Malta is well known for its strong Maritime and Aviation Sectors and offers a range of relevant services. It is a perfect hub for trade and commerce especially since it has a strategic geographical location in the middle of the Mediterranean Sea. Malta’s respected flag and established connections with both European and non European states make it ideal as a platform for your business. Today Malta has one of the largest shipping and aviation registers in the world.
In that context¸ it is interesting to know that PKF Malta also offers shipping and aviation registration services to its clients. We constantly challenge ourselves to improve our services to accommodate complex changes in the business environment.
The registration of ships under the Maltese Flag is regulated by the Merchant Shipping Act (Chapter 234 of the Laws of Malta). The registration of aircraft is regulated by The Aircraft Registration Act¸ which came into force on the 1st October 2010 and implements the provisions of the Cape Town Convention on International Interests in Mobile Equipment.
What are the main factors convincing our clients to choose registration under the flag of Malta?
- There are no trading restrictions on vessels registered in Malta
- Malta offers a complete tax exemption to owners¸ charterers and financiers of Maltese flagged vessels of 1¸000 Net Registered Tonnage and over. This incentive may also be extended to ships under 1¸000 NRT
- No restrictions on the sale or transfer of shares of a company owning Maltese ships
- No restrictions on the sale and mortgaging of Maltese ships.
- Malta has concluded over 60 double tax treaties and bilateral maritime agreements with maritime countries that lay the way for smoother and more efficient business transactions.
The key factors specifically linked to the success of Malta’s aviation sector¸ include the following:
- Corporate taxation at the mere effective rate of 5% following refunds
- Ratification of Cape Town Convention
- No Withholding taxes on aircraft lease payments
- VAT exemptions on certain aircraft activity.
Furthermore¸ Malta is renowned to be a tax-efficient base for international business operations¸ providing innovative tax planning opportunities upon re-domiciliation to Malta of foreign companies conducting international shipping and aviation operations. In the recent years¸ Malta has also witnessed growth in the aviation industry¸ attracting internationally renowned entities to set up operations in Malta.
Our professional team can assist you in all aviation and shipping–related requirements. We provide practical advice of new legal requirements and interpretations of existing legislation in that matter.
For a free copy of the PKF Shipping Registration or PKF Aviation Registration brochures please email a.cass