VC-A's Holding Co. Program
In response to the UK government's recent announcement of a corporate tax rate increase from 19% to 25% for companies with profits exceeding £250,000 starting in April 2023, there is a growing need for tax-efficient solutions.
UK companies with profits of £50,000 or less will remain at the 19% rate, while those with profits ranging between £50,000 and £250,000 will experience a tapered rate. This adjustment applies to both UK resident companies and overseas company branches operating in the UK.
Given the associated setup and maintenance costs, it becomes advisable for companies with net profits in excess of £42,000 and poised for growth to explore the benefits of establishing a holding company in Malta.
Malta, a Mediterranean island nation, offers an attractive tax regime for foreign investors. It boasts a flat corporate tax rate of 35%, which, although may appear high initially, is complemented by a unique tax refund system. This system allows shareholders to claim back a portion or all of the tax paid by the company on dividends or distributed profits, contingent upon income source, nature, and relevant tax treaty provisions between Malta and the shareholder's country of residence.
For instance, a UK company that establishes a holding entity in Malta and receives dividends from subsidiaries in other countries can reclaim 6/7 of the tax paid by the Maltese company, effectively resulting in a 5% tax rate.
With the gap between the UK corporate tax rate and the Maltese effective tax rate widening from 19% to 25%, the advantages of establishing a Malta-based holding company have become even more pronounced for UK companies, offering a 6% increase in potential tax savings.
However, the process of establishing a holding company in Malta is intricate and demands meticulous planning, legal guidance, and adherence to regulatory requirements.
Value Creation - Alternatives (VC-A), specializing in international business expansion, is pleased to introduce the "Holding Co. Program." In collaboration with Fiduscorp, a regulated entity in Malta licensed to provide directorships and professional management services, VC-A offers tailored solutions to companies seeking tax-efficient structures.
If you're a UK company seeking to optimize tax savings and expand internationally, we invite you to contact VC-A today. Discover how we can facilitate the setup of a Malta-based holding company and leverage our international network to implement your global growth strategy.
VC-A extends a complimentary consultation and custom proposal to align with your unique objectives. Don't miss this opportunity to harness Malta's tax refund system and enhance profitability.
Contact VC-A now to embark on your journey towards success.