In Malta there is one central rate that is 35%. However, Malta operates a full imputation system. Upon a distribution of profits by a company registered in Malta, its shareholders may claim a partial tax refund. Both resident and non-resident shareholders are entitled to tax refunds in respect of the underlying tax on distributed company profits. The amount of the tax refund varies depending on the type of profits that is taxed at the level of the company (e.g. in certain cases no refund is possible while in others 5/7ths or 6/7ths of the tax paid by the company may be claimed). More information is provided in the Explanatory Annex.