Tax-News Malta Review 2010-2011

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Tax-News.com Malta Review 2010-2011

A review and forecast of Maltaís international business, legal and investment climate.
CONTENTS
MALTA INDUSTRY
INSIGHT Malta E-Gaming
Tax Benefits in Malta In the autumn of 2000 the Maltese
government passed legislation enabling PROFILE - PAGE 13
by Verdun Group
online betting centres to be set up in the
PAGE 6 country, and this legislation, coupled with
provisions from the Income Tax Act
Malta: Business Hub written specifically for international
in the Mediterranean - companies, made Malta an attractive
A quick guide of the location for casino and sportsbook PROFILE - PAGE 15
main features of operations.
Maltese Companies
by Fenlex A large number of companies from
PAGE 9 around the world expressed interest in
Malta, including Stanley Leisure, William
Responsible Gaming - Hill, Ladbrokes, Paddy Power, Unibet, PROFILE - PAGE 16
CSR in the e-Gaming GC Sports, International Allsports, and
Industry Eurofootball.
By Jonathan Dalli -
Head of Marketing, Malta became the first EU member state
e-Management to regulate internet gaming in May 2004
with its Remote Gaming Regulations PROFILE - PAGE 17
PAGE 11 under the Lotteries and Other Games Act
2001. Malta has subsequently attracted
The Malta Gaming more than 250 remote gaming companies
Jurisdiction - Quality and issued over 350 licences.
Attracting Quantity
By Jonathan Dalli -
Head of Marketing, CONTINUED PAGE 1 PROFILE - PAGE 18
e-Management
PAGE 12
PROFILE - PAGE 19
Malta Holding Companies
Malta, like Cyprus, has been obliged to dismantle its old 'offshore'
companies regime as a trade-off for membership of the European Union,
but this change has by no means been detrimental to the Maltese business environment, and the jurisdiction
remains one of the most favourable places in the EU to locate an international holding company.
Maltese holding companies can be used for a variety of purposes, including holding real assets like property,
shares and securities and intellectual property, and intangible assets such as copyrights and patents, and
shareholders benefit from a full imputation system under which tax can be reduced to zero percent in certain
circumstances.
CONTINUED PAGE 2
Malta Shipping
With its location in the heart of the Mediterranean Sea, a centuries old maritime tradition and a respected
and favourable regulatory and tax regime for shipping, it is no surprise that Malta has developed one of
the world's largest ship registers in modern times, and in the face of stiff competition from other prominent
maritime nations.
CONTINUED PAGE 4
Tax-News.com Malta Review 2010-2011. Copyright Tax-News.com 2010. All rights reserved.
IMPORTANT NOTICE: Tax-News.com has taken reasonable care in sourcing and presenting the information contained in this publication, but accepts no responsibility for any financial
or other loss or damage that may result from its use. In particular, users are advised to take appropriate professional advice before committing themselves to involvement in offshore
jurisdictions, offshore trusts or offshore investments.
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PAGE 1
Malta E-Gaming
In the autumn of 2000 the Maltese government passed legislation enabling
online betting centres to be set up in the country, and this legislation, coupled
with provisions from the Income Tax Act written specifically for international
companies, made Malta an attractive location for casino and sportsbook
operations.
A large number of companies from around the world expressed interest in

Malta, including Stanley Leisure, William Hill, Ladbrokes, Paddy Power,
Unibet, GC Sports, International Allsports, and Eurofootball.
Malta became the first EU member state to regulate internet gaming in May
2004 with its Remote Gaming Regulations under the Lotteries and Other
Games Act 2001. Malta has subsequently attracted more than 250 remote
gaming companies and issued over 350 licences. These businesses employ
about 5,200 people in Malta, and service around 10% of the world's internet
gaming market. They generated tax revenues for the government of EUR26.9m
in 2008 and EUR52.5m in 2009.
The e-gaming industry in Malta is regulated by the Lotteries and Gaming

Authority, which was established in 2002 and is responsible for the governance
of all gaming activities in Malta including casino gaming, commercial bingo
games, commercial communication games, remote gaming, sports betting, the
National Lottery and non-profit games. According to its mission statement, the
Authority's role is to ensure that "gaming is fair and transparent to the players,
preventing crime, corruption and money laundering and by protecting minor and vulnerable players."
In 2002 the Malta Lotteries and Gaming Authority put together the legislative framework for a new licensing
regime encompassing online casinos, sports betting, betting exchanges and lotteries, which came into effect
in early 2003. Said the Authority: 'This framework has the objective of providing regulation which is strong and
serious but not unnecessarily bureaucratic, ensuring vigorous protection for users of online gaming, and
dovetailing with Malta's long-established and reputable financial services sector.'
There are four classes of licence available to operators in Malta, as follows:
ï Class 1 - For operators managing their own risk on repetitive games. This class covers casino-type games.
ï Class 2 - For operators managing their own risk on events based on a matchbook. Under this class
operators can offer fixed odds betting.
ï Class 3 - For operators taking a commission from promoting and/or betting games. This class includes
peer-to-peer games, poker networks, betting exchanges and online lotteries.
ï Class 4 - To host and manage remote gaming operators, excluding the licensee themselves. This is intended
for software vendors who want to provide management and hosting facilities on their gaming platform.
Licenses are granted for a period of five years and licensees must have the core part of their online operation
physically located in Malta.
The amount of tax paid by online gaming companies located in Malta depends on the type of licence they hold:
Class 1 licence holders pay EUR4,660 for the first six months, then EUR7,000 per month thereafter; Class 2
firms involved in fixed odds betting pay a 0.5% tax on the gross amount of bets accepted; Class 3 licence
holders pay a 5% tax on real income; and Class 4 licence holder pay no tax in the first six months of operations,
then EUR2,330 per month for the following six months, and EUR4,460 per month thereafter. The maximum
amount of tax payable annually in respect of any one licence is EUR466,000. Application and annual licence
fees are EUR2,330 and EUR7,000 respectively for all classes of licence.
Moves to tax and regulate online gaming and gambling elsewhere in the European Union have been to the benefit
of the industry in Malta in recent years. In mid-2007 it was reported that applications to the Maltese gaming
CONTINUED PAGE 2
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PAGE 2
Malta E-Gaming Continued
regulator surged in the run up to the introduction of more stringent e-gaming
regulations in the UK, with interest shown from the likes of Intercasino, William
Hill, Littlewoods, Playboy Casino and Virgin Games. This was prompted by
the UK government's announcement that only companies based in territories
on its so-called 'white list' would be able to market their services in the UK
from September 1, 2007, when the Gambling Act 2005 came into force. It was
estimated at the time that this could effectively ban one thousand firms from
advertising in the UK. To gain a place on the UK white list, countries must meet
stringent new standards which are designed to stop children gambling, protect
vulnerable people, keep games fair and keep out crime. Countries in the
European Economic Area (EEA), which includes Malta, are automatically
accepted onto the white list. But the white list is fairly exclusive, and only a
small list of other territories, including the Isle of Man, Alderney, and the
Australian state of Tasmania, were deemed to have suitably adequate
regulatory regimes.
In June 2010, Malta disagreed with the conclusions of an EU Competitiveness

Council meeting which adopted a definition of illegal gambling as: ìgambling in
which operators do not comply with the national law of the country where services
are offered, provided those national laws are in compliance with EU treaty
principles". Having taken note of some recent European Court of Justice rulings
that apparently support attempts to restrict Europe-wide regulation in favour of
local monopolies, and of national legislation which appears to contravene the
principles of the freedom of services, such as that now in force in France, Malta
fears that it may suffer if a new, illiberal regime is voted through based on the Green Paper. The Maltese government
says that the Competitiveness Council's definition does not properly take into account that Malta has a very advanced
regulatory regime in full compliance with EU legislation. But clearly there are developments to be watched with
regards e-gaming regulation in the EU in the coming years.
Malta's economic policy encourages information technology operations, and the territory has invested heavily in
state-of-the-art telecommunications. There are already a number of Internet Service Providers in Malta, with clear
interest being shown in continuing offshore e-commerce development. This was confirmed in 2008 by the
European Commission, which recognized the jurisdiction as "well advanced in information society, with many
benchmarking indicators significantly above the EU average." the Commission's study showed that Maltese
businesses are the 4th best connected in Europe to broadband and Maltaís population is the 5th most covered
by DSL coverage in the EU. The report also found that the ratio of Maltese employees with ICT skills is the 5th
largest in Europe, and the ratio of ICT specialists in Malta is also ahead of European average.
Malta Holding Companies

Malta, like Cyprus, has been obliged to dismantle its old 'offshore' companies regime as a trade-off for
membership of the European Union, but this change has by no means been detrimental to the Maltese
business environment, and the jurisdiction remains one of the most favourable places in the EU to locate an
international holding company.
Maltese holding companies can be used for a variety of purposes, including holding real assets like property,
shares and securities and intellectual property, and intangible assets such as copyrights and patents, and
shareholders benefit from a full imputation system under which tax can be reduced to zero percent in
certain circumstances.
In March, 2006, the European Commission formally requested Malta under EC Treaty state aid rules to abolish
the tax regime for Maltese Companies with Foreign Income (CFI), and the International Trading Companiesí (ITC)
regime (which had an effective tax rate of 4.2% for non-residents) by the end of 2010 at the latest. Competition
Commissioner Neelie Kroes observed at the time that: ìThe schemes provide sizable aid to companies that are
owned by non-Maltese and produce revenues outside of Malta, and are therefore highly distortive without promoting
growth of the Maltese economyî.
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PAGE 3
Malta Holding Companies Continued
In May of that year, the Maltese government formally decided to gradually
abolish the existing aid schemes, a development welcomed by Kroes as "a
further important step towards eliminating selective tax incentives that
significantly distort the location of business activities in the Single Marketî.
Maltaís acceptance of the EC recommendation meant that the existing ITC

and CFI schemes were effectively abolished by January 1, 2007 and the tax
status of ITC was prohibited to any new company registered in Malta after
December 31, 2006.
Nevertheless, with its entry into the EU, Malta has strengthened its position
and appeal to investors. Benefits include a good tax system with a network
of double taxation agreements in place with some 50 countries, a flat income
tax rate of 15% on remittances by permanent residents and no municipal taxes.
Other incentives include an excellent infrastructure, and a skilled workforce of
English-speaking locals and an enviable location.
The Maltese Income Tax Act as amended governs company taxation. The rate
of income tax is 35% on chargeable income (certain types of company benefit
from lower rates). Malta imposes income tax on the world-wide income of
companies resident in the country; this includes all companies incorporated or
registered under any Maltese law if they are ordinarily resident, and any foreign
company which is managed and controlled from Malta. The definition of income
includes capital gains, but there is no separate capital gains tax as such.
However, capital losses can only be relieved against capital gains, so the distinction is preserved within the tax
computation. Local-source income and foreign-source income are also treated separately within the computation;
Maltese companies with foreign income maintain a Foreign Income Account for this purpose.
A Malta holding company is a company resident in Malta and pays 35% tax on its net income. However,
shareholders of Malta holding companies qualify for a full refund of the Maltese tax paid by the company on
profits and gains arising from ìparticipating holdingsî when such profits are distributed. From January 1, 2008,
Malta holding companies also qualify for a participation exemption subject to anti-abuse provisions introduced
from the same date. For a Maltese resident company to hold a ìparticipating holdingî in a company incorporated
abroad, it must hold at least 10% of the equity shares in the non-resident company. To qualify for the participation
exemption, the foreign subsidiary must satisfy one of three criteria: be resident in the EU; be subject to foreign
tax of at least 15%; and not derive more than 50% of its income from passive income.
When dividends are paid by trading companies to the shareholders, these shareholders are entitled to claim
refunds of 6/7ths of the Malta tax paid by the company, resulting in an effective Maltese tax rate of 5%.
Distributions made from profits derived from passive income such as interest and royalties, entitle the
shareholder to claim 5/7ths of the tax paid by the company.
Maltese company law derives chiefly from civil or 'Roman' law, rather than common law. A new Companies
Act 1995 replaced the old Commercial Partnerships Ordinance, and set up a new regime for commercial entities
under the Registrar of Companies. Companies set up under the old regime had until January 1, 1998 to convert
themselves into the new formats, except that 'Offshore Companies', which can now no longer be formed, had 10
years to adapt.
Maltese holding companies can be constituted as either a public or private limited company. The private limited
company, (or 'partnership anonyme' in civil code terms), has the suffix 'Limited' or 'Ltd' and is formed by
submission of the Memorandum and Articles to the Registrar (in English), together with the appropriate fee,
which ranges from EUR245 to EUR2,250, depending on the level of share capital. Once all documents and
information have been submitted to the registrar, incorporation may take as little as 24 hours. To form a private
limited company in Malta, only one member and one director is necessary, the latter being a natural person of
any nationality and resident anywhere. There must be a company secretary, which must be a Licenced Maltese
Nominee Company and there must be registered office in Malta. Shares can be registered but bearer shares are
not permitted. Preference or redeemable shares are allowed and shares do not have to carry voting rights.
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PAGE 4
Malta Shipping
With its location in the heart of the Mediterranean Sea, a centuries old maritime
tradition and a respected and favourable regulatory and tax regime for shipping,
it is no surprise that Malta has developed one of the world's largest ship registers
in modern times, and in the face of stiff competition from other prominent
maritime nations.
Vessel registration under the Malta flag and the operation of the Maltese ships
is regulated by the Merchant Shipping Act, a law based in the main on United
Kingdom legislation, subsequently revised and amended in 1986, 1988, 1990
and 2000. The main legislation is also supplemented by a comprehensive set
of rules and regulations. Malta is additionally a party to most of the major
International Maritime Conventions and Malta-flagged ships are obliged to strictly
adhere to the provisions of these international conventions. By the end of 2008,
a total of 5,015 ships, 2,311 of which were pleasure yachts, were registered under
the Maltese Merchant Shipping Act.
In January, 2006, Malta was one of only four flag states that attained the highest
quality ranking following the Paris Memorandum on Port State Control's annual
inspections. The Paris MoU ìWhite Listî represents quality flags with a consistently
low detention record. By the end of 2009, the White List included 41 flag states.
In order to register a ship in Malta, it must be owned by a company incorporated

in the jurisdiction. All types of vessels from pleasure craft to oil rigs may be
registered provided that they are wholly-owned by legally constituted corporate
bodies, or by European Union citizens. There are no nationality requirements for
shareholders or directors of Maltese companies, and neither are there any
nationality restrictions on officers and crew employed on Maltese-flagged ships.
A vessel is first registered provisionally under the Malta flag for six months (extendible under certain circumstances)
during which period all documentation needs to be finalized. This includes, in particular, evidence of ownership and
of cancellation of former registry. Authority to operate still remains linked to conformity with the relative manning,
safety and pollution prevention international standards. Once a vessel is provisionally registered, registration, transfer
and discharge of mortgages may be effected immediately on presentation of the relative documents to the Registrar.
The 1986, 1988, 1990 and 2000 amendments introduced important safeguards in respect of registered mortgages,
making financing of Maltese ships more attractive.
Generally, vessels that are more than 25 years old are not accepted for registration by the Maltese Registry, and
ships which are older than 20 years will be required to undergo a Flag State inspection prior to provisional
registration. Maltese law provides for both bareboat charter registration of foreign ships under the Malta flag and
also for the bareboat charter registration of Maltese ships under a foreign flag. Ships that are bareboat charter-
registered in Malta enjoy the same legal privileges, and have the same legal obligations, as any other ship
registered in Malta. Maltese law also allows for the registration of ships that are under construction.
Yachts which do not carry cargo or more than 12 passengers may be registered as commercial yachts under
Malta's Commercial Yacht Code 2006, which sets out standards on safety and pollution. The Commercial Yacht
Code was developed in line with international regulations and other industry standards and caters for both small
yachts and superyachts above 24 metres and up to 3,000 gross tons. The Code has been proving successful
with major yacht and superyacht builders alike, with the number of commercial yachts certified in compliance with
the Malta Code increasing considerably during the past years. The registration procedure for yachts is similar to
that of other vessels, and a six month provisional registration is usually granted allowing time for the appropriate
documents to be submitted and the registration finalized.
CONTINUED PAGE 5
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PAGE 5
Malta Shipping Continued
Malta applies a tonnage tax system to vessels on its register. This varies from
EUR875 for ships not exceeding 2,500 net tons, up to EUR6,780 for vessels
exceeding 50,000 net tons (plus 5 cents for every net ton above this threshold).
However, the amount of tax due can be lower or higher depending on the age
of the ship: there is a 30% reduction in annual tonnage tax for ships which are
less than 5 years old; and a 15% reduction for ships which are not less than
five years old and not more than 10 years old. Vessels which are no less than
15 years old and no more than 20 years old pay an additional 5% in tonnage
tax, rising to 50% for ships which are equal to or exceed 30 years of age.
Commercial yachts pay an annual tonnage tax of EUR175.
Unusually for a low tax jurisdiction, Malta has entered into more than 50 double
tax treaties, and a reciprocal agreement between Malta and the United States
exempts shipping and air operations from income tax. This agreement makes it
possible for Maltese companies owning or operating ships calling at US ports to
claim an exemption from the 4% gross transportation tax levied on transportation
income attributable to transport which begins or ends in the United States. Malta
has also concluded two maritime agreements with the People's Republic of China
and the Russian Federation; similar treaties with several other countries are in the
process of negotiation.
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PAGE 6
Tax Benefits in Malta
by Verdun Group
1.0 Tax benefits in Malta in general

2.0 International Holding Companies in Malta
2.1 Holdings Typically Held to Best Utilize a Malta Holding Company
2.2 Benefits of Using Malta for Holding Assets in the EU/EEA
2.3 Why Overseas Investors opt for Malta as the Preferred Choice
3.0 The EU Directives and the 2-Tier Structure
4.0 Malta Trading Companies ñ ìThe Tax-Friendly Gateway to the EUî
4.1 Maltaís Strength as a Gateway to the EU
4.2 Examples of Industries Currently Relocating to Malta
5.0 More European Online Businesses Operate from Malta
5.1 Typical Functions to Outsource to Malta
5.2 Recruitment of Multi-lingual Staff
6.0 VAT Rates of Only 5.4% for Yachts in Malta
6.1 Lease-Purchase Agreement
7.0 Shipping Registry in Malta on Global Top 5 list
8.0 Leasing and Other Financial Services in Malta
9.0 Expatriates in Malta Taxed at Only 15%
1.0 Tax benefits in Malta in general

ï Taxation in the hands of the shareholders could be as little as nil in Malta
ï The general corporate tax rate is 35%
ï Due to favorable tax credits the majority of holding companies in Malta are taxed at 0% in the hands of the
investor
ï Similar tax credits for trading companies leave only 5% as tax paid in the hands of the shareholder
ï Only 5% net tax suffered after tax-credit! 6/7 of the corporate tax is credited to the shareholder(s)
ï No withholding tax! No tax on dividend payments
ï Parent- Subsidary Directive is valid! Valid all over the EU/EEA area
ï Only Ä240 to be paid up in share capital! Only 20% of the minimum Ä1,200 to be paid on incorporation
ï Full limited liability
2.0 International Holding Companies in Malta

EU membership in 2004 has made Malta one the favorite jurisdictions for international holding companies in
Europe.
Malta holding companies are taxed on a worldwide basis at the standard corporate rate of 35% reduced to an
effective rate of 0% in the hands of the investor.
2.1 Holdings Typically Held to Best Utilize a Malta Holding Company:

ï Aircrafts | Motor cars | Yachts | Ships
ï Real estate | Shares and securities | Bank accounts
ï Intellectual Property |Patents | Copyrights | Franchises | Intangible rights
2.2 Benefits of Using Malta for Holding Assets in the EU/EEA:

ï Full refund on all capital gains tax in the hands of the shareholders
ï Full refund of all dividends in the hands of the shareholders
ï No withholding tax in the hands of the shareholders
2.3 Why Overseas Investors opt for Malta as the Preferred Choice:
ï Tax advantages based on EU-Directives valid within the EU/EEA
ï No withholding tax suffered in Malta
2.3 Why Overseas Investors opt for Malta as the Preferred Choice:
ï Tax advantages based on EU-Directives valid within the EU/EEA
ï No withholding tax suffered in Malta
CONTINUED PAGE 7
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PAGE 7
Tax Benefits in Malta Continued
by Verdun Group
3.0 The EU Directives and the 2-Tier Structure

By taking advantage of the EU Parent-Subsidiary Directive any parent company tax resident in another EU/EEA
member state may distribute dividends tax-free from a Malta subsidiary. This corporate structure has become a
major success within the EU/EEA and is being used by some of the largest brands and business corporations in
Europe to structure their international activities in a tax-favorable way.
4.0 Malta Trading Companies ñ ìThe Tax-Friendly Gateway to the EUî

Malta agreed on a groundbreaking deal with the EU when joining the Union in 2004. The country has a favorable
geographical location combined with Europeís most attractive tax benefits. International companies selling to the
European market take advantage of the tax benefits of using Malta as their gateway to the EU.
4.1 Maltaís Strength as a Gateway to the EU:

ï Access to the European market
ï One of the lowest VAT rates in Europe at 18%
ï Very attractive returns to the shareholders at a total tax suffered of down to only 5% (following tax-
refunds in the hand of the investor of up to 6/7 of the corporate tax suffered)
ï No withholding tax in Malta
ï Attractive double tax treaties with more than 40 countries
ï Highly developed IT ñinfrastructure
ï English is an official language
Companies from several industries are taking advantage of all the benefits offered by Malta as a European
member state.
4.2 Examples of Industries Currently Relocating to Malta:

ï Online businesses
ï Textile industry
ï Pharmaceutical industry
ï Call centers
ï Financial services
ï Insurance
ï Research & Development
ï MoreÖ
5.0 More European Online Businesses Operate from Malta

Online based business is growing rapidly and is easier to relocate than any other industry. The trend for
European online based businesses is to move its operations to Malta and more tax friendly environments and
still keep all the benefits of being located in an EU member state.
5.1 Typical Functions to Outsource to Malta:

ï Sales
ï Support
ï Server hosting
ï IT
Due to the rapid expansion of the e-gaming industry in Malta the country has developed in to a high-end
provider of IT-infrastructure. Other online businesses are starting to realize this potential and move further south
in Europe.
5.2 Recruitment of Multi-lingual Staff:

ï Attractive tax benefits for foreign employees with personal tax rates at only 15%
ï 321 days of sun a year
6.0 VAT Rates of Only 5.4% for Yachts in Malta

The VAT rate on leasing of yachts by a Malta company is reduced by a predetermined percentage depending on
the size and means of the yacht.
CONTINUED PAGE 8
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PAGE 8
Tax Benefits in Malta Continued
by Verdun Group
Since it is hard to determine the exact period of time a yacht spends in EU

territorial waters the conclusion has come to charge VAT based on the
anticipated number of days a year the yacht will be in EU waters. The larger the yacht ñ the less time is expected to
be spent in EU territory.
The official table released by the Maltese VAT department:
Type of Yacht % of lease subject to VAT Effective VAT rate

All Yachts > 24m 30% 5.4%
Sailing Yachts 20.01-24m 40% 7.2%
Motor Yachts 16.01-24m 40% 7.2%
Sailing Yachts 10.01-20m 50% 9.0%
Motor yachts 12.01.16m 50% 9.0%
Sailing Yachts < 10m 60% 10.8%
Motor Yachts 7.51-12m 60% 10.8%
Motor Yachts < 7.5m 90% 16.2%
6.1 Lease-Purchase Agreement

With careful planning, the Tax and VAT rates charged in Malta give the lessee of a yacht owned by a Malta
company the option to become the owner of an EU VAT-paid yacht by paying as little as 6-7% on the original
value of the yacht in tax and VAT together.
7.0 Shipping Registry in Malta on Global Top 5 list

Shipping companies based in Malta are totally exempt from taxation on ships over 1,000 tons (ëExempted shipsí).
The exemption is valid for the operation and ownership of Maltese registered vessels, including charterers and
financiers.
Any type of vessel may be registered in the Maltese register of ships and fly the Malta flag provided it is wholly
owned by Maltese citizens or by Maltese corporate bodies. The law also allows foreign ships to be bareboat
charter registered in Malta and the bareboat charter registration of Maltese ships in foreign registers.
8.0 Leasing and Other Financial Services in Malta

Over the last five years a trend among multinational companies have been to set up a financial services division in
Malta to serve the world wide activities of the group. The operations in Malta are local profit centers tailored to
provide for financial services like leasing arrangements for capital intensive goods and services and looking after
the majority of the internal financing of the group activities and external financing offered to clients.
9.0 Expatriates in Malta Taxed at Only 15%

Individuals not deemed ordinary resident in Malta with employment income subject to tax in Malta may as of 2010
opt for a flat taxation rate of only 15% instead of the standard progressive tax rates applicable to ordinary residents.
Verdun Group (Malta)

malta@verdungroup.com
Tel: +356 2010 7000
Verdun Corporate Services (Malta) Limited

Suite 7 / Level 4
The Plaza Commercial Center
Bisazza Street
SLM 1640, Sliema
Malta
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PAGE 9
Malta: Business Hub in the Mediterranean
A quick guide to the main features of Maltese Companies
by Fenlex
One of the worldís earliest, most successful and wealthiest multinational organisations made Malta its home.
Malta in turn made this organisation famous. It came to be known as the Knights of Malta, and the traditions
of commerce, international trade and multiculturalism it established became ingrained in the culture of the
Maltese Islands.
Maltaís exceptional location in the Mediterranean has always ensured that its geopolitical importance is
established. Historically, this allowed Malta to punch well above its tiny size, a characteristic that continues to
this day.
Since Malta joined the European Union in 2004, its presence as a financial services centre is increasingly
being felt. Although tourism forms the natural backbone of Maltaís industry, the financial service industry has
been experiencing constant growth, drawing primarily from the islandís political and economic stability. Today,
it is fast becoming one of the pillars of the Maltese economy.
There are many reasons why Malta is a special place to do business or to invest in. Amongst other things, it
boasts highly attractive incentive packages, a skilled and multilingual workforce, as well as a competitive fiscal
regime backed up by over 50 double taxation agreements.
Company Formation in Malta
In fact, Maltaís corporate tax regime has evolved over the years to a highly sophisticated system which has
combined an interesting blend of realistic corporate taxation together with a series of favourable tax credit
incentives. Today, Maltese companies have one of the most tax-advantageous corporate structures within
the European Union because Malta operates a full imputation system on tax. This allows for no further tax to
be due by non-resident shareholders on receipt of dividends distributed out of profits of a company. These
distributions may also trigger refunds of Malta tax paid by the company. The standard refund is 6/7ths of a 35
per cent corporate tax rate. The effective tax rate will generally range from 0% to 10%.
In addition, company formation expenses in Malta are relatively low, thus making Malta a cost effective
jurisdiction, not only for large corporationsí tax planning, but also for small and medium sized businesses.
Maltese limited liability companies are allowed to carry out various activities, be it trading, holding or
investments. The company can also mix the nature of its business.
Every company registered in Malta requires a company secretary and at least one director who may be
either a corporate entity or an individual, Maltese resident or not. The company secretary must be an
individual and preferably well versed in Maltese Company Law. In addition, a Maltese company needs to have
a registered office in Malta and a minimum of two shareholders, however exemptions to this rule apply. Malta
also has a fully fledged trustee regime and shares may be held by licensed trustees in a fiduciary capacity for
and on behalf the ultimate beneficial owners. A Maltese company must have a minimal issued share capital
of Ä 1,165 on incorporation, of which at least 20% must be paid upon subscription.
Maltese legislation also allows foreign companies to change their domicile to Malta. This means that foreign
companies can, without the need to wind-up their setup in the foreign country and incorporate a new company
in Malta, opt to continue their existing setup in Malta.
It is needless to say that Maltese companies, like in most other jurisdictions, need to adhere to statutory
obligations. Amongst others, there is a requirement to prepare annual financial statements, which must be
audited by a local independent auditor, and the filing of an annual return, as well as various tax filing matters ñ
tasks that are often looked after to by corporate service providers.
CONTINUED PAGE 10
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PAGE 10
Malta: Business Hub in the Mediterranean Continued
A quick guide to the main features of Maltese Companies
by Fenlex
Established Service Provider Industry
Since the early 90ís more and more foreign owned companies have set up in Malta and have sought to outsource
a number of key functions within their organisation. It is for this reason that Fenlex Corporate Services Ltd.
(ëFenlexí) was set up in the late 90ís within the Fenlex Group so as to address this specific demand from clients.
Fenlex is made up of a team of multi-disciplinary professionals that include Legal, Accountancy, Economic,
Banking Management and Communications graduates.
Throughout the past years, Fenlex has assisted a considerable number of international clients of all sizes present
in a very broad spectrum of business interests in establishing themselves in Malta, by assisting in pre-incorporation
structuring and incorporation of the corporate vehicle/s required in Malta and other reputable jurisdictions, as well
as setting up business in Malta.
Once the companies are set up, Fenlex offers clients a full range of corporate services that include company
administration as well as a wide range of back office services covering accountancy, VAT and Tax compliance
services, payroll, banking and administrative support. Fenlex also offers clients, if required, full access over a
secure internet connection to their Financial Information Systems allowing up to date access to important
management information.
For more information please contact:
Fenlex Corporate Services Ltd., Karl Diacono, 85. St. John Street, Valletta VLT 1165, Malta.
Phone: 00356 21241817, E-mail: karl.diacono@fenlex.com
Sponsored by
PAGE 11
Responsible Gaming -
CSR in the e-Gaming Industry
by Jonathan Dalli - Head of Marketing, e-Management
Corporate Social Responsibility (CSR) in the e-Gaming industry is an issue that is taken very seriously by regulators
and operators alike.
A responsible player is generally defined as a person, who makes a reasonable and conscious choice and acts in
accordance with this choice; based on his/her individual desires and needs, as well as his/her awareness of the
purpose of entertainment through regulated gaming. Looking for fun is implanted in human nature and can well be
considered as an integral part of the natural development of humankind. The e-gaming industry, including the Malta
Jurisdiction, responds to such a necessity, albeit in a regulated manner.
A good and reliable regulatory framework predominantly ensures the fulfilment of such needs and wants. When the
fun element takes over and potentially goes beyond the limits of oneís satisfaction, delving into deeper psychological
layers; regulatory models come into play. E-gaming regulations envisage and subsequently implement various
measures to prevent addiction to gambling and ensure players act in a responsible manner. Special attention in
this respect is paid to the protection of the under-aged and juvenile.
Operators also have a stake, and some are also taking the initiative to issue CSR Reports, including and outlining
contributions made to society at large, donations to charitable causes, their commitment to becoming environmentally
conscious and friendly, and the ways of implementing systems to identify and support problem gamblers. Apart from
recognising that this is the right thing to do, remote gaming operators who conduct their business responsibly are
realising that this ultimately proves fundamental to their future success.
Thus responsible gaming is an integral part of the daily activity in a remote gaming company, particularly because the
Internet in particular has opened access to the such companies 24 hours a day, 7 days a week, 365 days a year.
Furthermore, as various forms of payments are accepted and access to e-gaming and betting companies is available
from oneís home or PC or mobile phone, solutions such as age verifications, customer limited deposit / session limits
have become increasingly important; as well as carefully planned marketing campaigns to ensure that the vulnerable
are not targeted. The uncontrolled advertising of games is another issue, as well as the mail-outs of wrong and
possibly misleading advertisements, and adverts aimed and targeted towards the under-aged; as well as spam
advertising.
The playerís ongoing desire to have fun, the responsibility of the state through the regulator to establish the
necessary levers on the limitation of such a possibility, as well as the implementation of a socially responsible
model by the operators, serves as a basis for the development of a Responsible Gaming model.
With the Maltese Islands attracting a large number of licensees setting up shop in such jurisdiction as well as to
capitalise on the competitive advantages that the Malta Jurisdiction has to offer, the Mediterranean island has
unquestionably established itself as the hub of online gaming in Europe. It has however taken on board the issue
of Responsible Gaming very seriously. The underestimation of such a potential problem will definitely affect the
credibility of a gaming jurisdiction; and will also lead to a negative social attitude towards the industry and its key
players. Managing social and environmental factors enhances a jurisdictionís credibility with stakeholders! This
is further confirmed in the LGAís slogan of ìReputable, Responsible and Responsiveî as the European Hub of
Remote Gaming.
e-Management Ltd
28, Cathedral Street
Sliema SLM1525
Malta - EU
Tel: +356 2132 EMAN [2132 3626]

Fax: +356 2132 3627
malta@emanagement-group.com
www.emanagement-group.com
Sponsored by
PAGE 12
The Malta Gaming Jurisdiction -
Quality Attracting Quantity
by Jonathan Dalli - Head of Marketing, e-Management
Malta, the Mediterranean island, has unquestionably established itself as the hub of remote gaming in
Europe. When reputable operators started earmarking Malta as their new home, they also realised the various
competitive advantages Malta offers, including but not limited to:
ï an EU member state since May 1st, 2004 and euro-zone member since January 1st, 2008; ensuring Malta
has a voice in the various EU institutions when discussing the future of the iGaming industry;
ï a welcoming jurisdiction with the regulator having a pro-business attitude and approach, simultaneously
being accessible and pragmatic; thus contributing to a solid reputation as a well-regulated jurisdiction which
safeguards the interests of the operators as well as those of their players;
ï an efficient and relatively inexpensive licensing process;
ï a very attractive fiscal regime / incentives to the benefit of companies operating from the island, including
the availability of tax refunds based on Maltaís full imputation system; complemented by a wide network of
double tax treaties with various countries;
ï the domiciliation of companies into Malta or out of the island, facilitating the notion of a company being a
going-concern;
ï an established and well regulated financial services industry and the presence of reputable international
financial institutions;
ï a stable democratic, political and economic climate, with the government earmarking various areas,
including financial services, for Malta to be a centre of excellence, this becoming the governmentís
short-to-medium term strategy and vision;
ï support services provided by pro-active professionals, including major accountancy and audit firms; as
well as the presence of local and international banks;
ï a highly qualified and skilled workforce, fluent in various languages with English being a mother tongue;
and
ï web / data hosting and co-location facilities, based on a state-of-the-art telecommunications infrastructure
with four Internet connectivity submarine cables connecting Malta to Sicily and subsequently the rest of
the world.
The above advantages have meant that other operators started following suit and as such confirmed that a
Malta Gaming Licence is a ëseal of qualityí. Furthermore, this confirms the LGAís slogan of ìReputable,
Responsible and Responsiveî as the European Hub of Remote Gaming.
Bio: Jonathan Dalli

Jonathan is a graduate from the University of Malta and the Institute of Financial Services (UK). He was appointed
Head of Marketing of HBM Group/e-Management in September 2009, overseeing all marketing activities in relation
to the groupís service portfolio on an international level; directs the marketing & PR campaigns; event management;
brand management strategies; marketing communications & media relations; and strategic collaborations. He also
acts as Management Consultant for various business concerns. Previously, he was Marketing Manager of a quad-
playerís provider in the Telecommunications Industry, following another stint in iGaming Licensing and Consultancy
whereby he was already involved in the licensing of various successful iGaming license applications. He has also
held various marketing posts in a number of private sector enterprises and industries in Malta, Slovakia and the
Czech Republic. Jonathan is also a part-time freelance lecturer at the University of Malta. He speaks fluent English,
Italian and basic French. Email: jonathan@emanagement-group.com
e-Management Ltd
Sliema SLM1525
Malta - EU
Tel: +356 2132 EMAN [2132 3626]

Fax: +356 2132 3627
Sponsored by
PAGE 13
PROFILE: Verdun Group
Our vision for Verdun Group has always been to build Europeís most transparent
and service minded international corporate service provider and revolutionize the
ease of communicating with our clients through the use of advanced online based applications.
Our specialty is to provide small- to medium sized businesses with the benefits normally only utilized by large multi-
national corporations.
With roots back to 1999, the hedge fund controlled Verdun Group has grown into a multi-million Euro corporation by
clearly focusing on the goal of enabling transparent and high-quality international corporate services to anyone with
an internet connection based anywhere in the world.
Verdun Groupís premium services provide low cost connectivity to public registrars in several reputable jurisdictions.
Verdunís software also offers a robust set of features, including online filing of annual return, annual accounts, change
of particulars, change of directors and company secretary, change of shareholders etc.
As one of the fastest growing companies within international corporate services, Verdun Group already has thousands
of clients in several EU/EEA countries and territories. Verdun Group is currently adding a high double digit figure of
companies a day and has created a thriving ecosystem of products, services, developers, and affiliates. Verdun Group
is considered the market leader in virtually all European countries in which the company does business.
Our Clients
International companies
Verdun Group has extensive experience advising clients internationally, and we have been involved in transactions
in virtually every corner of the world. From our main office in the heart of London, and through our international
trading centers in Malta and Cyprus, we offer a range of services to both corporations and individuals.
Verdun Group is primarily a corporate boutique providing full service solutions for international companies, trusts and
foundations ñ we provide advanced management and administrative services with care and confidentiality.
Our staff speaks English, Maltese, German, Italian and all Scandinavian languages and customers have access to
the expertise of our professional staff, independent of their base.
Sole traders
Verdun Group has helped more than 9,000 sole traders within Europe to incorporate a more sound corporate
structure by converting thousands of Sole Trading companies to limited companies with no capital requirement,
offering a combination of lower tax rates, reduced personal liabilities and increased social security - all at the price
of a Sole Trading company.
Our Brands
Verdun Group has a suite of well-known and successful brands covering a global client base. Our corporate
products cater to a wide spectrum of clients from the sole trader to the multi-national corporation.
Verdun Legal Services
Verdun Legal Services is corporate boutique based in the heart of central London, just a stone throw away from
Buckingham Palace. The London office is the groupís center for international transactions and our major hub for
coordinating our international activities.
CONTINUED PAGE 14
Sponsored by
PAGE 14
PROFILE: Verdun Group Continued
Verdun Corporate Services
Verdun Corporate Services is represented by our commercial centers in Malta and Cyprus - in the heart of the
Mediterranean region - offering attractive gateway-solutions to the EU and looking after the groupís activities in
Southern Europe and MEA. Verdun Corporate Services is our full service brand assisting our clients with all
corporate matters from incorporations to accounting, banking and general infrastructure services - holding your
hand throughout the whole process.
Verdun Technologies
Verdun Technologies is our tailor-made state-of-the-art online corporation engine having helped thousands of people
around the world to incorporate and administer their Pan European corporate structures within the EU/EEA. We
believe in transparence and bring you all the relevant information about your company to you directly through a secure
online user-interface.
Find us Contact us
Verdun Legal Services Limited uk@verdungroup.com

Suite 1.7 Tel: +4420 7808 7080
1 Warwick Row
London SW1E 5ER
United Kingdom
Verdun Corporate Services (Malta) Limited malta@verdungroup.com

Suite 7 / Level 4 Tel: +356 2010 7000
The Plaza Commercial Center
Bisazza Street
SLM 1640, Sliema
Malta
Verdun Corporate Services (Cyprus) Limited cyprus@verdungroup.com

Office M102 Tel: +357 2200 7940
25 Michalakopoulou St.
Michalakopoulou Tower
1075 Nicosia
Cyprus
Sponsored by
PAGE 15
PROFILE: Fenlex
Fenlex (www.fenlex.com) was established in the 1980ís and is today one
of the largest and leading corporate services providers in Malta. The services
provided by the Fenlex Group include:
Company Incorporation and Re-Domiciliation
Company Administration and Maintenance
Provision of Registered Office
Company Secretarial Services and Support
Directorship Services
Accountancy Services
Bank Account Administration
Tax compliance and payroll services
VAT registration and compliance
Relocation Assistance
Management & Operations (e.g. assistance in the day-to-day operations such as sourcing of property,
searching for partners, assisting in the application process for a remote gaming license)
The Fenlex Group of Companies includes Fenlex Corporate Services Limited and Fenlex Holdings & Services
Limited.
Fenlex Corporate Services Limited is a fully fledged corporate services company. It offers special expertise in
most aspects of company management, accounting and administration. Its large international client base is
serviced by a multi-disciplinary team organised into three support units: Corporate Services, Accounts and
Operations.
Fenlex Holdings & Services Limited is licensed to act as trustee and fiduciary by the Malta Financial Services
Authority and consists of well trained individuals with integrity and a commitment to providing excellent service
tailored to meet individual client requirements.
Fenlex is closely associated with Fenech & Fenech Advocates (www.fenechlaw.com), one of Maltaís largest
and longest established law firms. Clients requiring legal advice on a wide range of areas of practice, including
international tax planning and corporate law, financial services (including the setting up and licensing of hedge
funds and retail funds), remote gaming law, trusts and foundations, ICT law, intellectual property law, maritime
and aviation Law, and VAT on the leasing of yachts amongst others, will be serviced by the firmís experienced
lawyers.
Fenlex is also associated with Fenech & Fenech Marine Services Ltd. that provides ship registration services.
Providing tax, corporate, accountancy and advisory services, Fenlex can guarantee your freedom from
handling the other important yet distracting areas supporting your business. This will allow you to focus on
your core target business and help unlock the full potential of your venture.
Contact Us
Fenlex
Fenlex House
85, St. John Street
Valletta
VLT 1165
Malta
Tel: + 356 2124 1817

Fax: + 356 2599 0640
www.fenlex.com
Sponsored by
PAGE 16
PROFILE: e-Management
e-Management is a dedicated business division of HBM Group (est. 1991),

with offices in reputable regulated Online Gaming Jurisdictions worldwide.
We are a leading specialized turnkey provider of Business Support & Corporate Services to the Online Gaming
Industry.
As a professional, client oriented service provider of fiduciary services, we focus on establishing and managing
internationally engaged e-Gaming Companies based out of Curacao and Malta. With more than a decade of
experience in assisting major software providers and operators with their corporate and licensing requirements
in both Curacao and Malta, e-Management/HBM Group was amongst the first Corporate Services Providers in
1997 to enter the Online Gaming Industry. e-Management offers innovative services by assisting all e-Gaming
(related) businesses to efficiently and effectively structure their enterprise in an ever changing and challenging
business environment without borders.
e-Management, via HBM Group, provides its Business Support & Corporate Services in the following
jurisdictions: Anguilla, Bonaire, British Virgin Islands, Cayman Islands, Curacao, Malta, New York, Panama,
St. Maarten, The Netherlands and Uruguay. We are proud to offer our global clients with international
e-Commerce Company Solutions worldwide.
e-Managementís service portfolio comprises the following:
Company Set-Up, Formation & Domiciliation

International Corporate Structuring
Directorship & Shareholder Services
Accounting & Corporate Secretarial Services
Opening & Operating of Corporate Bank Accounts
Merchant Accounts & Payment Gateways Set-up
e-Gaming Licensing Support & Consultancy in Malta, Curacao and other jurisdictions
Key Officials in Malta
Office Facility Services such as office space
Co-Location Solutions in multiple jurisdictions
Global Recruitment and Placement Solutions
Contact Us
e-Management Ltd
Sliema SLM1525
Malta - EU
Tel: +356 2132 EMAN [2132 3626]

Fax: +356 2132 3627
Sponsored by
PAGE 17
PROFILE: UHY Pace, Galea Mus˘ & Co.
UHY Pace, Galea Mus˘ & Co. is a member of UHY, an international association
of independent accounting and consulting firms, whose organising body is Urbach
Hacker Young International Limited, a UK company. Each member of UHY is a separate and independent firm.
The services described herein are provided by UHY Pace, Galea Mus˘ & Co. and not by Urbach Hacker Young
International Limited or any other member of UHY. Neither Urbach Hacker Young International Limited nor any
member of UHY has any liability for services provided by other members.
UHY International
UHY is one of the worldís leading business advisory, consulting and accounting networks, with teams operating
across 242 offices in 76 countries worldwide. Our member firms are modern businesses in their respective
countries, knowledgeable of local regulations, market practice and cultural norms.
In the global marketplace, UHY member firms offer full service support in every major financial centre worldwide,
creating opportunities for extending business interests across all services and sectors.
UHY is present in Malta providing financial accounting, business consulting and taxation services through UHY
Business Advisory Services Limited which specialises in advice and services to small and medium sized enterprises.
UHY Pace, Galea Mus˘ & Co. is the audit arm. We see the annual audit as being more than a statutory obligation.
It should also serve as an opportunity to take a close look at your business ñ an opportunity which could prove a
very important one. Which is why we make careful recommendations and suggestions, based on our findings,
discussing with the client the best way forward.
Services offered:
Management consultancy, accountancy and Book-keeping

VAT Advice, Registration and compliance
VAT - preparation of forms supported by management accounts
Local and International Taxation - Corporate and personal tax services, computations, planning,
submissions, payments and compliance
Payroll bureau services
Business planning and and cashflow forecasting
Corporate services ñ formation, domiciliation and administration
Shipping ñ finance, registration and administration
Banking assistance
iGaming ñ registration, management and support
Contact Us
UHY Pace, Galea Mus˘ & Co.

Matilda Court, Apartment No. 2,
Giuseppe Cali` Street,
Ta' Xbiex XBX 1423,
MALTA
Tel: + 356 2131 1814 / 2133 1710

Fax: + 356 2131 0461
info@uhymalta.com
http://www.uhymalta.com
Sponsored by
PAGE 18
PROFILE: HBM Group
HBM Group, established in 1991, is the leading independent financial
services provider headquartered in Curacao, Dutch Caribbean. As a
professional, client-oriented family of service companies, HBM Group is focused on delivering comprehensive
international company solutions. We assist in the formation and management of international companies for
businesses and individuals, ensuring compliance with international legislation.
HBM Group is dedicated to providing a complete range of services and solutions to meet and exceed the
demands of our clients in an ever-changing global market. Our team of professionals, with over a decade of
experience, offers premier and personalized service to each client, individually. We understand each client is
unique. Therefore, our comprehensive services are based on understanding your priorities and desires for
your company or trust. By building on our tradition of excellence, and protecting the integrity and reputation of
our clients, HBM Group is committed to providing our clients with all the necessary services for economic
success.
To ensure the right solution, HBM Group is dedicated to understanding the clientís priorities. HBM Group can
guarantee the highest standard of business ethics, the utmost confidentiality, and state-of-the-art technology.
HBM Groupís service portfolio comprises the following:
- Company set-up and incorporation services;

- Regulatory and licensing consultancy;
- Directorship and management services;
- Accounting and administrative services;
- Back-office and support services; and
- Fiduciary and trustee services.
HBM Group, provides its Business Support & Corporate Services in the following jurisdictions:
Anguilla, Bonaire, British Virgin Islands, Cayman Islands, Curacao, Malta, New York, Panama, St. Maarten, The
Netherlands and Uruguay.
Contact Us
HBM Group
Sliema SLM1525
Malta - EU
Tel: +356 2132 3626

Fax: +356 2132 3627
malta@hbmgroup.com
www.hbmgroup.com
Sponsored by
PAGE 19
PROFILE: AeroNautica
AeroNautica is an organisation acting in the fields of aviation and maritime law,
corporate services, business support services, company management and
marketing, providing services for business, corporate and registration affairs, such as guidance through the
Corporate and Legal Requirements, and the Aircraft and Maritime Registration process.
AeroNautica (Malta) Limited is the synchronization of synergies between HBM Group, a corporate & fiduciary
services provider offering international company & management solutions; and City Consult, a leading Malta based
corporate & commercial law firm offering legal and advisory services.
AeroNautica played an instrumental role in the launch and promotion of the aircraft registry especially in Malta, and
the company keeps a close working relationship with all government departments particularly the Civil Aviation
Directorate, a division of Transport Malta. AeroNautica operates a secondary office at Malta International Airport.
AeroNauticaís service portfolio, available in various jurisdictions, includes but is not limited to:
Aviation & Maritime Consultancy

Aircraft, Ship & Yacht Registration
Malta Aircraft & Maritime Register Search
Purchase & Sale Transaction Management
Co-Ordination of Aircraft, Ship & Yacht Financing
Drafting & Reviewing of Agreements
Legal & Tax Solutions
Company Set-Up, Formation & Domiciliation
International Corporate Structuring
Directorship & Shareholder Services
Accounting & Corporate Secretarial Services
Opening & Operating of Corporate Bank Accounts
Contact Us
AeroNautica (Malta) Limited

28, Cathedral Street, Sliema SLM1525, Malta - EU
Area 3, Security Gate 1, Malta International Airport, Luqa LQA3290, Malta - EU
Tel: +356 2258 3631

Fax: +356 2258 3617
info@aeronauticaworld.com
www.aeronauticaworld.com

Tax-News Malta Review 2010-2011

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Tax-News.com Malta Review 2010-2011

A large number of companies from around the world expressed interest in

The e-gaming industry in Malta is regulated by the Lotteries and Gaming

There are four classes of licence available to operators in Malta, as follows:

In June 2010, Malta disagreed with the conclusions of an EU Competitiveness

Malta Holding Companies

Maltaís acceptance of the EC recommendation meant that the existing ITC

In order to register a ship in Malta, it must be owned by a company incorporated

1.0 Tax benefits in Malta in general

1.0 Tax benefits in Malta in general

2.0 International Holding Companies in Malta

2.1 Holdings Typically Held to Best Utilize a Malta Holding Company:

2.2 Benefits of Using Malta for Holding Assets in the EU/EEA:

3.0 The EU Directives and the 2-Tier Structure

4.0 Malta Trading Companies ñ ìThe Tax-Friendly Gateway to the EUî

4.1 Maltaís Strength as a Gateway to the EU:

4.2 Examples of Industries Currently Relocating to Malta:

5.0 More European Online Businesses Operate from Malta

5.1 Typical Functions to Outsource to Malta:

5.2 Recruitment of Multi-lingual Staff:

6.0 VAT Rates of Only 5.4% for Yachts in Malta

Since it is hard to determine the exact period of time a yacht spends in EU

The official table released by the Maltese VAT department:

Type of Yacht % of lease subject to VAT Effective VAT rate

6.1 Lease-Purchase Agreement

7.0 Shipping Registry in Malta on Global Top 5 list

8.0 Leasing and Other Financial Services in Malta

9.0 Expatriates in Malta Taxed at Only 15%

Verdun Group (Malta)

Verdun Corporate Services (Malta) Limited

Company Formation in Malta

Established Service Provider Industry

For more information please contact:

Tel: +356 2132 EMAN [2132 3626]

Bio: Jonathan Dalli

Tel: +356 2132 EMAN [2132 3626]

Verdun Legal Services

Verdun Legal Services Limited uk@verdungroup.com

Verdun Corporate Services (Malta) Limited malta@verdungroup.com

Verdun Corporate Services (Cyprus) Limited cyprus@verdungroup.com

Tel: + 356 2124 1817

e-Management is a dedicated business division of HBM Group (est. 1991),

e-Managementís service portfolio comprises the following:

Company Set-Up, Formation & Domiciliation

Tel: +356 2132 EMAN [2132 3626]

Management consultancy, accountancy and Book-keeping

UHY Pace, Galea Mus˘ & Co.

Tel: + 356 2131 1814 / 2133 1710

HBM Groupís service portfolio comprises the following:

- Company set-up and incorporation services;

Tel: +356 2132 3626

Aviation & Maritime Consultancy

AeroNautica (Malta) Limited

Tel: +356 2258 3631

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