Do you have to pay income tax in Malta? What are the other types of taxes that apply? Find out in this article.
Whether you have decided to work or retire in Malta, taxation will probably be one of your main concerns. Indeed, before expatriating to another country, it is best to be aware of its tax system so as to know whether or not you will have to pay tax. In general, tax rates are rather low in the country, but these apply to different categories of people.
Temporary residents in Malta do not have to pay tax. Permanent residents, for their part, have to pay tax according to their income from local sources. This also applies to expatriates, regardless of their country of origin. In 2015, these varied as follows:
0 to 8,500 euros – 0 % (no tax relief)
8,501 to 14,500 euros – 15 % (1,275 euros tax relief)
14,501 to 60,000 euros – 25 % (2,275 euros tax relief)
60,001 euros and beyond – 35 % (8,725 euros tax relief)
0 to 11,900 euros – 0 % (no tax relief)
11,901 to 21,200 euros – 15 % (1,785 euros tax relief)
21,201 to 60,000 euros – 25 % (3,905 euros tax relief)
60,001 euros and beyond – 35 % (9,905 euros tax relief)
0 to 9,800 euros – 0 % (no tax relief)
9,801 to 15,800 euros – 15 % (1,470 euros tax relief)
15,801 to 60,000 euros – 25 % (3,050 tax relief)
60,001 euros and beyond – 35 % (9,050 euros tax relief).
The following allowances are considered:
- school and education fees
- child care fees
- dietary pensions for children
- old age home fees
- some factors regarding rental income.
Registration as a taxpayer
Once you have received your work and resident permit, you are required to duly fill and sign the Expatriates Taxpayers Registration Form which you then have to produce to the Inland Revenue Department.
Deadlines and payment
You are required to submit your previous year's tax return at the latest on the 30th of June of the current year. Hence, tax declaration for the previous year 2014 had to be submitted at the latest on the 30th of June 2015. Otherwise, penalties should apply.
In some cases, you can even receive your tax return form by post. You simply have to fill it and produce it to the Inland Revenue Department along with the payment check. You can make online payment as well.