Direct taxes - Personal Income Tax

    Generic part

    Personal income tax
    Income Tax
    MT - Malta
    EUR
    Date
    Year
    1948/01/01
    2018/01/01
    2018/02/02 15:07:09

    Contact information

    Administration

    Service

    Website

    E-mail

    Telephone

    Who sets

    The tax rate is set by

    • Central authority
    • Regional authority
    • Local authority
    • Social security

    The tax base is set by

    • Central authority
    • Regional authority
    • Local authority
    • Social security

    The reliefs are set by

    • Central authority
    • Regional authority
    • Local authority
    • Social security

    Beneficiary

    • Central authority
    • Regional authority
    • Local authority
    • Social security
    • Others

    Geographical Scope

    MT - Malta
    No Yes

    Taxpayers

    Who is liable for the tax?

    • Residents
    • Non-Residents

    Tax object and basis of assessment

    As general rule, taxable income under personal income tax includes

    • 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

    Income considered for residents

    Domestic income
    Worldwide income (subject to double-tax relief)

    Domestic-source income of non-residents is

    Taxed
    Not Taxed

    Employment incomes of married couples are

    Taxed jointly
    Taxed separately

    Benefits in kind

    • Company car
    • Low-interest loans
    • Stock options
    • Meal, sport, cultural cheques
    • Health insurance
    • Computer and IT services
    • Phone and telecommunications services
    • Parking
    • Public transport
    • Day-care for children
    • Meals at cantine
    • Accommodation

    Deductions, Allowances, Credits, Exemptions

    Deductions from the tax base

    • Child care expenses
    • Educational expenses
    • Sport activities expenses
    • Medical expenses
    • Travel expenses
    • Interest on mortgages
    • Capital from mortgages
    • Interest from loans other than mortgages
    • Alimony obligations under law
    • Donations
    • Contributions to supplementary pension or health insurance
    • Contributions to life insurance funds
    • Investments in companies located in specific regions or active in specific businesses
    • Investments in eco-friendly or energy-efficient goods
    • Investment in IT materials or e-services
    • Membership fees to Unions
    • National, regional or local taxes

    Deduction for professional expenses, in particular for employees

    • No deduction
    • A lump-sum amount:
    • In percentage of income:
    • Based on real expenses
    • Capped

    Deduction for professional expenses, in particular for self-employed

    • No deduction
    • A lump-sum amount:
    • In percentage of income:
    • Based on real expenses
    • Capped

    Deduction for child care expenses

    • No deduction
    • A lump-sum amount:
    • In percentage of income:
    • Based on real expenses
    • Capped

    Allowances

      in EUR/National Currency or % of tax base

    Credits

      in EUR/National Currency or % of tax base
    • Child care expenses
    • Educational expenses
    • Sport activities expenses
    • Medical expenses
    • Travel expenses
    • Interest on mortgages
    • Capital from mortgages
    • Interest from loans other than mortgages
    • Alimony obligations under law
    • Donations
    • Contributions to supplementary pension or health insurance
    • Contributions to life insurance funds
    • Investments in companies located in specific regions or active in specific businesses
    • Investments in eco-friendly or energy-efficient goods
    • Investment in IT materials or e-services
    • Membership fees to Unions
    • National, regional or local taxes

    Losses

    • Carried-forward for
    • Indefinite
    • Carried-back for
    • Indefinite
    • Transferred to spouse or partner

    Exemptions

    • 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

    Rate(s) Structure

    Amount (from) Amount (to) Rate -
    0
    9,100
    0 %
    9,101
    14,500
    15 %
    14,501
    60,000
    25 %
    60,001
    35 %
    0
    12,700
    0 %
    12,701
    21,200
    15 %
    21,201
    60,000
    25 %
    60,001
    35 %
    0
    10,500
    0 %
    10,501
    15,800
    15 %
    15,801
    60,000
    25 %
    60,001
    35 %
    0
    700
    0 %
    701
    3,100
    20 %
    3,101
    7,800
    30 %
    7,801
    35 %


    Regional taxes

    • A lump-sum amount:
    • A percentage of income:
    • A tax surcharge:

    Local/municipal taxes

    • A lump-sum amount:
    • A percentage of income:
    • A tax surcharge:

    Special surcharges

    Surcharge

    • A lump-sum amount:
    • A percentage of income:
    • A tax surcharge:


    Separate taxation

    • 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

    Withholding taxes

    • Dividends
    35 %
    Final Creditable
    • Interests from government bonds
    15 %
    Final Creditable
    • Interests from corporate bonds
    15 %
    Final Creditable
    • Interests from special saving accounts
    15 %
    Final Creditable
    • Interests from deposits
    15 %
    Final Creditable

    Tax due date

    Tax collector

    General comments

    Economic function

    • Consumption
    • Labour Employed (paid by employers and employees)
    • Labour Non-employed
    • Capital income: corporations
    • Capital income: income of households
    • Capital income: income of self-employed
    • Capital stocks

    Environmental taxes

    • Energy
    • Transport
    • Pollution/resources

    Tax revenue

    d51m-c01
    Year Annual tax revenue (in millions) % of GDP % of total tax revenue -
    2016
    678.37
    6.5587 %
    21.023 %
    2015
    595.62
    6.1764 %
    20.1169 %
    2014
    560.25
    6.587 %
    20.3188 %
    2013
    522.76
    6.8378 %
    20.9557 %
    2012
    472.49
    6.5913 %
    20.3414 %
    2011
    440.42
    6.4432 %
    20.0291 %
    2010
    389.85
    5.9073 %
    18.4982 %
    2009
    391.72
    6.3813 %
    19.6666 %
    2008
    351.41
    5.7338 %
    17.8607 %
    2007
    341.59
    5.933 %
    18.0669 %
    2006
    359.84
    6.6809 %
    20.9063 %
    2005
    326.32
    6.346 %
    20.1047 %
    2004
    305.26
    6.2718 %
    20.8539 %
    2003
    284.26
    5.9286 %
    20.1589 %
    2002
    274.33
    5.791 %
    19.7204 %
    2001
    239.7
    5.2785 %
    18.4441 %
    2000
    196.93
    4.4809 %
    16.4781 %

    Footnotes