Benefits of electronic commerce as a tool for international trading companies to trade outside Malta

Abstract

We are constantly witnessing change, change that brings about new opportunities. Electronic commerce has today made tangible what was considered to be a dream a decade ago. E-commerce has also brought countries closer together. International Trading Companies, whose main characteristic is distance trading, seized this opportunity. In the present day, the words 'international business' and 'e-commerce' are words which are often co-related. Malta's taxation structure still offers alluring tax incentives to non-residents who intend to set up their base here. A perfect example of international business using e commerce is betting companies. Such companies mushroomed in Malta as a result of the right circumstances occurring at the right time. The Maltese government, keeping a watchful eye on international events, was opportunistic and acted fast by enacting related legislation swiftly. However Malta, as a country, does have its pros and cons. Many a time, the pros mentioned were its central geographical location and a bilingual working population. The place of work and quality of life are inextricably linked. This is a necessity which Malta can boast of. Several shortcomings mentioned in the interviews were weaknesses in technical reliability and the bank's difficulties in dealing with these new situations. Malta's uncertain future relations with the European Union were also often brought up. In theory, e-commerce and offshore are compatible. However, e-commerce is still in its infancy. Offshore business is tax-motivated while e-commerce has not prospered primarily because of taxation benefits.