Malta imposes a 15% final tax on large multinationals under new regulations.
Malta’s government has issued Legal Notice 188 of 2025, titled the Final Income Tax Without Imputation Regulations, 2025, under Article 22B of the Income Tax Act on 2 September 2025.
The Regulations introduce a new optional tax system. Under this system, certain entities can choose to pay a final income tax on their chargeable income instead of using Malta’s traditional full imputation system.
The new rules will raise the effective tax rate for eligible multinationals from 5% to 15%. The decision affects approximately ten companies with a global annual turnover exceeding EUR 750 million and aligns Malta with the EU-agreed global minimum tax for large multinational corporations.
The government expects this measure to increase revenue and align with the EU’s global minimum tax rules for large multinational companies.
