| Tax Workings for Income generated by an ITC | € |
| | |
| Chargeable Income of ITC (profits) | 1,000 |
| Less Corporate Tax @ 35% | (350) |
| Profits available for distribution (Dividend) | 650 |
| | |
| Upon Distribution of Dividends to a Non-Resident | |
| Shareholder | |
| | |
| Distributable Dividend to non-resident shareholder | |
| Gross Dividend (650 + 350) | 1,000 |
| | |
| The above is grossed for tax purposes to enable the calculation of | |
| the Tax refunds offered by Maltese Law | |
| | |
| Refunds | |
| 1. The difference between 35% paid and the 27.5% due | 75 |
| by non-resident shareholders (350 – 275) | 233.33 |
| 2. 2/3 of the tax paid by ITC (2/3 of 350) | 308.33 |
| | |
| Total Refund due to Non-resident Shareholder | |
| | |
| Totals received by Non-resident Shareholder | |
| (650 dividend + 308.33 refunds) | 958.33 |
| | |
| Total tax suffered (1000 – 958.33) | 41.67 |
| | |
| Net effective rate of tax | 4.17% |
