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%

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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 holdersSubject 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

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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.

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Statutory dates for the year 2019

Filing of income tax return by individualsAn 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 endAn 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

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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

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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

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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

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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

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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

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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

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

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Information as at 11th March 2019.

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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