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Money matters

what is tax in Malta, and is it considered a tax haven ?

No, really... it does!
But does it matter more in Malta than at home?

NO ADVERTISING - financial services adverts belong in our classifieds section. Get-rich-quick schemes belong in the trash.

Postby supertuur » Sat 11 Apr 2009 23:01 GMT

Londonphoto,

I would keep your photography earnings offshore till the 1st of Jan and then remit the money to Malta. The earnings will be classified as capital and will atract no TAX. You are better off taking a loan if you need the money before hand than pay tax. For EU citizens I see no advatage in the PR scheme and you are better of as an OR.

The PR is good for non EU residents that want a low cost tax base.
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Postby gozomark » Sun 12 Apr 2009 07:28 GMT

Hi Supertuur

welcome back to the forum :D

Londonphoto laid out his reasons for wanting PR in the following thread
http://www.britishexpat.com/expatforum/ ... ght=#38724

in particular

but I would prefer to invoice all my clients in Europe and worlwide from malta and be taxed 15% flat fee rather then do tax avoidance with an offshore company.... at the end of the day... it is true that I do not have pay taxes on the money that I do not bring into malta..but in order to be in respectfull of the tax law with the other country were I mainly work (uk/france/italy/usa) I will have to demonstrate that I do live and pay taxes in malta for real ,iif I want to avoid to pay taxes in the country were I did the job.The alternatives is to do tax avoidance and make money disappear in some offshore (which is what I do not want to do)... This is the reason why I am interested in PR.

my knowledge of tax law in uk/france/italy/usa is insufficient to advise whether LP is right, and believe this was an issue he was going to bring up with his accounant/advisor in Malta
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Postby stuartd1 » Sun 12 Apr 2009 12:34 GMT

As far as I can see, as an OR you are only taxed on earnings you remit to Malta. So you could have your clients remit to another offshore account elsewhere and only bring into Malta and declare what you need to live on here. As Mark says though, get a professional to check it out.
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Postby gozomark » Sun 12 Apr 2009 12:44 GMT

stuartd1 wrote:As far as I can see, as an OR you are only taxed on earnings you remit to Malta. .
(or earn in Malta) - correct.
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Postby supertuur » Sun 12 Apr 2009 22:06 GMT

Gozomark/Londonphoto,

Yes almost back in Malta after a 5 month trip around the globe.

This is the construction I use to bill clients. I use an LLP registered in the UK. You can than invoice from a registered UK business. You can also have a UK bank account. As the work is done outside the UK income in the LLP will not be taxed. (I have had this verified by accountant)

Remit only once the income once it has become capital for Maltese tax purposes (turn of the year).
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Postby Mr Kriss » Mon 13 Apr 2009 23:48 GMT

Getting back to the 10% of residents being PR makes me wonder if there are numerous people who are essentially non residents who use the PR to avoid declaring residence somewhere else and who may just have a holiday apartment in Malta. This brings in revenue to the Maltese coffers without having to provide any services so why stop it?
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thanks everybody !

Postby londonphoto » Fri 17 Apr 2009 14:04 GMT

I arranged a meeting next week with a Maltese accountant and I will find out the best solution within the international law !.. I will of course notify on this board to help future users !
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Postby Mr Kriss » Fri 17 Apr 2009 15:40 GMT

'best solution within international law' sounds very much like tax avoidance (not evasion) to me.

That would probably be my approach too.

Good luck, I hope you get good advice.
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thanks

Postby londonphoto » Sat 18 Apr 2009 11:04 GMT

Kriss !.. the problem is that now days everything MUST be done properly, as they are tightening control after the G20 meeting in London and joints cooperations between countries !.. even Switzerland will be forced to give up bank secrecy at the end.. they are already discussing it right now !
So... of course the best think is to be absolutely sure all the process will be done accordingly to law; I will be moving and taking residency in Malta and living there.. so there should be any problems !... it wont be a "malicious " residency status just for tax reasons ! (so.. Uk tax man.. if you are reading this forum.. you know I am a good guy ;) ) ahahha
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Postby gozomark » Sat 18 Apr 2009 11:13 GMT

there are many ways of doing it properly, and choosing the wrong way may prove very costly for you - hopefully the person you are seeing is fully aware of all the options, both from a Malta perspective, and from an international perspective.

If you feel the advice you receive isn't sufficiently wide ranging, remember there is an excellent accountant recommended on the "recommended suppliers" forum who I, and several others here, have used.
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Postby Mr Kriss » Sat 18 Apr 2009 21:22 GMT

Londonphoto,

I am pretty sure that what I was saying was agreeing with your chosen route. You said earlier (May 2008) that you didn't want to chose a tax avoidance route.

Avoidance is, as you know, a legal method of minimising your tax obligations and not cheating anyone. What you appear to be doing is taking advice to identify the best way to minimise taxation for your circumstances i.e. tax avoidance, though the term tax mitigation may be more acceptable to some.

I was not in any way suggesting doing things in any improper manner.
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Postby gozomark » Sat 18 Apr 2009 21:46 GMT

Londonphoto - Mr Kriss's comment about May 2008 reminded me that I emailed you the recommended accountants details back then on the understanding you would in exchange consider making a donation to the forum which I believe is still outstanding - perhaps you would consider joining the "recommended suppliers" forum - its only £25, with 50% going to Gozo SPCA

[Edited by Dave to reflect the increase in the RS joining fee, 1 Oct '09]
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Postby supertuur » Sun 19 Apr 2009 22:01 GMT

He who wants to pay Tax if you see how it is wasted on bailing out banks and failed businesses.
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Postby Mr Kriss » Mon 20 Apr 2009 14:27 GMT

Please everyone pay your UK taxes. They need the money to save up and pay my pension eventually. After raiding company pension assets they have now raided the public pension coffers so I can probably look forward to working until I am 93 or pushing up daisies.
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donation

Postby londonphoto » Thu 23 Apr 2009 09:32 GMT

hi Mark,

you are right !.. no problem.. of course I will !.. I have 2 jack russels myself and I am very sensible about this matters; (actually..one of my problems for the first years will be do find a nice rented accommodation with a landlord that wont refuse them).. I am planning to buy a an apartment later.. so wont be a problem after that..
... send me the details and I will do ! ;)
Back to my taxes... and in reply to kriss.. I am not very keen to be honest to leave a big chunk of my income to Uk; especially because I really get very few out of it in terms of services. And with the new budgets just approved by Labour, I will have now to pay 50% !!!!!!!! for what?.. to recover Banks from dodgy financial business?.. or to maintain the huge benefits system often spoiled... well long story !
Kriss.. in the last 5 years.. as a foreigners I have been probably double the amount that a typical Uk clerk's citizen will pay in an entire working life !! (more of less).. and for what?
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