Hi guys,
I have a pretty simple question in my opinion, but I haven't found answer anywhere, so I will try there.
I am EU citizen moving to Malta. Let's say I have income €30.000 per year. Therefore, my tax rate is 35% and deduction amount is €4.675.
How does the deduction work?
a) 35% from €30.000 is €10.500 minus €4.675 deduction, so I pay €5.825 income tax.
b) €4.675 is dedcuted from my €30.000 income = €25.325 and then I pay 35% of that amount -> €8.863,75 income tax
Do you have answer for that?
Thanks a lot and enjoy Malta!
Tax deduction - how does it work?
johnyvienna
16 October 2011 08:53:04
1
Toon
16 October 2011 11:41:36
9548
the first 8500 is tax free the next 6000 is taxed at 15% the next 5000 is taxed at 25% and every eurocent over that is taxed at 35%...how it gets paid (weekly monthly or annually depends on your employer systems
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