Malta Tax Rates & Dates 2019

Malta Income Tax Rates (year of assessment 2020)

Company rate of tax 35%

Resident married couples opting for joint computation1

Taxable income (€) Rate (%) Deduct (€)
0 - 12,700 0 0  
12,701 - 21,200 15 1,905
21,201 - 28,700 25 4,025
28,701 - 60,000 25 3,905
60,001 and over 35 9,905

Resident parents not qualifying / opting for joint computation

Taxable income (€) Rate (%) Deduct (€)
0 - 10,500 0 0  
10,501 - 15,800 15 1,575
15,801 - 21,200 25 3,155
21,201 - 60,000 25 3,050
60,001 and over 35 9,050

Resident single individuals and married couples opting for separate computation2

Taxable income (€) Rate (%) Deduct (€)
0 - 9,100 0 0  
9,101 - 14,500 15 1,365
14,501 - 19,500 25 2,815
19,501 - 60,000 25 2,725
60,001 and over 35 8,725

Non-resident individuals

Taxable income (€) Rate (%) Deduct (€)
0 - 700 0 0  
701 - 3,100 20 140
3,101 - 7,800 30 450
7,801 and over 35 840
  • Employment outside Malta (subject to certain conditions)
15%
  • Employment income earned by expatriates in respect of eligible offices carried out in Malta (subject to certain conditions)
15%

  • Rental income derived from property used for residential or commercial purposes (applicable to both individuals and companies)   
15%
  • Football Income (subject to conditions)
7.5%
  • Waterpolo Income (subject to conditions)
7.5%

Returned Migrants

Married Single
First €5,900 0% First €4,200 0%
Excess 15% Excess 15%

Taxation is subject to a minimum annual tax liability of €2,325 after double taxation relief.

The above rates apply to the taxpayer's chargeable income apart from Malta source income. The latter is taxed at rates applicable to Maltese residents without taking into account the tax free bracket.

 
  • Permanent residence permit holders

Subject to a minimum annual tax liability of €4,192 after double taxation relief

15%
  • Residents of Malta in terms of The Residence Programme Rules (TRP)

This scheme is applicable to EU/EE and Swiss nationals. Tax is subject to a minimum annual tax liability of €15,000 after double taxation relief.

15%
  • Residents of Malta in terms of the Global Residence Programme Rules (GRP)

This scheme is applicable to non-EU/non-EEA and non-Swiss nationals. Tax is subject to a minimum annual tax liability of €15,000.

15%
  • Residents of Malta in terms of the Malta Retirement Programme Rules (MRP)

This scheme is applicable to EU/EEA and Swiss nationals. Tax is subject to a minimum annual tax liability of €7,500 and an additional €500 for every dependent and carer.

15%

Capital allowances

Asset type         Max (%)
Computers and electronic equipment, computer software 25
Aircraft interiors and other parts 25
Motor vehicles, other machinery 20
Air conditioners 16.67
Communication and broadcasting equipment 16.67
Catering equipment 16.67
Equipment used for construction of buildings and excavation 16.67
Equipment mainly designed or used for the production of water & electricity 16.67
Medical equipment 16.67
Aircraft airframe, engines and / or airframe overhaul, interiors and other parts 16.67
Furniture, fixtures, fittings and soft furnishings 10
Ships and vessels 10
Lifts and escalators 10
Other plant 10
Electrical & plumbing installations and sanitary fittings 6.67
Cable and pipeline infrastructure 5
Industrial buildings and structures 2
Personal tax deductions                Maximum
  • Alimony payments to estranged spouse
 

Actual amount paid

(capped at the chargeable income for the year)

  • School Fees
 

 

 

Secondary School       €2,300
Primary school       €1,600
Kindergarten       €1,300
Facilitator Services       €9,320
  • Homes for the elderly and the disabled
      €2,500
  • Child care fees
      €2,000
  • Sports fees
      €100
  • Cultural activities
      €100
  • School transport fees
      €150
  • Tertiary education institution fees
      €10,000

Provisional tax

  • On transfers of immovable property and securities
7% on consideration
  • On transfers of immovable property held by listed companies that opt out of A.5A
8%
  • On transfers of immovable property held by listed companies that opt out of A.5A and which property was acquired prior to 1st January 2004
10%
  • On profits of companies and self employed persons
1st installment 20% of benchmark
2nd installment 30% of benchmark
3rd installment 50% of benchmark
  • Provisional tax on part time self employment
15% of profits
  • Provisional stamp duty on transfers of immovable property (payable on the preliminary deed)
1% of transfer value

Social Security Contributions for the year 2019

  Rate Minimum Maximum
Employed persons (born up to 31 December 1961)
  • Deductible from emoluments
10% €17.58 €35.70
  • Payable by employer
10% €17.58 €35.70
Employed persons (born on or after 1 January 1962)
  • Deductible from emoluments
10% €17.58 €46.53
  • Payable by employer
10% €17.58 €46.53
Self-occupied and self-employed persons
  • Born up to 31 December 1961
15% €30.25 €53.54
  • Born on or after 1 January 1962
15% €30.25 €69.79
Full time farmers
  • Born up to 31 December 1961
10% €20.16 €35.70
  • Born on or after 1 January 1962
10% €20.16 €46.53
  April 2019 August 2019 December 2019
No. of contributions due in 2019 17 17 18

Withholding tax

Payments to residents Payments to non-residents
Investment income (as defined) 15%3 Dividends, interest and royalties NIL
Part time work (as defined) 15% Capital gains on transfers of securities (s.t.c) NIL
Dividends from the untaxed account 15% Taxable income paid to a non-resident company 35%4
Dividends paid out of profits which
Taxable income paid to other non-resident persons 25%
have been taxed at 32.5% 2.5% Investment Income (as defined) 15%5

Transfers of immovable property (final tax)

Immovable property transferred before 1 January 2015:  
  • Property that had been acquired through inheritance prior to 25/11/1992
7% of consideration
  • Property inherited after 25/11/1992
12% on transfer value less cost of acquisition6
  • Restored property (subject to certain conditions)
10% of TV
  • Other property
12% of TV 
Immovable Property Transferred after 1 January 2015:  
  • Property transferred within 5 years of acquisition and which does not form part of a project     
5% of TV
  • Restored property (subject to conditions)
5% of TV
  • Property acquired prior to 1st January 2004
10% of TV
  • Property that had been acquired through inheritance prior to 25/11/1992
7% of consideration

  • Property inherited after 25/11/1992
12% of TV less cost of acquisition
  • Transfer of sole residence within 3 years from acquisition
2% of TV
  • Property forming part of a project and property situated in a Special Designated Area (subject to conditions)
8%/10%/12% of TV
  • Other Property
8% of TV

Taxation of fringe benefits

Category 1 - Use of business car

Annual fringe benefit value = (Vehicle use value + Maintenance value + Fuel value) X Private use percentage 
Vehicle use value = 17% of the vehicle value (10% if the vehicle is more than 6 years old) 
Maintenance value = 5% of the vehicle value (3% if the value of the vehicle does not exceed €28,000) 
Fuel value = 5% of the vehicle value (3% if the value of the vehicle does not exceed €28,000)

The private use percentage of a vehicle is determined by reference to the vehicle value as follows:

Car value Private use percentage
Not exceeding €16,310 30%
Exceeding €16,310 but not €21,000 40%
Exceeding €21,000 but not €32,620 50%
Exceeding €32,620 but not €46,600 55%
Exceeding €46,600 60%

Allowance for use of employee owned car

Allowance Fringe benefit
0 – €2,340 50% of the allowance
More than €2,340 Cash allowance less €1,170

Category 2 - Use of other business assets

Accommodation

5% of the higher of the market value and the original cost of the property

Fringe benefit value is increased by the cost of making the property available for use (e.g. water and electricity, repairs etc.)

Use of other assets

12% of the higher of the market value and the original cost

The original cost is reduced by 40% in the case of assets that are more than 6 years old

Category 3 - Other benefits

Generally, the fringe benefit value is the actual cost to the employer or the market value. Special rules and certain exemptions apply.


Statutory dates for the year 2019

  • Filing of income tax return by individuals

An extension of 1 month is usually given if the return is filed electronically

30 June 2019 
  • Filing of income tax returns by companies:
 
Companies having a 30th June year end or earlier 31 March 2019 
Companies having a 31st July year end 30 April 2019
Companies having a 31st August year end 31 May 2019
Companies having a 30th September year end 30 June 2019 
Companies having a 31st October year end 31 July 2019 
Companies having a 30th November year end 31 August 2019 

Companies having a 31st December year end

An extension of two months is usually given if the return is filed electronically

30 September 2019 
  • Filing of income tax returns by Partnerships which have not elected to be treated as companies
30 June 2019 

  • Payment of settlement tax by individuals, companies and other bodies of persons
On tax return date
  • Payment of provisional tax by self-employed/self-occupied individuals, companies and other bodies of persons
1st payment (20% of the benchmark amount) 30 April 2019
2nd payment (30% of the benchmark amount) 31 August 2019       
3rd payment (50% of the benchmark amount) 21 December 2019
  • Payment of Social Security Contributions by self-employed/self-occupied individuals
1st payment 30 April 2019
2nd payment 31 August 2019
3rd payment 21 December 2019

  • Monthly remittance of FSS and social security contributions deducted by employers
The last working day of the following month
  • Annual reconciliation statement (FS 7) and employees’ FS 3
15 February of the following year

  • Filing of corporate statutory documents with the Registry of Companies:
Annual return 42 days after the anniversary of registration
Financial statements 10 months + 42 days after the accounting reference date

Value Added Tax
  • Filing of vat returns by:
Persons registered under Article 10 VAT Act The 15th day of the second month following the month during which the tax period ends
Persons registered under Article 11 VAT Act 15th February of the following calendar year
Persons registered under Article 12 VAT Act The 15th day of the month/second month following the date on which the transaction becomes chargeable to Maltese VAT

  • Recapitulative Statements
Goods The 15th day of the month following the relative calendar month  
Services Quarterly
 
Refund of VAT in terms of the 8th Directive 30th September of the calendar year following the refund period

VALUE ADDED TAX

18% Standard rate
7% Accommodation in hotels and licensed premises
5% Supply of electricity, importation of works of art, collector’s items and antiques, certain confectionery, medical accessories, printed matter, items for exclusive use of the disabled, domestic care services, minor repairs of bicycles, shoes leather goods, clothing and household linen, and admission to museums, art exhibitions, concerts and theatres.
0% Exports, intra-community supplies and international transport, supplies of brokers and other intermediaries, supply and repair of commercial aircraft and sea vessels, duty free supplies, food, pharmaceuticals, transport, investment gold, goods under a customs duty suspension regime and the supply of goods on board cruise liners
Exempt Immovable property, non commercial rent, services by non-profit making organization, insurance, banking and investment services, sports, religious and cultural activities, lotteries and public postal services, health, welfare, education, public broadcasting, the supply of water by a public authority and letting of space for artistic and cultural activities

Registration threshold

  Entry threshold Exit threshold
Supply of goods €35,000 €28,000
Supply of services with a relatively low value added €24,000 €19,000
Other €20,000 €17,000  

Businesses whose turnover falls below the above registration thresholds are obliged to register as an exempt small undertaking unless they opt for the standard VAT registration.

Intra-community acquisitions threshold €10,000  
Distance sales threshold €35,000  

STAMP DUTY

  • Inter vivos transfers
  • Transmissions causa mortis
 
Immovable property- 5%7 Immovable property - 5%
Shares in property companies - 5% Shares in property companies - 5%
Other shares - 2% Other shares - 2%  
  Other assets - NIL
  • Insurance policies 

Life - 0.1% of the sum assured 
Other (except aviation, marine cargo, hull or boat, credit and suretyship and medical cover) - 10% of the premium


For further information please contact the firm’s tax partners: 
Stephen Balzan - [email protected] 
Elaine Camilleri - [email protected]


Disclaimer

These notes contain general information only and are not intended to address the circumstances of any particular individual or entity. ACT, by means of these notes is not rendering any accounting, business, financial, investment, legal, tax, or other professional advice or service. These notes are not a substitute for such professional advice, nor should they be used as a basis for any decision or action that may affect your finances or your business. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. Before making any decisions or before taking any action that may affect your finances or your business, you should consult a qualified professional adviser. ACT shall not be responsible for any loss whatsoever sustained by any person who relies on these notes.

Information as at 11th March 2019.

 


 

1Also applicable to non-residents who are EU/EEA nationals provided that at least 90% of the couple’s world-wide income is derived from Malta

2Also applicable to non-residents who are EU/EEA nationals provided that at least 90% of the individual’s world-wide income is derived from Malta

3Option exists to receive investment income without final withholding tax. Recipient has obligation to declare investment income in his personal income tax return and be subject to tax at the standard progressive rates of tax. 

4A lower or NIL rate may be authorised

5This also applies to EU/EEA individuals who are not residents of Malta for income tax purposes and who together with their spouses (if any) have at least 90% of their worldwide income arising in Malta

6Transfer value is the higher of the consideration and the market value of the property transferred

7Special rates apply to persons who acquire immovable property for the purpose of establishing therein their sole or main residence

 

The above rates apply to the taxpayer’s chargeable income apart from Malta source income. The latter is taxed at rates applicable to Maltese residents without taking into account the tax free bracket.  

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