Malta International Trading Company:

An International Trading Company (ITC) is a company registered in Malta which does business exclusively with non-residents, both in fact and according to its Articles. Certain complementary activities in Malta are permitted:

• purchases for export of Maltese goods provided that they are not made from a 15% shareholder in the buying company;

• trading with companies registered in Malta under the Financial Services Centre Act 1988 (ie offshore companies; see below);

• trading with other International Trading Companies.

The Maltese Inland Revenue will give a Ruling on request that a company is an ITC, which is valid for 5 years, extensible for a further 5 years.

An International Trading Company pays an effective rate of tax of only 4.17% (see Offshore Legal and Tax Regimes for details.) In addition it is able to make use of Malta's many double taxation treaties (unlike offshore companies).

The beneficial owners of an ITC can remain confidential if they incorporate the company through a licensed nominee company. As regards its legal basis, the ITC is formed as a private limited company (see above).

The ITC regime is being brought to an end (see above).

updated: 16.07.07.