CRS - AEOI - FACTA exchange informations to Malta

[Martin Everson]

What do you think is the best choice overall for residency & tax in Europe at the moment?

Any country in Europe where you can be a resident non-dom. I gave a list of countries on another thread. Just find the european country which suites you language wise, weather wise and cultural wise. For some its Malta and for some its UK or Ireland etc.

 

[Osleak]

With EU Parent subsidiary directive there is no tax owed for dividends from Malta company to UK company but do you file accounts for it?

My accountant is paid to do all requirements for the 6/7 refund so i think yes!

Btw i ll contact csb and emanagement in Malta to be sure about cfc for trading company in UK, cfc about UK holding of the Maltese LTD trading with ubo and director of all 3 is a non dom resident in Malta, after that i’ll share informations here.

 

[Martin Everson]

My accountant is paid to do all requirements for the 6/7 refund so i think yes!

So you don't know basically? Best to confirm and check.

Btw i ll contact csb and emanagement in Malta to be sure about cfc for trading company in UK, cfc about UK holding of the Maltese LTD trading with ubo and director of all 3 is a non dom resident in Malta, after that i’ll share informations here.

Also ask them about EU Parent subsidiary directive post brexit for UK company as a holding company for Malta company. Remember EU PSD will no longer apply post brexit to UK companies. However this has no impact I can think of the top of my head as both countries are zero rated for dividend withholding taxes. However there are often odd indirect problems related to UK leaving and not sure if anything will affect Malta's tax treaty with UK but others are affected indirectly i.e after brexit I read.....

-------

"there may be other indirect treaty consequences. For example, following Brexit, the UK will no longer be an EU Member State for the purposes of applying the limitation on benefits (LoB) clause in US double tax treaties (for example, with Ireland and the Netherlands), such that treaty benefits may in some cases be lost on payments from a US source to a subsidiary of a UK holding company located in those jurisdictions "

------

 

[Osleak]

So you don't know basically? Best to confirm and check.



Also ask them about EU Parent subsidiary directive post brexit for UK company as a holding company for Malta company. Remember EU PSD will no longer apply post brexit to UK companies. However this has no impact I can think of the top of my head as both countries are zero rated for dividend withholding taxes. However there are often odd indirect problems related to UK leaving and not sure if anything will affect Malta's tax treaty with UK but others are affected indirectly i.e after brexit I read.....

-------

"there may be other indirect treaty consequences. For example, following Brexit, the UK will no longer be an EU Member State for the purposes of applying the limitation on benefits (LoB) clause in US double tax treaties (for example, with Ireland and the Netherlands), such that treaty benefits may in some cases be lost on payments from a US source to a subsidiary of a UK holding company located in those jurisdictions "

------

Yes I don’t know i need to ask to my accountant, what i should ask? If she make the accounting and declarations for the uk ltd holding?

 

[Martin Everson]

Yes I don’t know i need to ask to my accountant, what i should ask? If she make the accounting and declarations for the uk ltd holding?

Yes. Also check on UK company house what was filled under accounts. Make sure they didn't just filled a zero return while telling you "it's normal practice in Malta" .

I understand sometimes you just have to go with the flow as the setup you describe is normal practice in Malta. Good news is even EU said it is not a harmful tax practice after investigating it following Panama papers plus you live in Malta. However only you will know if a shell UK holding company with no accounts is a good idea.

Every year Malta wipes out €2 billion in foreign tax by giving shareholders 85% rebates on their tax

Panama Papers hall of shame will also place Malta’s imputation tax system under limelight when MEPs investigate tax avoidance structures

www.maltatoday.com.mt

 

[Osleak]

Yes. Also check on UK company house what was filled under accounts. Make sure they didn't just filled a zero return while telling you "it's normal practice in Malta" .

I understand sometimes you just have to go with the flow as the setup you describe is normal practice in Malta. Good news is even EU said it is not a harmful tax practice after investigating it following Panama papers plus you live in Malta. However only you will know if a shell UK holding company with no accounts is a good idea.

Every year Malta wipes out €2 billion in foreign tax by giving shareholders 85% rebates on their tax

Panama Papers hall of shame will also place Malta’s imputation tax system under limelight when MEPs investigate tax avoidance structures

www.maltatoday.com.mt

Just checked they filled annual return as dormant, company status is active but The accounts are like dormant
Before the ltd holding i had scottish lp, with nominee corporate members and nominee director aswell, with bank account, but the accountant told me that it s not good because it’s to opaque structure.... btw i’ll talk about it with csb i’m sure that they have experience about it (30 years)

Let’ see

 

[Martin Everson]

Just checked they filled annual return as dormant, company status is active but The accounts are like dormant

As I thought zero return. Ok so your Malta company has never paid the shareholder (UK Company) a dividend and UK company never paid out a dividend then I guess?

btw i’ll talk about it with csb i’m sure that they have experience about it (30 years)

Cool....let us know what they say.

 

[GrumpyMess]

What is the minimum presence requirement in Malta for remittance basis of taxation to get the residence certificate? In the request form I see they require a lot of evidences.

 

[Osleak]

What is the minimum presence requirement in Malta for remittance basis of taxation to get the residence certificate? In the request form I see they require a lot of evidences.

You can stay in malta how many days you want 30/70/100/183 ....if you do application for residence as self sufficent, emoloyed or self employed you will be considered resident but not domiciled because your domicile for Malta will be your country of birth... unless you require to get domicile in Malta...

 

[GrumpyMess]

You can stay in malta how many days you want 30/70/100/183 ....if you do application for residence as self sufficent, emoloyed or self employed you will be considered resident but not domiciled because your domicile for Malta will be your country of birth... unless you require to get domicile in Malta...

for residence yes, but I am curious how much days I need to stay to receive the tax residence certificate

 

[Osleak]

for residence yes, but I am curious how much days I need to stay to receive the tax residence certificate

Are you EU or Extra Eu? To get residence ID if you are EU you just to need to rent home for 6 months or more, and fill the application for get residence. For extra eu I don’t know the procedure sincerely...

 

[GrumpyMess]

Are you EU or Extra Eu? To get residence ID if you are EU you just to need to rent home for 6 months or more, and fill the application for get residence. For extra eu I don’t know the procedure sincerely...

you are confusing the residency and the residency certificate. For example in UAE you can get a residency by incorporating a company but you will not get a tax residence certificate without living there for 183 days.

 

[Osleak]

you are confusing the residency and the residency certificate. For example in UAE you can get a residency by incorporating a company but you will not get a tax residence certificate without living there for 183 days.

Yes you are right! There is an application to fill but I don’t know if you need to be employed or not.... I suppose yes...

 

[Martin Everson]

If you are coming to Malta as self employed this is the easiest way. You simply fill in a "Expatriates Taxpayer Registration Form" email it to the IRD and they will send you back a "Registration Certificate" with your Tax ID. It is that simply. However there is a sequence to follow:

1. Do Jobsplus Registration as Self Employed online
2. Register for Social Security online
3. Expatriates Taxpayer Registration online (Tax ID given)
4. Register for VAT online

All can be done remotely and completely over email from your home country if you have an address in Malta. Once you arrive you do the last step.

5. Register for government E-ID (to get residency ID)
6. Switch driving license (optional)

As you can see you can be in Malta zero days to get a Tax ID in reality.

 

[blutbra]

@GrumpyMess : to get the Tax Residence Certificate in Malta you need to prove your permanent staying in the Isle for more than 183 (consecutive) days during a year. This is the general rule and it also depends on the type of resident permit (self sufficient, self employed etc.) you have obtained. E-residency and tax-residence are treated as two different matters and they are managed by two different Maltese authorithy . Obviously you need to be a tax payer in Malta in order to ask the certificate.This is the general rule but ,in Malta, everything is very "fluid" and it could depend on the lawyer , if used, that deposit the application. Also note that the Tax Residence Certificate activates the DTA matters, this is surely more challenging , for the Maltese government, than an E-residency .

 

[Martin Everson]

Like I said you get tax certificate immediately as self employed in fact the tax number is emailed the next day on completion of Expatriates Taxpayer Registration form and certificate posted a couple of days later.

P.S This is process for EU citizen utilizing freedom of movement and this is proper Malta Residency with Government ID card.

 

[GrumpyMess]

@blutbra, that's exactly what I've asked, because I am exploring an opportunity to get a non dom residency there by renting a room, incorporating a company and visit Malta just once per year for a week, to benefit from remittance basis of taxation and 5% company tax. However it seems this way I'll not get a tax residency certificate for the DTT matters to be double sure that my home country doesn't bother me

 

[blutbra]

@ Martin Everson : tax number and tax residence certificate are two different stories , the tax number doesn't automatically give you the right to ask ,immediately, for the second one. Just to be precise I'm talking of a very recent personal experience .

 

[blutbra]

@GrumpyMess, I'm not an expert but I doubt you can ask a tax residence certificate with the setup you described. Even being myself an EU' TRP resident with a special tax status it was difficult and expensive . As soon as I received my TRP status, last year, I payed my taxes but I received the tax residence certificate only few months ago. Please also note that you need to present an application that can be accepted or refused ,we are talking of a discretionary decision taken by the Commissioner for Revenue.

 

[GrumpyMess]

Even being myself an EU' TRP resident with a special tax status it was difficult and expensive

Even with residing for more than 183 days? They must be laughing at their taxpayers. Why have you chose TRP but not the remittance basis taxation?