International Holding & Trading Companies

IHC’s and ITC’s are not offshore companies properly speaking. They are deemed Maltese companies for registration and regulation purposes and are governed by formation rules quite similar to ‘domestic’ companies. There are certain safeguards and exceptions such that they cannot trade inside Malta but can trade from Malta and can make joint-ventures with Maltese Companies, maintain accounts in any currency (including Euros), and obtain ‘resident’ status for their overseas directors. Foreign shareholders in such Companies can get an advance revenue ruling from the Inland Revenue Department as to their tax status, subject to certain rules as to how dividends are paid and distributed.

Bearing in mind that Malta has double-taxation agreements with some 31 countries*, the prospects for foreign investors in such Companies are excellent.

* Australia, Austria, Belgium, Bulgaria, Canada, China, Croatia, Cyprus, Czech Republic, Finland, France, Germany, Hungary, India, Italy, Korea (Rep of), Libya, Luxembourg, Malaysia, Netherlands, Norway, Pakistan, Poland, Romania, Slovakia, South Africa, Sweden, Switzerland, Tunisia, United Kingdom and the United States of America.