Malta provides a legal framework tailored for domestic and cross-border securitisations, which offers statutory bankruptcy remoteness and tailored income tax neutrality rules. Therefore, this optimises the investors’ return and the originator’s cost of funding. The legal framework of a Securitisation Cell Company (SCC) delivers a platform-type structure that offers the advantage of lower costs and speedier set-up time.
While a securitisation vehicle, or cell, is an ordinarily taxable entity, tailored tax rules cause it to be tax neutral on its profit and losses. Malta applies no withholding tax on outbound payments, and inbound payments may benefit from Malta’s tax treaties.
As an operating company established in Malta, the Coprolin multi-originator securitisation platform responds to all requirements with regards to substance, which is sometimes a challenging issue for stand-alone securitisation vehicles.