W-8BEN-E for a Malta Ltd: the 6/7 refund can cancel the treaty rate
This article was created with AI assistance and has not been reviewed by a human editor. It is provided for general informational purposes only and does not constitute tax, legal, or financial advice.
Treaty articles and rates on this page are checked against the US-Malta Income Tax Convention signed at Valletta on August 8, 2008 (home.treasury.gov, Treaty-Malta-8-8-2008.pdf) — last verified October 2026. Under Article 28(2) it entered into force on the exchange of instruments of ratification, and withholding rules apply from the first day of the second month after that. The technical explanation is not the treaty text. No protocol is on the IRS documents page.
AI-generated imageIf your Malta company pays out dividends to claim the 6/7 refund, check this before ticking Active trade or business. Article 22 counts those dividends toward a 25% cap when the owners are not residents of Malta or the United States entitled to benefits under Article 22(2)(a), (b), (c)(i), (d), or (e). A company can have a real Maltese trade and still fail the publicly traded, ownership, and active trade tests together.
This guide is for a Malta private limited liability company (Ltd) that is paid by US businesses. Work the Ltd does in Malta is not US-source income: there is no US withholding on it, and Part III (Lines 14a, 14b and 15) stays blank. The guide covers the Article 22 base-erosion clause, the derivative benefits test, why royalties and ordinary interest are 10% and not 0%, which number goes on Line 9b, and what to do when profit is distributed to a non-resident owner. The filled example further down shows the other case: staff performing services on site in the United States, with no US permanent establishment, claiming Article 7(1) at 0%.
If you are a self-employed individual, you file Form W-8BEN, not this one: start the W-8BEN wizard. Work you do in Malta is not US-source, so Part II (Lines 9 and 10) of that form stays blank. Article 3(1)(e) says business includes professional services and other activities of an independent character, and there is no independent personal services article: pay for services you perform in the United States is claimed under Article 7, not Article 14, and on Form 8233, not Form W-8BEN. Article 14 is Income from Employment. Do not invent a 183-day test for a freelancer. A Maltese national puts the identity card number on Form W-8BEN, for example 1234567M. That illustration is a format, not a published check digit.
If the company has US-source income to claim and meets an Article 22 test, you can start the W-8BEN-E wizard now. In a few minutes you have a signature-ready PDF for $30. It asks the 25% question before it offers Active trade or business, claims Article 7(1) at 0% only for services performed in the United States with no US permanent establishment, and leaves Part III blank for work done in Malta.
Blank form or already filled in?
You can download the official, blank form from the IRS and complete it yourself — or get the same file already filled in by our wizard.
- Blank official W-8BEN-E (IRS, free): Download W-8BEN-E as a PDF directly from the IRS — for a private Ltd or a public limited company.
- Blank official W-8BEN (IRS, free): Download W-8BEN as a PDF directly from the IRS — for a self-employed individual.
- Already filled in (5–10 minutes): W-8BEN-E for Malta companies ($30) or W-8BEN for individuals ($5).
- The convention: US-Malta Income Tax Treaty PDF on Treasury.gov — signed August 8, 2008. Article 7 is Business Profits. Article 22 is Limitation on Benefits.
Public limited company or private Ltd?
Malta company law uses more than one limited company, and US tax classification does not follow the local label one-for-one:
- Public limited company (p.l.c.): 26 CFR 301.7701-2(b)(8)(i) lists "Malta, Public Limited Company" as a per se corporation. It is a Corporation and cannot file Form 8832.
- Private limited liability company (Ltd): The usual operating company. It is not on the per se list. It defaults to Corporation because its members have limited liability, and a different US classification is made on Form 8832. A single-member private Ltd is not disregarded by default. Do not treat it as the public per se form.
- Partnership en nom collectif or en commandite: Defaults to Partnership when at least one partner has unlimited liability, under 26 CFR 301.7701-3(b)(2). Check Partnership in Part I, line 4, not Corporation.
- Self-employed individual: Not a company. That person files Form W-8BEN; Part II (Lines 9 and 10) stays blank for work done in Malta, and pay for work performed in the United States is claimed under Article 7 on Form 8233.
The trap worth naming: a private Ltd is not the public company on the per se list. It defaults to Corporation and can leave that default on Form 8832. The treaty question is separate. Even a correctly classified Corporation gets no treaty rate unless an Article 22 test is met.
Chapter 3 still decides which form you file. The treaty rates sit in Part III, and Part III stays blank for services performed in Malta, and whenever no Article 22 test is met.
Who actually needs to submit this form?
Any Malta private Ltd or public limited company that receives payments from a US business and needs to document that it is not a US person. Whether Part III is filled in depends on the income and on Article 22:
- Services performed in Malta: Not US-source income. There is no US withholding and no treaty claim: Part III (Lines 14a, 14b and 15) stays blank, whatever the owners and the dividends.
- Owners are residents of Malta, and dividends do not go to other owners: If less than 25% of gross income is paid or accrued to persons who are not residents of the United States or Malta entitled to benefits under Article 22(2)(a), (b), (c)(i), (d), or (e), and the company has an active trade in Malta connected with the income, Line 14b can be Active trade or business under Article 22(4). Services the company performs in the United States, with no US permanent establishment, are then Article 7(1) at 0%.
- The company distributes profits to a non-resident owner: Those dividends count toward the 25%. A Malta Ltd owned by a resident of another country that pays out profits to support the 6/7 refund can fail Article 22(2)(c), 22(2)(f), and 22(4) together. It may still meet derivative benefits under Article 22(3) if at least 95% of each class is owned by seven or fewer equivalent beneficiaries and less than 25% of gross income goes to persons who are not equivalent beneficiaries. Otherwise US-source royalties, interest, or dividends take 30% unless the company has received a determination under Article 22(6).
- A software licence, not a service invoice: A copyright licence of software is a royalty. Article 12(2) is 10% only if the company may claim the treaty. There is no 0% royalty rate. Equipment rental is not a royalty: a lease in the company's trade is Article 7(1) at 0% with no US permanent establishment and no activity in the United States, and a passive lease is other income that Article 21(3) lets the United States tax at up to 10%. A lease of containers is neither: Article 8(3) makes those profits taxable only in the residence state, 0%, except to the extent the containers are used for transport solely between places within the United States.
Article 22 before you pick a Line 14b box
Publicly traded (Article 22(2)(c)(i)), a subsidiary of publicly traded companies (Article 22(2)(c)(ii)), ownership and base erosion (Article 22(2)(f)), and active trade or business (Article 22(4)) each also require the same clause: less than 25% of gross income for the taxable year is paid or accrued, directly or indirectly, to persons who are not residents of either country entitled to benefits under Article 22(2)(a), (b), (c)(i), (d), or (e). Payments at arm length in the ordinary course for services or tangible property are left out. Dividends are not left out. US withholding of 30% applies only to US-source income such as royalties, interest, dividends, or services performed in the United States.
A yes on that 25% question does not by itself prove an active Maltese trade. When the income comes from a trade or business activity the company conducts in the United States, or from a related person, Article 22(4)(b) also needs the Maltese trade to be substantial in relation to it. It is deemed substantial if, for each of the three preceding taxable years, the Malta asset value, gross income, and payroll expense related to it each equal at least 10% of the company's (and related parties') proportionate share of those related to the US activity that generated the income, and the average of the three ratios exceeds 15% in each of those years. Derivative benefits (Article 22(3)) is its own Line 14b box with its own 25% test. The Favorable discretionary determination box is only for a company that has received a determination under Article 22(6). The triangular permanent-establishment rule (Article 22(5)) and the remittance rule (Article 22(7)) are not boxes.
| Step | Result |
|---|---|
| 1. Base erosion | Less than 25% paid or accrued to persons who are not residents of either country entitled to benefits under Article 22(2)(a), (b), (c)(i), (d), or (e), and dividends to other owners count. If no, do not tick Active trade, Ownership and base erosion, Publicly traded, or Subsidiary of a publicly traded corporation. |
| 2. If yes, and the company has a connected Maltese trade | Line 14b can be Active trade or business under Article 22(4), if Article 22(4)(b) is also met when it applies. |
| 3. If yes, and the company is mainly a holding company | Ownership and base erosion under Article 22(2)(f) still needs 75% of each class owned by residents of Malta entitled to benefits under Article 22(2)(a), (b), (c)(i), (d), or (e). United States residents do not count toward that 75%. Article 22(4) does not add this 75% test. |
| 4. If yes, and the shares are listed or listed companies own 75% | Publicly traded under Article 22(2)(c)(i) is the box for a Malta company whose own shares are listed, regularly traded, and primarily traded on recognized exchanges in Malta. Subsidiary of a publicly traded corporation is the box for Article 22(2)(c)(ii): at least 75% of each class owned by companies that meet 22(2)(c)(i) in their own residence state, Malta or the United States. A direct owner listed on the NYSE or NASDAQ counts. The same-state rule applies only to an intermediate owner in an indirect chain. |
| 5. If the clause fails | Foreign-source services: leave Part III blank. US-source royalties, interest, or dividends: check derivative benefits under Article 22(3); otherwise 30%, unless the company has received a determination under Article 22(6). |
Why this treaty is strict
The text that makes this treaty strict for a private Ltd is Article 22(2)(f)(ii): the 25% cap is not limited to deductible payments, so dividends count, and the same clause sits inside the publicly traded test (22(2)(c)(i)(D) and (c)(ii)(B)) and the active trade test (22(4)(a)(ii)). Only derivative benefits (22(3)) measures its 25% against equivalent beneficiaries instead.
Line by line when the company claims the treaty
For services performed in Malta, which is the frequent case, Part III (Lines 14a, 14b and 15) stays blank: that income is not US-source. Lines 14a, 14b and 15 are filled only when the company claims the treaty, for example for US-source royalties, interest, or dividends, or for services its staff perform in the United States with no US permanent establishment, and only after an Article 22 test is met.
| Line | What you enter |
|---|---|
| Line 1 | The legal name, for example Valletta Digital Ltd. |
| Line 2 | Malta. |
| Line 4 | Corporation for a private Ltd or a p.l.c. Partnership for en nom collectif or en commandite. A self-employed individual files Form W-8BEN. |
| Line 6 | The registered office in Latin letters (e.g., 12, Triq il-Merkanti, Valletta, VLT 1170). |
| Line 9b | The company 9-digit income tax number issued by the Inland Revenue Department, for example 987654321. That example is a format illustration. No check digit is published for the series. Do not enter a registry number such as C12345. Do not add MT unless the payer asked for a VAT ID. |
| Line 14a | Only when the company claims the treaty: Malta. Blank for services performed in Malta, and blank when no Article 22 test is met. |
| Line 14b | Only when the company claims the treaty. Active trade or business under Article 22(4) only after the 25% clause is met and the company has a connected trade in Malta. Ownership and base erosion is Article 22(2)(f). Publicly traded is Article 22(2)(c)(i), for the company's own listed shares. Subsidiary of a publicly traded corporation is Article 22(2)(c)(ii); a direct United States owner listed on the NYSE or NASDAQ can satisfy it. Derivative benefits is Article 22(3). Do not check No LOB article in treaty. |
| Line 15 | Blank for services performed in Malta. For services performed in the United States with no US permanent establishment: Article 7(1), 0%, type of income Services. A lease of equipment in the company's trade, with no activity in the United States, is Article 7(1) too, not Article 12. A lease of containers not used for transport solely between places within the United States is Article 8(3), 0%. A software licence is Article 12(2) at 10%. Ordinary interest is Article 11(2) at 10%. Dividends to a company that owns directly at least 10% of the voting stock are Article 10(2)(a)(i) at 5%. Other dividends are Article 10(2)(a)(ii) at 15%. |
Read the 9-digit income tax number from the Inland Revenue record before Line 9b. The company registry number that starts with C is not the TIN. A Maltese national identity card number belongs on Form W-8BEN, not on the company form.
The guided W-8BEN-E wizard asks the 25% question before it offers Active trade or business.
Filled example: Valletta Digital Ltd
An operating private Ltd with staff and payroll in Valletta whose owners are residents of Malta and which pays no dividends to other owners. Two of its developers perform services on site in the United States for a few weeks, with no US permanent establishment. Its Maltese assets, gross income, and payroll meet the Article 22(4)(b) substantiality test. Chapter 3 Corporation, FATCA Active NFFE, Part III Article 7(1) at 0% for services performed in the United States, Line 14b active trade or business under Article 22(4), income tax number 987654321. Work done only in Malta would leave Part III blank.
Sample only — uses a fictional company for illustration. Example: Valletta Digital Ltd, 12, Triq il-Merkanti, Valletta VLT 1170, Malta, income tax number 987654321, Chapter 3 Corporation, FATCA Active NFFE, Article 7(1) at 0% for services performed in the United States with no US permanent establishment, Line 14b active trade or business under Article 22(4). The same company working only in Malta, or distributing profits to a non-resident owner with no other Article 22 test met, would leave Part III blank.
Articles and rates, if Article 22 is met
Use this table only for US-source income, when the 25% clause is met and the rest of the Limitation on Benefits test you rely on is also met (or derivative benefits under Article 22(3)). Services performed in Malta need no line. If no test is met, do not put these rates on Line 15.
| Income type | Article | Rate |
|---|---|---|
| Services performed in the United States, no US permanent establishment | Article 7(1) | 0% |
| Equipment rental in the company's trade, no US permanent establishment and no activity in the United States | Article 7(1) | 0% |
| Software licences and other royalties in Article 12(3) | Article 12(2) | 10% |
| Ordinary interest | Article 11(2) | 10% |
| Dividends to a company that owns directly at least 10% of the voting stock | Article 10(2)(a)(i) | 5% |
| Other dividends, including portfolio dividends | Article 10(2)(a)(ii) | 15% |
| REIT dividends in the Article 10(4)(a) cases, including a company that holds not more than 5% of any class of a publicly traded class of REIT stock or not more than 10% of a diversified REIT | Article 10(2)(a)(ii) | 15% |
| Other income that no other article deals with and Article 21(3) lets the source state tax, including a passive equipment lease | Article 21(3) | 10% |
| Use, maintenance or rental of containers (including trailers, barges and related equipment), not used for transport solely between places within the United States | Article 8(3) | 0% |
| Services performed in Malta (no US-source income) | None: Part III blank | — |
Article 10(3) is 0% only for a pension fund as Article 3(1)(k) defines it (for Malta, a licensed fund or scheme subject to tax only on income from immovable property in Malta, operated principally to provide pension or retirement benefits or to earn income for such funds), and only when the dividends are not from a trade or business of the fund or through an associated enterprise. Article 10(4)(a) removes the 5% rate for a RIC and a REIT. A RIC dividend is 15% under Article 10(2)(a)(ii), unless the pension-fund rule applies. A REIT dividend is 15% (or 0% for such a pension fund) only in three cases: an individual or a pension fund holding not more than 10%; a person holding not more than 5% of any class when the dividends are paid on a class of REIT stock that is publicly traded; or a person holding not more than 10% of a diversified REIT. In the last two cases the owner can be a company, including a private Ltd. The class of REIT stock is what must be publicly traded, not the owner. Outside those cases a REIT dividend has no treaty rate and 30% applies. Article 11(3)(a): US contingent interest of a type that does not qualify as portfolio interest under US law can be taxed at up to 15%. Article 11(3)(b): an excess inclusion on a residual interest in a REMIC may be taxed by each state under its own law. A late-payment penalty is not interest. Article 21 is not the 2006 Model residence-only rule: Article 21(3) lets the source state also tax other income that no other article deals with at up to 10%, so that claim is 10%, not 0%. Article 21(3) does not reach a lease of containers (Article 8(3), 0%, except to the extent the containers are used for transport solely between places within the United States).
Questions people ask before they sign
Short answers for a private Ltd. A US office, a fund, or a financial institution needs an accountant, not a blog page.
Does the 6/7 refund affect my W-8BEN-E?
It can. The refund is a Malta tax computation. On the US form, the question is whether dividends paid to owners who are not residents of Malta or the United States entitled to benefits under Article 22(2)(a), (b), (c)(i), (d), or (e) use up the Article 22 25% cap. If they do, do not tick Active trade or business. For services performed outside the United States, leave Part III blank. For US-source royalties, interest, or dividends, check derivative benefits under Article 22(3); otherwise 30% applies unless the company has received a determination under Article 22(6).
I'm a freelancer in Malta — which article?
None, for work you do in Malta: it is not US-source, so Part II (Lines 9 and 10) of Form W-8BEN stays blank. For services you perform in the United States the treaty article is Article 7, because there is no independent personal services article, and you claim it on Form 8233, not Form W-8BEN. Article 14 is Income from Employment. Do not cite Article 14, and do not add a 183-day independent-services test.
Is there 0% on royalties?
No. Article 12(2) is 10% for copyrights, films, patents, trademarks, designs, secret formulas, and know-how, including a software licence. Equipment rental is not a royalty. A lease in the company's trade is Article 7(1) at 0% when there is no US permanent establishment, no activity in the United States, and the company may claim the treaty; a passive lease is other income under Article 21(3) at 10%. A lease of containers takes Article 8(3) at 0%, except to the extent the containers are used for transport solely between places within the United States.
Does iGaming income qualify?
The treaty has no iGaming article. Qualification depends on the Article 22 tests, including the 25% clause, and on whether the income is US-source. Services performed in Malta are not US-source: Part III (Lines 14a, 14b and 15) stays blank. A software licence is Article 12(2) at 10% only if the company may claim the treaty. Services performed in the United States with no US permanent establishment are Article 7(1) at 0% only on the same condition. Ask a tax advisor before you classify gaming receipts.
Which number goes on Line 9b?
The company 9-digit income tax number, for example 987654321. That is a format illustration. The OECD note does not publish a check digit for it. Do not enter C12345. That is the registry number. Do not enter a VAT number that starts with MT unless the payer asked for a VAT ID. A Maltese national identity card number, such as 1234567M, belongs on Form W-8BEN. The letters the OECD note lists are M, G, A, P, L, H, B, and Z. 1234567M is a format illustration, not a failed check digit.
Can a private Ltd file Form 8832?
Yes, when it needs a US classification other than Corporation. A public limited company is per se under "Malta, Public Limited Company" and cannot file Form 8832. A private limited liability company is not on that list. It defaults to Corporation, and Form 8832 is how it elects a different classification. A single-member private Ltd is not disregarded by default.
What to do next
- Fill out your W-8BEN-E in the guided wizard: Start the W-8BEN-E wizard ($30). It asks the 25% question before it suggests Active trade or business.
- Are you self-employed?: Use the W-8BEN wizard ($5). Part II stays blank for work done in Malta; pay for work in the United States goes on Form 8233 under Article 7, not Article 14.
Mistakes that get the form sent back
- Writing a treaty article for a fee for work performed in Malta: That fee is not US-source and has no US withholding. Leave Part III (Lines 14a, 14b and 15) blank. Article 7(1) at 0% is only for services performed in the United States with no US permanent establishment.
- Citing Article 14 for a freelancer: Article 14 is Income from Employment. A freelancer's work in Malta leaves Part II (Lines 9 and 10) of Form W-8BEN blank; pay for work in the United States is claimed under Article 7 on Form 8233.
- Claiming 0% on royalties, ordinary interest, or other income: All three are 10% when the treaty applies. Article 12(2) for royalties. Article 11(2) for ordinary interest. Article 21(3) for other income that no other article deals with. A lease of containers is Article 8(3) at 0%, except to the extent the containers are used for transport solely between places within the United States. Alimony and child support of an individual are Articles 17(4) and 17(5), both at 0%.
- Ticking Active trade without the 25% check: Article 22(4) includes the base-erosion clause. Dividends to owners who are not residents of either country entitled to benefits under Article 22(2)(a), (b), (c)(i), (d), or (e) count. If the clause fails, leave Part III blank for foreign-source services and check derivative benefits under Article 22(3) for US-source income.
- Typing a C number on Line 9b: Line 9b takes the 9-digit income tax number, for example 987654321. C12345 is the registry number. MT plus digits is the VAT number.