Insights

During the budget speech delivered on the 17th of October, the Government introduced a number of measures designed to incentivise further growth of Malta’s capital markets.

As from next year, any gains on the sale of listed shares held by persons prior to listing on the Malta Stock Exchange will be exempt from the current 15% applicable tax rate. The listing of shares on alternative trading platforms, such as Prospects, will also benefit from a similar tax incentive depending on the corresponding percentage of shares offered to the public. It is not yet clear as to the amount of shares that need to be offered to the public in order to benefit from the said exemption.

Another measure introduced relates to dividends from companies listed on the Malta Stock Exchange. For distributions made out of profits derived after 1st January 2017, smaller investors holding less than 0.5% of the nominal share capital of a company listed on the Malta Stock Exchange will be eligible to claim a full credit of the tax at source deducted through its income tax return, depending on the income tax rates applicable to the shareholder.