy Services Limited can be instrumental in compiling an exhaustive Transfer Pricing Strategy which:

 

• Identifies a framework of accounting policies and procedures;

 

• Identifies an optimal transfer price model; and

 

• Provides tax planning advice and disclosures to tax forms to authorities.

 

For further information on the procedure of registration, registration fees and tonnage tax you are kindly requested to contact:

 

Key Contacts:

 

Alex Agius

Managing Director

 

Marica Bonello

Senior Auditor

 

Lamima Consultancy Services Ltd

Email:    info@lamima.com.mt

Tel:       +356 21423059