Dividend Tax Calculator (Imputation Refund)

Malta runs a FULL IMPUTATION system, not a classical dividend-withholding one: the company pays 35% corporate tax to the Commissioner for Revenue, and — unlike most 'flat withholding' countries — a shareholder who receives a dividend out of those already-taxed profits can claim a REFUND of most of that 35% once the dividend is actually distributed (refund is paid to the shareholder, not credited at source). Three refund fractions apply depending on the type of income the profit derives from: 6/7 for trading income (by far the most common — brings the net Malta tax cost down to 35% x (1 - 6/7) = 5%); 5/7 for income from passive interest and royalties (net ≈10%); and 2/3 for income allocated to the Foreign Income Account where the company already claimed double-taxation relief on that income (net ≈11.67%, since part of the underlying 35% was itself relief-reduced foreign tax, not pure Malta tax). A 0-refund case also exists for income taxed via final withholding tax (e.g. property transfers taxed under the final withholding system) or exempt under the participation exemption on qualifying holding-company dividends/gains, where there is no residual shareholder-level tax to refund because none is due in the first place. Refunds are claimed by the RECIPIENT shareholder (an individual or, in practice usually, a Malta holding company) via a refund application to the Commissioner for Revenue, typically ~14 days after the year the dividend was received, and are available to both resident and non-resident shareholders (subject to the shareholder not being a party excluded by the participation-exemption anti-abuse rules). No further Malta withholding tax is charged when the dividend itself is paid out. As of 2026 no calculator anywhere models all three refund fractions together with a personal-tax overlay — this is the flagship content for the Malta build.