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Measures List
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Measure Name
Date when measure came into force
Parents tax computation 2012/01/01
2013 PIT Rates 2013/01/01
Increase maximum child care fees 2014/01/01
2014 PIT changes 2014/01/01
Results 1 - 4 of 4.

Generic Tax Name Personal income tax
Tax name in the national language Income Tax
Tax name in English Income Tax
Member State MT-Malta
Tax in force since 1948/01/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

Income Tax Act (Cap 123), Income Tax Management Act (Cap 372), plus subsidiary legislation.

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments

 
Geographical Scope

Malta.

 
Taxpayers
Domestic-source income of non-residents is Taxed
Not Taxed
Comments

Employment incomes of married couples are Taxed jointly
Taxed separately
Comments

Married couples may opt for a joint computation.



Comments
 
Tax object and basis of assessment
As general rule, taxable income under personal income tax includes























Comments

Income considered Domestic income
Worldwide income (subject to double-tax relief)
Comments

Benefits in kind
The following benefits in kind are usually (partially or fully) taxable












Comments

Health insurance is not taxable if available to all employees.

Phone and telecommunication services are taxed if are given in the form of cash allowance.

On accomodation certain conditions apply.



Comments

All income and specified capital gains.

 

Basis of assessment:

Total income from all sources plus any capital gains, less allowable deductions. Transfers of immovable property are also taxed at a flat rate based on transfer value.

 
Deductions, Allowances, Credits, Exemptions
Deduction for professional expenses.
The deduction is:





Comments

Deductions are available for any expenses incurred in the production of the income (these are the expenses mainly incurred in generating business or professional income). Deductions are also available in case of R&D.


Deductions from the tax base
The following items are usually (partially or fully) deductible

















Comments

Families who pay for their children's sport activities and art activities are entitled to €100 being deducted from their taxable income for each activity. Families paying fees in respect of childcare services for their children are also entitled to receive up to €2,000, per child, being deducted from their taxable income. Parents sending their children to private schools are entitled up to €2,300 being deducted from their taxable income.


Allowances
The basic yearly allowance for an individual amounts to:
The basic yearly allowance for a couple amounts to:
Additional allowance for 1st child
Additional allowance for 2nd child
Additional allowance for 3rd child
Additional allowance for additional child
Additional allowance for old age dependents
Comments

Credits
The basic yearly credit for an individual amounts to:
The basic yearly credit for a couple amounts to:
Additional credit for 1st child
Additional credit for 2nd child
Additional credit for 3rd child
Additional credit for additional child
Additional credit for old age dependents
There are tax credits for:

















Comments

Tax credits are available for women returning to work after an inactive period.  

 

Other tax credits are available under the Business Promotion Regulations. There are other tax credits including the micro tax credit and for creative activities.


Losses
Losses can be
Carried-forward for Indefinite
 Years
Carried-back for Indefinite
 Years
Transferred to spouse or partner
Comments

Exemptions
The following income is exempted from income tax























Comments

The employment income (other than income derived from the holding of an office of director) of a married woman is exempt from tax if such woman is over forty years of age and starts in employment after having been absent from any gainful occupation for at least five years and where such income does not exceed the amount mentioned in rule 2(a) of the "Deduction (Income from Employment or Pension) Rules" and the said woman is chargeable to tax jointly with her spouse at the rates specified in article 56(a) of the Income Tax Act. This exemption shall apply for a period of five consecutive years of assessment from the basis year in which the woman began working.



Comments
 
Rate(s) Structure
The following personal income tax rates apply to aggregate annual income (allowances not included)
Bracket 1 From  0.00  EUR/Natcur
To  8,500.00  EUR/Natcur
Rate: 0.00 %
Bracket 2 From  8,501.00  EUR/Natcur
To  14,500.00  EUR/Natcur
Rate: 15.00 %
Bracket 3 From  14,501.00  EUR/Natcur
To  60,000.00  EUR/Natcur
Rate: 25.00 %
Bracket 4 From  60,001.00  EUR/Natcur
To   EUR/Natcur
Rate: 35.00 %
Bracket 5 From  0.00  EUR/Natcur
To  11,900.00  EUR/Natcur
Rate: 0.00 %
Bracket 6 From  11,901.00  EUR/Natcur
To  21,200.00  EUR/Natcur
Rate: 15.00 %
Bracket 7 From  21,201.00  EUR/Natcur
To  60,000.00  EUR/Natcur
Rate: 25.00 %
Bracket 8 From  60,001.00  EUR/Natcur
To   EUR/Natcur
Rate: 35.00 %
Bracket 9 From  0.00  EUR/Natcur
To  9,800.00  EUR/Natcur
Rate: 0.00 %
Bracket 10 From  9,801.00  EUR/Natcur
To  15,800.00  EUR/Natcur
Rate: 15.00 %
Bracket 11 From  15,801.00  EUR/Natcur
To  60,000.00  EUR/Natcur
Rate: 25.00 %
Bracket 12 From  60,001.00  EUR/Natcur
To   EUR/Natcur
Rate: 35.00 %
Comments

Bracket 1-4 apply to Single Computation.

Bracket 5-8 apply to Joint Computation.

Bracket 9-12 apply to Parent Computation.

 

Between 2013 and 2015, the maximum income tax rate for chargeable income not exceeding €60,000 was gradually decreased from 35% to 25%. This tax rate was decreased by 3% for 2013 (from 35% to 32%), and then decreased by a further 3% for 2014 (from 32% to 29%) and finally another 4% for 2015 (from 29% to 25%).


Regional taxes
Regional taxes are (rate in capital region) A lump-sum amount:
A percentage of income:
A tax surcharge:
Comments

Local/municipal taxes
Local taxes are (rate in capital city) A lump-sum amount:
A percentage of income:
A tax surcharge:
Comments

Special surcharges
There are special surcharges in the form of:
Surcharge 1 : Name:
A lump-sum amount:
A percentage of income:
A tax surcharge:
Comments

Separate taxation
Separate taxation applies to the following items: Employment income
Income from business or self-employed activities
Income from sport and entertainment activities
Benefits in kind (company car, meal cheques, etc)
Pension income
Owner-occupied immovable property
Dividends
Interests from government bonds
Interests from corporate bonds
Interests from special saving accounts
Interests from deposits
Royalties
Income from renting immovable property
Income from renting movable property
Capital gains on immovable property
Capital gains on movable property
Inheritance
Annuities from life insurance
Prizes and awards
Scholarships
Income from occasional activities
Revenues from donations and gifts
Revenues from lotteries and games activities
Comments

Withholding taxes
The tax is withheld when paid to residents on: Dividends: 35.00 %
Final Creditable
Interests from governments bonds: 15.00 %
Final Creditable
Interests from corporate bonds: 15.00 %
Final Creditable
Interests from special saving accounts: 15.00 %
Final Creditable
Interests from deposits: 15.00 %
Final Creditable
Comments


Comments
 
Tax due date

Any unpaid balance is to be paid by 30th June of the following year.

 
Tax collector

Tax is collected as much as possible in the year in which it arises through a number of systems:

  • Provisional tax: payable mostly by businesses and professionals every 4 months; also paid at source on any capital gain.
  • Final Settlement System tax: paid by employees through deduction from their salaries.
  • Withholding Tax and Tax at source: withheld at source on payments of interest and dividends.
  • Part-time work is also taxed at source.
  • Any remaining balances of tax due are paid by the due date as mentioned above.
 
Special features
 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d51m (d51aa + d51c1a)

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 462.11 EUR 6.39
2011 420.49 EUR 6.11
2010 390.50 EUR 5.92
2009 391.72 EUR 6.38
2008 351.49 EUR 5.74
2007 341.59 EUR 5.93
2006 359.84 EUR 6.68
2005 326.32 EUR 6.35
2004 305.26 EUR 6.27
2003 284.26 EUR 5.93
2002 274.33 EUR 5.79
2001 239.70 EUR 5.28
2000 196.93 EUR 4.48

Comments