The liquidation of companies in Malta is governed by the Companies Act. The later imposes several formal requirements on how the liquidation of a company in Malta is to take place. The formal process seeks to protect both creditors, employees and other stakeholders. In this regard the Companies Act requires that a liquidator be appointed to manage the liquidation process and ensure that all the requirements imposed by local legislation are meet. One important duty of a liquidator is to ensure that the company meets its tax obligations and pending tax dues. In this regard the liquidator is regulated by special obligations and responsibilities under Article 7 of the ITMA.

Where a liquidation takes place, a liquidator must ensure that:

- An annual tax return for the last year of the company’s existence is completed and submitted in a timely manner,

- Ensure that the company is not struck off the Registry of Companies before it obtains the necessary tax clearance from the Office of the Commissioner for Tax and Customs.

Once a company has stopped trading and has abided by all the formalities imposed by the Malta Business Registry as well as the Companies Act and has settled all pending dues with the Commissioner for Tax and Customs, the company may make a formal request for de-registration. This can be done by the company’s representative through a written request sent to the International and Corporate Tax Unit informing the latter that the company has completed the liquidation process and should be de-registered for tax purposes.