Business tax
Company tax 2027: the proposed 25% rate
The Diskors tal-Budget 2027 (printed pp. 34 to 35) announces 25% instead of 35% on retained or reinvested profit for qualifying companies with turnover up to €1 million. Distributed profit stays at 35%.
Illustrative baseline: 35% on all profit
€42,000.00
Proposal: 25% retained, 35% distributed
€34,000.00
Illustrative difference
€8,000.00
Retained €80,000.00 · distributed €40,000.00. Company-level tax only; shareholder tax refunds on distributions are not modelled.
Rules still pending
- Which companies qualify, and how "retained" or "reinvested" is defined.
- How it interacts with Malta's refund system on distributions.
- Start date and any clawback if retained profit is later paid out.
Related
See the measure page, the SMEs guide and, for sole traders, the self-employed calculator. Speak to a tax adviser before acting.