New tax on worldwide income

Yes but there is tax equalization with most countries no? There is for the Netherlands, but am not certain what this new bill would me. We already pay a graduated 53 percent tax!

Does that not read that the €5,000 tax is if you earn MORE than €35,000 not on the 1st €35,000 :-

'(ii) derives income (including, in the case of a
married couple whose income is chargeable to tax in terms
of article 49 of the Act, the income derived by both
spouses) amounting to NOT LESS than thirty five thousand
euro (€35,000) or its equivalent in another currency'

Ray

My source has told me that the tax levied is on the 1st €35.000 they assume you make - it doesn't matter if you make €35000 or €500.000, they will only tax you on €35.000.

But I don't have the exact details, that is what I was hoping somebody here would help clear up.

This thing seems to have gone completely under the radar, so far I've not met 1 single person who had heard about this until now...

There is for some countries and for some type on income, but certainly not for all, and that is one of the main reasons why many expats are here - to not be taxed on their wordwide income. Apparently this is going to change now...

mikohassing2 wrote:

My source has told me that the tax levied is on the 1st €35.000 they assume you make - it doesn't matter if you make €35000 or €500.000, they will only tax you on €35.000.

But I don't have the exact details, that is what I was hoping somebody here would help clear up.

This thing seems to have gone completely under the radar, so far I've not met 1 single person who had heard about this until now...

But the wording in the extract of the Act that you quoted says over €35,000 not the first €35,000!
So are you saying that is wrong? If so why quote it?

Ray

I think you are reading it wrong.

This is a condensed version:

"...is ordinarily resident in Malta and who is not taxable in accordance with any scheme under the Act effectively establishing a minimum tax payable; and derives income amounting to not less than thirty five thousand euro (€35,000) arising outside Malta, shall, for any year of assessment, be subject to a tax liability on his income amounting to not less than five thousand euro (€5,000) per annum (hereinafter "the minimum tax")"

A €5000 tax equals taxed income of €35.000

mikohassing2 wrote:

I think you are reading it wrong.

This is a condensed version:

"...is ordinarily resident in Malta and who is not taxable in accordance with any scheme under the Act effectively establishing a minimum tax payable; and derives income amounting to not less than thirty five thousand euro (€35,000) arising outside Malta, shall, for any year of assessment, be subject to a tax liability on his income amounting to not less than five thousand euro (€5,000) per annum (hereinafter "the minimum tax")"

A €5000 tax equals taxed income of €35.000

So you are saying that I will pay €5000 tax on my €10000 pension!
The statement above say an income not less than €35000, my €10000 is less so not liable to the tax!

Ray

Yes, if you are earning less than €35.000, then you will not be taxed. Obviously somehow you will have to prove to them that you are not earning €35.000, this is one of the big questions here, how exactly do you do that?

The problem with knowing what is going on is that this is amending a large existing bill inserting bits of this and that here and there.  The context is missing by just looking at it like this.

I've asked my accountant to figure it out, but inevitably each have unique circumstances, you should do the same

It seems to me a little bit unrealistic. If you for example have 8000 pension a year from abroad then you have to pay 5.000 tax. That's about 62% But If you have a pension of 100.000 then you also pay 5.000. That's a tax of 5%. So the higher your income the lower your percentage income tax. That can't be truth I think. Is it an april fools joke maybe?

No, you will only have to pay this tax if you make at least €35.000 abroad.

But you are correct, if you make €35.000 and have to pay €5.000, or you make €500.000 and still only have to pay €5.000, that doesn't seem fair.....

If you earn over > 35k excluding capital gains outside of malta you'll pay this, any taxes paid here or elsewhere will be deducted from the 5k total.

If you earn 10k pension or even 34k pension and remit it here you wont pay this tax.

(I asked a pro)

Exactly the keyword is it will be offsetted against other taxes paid.

This is targeted at non-doms which don't remit any money to Malta and thus live tax free apart from corp taxes, scam accountants, typical maltese fraud etc.

Hi everybody,
my wife and me, both German, thinking about to relocate to Malta in the near future, 2020 perhaps.
Now this new Tax (https://www.financemalta.org/sections/t … tion-2017/) is confusing me a little. We will live on my pension of less than 35K. This said pension we will recieve, remitt to , in Malta. As far as I understood the double tax relief, we have to pay tax on that pension in Malta anyway.

We also will have other income of less than 35K in Germany  as well. That is taxable in Germany only, regarding the double tax relief.

Capital gain is excluded.!?

Just the case this other income in Germany will be above 35K, of which I payed tax for in Germany, do I also have to pay that said 5K€ tax in Malta?

How do I prove how much money I remitted to Malta?

This is a little wierd and confusing . . .


Thank you