Tax deduction - how does it work?

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Member since 16 October 2011

johnyviennaMember16 October 2011 06:53:04

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!

Toon Cyprus Expert

Member since 04 June 2011

ToonCyprus Expert16 October 2011 09:41:36

9903

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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