Moving to Malta Forums

Have I gone crazy?

Atornokeber — Sun Nov 15, 2009 3:40 pm

Author: Atornokeber

Posted: Sun Nov 15, 2009 3:40 pm

Greetings!

I'm new to this community and just wanted to introduce myself and say "hello".

Finally a good site with colors that I can follow - which truly is refreshing!

I'm here to learn + get involved. How could I best get involved?

Laters Ya'll~

PS: - I'm trying to locate a lost friend called Rhett Aderholt, Where would I locate him?

Work From Home Business Opportunity

AJC — Tue Jun 16, 2009 11:04 am

Author: AJC

Posted: Tue Jun 16, 2009 11:04 am

We are an international leader in Personal Development Products & Events looking for a few motivated Sales Reps to help us with the expansion into Europe. We are committed to helping the most driven individuals develop a profitable , long-term career.

The Sales opportunity is a full-time position offering flexible hours, great autonomy, outstanding income potential and fast career advancement.

Income potential based on a high commission level up to 8K per sale. A high percentage of our sale team makes 6 figure within their first year.

Recession-proof business, while most companies are downsizing, we are exploding with 151% growth in 24 months, the company has an 8 year track record, is debtfree and triple rated by D&B.

You set your own schedule, you work from anywhere you choose. No travel, no week-ends.

Our product line features 3 products ranging from an upscale Personal Development course to high level life coaching seminars.
Our business takes the principle of the movie The Secret to transform lives all over the world and create amazing personal and financial results.

You are enthusiastic and outgoing with excellent communication and relationship building skills, ability to excel in a team or alone. You are confident, pro-active, determined and persistent. You have the drive and the desire to achieve financial freedom. You have the ability to set personal goals and act upon them. You are results-oriented and ambitious. You have an entrepreneur mindset and you are coachable and trainable. You have basic computer knowledge.

We provide full training and support including daily interaction with top income earners of the industry, best online tools and personal coaching.

If you truly want to change your life, exit the rat race for good and have the time, money and freedom to enjoy a new lifestyle, please call Anne at +32.10.458.670 for a brief interview.

Business opportunity

welifechange — Sat Feb 21, 2009 5:35 am

Author: welifechange

Posted: Sat Feb 21, 2009 5:35 am

Major wellness Co with humanitarian focus launching into Malta

Key business partners required

Email welifechange@yahoo.co.uk

Regards

Ryan Cross

Work Available in Malta

Principal Relocation — Thu Feb 19, 2009 2:48 pm

Author: Principal Relocation

Posted: Thu Feb 19, 2009 2:48 pm

Principal Relocation Company seeks freelance local counselors to accompany corporate clients to view properties, public offices, etc. in Malta. Own transport is necessary. Experience in the relocation and/or immigration field preferred but not essential. Please send your CV and photo with reference MT-LC as the subject.

free accomodation wanted in return for personal training

elaineheap — Sun Feb 01, 2009 11:37 am

Author: elaineheap

Posted: Sun Feb 01, 2009 11:37 am

Hi I'm Elaine, 40 years of age, married to David and from the UK. I am a qualified personal trainer level 3 reps UK registered. We are looking for free accommodation for 6 months commencing June 09 in return for free personal training for 6 months. I generally work with clients wanting to achieve body fat loss and muscle toning. I will commit to you on a weekly basis showing you how to eliminate those long and boring gym session by introducing you to a dynamic way of exercising that will give you maximum results in minimum time! The exercise program is suitable for both men and women of all ages and is fun, easy to follow, very effective and will reduce any conventional gym workout by more than half!

If interested contact Elaine elainecaspey@yahoo.co.uk

EMPLOYMENT IN MALTA (Getting a Job)

Malta Information — Tue Oct 17, 2006 4:44 am

Author: Malta Information

Posted: Tue Oct 17, 2006 4:44 am

EMPLOYMENT IN MALTA (Getting a Job)

Although Malta became a member of the EU in 2004, the government successfully negotiated a seven-year period during which restrictions can be imposed on the rights of other EU nationals to work in Malta. EU nationals still have to obtain an employment licence before they can work in Malta, and although this is normally granted, the government reserves the right to refuse applications if it is felt that the Maltese labour market or particular sectors of the economy are being threatened by an influx of EU workers.

It is extremely difficult for nationals of non-EU countries to obtain permits to work in Malta. However, if an expatriate has at least a 40% investment in a Malta-based company, they will be able to obtain a work permit for himself and one other expatriate worker.

Generally, jobs are very scarce in Malta, although expatriates are more likely to be successful in finding employment if they have IT or translation skills. There are also seasonal jobs available for teachers in the many English language schools found in Malta.

Salaries in Malta are low by EU standards, usually a maximum of 800 Euros per month, but are gradually increasing, and all employees are given an annual pay rise based on the cost of living.

Most employees work for 40 hours per week, and are entitled to 25 days paid annual leave. In addition, Malta has 13 public holidays.

Job vacancies in Malta are advertised in the English language press, including the Times of Malta and The Independent. Jobseekers should also register with the Public Employment Services-Employment and Training Corporation, whose website has a useful on-line search facility. You should also bear in mind that many jobs in Malta are filled by word of mouth and networking, so if you are seeking work in the country it may pay to spend some time there initially just making friends with the locals.

DOING BUSINESS IN MALTA

Malta Information — Tue Oct 17, 2006 4:31 am

Author: Malta Information

Posted: Tue Oct 17, 2006 4:31 am

DOING BUSINESS IN MALTA

GENERAL

Malta has created the right economic environment to meet the demands of the global market. It has strong and long-standing links with Europe, North Africa and beyond and has a liberal foreign investment policy.

Malta has a thriving industrial sector with over 200 foreign and some 400 locally-owned manufacturing companies. Products made in Malta are exported worldwide and comprise semiconductors, electronic components and sub-assemblies, pharmaceuticals and medicinals, rubber and plastics, fabricated metal products and machinery, software, garments, food products and others.

The flexible and highly-trained multi-lingual workforce is Malta’s main asset and helps to ensure the country’s competitive edge through high-quality production at costs that are highly competitive relative to mainland Europe.

Malta offers a modern transportation infrastructure, state of the art telecommunications networks, and frequent air links to Europe, North Africa and Middle Eastern destinations. Malta’s strategic location in the centre of the Mediterranean as well as its excellent harbours and Freeport make it an excellent manufacturing location.

The Business Promotion Act (BPA) which succeeded the Industrial Development Act and which has been in force since 2001, introduces greater scope and flexibility to the incentives available for the promotion of business, and covers a much wider range of qualifying sectors and activities than before.

The BPA provides incentives for those industries demonstrating growth and employment potential that are engaged in manufacture (including software development), repair, improvement and maintenance activities.

The Business Promotion Regulations, issued in terms of the Business Promotion Act, provide attractive fiscal incentives for companies engaged in particular manufacturing and qualifying activities.

The incentives available under the Business Promotion Act may be subdivided under two headings namely, tax related incentives and non-fiscal related incentives.

FORMS OF COMPANIES

Private Limited Company

The private limited company, (or 'partnership anonyme' in civil code terms), has the suffix 'Limited' or 'Ltd'. The company is formed by submission of the Memorandum and Articles to the Registrar (in English), together with the appropriate fee. Incorporation takes about 7 to 10 days and shelf companies are not available.

The following are the chief characteristics of a private limited company:

* only one member is necessary;

* only one director is necessary, and must be a natural person, but can be of any nationality and resident anywhere;

* there must be a company secretary, which must be a licensed Maltese Nominee Company;

* there must be a registered office in Malta;

* the minimum authorised and paid-up capital is Lm500, but it is usual to have capital between Lm2,000 and Lm5,000 (the highest amount within the lowest duty band); a minimum 20% of the authorised value must be paid up; if there are non-resident members then the minimum capital is Lm10,000 of which 50% must be paid up, and they must obtain exchange control permission (a formality);

* shares can be registered but not bearer; preference or redeemable shares are permitted; and shares do not have to carry voting rights;

* accounts must be kept but do not have to be filed.

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);

* 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%. 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.

Note 1 : The existing ITC and CFI (Companies with Foreign Income) schemes will be effectively abolished by 1st January 2007 at the latest.
Note 2 : The tax status of ITC is prohibited to any new company registered in Malta after 31st December 2006.
Note 3 : The existing ITCs will benefit from the current system only until 31st December 2010.

International Holding Company

The International Holding Company (IHC) is similar to the International Trading Company except that as its name implies it holds participations in foreign companies. Its effective tax rate is 11.67% or less; if dividends emanate from a 'participating holding', ie one of more than 10% in the paying company, then the effective rate of tax is nil.

Like the ITC, the IHC can make use of Malta's Double Taxation Treaties.

Offshore Company

Offshore Companies were brought into being by the Malta Financial Services Centre Act 1988. The details of their formation are no longer interesting, because in 1994 the Government legislated them away. The final date for forming an Offshore Company was 1996, and existing Offshore Companies had to convert into other forms (mostly International Trading or Holding Companies or Trusts) by the end of 2003.

Offshore Companies, which must be owned by non-residents and which must deal or trade only with non-residents, came in two flavours: the Trading Offshore Company, and the Non-Trading Offshore Company.

Trading Offshore Companies could be General Trading Offshore Companies (for any purpose other than banking or insurance), Banking Offshore Companies or Insurance Offshore Companies. The two latter are dealt with in Offshore Business Sectors; the General type was used for many purposes including barter and counter-trade operations, reinvoicing centres, employment centres, leasing, construction management, administration etc. Trading Offshore Companies paid 5% tax (or more if they wish).

Non-Trading Offshore Companies were property-holding vehicles, property being defined very widely to include shares, other holding companies, investments, ships, etc. Non-Trading Offshore Companies were exempt from tax, including withholding tax.

Offshore Companies did not benefit from Malta's network of Double Taxation treaties.

General Partnership

General Partnerships are formed under the Companies Act 1995 as a partnership 'en nom collectif' which has a partnership name. There is a Deed of Partnership giving the names of the partners, the address of the registered office, the objects of the partnership, its duration, and the amount of capital contributed by each partner. The Deed is registered by the Registrar of Companies.

The partners are liable jointly and severally for the full debts of the partnership.

Limited Partnership

Limited partnerships in Malta have general partners, who are responsible for management, and have unlimited liability, and limited partners, who are liable only to the extent of their capital contributions to the partnership. A limited partnership is formed under the Companies Act 1995 as a Societe en Commandite Simple and is subject to the same rules as a general partnership. The SICAV (Societe 'd'Investissement a Capital Variable) is also formed under the Act, but as a partnership limited by shares (Societe en Commandite Limitee par Actions), and is used by mutual funds.

Branch of Overseas Company

An overseas company can carry on business in Malta through a branch office, and is not subject to the local income tax regime (ie its profits can be freely remitted back to head office); the disadvantage is that it is not eligible for any of the incentives offered by the Maltese government for inward investment.

Trusts

The Offshore Trusts Act 1988 was amended by The Trusts and Trustees Act 2004, which became effective in January 2005, and allows Maltese residents and firms to use local trusts, while also furthering Malta’s international obligations on non-discrimination, transparency and the prevention of money laundering.

The government believes that the legislation, which creates a more streamlined and simplified trust regime, will make Malta much more attractive to both international and domestic clients, by offering greater flexibility and certainty. The new Act eliminates the nominee company regime, and introduces a licensing regime for professional trustees.

Until 2005, trusts in Malta were based on the Offshore Trusts Act 1988, which was largely based on Jermal trust law, itself a common law implant stemming from English trust law. Trusts under this Act must have non-resident settlor and beneficiaries, and trust assets must not include Maltese real estate (permitted under the new Act).

The Recognition of Trusts Act 1994 gave effect to the Hague Convention, and results in a division of trusts into:

* Maltese trusts, where the proper law of the trust is Maltese, and the governing legislation is the 1988 Act (now called the Trusts Act 1988); and

* Foreign trusts, governed by whatever law the settlor has nominated..

All trusts, including foreign ones, must register with the Maltese Financial Services Centre (MFSC), which costs Lm200 on registration and annually thereafter. Foreign trusts which do not register with the MFSC will not benefit from the tax advantages of registered foreign trusts (they are tax-exempt). Under the 2004 Act, transfers of assets into a trust or a change of beneficiaries may give rise to a charge to tax.

Under the 2004 Act, a registered trust must have a Maltese Professional Trustee as one of its trustees, which files an annual declaration of conformity with the law.

It is likely that a Malta-registered trust will often be a more effective holding vehicle than the International Holding Company. Trusts are able to use the extensive network of Maltese Double Taxation Treaties.

Unit Trusts

There are no special provision in Maltese law covering Unit Trusts, which are therefore treated in the same way as ordinary Maltese trusts, and have the same tax regime.

BUSINESS INCENTIVES

1. Provision of Immovable Property

Industrial buildings can be allocated at competitive rates of rent.

2. Soft Loans

Qualifying companies may benefit from low interest rate loans covering up to 75% of the qualifying expenditure undertaken by the company.

3. Loan Interest Rate Subsidies

Alternatively, companies may qualify for a subsidy on the interest rate payable on loans taken up from licensed financial institutions to acquire additional assets.

4. Loan Guarantees

Guarantee may be availup to 75% of loans taken up by qualifying companies to finance the acquisition of assets.

5. Training assistance

Qualifying companies may benefit from substantial training assistance. Depending upon whether a company is classified as “large”, “small or medium” enterprise, such assistance may vary from 35% to 80% of costs incurred on training.

6. Work Permits

Indefinite work permits are granted to shareholders (or their nominees) holding more than 40% of the equity. Definite work permits for specialists are granted according to company requirements.

TAX INCENTIVES

1. Reduced Rates of Income Tax

This incentive applies only to qualifying companies engaged in those particular activities listed under the Business Promotion Regulations. These activities include pharmaceuticals, plastics, biotechnology, electronic and electrical equipment.

Such qualifying companies benefit from the following highly favourable tax rates, as applicable and up to 31/12/2008:

(a) 5% for the first 7 years of operation;

(b) 10% for the next 6 years;

(c) 15% for the following 5 years.

This incentive will no longer be available after the 31st December 2008.

2. Investment Tax Credits

This incentive, in terms of which the tax payable is reduced and even eliminated, may be availed of only by those qualifying companies that are entitled to benefit from reduced rates of income tax.

Investment tax credits are calculated as follows:

Either

(a) 50% of investment on capital equipment;

Or

(b) 50% of the first 2 year wage costs of new jobs created.

Note: For SMEs the applicable percentage is increased to 65%.

Tax credits unutilised during a particular year are carried forward to the following year and increased by 7%.

The combination of the above incentives would normally result in minimal or no taxes being paid for a number of years.

This incentive will continue to be available after the 31st December 2008.

3. Value Added Incentive Scheme

This incentive is applicable to those qualifying companies that are not eligible for reduced rates of income tax, and consists of a scheme whereby such companies benefit from reduced rates of income tax according to the increase in value added derived from their activities.

The reduced rates of tax applicable are as follows:

(a) 5% for the first 7 years of operation;

(b) 10% for the next 6 years;

(c) 15% for the following 5 years.

The reduced rates of tax apply to part or indeed a multiple of the increased profit when compared to a base period. For new companies, since the base period would be Nil, all the profits in the initial three years would be taxed at the reduced rate of 5%.

This incentive will no longer be available after the 31st December 2008.

4. Investment Allowances

Tax deductions in addition to normal tax depreciation are provided as follows:

Plant and machinery – 50% of the investment;

Industrial buildings or structures – 20% of the investment.

5. Reduced Rates of Tax on Reinvested Profits

The tax on profits that are reinvested in projects approved by Malta Enterprise is reduced by 19.25% from 35%.

6. Incentives for Job Creation

The creation of new jobs for particular persons, e.g. persons unemployed for more than two years, disabled persons, would entitle a company to an additional tax deduction based on the wage cost of such persons.

7. Tax Treaties

Malta has concluded tax treaties with a number of countries (mainly European but including Canada and Australia) which enhance the incentives provided by Maltese domestic legislation.

Most of these treaties ensure that profits generated in Malta are either exempt from tax in the country of residence of the investor, or that such a country will provide a tax credit for the Malta tax spared as a consequence of the incentives Malta provides.

RESIDENCE & LIABILITY FOR TAXATION

It is necessary to consider both domicile and residence to establish the exact tax situation of individuals in Malta.

Maltese domicile is established on the basis of UK case law principles. Broadly speaking, an individual's domicile of origin (where he was born) can be changed if he establishes a permanent home elsewhere. He can only have one domicile.

Residence is defined as habitual presence in the country; ordinary residence means that an individual is present in Malta in the ordinary or regular course of his life.

Individuals who are domiciled and ordinarily resident in Malta pay income tax on their world-wide income.

Individuals who are domiciled elsewhere, and who are resident but not ordinarily resident in Malta pay tax on their income arising in Malta, or remitted there (but not capital gains, whether remitted or not). The six-month test is likely to be definitive in establishing residence.

Non-resident individuals pay tax on their Malta-source income only; but local interest and royalty income are exempt from tax, as are capital gains on holdings in collective investment schemes or on securities as long as the underlying asset is not Maltese immovable property.

'Returned migrants' are offered a special tax regime: a person born in Malta who returns can elect to pay 15% income tax on local income only; there are various conditions.

Holders of Permanent Residence Permits issued under the Immigration Act 1970 can pay tax at a reduced rate on income arising in Malta plus remittances of foreign income. Such individuals are considered to be non-resident as regards investments in offshore and non-resident companies.

Income Tax

Income is comprehensively defined, under the same headings as for business income, and permitted deductions also follow the corporate model. Capital gains are also treated in the same way, and included in taxable income.

Certain types of income, and certain individuals (apart from returned migrants and holders of Permanent Resident Permits, both dealt with above), may benefit from reduced rates of tax:

* the special 27.5% rate of tax applicable to non-resident shareholders in International Trading Companies;

* the special regimes applicable to officers and/or employees of offshore companies, Freeport companies, insurance and mutual fund companies;

* the 'final withholding tax' of 15% on income from certain types of investment and income from part-time employment or self-employment, also at 15% (subject to various rules).

Social Security Taxes

Employers and employees make social security contributions in Malta on a graduated scale: at the maximum weekly pay of Lm 129.78 the employee and employer each pay 10% (Lm 12.97). The employer deducts the social security contribution along with income tax. The self-employed also make contributions.

Stamp Duty

Stamp Duty is levied on various transactions in Malta; the most important are:

* share transfers at 2% of the consideration;
* share issues at 0.4% of the nominal value;
* transfers of immovable property: 5%.

Companies licensed under the Investment Services Act 1994 (ie investment funds) are exempt from stamp duty on share transfers and issues. Maltese companies with predominantly foreign income can also obtain exemption.

Value Added Tax

VAT was reintroduced into Malta as from 1st January 1999, as required by the EU accession process, at a rate of 15%, with a reduced rate of 5% applicable to tourist accommodation. The budget for 2004 included an increase in the VAT rate to 18%.

Property Tax

In 2005, the Government attempted to introduce a new withholding tax of 12% to be levied on all sales of real property, replacing an existing 35% capital gains tax.

The new tax would not affect those selling their primary residence, who were exempt from capital gains tax.

Critics said that the tax would lead to an increase in property prices, disadvantage foreign buyers and generally fail to achieve its objective of stabilising the local housing market.

The government's rationale for switching to a withholding tax was to cut down on under-declarations of selling price and to boost the housing supply by encouraging those who have held on to property for long periods to sell.

In February, 2006, Malta's Parliamentary Secretary, Tonio Fenech, unveiled a number of amendments to the property tax in an attempt to head off criticism.

DIRECT CORPORATE TAXATION

The Maltese Income Tax Act as amended governs company taxation. Malta imposes income tax on the world-wide income of companies resident in the country; this includes all companies incorporated or registered under any Maltese law if they are ordinarily resident, and any foreign company which is managed and controlled from Malta. The definition of income includes capital gains; there is no separate capital gains tax as such. However, capital losses can only be relieved against capital gains, so the distinction is preserved within the tax computation. Local-source income and foreign-source income are also treated separately within the computation; Maltese companies with foreign income maintain a Foreign Income Account for this purpose (see below).

Non-resident Maltese companies pay income tax on locally-sourced income including capital gains, and on income remitted to Malta (excluding capital gains).

Non-resident foreign companies pay income tax on locally-sourced income only (not including capital gains). Local interest and royalty income would normally be exempt.

The Income Tax Act lists a number of sources of taxable income:

* Trade or business;
* Profession or vocation;
* Employment or office;
* Dividends;
* Interest and discounts;
* Pensions, charges, annuities and other annual payments;
* Rents and other profits arising from immovables or real rights thereon;
* Royalties;
* Other gains or profits.

Rates of Income Tax

The rate of income tax in Malta is 35% on chargeable income. Note that certain types of company benefit from lower rates, International trading Companies and International Holding Companies, see Offshore Legal and Tax Regimes; also, companies licensed under the Malta Freeports Act and 'qualifying' companies under the Business Promotion Act may receive tax holidays of 10 years or more.

Branch or Subsidiary ?

Branches of foreign companies are not subject to income tax in Malta; Maltese income and expenses are taken into the tax computation in the home country of the mother company. On the other hand, branches are not able to take advantage of double tax treaties, nor of Maltese investment incentives, all of which are available only to companies incorporated in Malta.

Calculation of Taxable Base

Allowable expenditure needs to be incurred 'wholly and exclusively' for the business; however, mixed private/company expenses can often be apportioned. Expenses can only be offset against the income in whose production they were incurred; they can be apportioned between types of income (losses, however, are transferable between income types). Among others, the following expenses are allowable:

* Repairs and the cost of maintaining the equipment used;
* Interest on capital employed in acquiring income;
* Bad debts and provisions for them;
* Capital allowances: first year 20%, but only 10% for hotels and industrial buildings; wear and tear allowances in future years.

Some types of expense are non-deductible, including:

* expenses incurred prior to production of the income, eg company formation, equity issuance or installation costs;
* charitable contributions (and other spending away of net income);
* capital items.

Unrelieved losses can normally be carried forward to offset future profits from whatever source (but only within the overall category of 'foreign-source' or 'local-source' - losses cannot cross that boundary line). Unabsorbed capital allowances however can only be applied to income from the same source.

Foreign-source income is protected against double taxation through 'Commonwealth Relief' which is now hardly ever used, Double Taxation Treaty relief, Unilateral Relief (often applies when Double Taxation relief is not available), and finally a 25% Foreign Tax Credit if all else fails. Only one of these four reliefs is available, and they apply in the order stated.

Group relief is available both for income and capital, but with limitations.

NB: This brief summary of some of the more important aspects of Maltese income tax law is given for general information only; it should not be relied upon in actual situations, for which professional tax advice is necessary.

Filing Requirements and Payment of Tax

The tax year is the calendar year, ending 31st December. Tax is assessed on the basis of the preceding calendar year, on on the financial year of the company that ended in the previous calendar year.

Companies make three equal payments of tax in the year of assessment, in April, August and December.

A tax return must be submitted within six months of the end of a calendar year, or if the company's financial year ended before 31st December, within one month of receipt of the official return form, if this is later. If there is a balance due according to the company's return, it must be paid by 30th June in the year of assessment.

Tax due on foreign-source profits is payable 18 months after the balance sheet date, or 18 months after the payment of a dividend, it that is earlier.

Withholding Tax

As regards dividends, Malta operates a full imputation system, but the situation is made quite complicated by the interaction of varying regimes for different types of income. Companies need to maintain three distinct income streams:

* Foreign Income;
* Taxed Local Income; and
* Untaxed Local Income.

Untaxed local income is that received from fiscally-privileged companies of various types, who are allowed to pay untaxed dividends etc, and it can be passed on subject to a withholding tax of 15% or in some cases without any deduction; taxed local income will have borne corporate income tax at 35% and dividends are not subject to withholding tax; foreign income will have been relieved of all or almost all of any tax it has suffered and will then have borne 35% local income tax - no withholding tax, therefore.

Resident (tax-paying) shareholders have a full 35% tax credit in respect of taxed local or foreign income dividends. Non-resident shareholders can take the tax credit, or they can opt for refunds of either two-thirds or all of the domestic tax paid depending on whether the foreign income came through a 10% participation or not.

NB: This is a highly simplified description of the Maltese withholding tax regime; specialist professional advice is necessary before any action is taken.

Malta's November 2000 budget introduced witholding tax on Collective Investment Schemes. With regard to foreign funds (with a primary or secondary listing on the Malta Stock Exchange), the fund manager or representative must register with the Inland Revenue Department which means that income to the investors in the fund will be subject to a 15% final witholding tax.

Income that goes to local residents from Investment Collective Schemes (either traded on the primary or secondary listings on the exchange) will be subject to tax. This includes distributing funds and accumulator funds.

Further changes made by the budget include tax levied on all government stock bought directly by an investor. However, tax is not levied if the investor invests in an accumulator fund which then reinvests in government stock.

FX Currency Trading / FX Forex Trading Online - Know More

admin — Tue Aug 29, 2006 9:37 am

Author: admin

Posted: Tue Aug 29, 2006 9:37 am

Forex Trading / FX Trading

Foreign Exchange
This short introduction explains the basics of trading Forex online, a brief explanation of the markets and the major benefits of trading Forex online. There are also two scenarios describing the implications of trading in a bear as well as bull market to better acquaint you with some of the risks and opportunities in the largest and most liquid market in the world.

As an additional aid for those who are new to Forex, there is also a glossary at the bottom of this text which explains some of the terms used in connection with currency trading.

Overview
Foreign exchange , forex or just Forex are all terms used to describe the trading of the world's many currencies. The forex market is the largest market in the world, with trades amounting to more than $1.5 trillion every day. This is more than one hundred times the daily trading on the NYSE (New York Stock Exchange) . Most forex trading is speculative , with only a few percent of market activity representing governments' and companies' fundamental currency conversion needs.

Unlike trading on the stock market, the forex market is not carried out by a central exchange, but on the "interbank" market , which is thought of as an OTC (over the counter ) market. Trading takes place directly between the two counterparts necessary to make a trade, whether over the telephone or on electronic networks all over the world. The main centres for trading are Sydney, Tokyo, London, Frankfurt and New York. This worldwide distribution of trading centres means that the forex market is a 24-hour market.

Trading Forex
A currency trade is the simultaneous buying of one currency and selling of another one. The currency combination used in the trade is called a cross (for example, the Euro/US Dollar, or the GB Pound/Japanese Yen.). The most commonly traded currencies are the so-called "majors" - EURUSD, USDJPY, USDCHF and GBPUSD.

The most important forex market is the spot market as it has the largest volume. The market is called the spot market because trades are settled "immediately" or on the spot. In practice this means within two banking days.

Trading on Margin
Trading on margin means that you can buy and sell assets that represent more value than the capital in your account. Forex trading is usually done with relatively little margin since currency exchange rate fluctuations tend to be less than one or two percent on any given day. To take an example, a margin of 2.0% means you can trade up to $500,000 even though you only have $10,000 in your account. In terms of leverage this corresponds to 50:1, because 50 times $10,000 is $500,000, or put another way, $10,000 is 2.0% of $500.000. Using this much leverage gives you the possibility to make profits very quickly, but there is also a greater risk of incurring large losses and even being completely wiped out. Therefore, it is inadvisable to maximise your leveraging as the risks can be very high. For more information on the trading conditions at Saxo Bank, go to the Account Summary on your Client Station and open the section entitled "Trading Conditions" found in the top right-hand corner of the Account Summary.

Why trade Forex?

24 hour trading
One of the major advantages of trading forex is the opportunity to trade 24 hours a day from Sunday evening (20:00 GMT) to Friday evening (22:00 GMT). This gives you a unique opportunity to react instantly to breaking news that is affecting the markets.
Superior liquidity
The forex market is so liquid that there are always buyers and sellers to trade with. The liquidity of this market, especially that of the major currencies, helps ensure price stability and low spreads . The liquidity comes mainly from large and smaller banks that provide liquidity to investors, companies, institutions and other currency market players.
No commissions
The fact that forex is often traded without commissions makes it very attractive as an investment opportunity for investors who want to deal on a frequent basis. Trading the "majors" is also cheaper than trading other crosss because of the high level of liquidity. For more information on the trading conditions at Saxo Bank, go to the Account Summary on your Client Station and open the section entitled "Trading Conditions" found in the top right-hand corner of the Account Summary.
50:1 Leverage
With a minimum account of USD 10,000, for example, you can trade up to USD 500,000. The USD 10,000 is posted on margin as a guarantee for the future performance of your position.
Profit potential in falling markets
Since the market is constantly moving, there are always trading opportunities, whether a currency is strengthening or weakening in relation to another currency. When you trade currencies, they literally work against each other. If the EURUSD declines, for example, it is because the U.S. dollar gets stronger against the Euro and vice versa. So, if you think the EURUSD will decline (that is, that the Euro will weaken versus the dollar), you would sell EUR now and then later you buy Euro back at a lower price and take your profits. The opposite trading scenario would occur if the EURUSD appreciates .

Important Forex Trading Terms

Spread
The spread is the difference between the price that you can sell currency at ( Bid ) and the price you can buy currency at ( Ask ). The spread on majors is usually 5 pips under normal market conditions. For more information on the trading conditions at Saxo Bank, go to the Account Summary on your Client Station and open the section entitled "Trading Conditions" found in the top right-hand corner of the Account Summary.
Pips
A pip is the smallest unit by which a cross price quote changes. When trading forex you will often hear that there is a 5-pip spread when you trade the majors. This spread is revealed when you compare the bid and the ask price, for example EURUSD is quoted at a bid price of 0.9875 and an ask price of 0.9880. The difference is USD 0.0005, which is equal to 5 "pips". On a contract or position, the value of a pip can easily be calculated. You know that the EURUSD is quoted with four decimals, so all you have to do is the cancel-out the four zeros on the amount you trade and you will have one pip. Thus, on a EURUSD 100,000 contract, one pip is USD 10. On a USDJPY 100,000 contract, one pip is equal to 1000 yen, because USDJPY is quoted with only two decimals.

Trading Scenario - Trading Rising Prices
If you believe that the Euro will strengthen against the dollar you'll want to buy Euro now and sell it back later at a higher price.

You buy Euro	We quote EURUSD at Bid 0.9875 and Ask 0.9880, which means that you can sell 1 Euro for 0.9875 USD or buy 1 Euro for 0.9880 USD. In this example you buy Euro 100,000, at the quote price of 0.9880 (ask price) per Euro.
The market turns	Later the market turns in favour of the Euro and the EURUSD is now quoted at Bid 0.9894 and Ask 0.9899.
Now you want to sell your Euro and get the profit	You sell Euro at a Bid price of 0.9894.
The profit is calculated as follows:	Sell price-buy price x size of trade (0.9894 minus 0.9880) multiplied by 100.000 = $140 Profit (Note that the profit or loss is always expressed in the secondary currency )

Trading Scenario - Trading Falling Prices
If, on the other hand, you believe that the Euro will weaken against the dollar, you'll want to sell EURUSD.

You sell Euro	We quote EURUSD at a Bid price of 0.9875 and Ask price of 0.9880 and you decide to sellEuro 100,000 at a Bid price of 0.9875.
The market moves in your favour	The Euro weakens against the dollar and the EURUSD is now quoted at bid 0.9744 and ask 0.9749.
Now you buy back your Euro	You buy EUR at an ask price of 0.9749.
Your Profit/loss is then	Sell price-buy price x size of trade (0.9875 minus 0.9749) multiplied by 100.000 = $ 1260 Profit

Remember that trading EUR 100,000 as we have done in our examples, does not mean that you have to put up Euro 100,000 yourself. It means that you have to deposit 2.0% of Euro 100,000, which is Euro 2,000 on margin as a guarantee for the future performance of your position.

Further Reading
To see how you can trade the forex market and benefit from our toolbox of information and live quotes, please proceed to our Forex Quick Start found under the Trading menu on the toolbar, under Forex.

Glossary

Appreciation	Anincrease in the value of a currency.
Ask	Theprice at which you can buy. Traders also speak of an ask price,the price requested. This usually indicates the lowest price aseller will accept.
Basecurrency	Thecurrency that the investor buys or sells (i.e. EUR in EURUSD).
Bear	Someonewho believes prices are heading down. A bear market is one inwhich there is a sustained fall in prices and which does not looklike it will recover quickly.
Bid	Theprice at which you can sell. Traders also speak of a bid price,the price offered. This usually indicates the top price apurchaser will pay.
Bid/Ask	TheBid rate is the rate at which you sell. The Ask (or offer) rate isthe rate at which you can buy.
Bull	Someonewho is optimistic about the market. A bull market is characterisedby enthusiastic and sustained buying.
cross	Whentrading currencies, the investor buys one currency againstanother. These two currencies form the cross: for example, EURUSD.
Crossrate	Anexchange rate that is calculated from two other exchange rates.
Depreciation/decline	Afall in the value of a currency.
Exchangerate	Whatone currency is worth in terms of another, for example the $Amight be worth 58 US cents or 70 yen. Currencies traded freely onforeign-exchange markets have a spot rate (applying to tradessettled 'spot', ie, two working days hence) and a forward rate.Countries can determine their exchange rates in a variety of ways:a floating exchange rate system where the currency finds its ownlevel in the market; a crawling or flexible peg system which is acombination of an officially fixed rate and frequent smalladjustments which in theory work against a build-up of speculationabout a revaluation or devaluation; a fixed exchange-rate systemwhere the value of the currency is set by the government and/orthe central bank.
EURUSD	Meansthat you trade EUR against dollars. If you buy Euro you pay indollars and if you sell Euro you receive dollars.
FX,Forex, Foreign Exchange	Allnames for the transaction of one currency for another, e.g. youbuy �100.00 with $150.25 or sell $150.25 for �100.00.
Interbank	Short-term(often overnight) borrowing and lending between banks, as distinctfrom banks' business with their corporate clients or otherfinancial institutions.
Interestrate differential	Theyield spread between two otherwise comparable debt instrumentsdenominated in different currencies.
Leverage(gearing)	Inthis case leverage means that the investor only funds part of theamount traded.
Long	Tobuy.
Longposition	Aposition that increases its value if market prices increase.
Liquid(-ity)	Thecapacity to be converted easily and with minimum loss into cash.Ultra-short-dated treasury notes are an example of a liquidinvestment. A liquid market is one in which there is enoughactivity to satisfy both buyers and sellers.
Margin	Theinitial amount or deposit required when entering into a position.Margin is a guarantee for future performance.
NYSE	Acomputerised system providing brokers with the prices of sharesand securities traded on the New York stock exchange and over thecounter. The quotes are published in real-time.
Openposition	Aposition in a currency that has not yet been offset. For example,if you have bought 100,000 USDJPY, you have an open position inUSDJPY until you offset it by selling 100,000 USDJPY.
"Overthe counter"	Whentrading takes place directly between two parties, rather than onan exchange.
Pips	Apip is the smallest unit by which a cross price quote changes. Soif EURUSD bid is now quoted at 0.9767 and it moves up 2 pips, itwill now be quoted at 0.9769.
Position	Money-market,futures, foreign-exchange and sharemarket traders talk of 'takinga position' which simply means buying or selling one currencycross. 'Position' can also refer to a trader'scash/securities/currencies balance, whether he or she is short ofcash, has money to lend, is overbought or oversold in a currency,etc.
Risk	Tryingto control outcomes to a known or predictable range of gains orlosses. Risk management involves a set of steps which begin with asound understanding of one's business and the exposures or risksthat have to be covered to protect the value of that business.Then an assessment should be made of the types of variables thatcan affect the business and how best to protect against unwelcomeoutcomes. Consideration must also be given to the preferred riskprofile - whether one is risk- averse or fairly aggressive inapproach. This also involves deciding which instruments to use tomanage risk, and whether a natural hedge exists that can be used.Once undertaken, a risk-management strategy should be continuallyassessed for effectiveness and cost.
Secondarycurrency (variable currency or counter currency)	Thecurrency that the investor trades the base currency against (i.e.USD in EURUSD).
Shortposition	Aposition that benefits from a decline in market prices.
Short	Tosell.
Speculative	Buyingand selling in the hope of making a profit, rather than doing sofor some fundamental business-related need.
Spot	ASpot rate is the current market price of an asset.
Spotmarket	Thepart of the market calling for spot settlement of transactions.The precise meaning of 'spot' will depend on local custom for acommodity, security or currency. In the UK, US and Australianforeign-exchange markets, 'spot' means delivery two working dayshence.
Spread	Thedifference between the bid and the ask rate.

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Financial Advisors services, Offshore Fund - Know More

admin — Wed Aug 16, 2006 2:59 am

Author: admin

Posted: Wed Aug 16, 2006 2:59 am

Financial Advisors services, Offshore Fund - Know More

Dear members & guests

Due to the continuous marketing approach of our expatriate community by multiple financial planners services company, Allo' Expat has decided to provided you with some usefull imformation on the Expat Offshore Banking issue. Hope you'll invest wisely..... in the future

Financial Advisors - who are they?

Q1 - How do I get the best offshore financial advice?

The best offshore financial advice is probably given by Independent Financial Advisors. Independent financial advisors (or IFA's, as they are sometimes called) advise their clients on savings, investments and pensions. They may also provide Savings Plans for offshore investing to their clients.

When counselling a client, the best offshore financial advisors should complete the following steps:

* Step 1 - collect detailed information about a client's financial circumstances and requirements ? be they for retirement planning, retirement income, expat investment, or another purpose.

* Step 2 - check all the offshore tax havens for the best offshore plans.

* Step 3 - provide impartial advice as to which plan(s) best meet their client's needs (in the form of a written report).

* Step 4 - arrange for a client to buy the chosen offshore plan(s) on the best terms available.

You may want to complete your own research to ensure you know the right questions to ask your advisor.

When all these stages are completed, you can be confident you have received the best offshore financial advice.

Q2 - What is a Certified Financial Advisor?

Financial advisors may need a license to practice, issued by the Financial Services Regulator in their Country. Only these advisors may be called 'Certified Financial Advisors'.

It may be a condition that prospective certified financial advisors show their Regulator that they are:

* competent to advise

* impartial in their advice

* independent of Providers

* covered by professional indemnity insurance.

So it is important to check that your financial advisor is listed under:

* Certified Financial Advisors, licensed to advise in the Country where you live and

* Independent Financial Advisors - advising on a wide range of offshore plans from a full list of providers.

Now you should feel confident you are receiving the best offshore financial advice.

Q3 - How are offshore financial advisors paid?

Independent financial advisors (IFA's) earn their living from commissions they receive from plan providers. This is their income for the offshore financial advice they give.

The commission that advisors (IFAs) receive from offshore financial advice cases may range from hundreds to thousands of dollars.

Good offshore financial advisors should not be influenced by the amount of commission they receive.

Some clients prefer to pay fees to their financial advisors for advice to ensure impartiality. When this occurs offshore financial advisors refund commission received from a plan provider either in cash or as an increased allocation of contributions invested.

Q4 -How do I find a list of Independent Financial Advisors (IFAs)?

Search the web! Try searching using the search words independent financial advisors or certified financial advisors PLUS the name of the Country in which you live.

Personal recommendations are always helpful - ask your friends if they would recommend their offshore financial advisors. Always check that a recommended advisor is both certified and independent.

Offshore Investing - What do that mean

Q1 - What is Offshore Investing or Offshore Investment?

When we talk about Offshore investing plan opportunities it is like the savings plans available in many countries, except these plans:

* Are registered in tax havens and are regulated by their Financial Services Authorities.

* Can be used for investing by non-residents of the tax havens.

* Are sometimes more tax efficient than or have other advantages over domestic savings plans.

Q2 - Why would expatriates choose offshore investing?

Expatriate investment in the savings plans catalogued here and offering offshore investing opprotunities might be appropriate when:

* No local or Home Country tax free regular savings plans are available.

* No local or Home Country tax free lump sum investment plans are available.

* An expatriate is planning to retire to a third country.

If you fit any of these categories of expatriates you should investigate the offshore plans researched by Offshore Boffin and consult your Financial Advisor.

Q3 - Are there other people who might benefit from Offshore Invesment?

Yes. People who are not living abroad might find offshore investment attractive in the following circumstances:

* They have more cash available for savings than can be invested tax free in their resident countries' investment plans (perhaps because the amount they can invest each year is capped).

* They may live in countries which do not have domestic tax free savings plans.

* They live in countries which are not suitable long-term investment environments for political or economic reasons.

* They wish to limit the effects of inheritance tac on their estates.

Q4 - Is there safe offshore investing?

The answer is that All investors should remember that the value of ALL their investments can go down as well as up!

Safe offshore investing is more likely by choosing plans:

* From politically stable tax havens - the quality of tax havens varies.

* From well-regulated tax havens - the tax havens whose savings plans are catalogued here all regulate their financial services companies to avoid 'fly-by-night' companies.

* From reputable investment management and life assurance companies - whilst past performance is not always a guide to the future, the companies whose savings plans are listed here are all well-known names.

* Investing in 'mutual' or 'collective' funds. these funds are based on a simple idea. If a large number of investors pool their savings in - for example - an equity fund, the larger fund can be invested in shares in many companies, spreading each individual's risk.

For expat investment - and others - to be successful the best offshore investment opportunities must be found. For that you'll need a good Financial Advisors.