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Betting Companies moving to Malta

Net tax liability: 0.5%

In 2000, the Maltese government issued regulations governing the operations of Internet Based Betting Offices.

Under these regulations, the Director of Public Lotto will grant licences to operate such betting offices to such persons having "the appropriate business ability to conduct the betting office successfully." Licences are issued for a minimum period of five years and may be extended for further periods of five years.

Favourable Tax Regime

The attractiveness of Malta as a venue for betting operations is also due to the tax-friendly environment in which they are allowed to operate:

Betting transactions are taxable at 0.5% on turnover.
No licence fees
No application fee
Effective corporate tax rate of 4.17%

Maltese betting operations are highly regulated and are carried out through an International Trading Company (ITC) set up for the purpose. ITCs are subject to the corporate tax rate of 35%. However, this is effectively reduced to 4.17% as non-resident shareholders are entitled to a rebate of 30.83% of the tax paid on distribution of dividends.

The above scenario has resulted in a considerable number of international betting companies, many based in Britain, recently setting up offshore operations here, enabling their clients to bet online through the numerous Internet facilities available today.

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