The role of Maltese holding companies in international tax planning

Abstract

The role of the Holding Company in International tax planning is certainly an area of study, which combines a multitude of theoretical aspects with practical issues. In fact this area of study combines the theories of International Taxation, and directives, to the practical use of international group structures and double taxation treaties Tax Planning is also a very topical issue, as is the Anti Avoidance measures which are being drafted and published by the European Union and the Organization for Economic Cooperation and Development. In view of the above I tackled the study by striving to define what is meant by the term Maltese Holding Company. I also analyised the provisions within our laws which regulate such a company. In the early part of my thesis I identified foreign directives, which regulate Holding Companies and gave an overall explanation to such directives. The study next concentrated on the use of the Maltese Holding Company in International Tax Planning, whereby a large list of fiscal and non-fiscal uses were identified. This was also done thanks to discussions and interviews held with the main nominee companies in Malta, together with the application of my research done in the initial chapters of the thesis. It was also felt necessary to consider briefly the anti avoidance measures which exists, and which could hence limit the use of the holding company. Finally I humbly proposed a variety of recommendations, which could possibly facilitate and improve the Financial Services Industry in Malta.