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From Komfie Manalo, Opalesque Asia:

Malta has a comprehensive tax regime which does not make it a tax haven, declares Joseph Taussig, founder of Zurich-based asset management firm Taussig Capital AG. In fact, Malta has entered into tax treaties with 55 countries, the latest of which is the United States, a treaty which took effect on January 1, 2011.

Speaking during the recent Opalesque Malta Roundtable, Taussig dismissed the “wrong-headed theory about tax havens,” including Bermuda, which he said has amongst the highest per capita tax receipts in the world.

Taussig explained that Malta’s imputation system, which was adopted from Britain and approved by the EU, might be giving the country a “tax haven” reputation because the system allows non-Maltese shareholders to get a refund of the taxes they pay. For example, a company pays 35% income tax in Malta, but its non-Maltese shareholders can get a refund of 5% under the imputation system. This makes Malta a very attractive destination amongst hedge fund managers.

A dividend imputation system is “a corporate tax system in which some or all of the tax paid by a company may be attributed, or imputed, to the shareholders by way of a tax credit to reduce the income tax payable on a distribution. It re......................

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