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 […]

Written By ACT Team

On March 11, 2019
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Malta Income Tax Rates (year of assessment 2020)

Company rate of tax35%

Resident married couples opting for joint computation1

Taxable income (€)Rate (%)Deduct (€)
0 – 12,70000 
12,701 – 21,200151,905
21,201 – 28,700254,025
28,701 – 60,000253,905
60,001 and over359,905

Resident parents not qualifying / opting for joint computation

Taxable income (€)Rate (%)Deduct (€)
0 – 10,50000 
10,501 – 15,800151,575
15,801 – 21,200253,155
21,201 – 60,000253,050
60,001 and over359,050

Resident single individuals and married couples opting for separate computation2

Taxable income (€)Rate (%)Deduct (€)
0 – 9,10000 
9,101 – 14,500151,365
14,501 – 19,500252,815
19,501 – 60,000252,725
60,001 and over358,725

Non-resident individuals

Taxable income (€)Rate (%)Deduct (€)
0 – 70000 
701 – 3,10020140
3,101 – 7,80030450
7,801 and over35840
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

MarriedSingle
First €5,9000%First €4,2000%
Excess15%Excess15%
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 relief15%
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 software25
Aircraft interiors and other parts25
Motor vehicles, other machinery20
Air conditioners16.67
Communication and broadcasting equipment16.67
Catering equipment16.67
Equipment used for construction of buildings and excavation16.67
Equipment mainly designed or used for the production of water & electricity16.67
Medical equipment16.67
Aircraft airframe, engines and / or airframe overhaul, interiors and other parts16.67
Furniture, fixtures, fittings and soft furnishings10
Ships and vessels10
Lifts and escalators10
Other plant10
Electrical & plumbing installations and sanitary fittings6.67
Cable and pipeline infrastructure5
Industrial buildings and structures2
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 securities7% on consideration
On transfers of immovable property held by listed companies that opt out of A.5A8%
On transfers of immovable property held by listed companies that opt out of A.5A and which property was acquired prior to 1st January 200410%
On profits of companies and self employed persons
1st installment20% of benchmark
2nd installment30% of benchmark
3rd installment50% of benchmark
Provisional tax on part time self employment15% 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

 RateMinimumMaximum
Employed persons (born up to 31 December 1961)
Deductible from emoluments10%€17.58€35.70
Payable by employer10%€17.58€35.70
Employed persons (born on or after 1 January 1962)
Deductible from emoluments10%€17.58€46.53
Payable by employer10%€17.58€46.53
Self-occupied and self-employed persons
Born up to 31 December 196115%€30.25€53.54
Born on or after 1 January 196215%€30.25€69.79
Full time farmers
Born up to 31 December 196110%€20.16€35.70
Born on or after 1 January 196210%€20.16€46.53
 April 2019August 2019December 2019
No. of contributions due in 2019171718

Withholding tax

Payments to residentsPayments to non-residents
Investment income (as defined)15%3Dividends, interest and royaltiesNIL
Part time work (as defined)15%Capital gains on transfers of securities (s.t.c)NIL
Dividends from the untaxed account15%Taxable income paid to a non-resident company35%4
Dividends paid out of profits which
Taxable income paid to other non-resident persons25%
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 25/11/19927% of consideration
Property inherited after 25/11/199212% on transfer value less cost of acquisition6
Restored property (subject to certain conditions)10% of TV
Other property12% 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 200410% of TV
Property that had been acquired through inheritance prior to 25/11/19927% of consideration

Property inherited after 25/11/199212% of TV less cost of acquisition
Transfer of sole residence within 3 years from acquisition2% 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 Property8% 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 valuePrivate use percentage
Not exceeding €16,31030%
Exceeding €16,310 but not €21,00040%
Exceeding €21,000 but not €32,62050%
Exceeding €32,620 but not €46,60055%
Exceeding €46,60060%

Allowance for use of employee owned car

AllowanceFringe benefit
0 – €2,34050% of the allowance
More than €2,340Cash 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 individualsAn extension of 1 month is usually given if the return is filed electronically30 June 2019 
Filing of income tax returns by companies: 
Companies having a 30th June year end or earlier31 March 2019 
Companies having a 31st July year end30 April 2019
Companies having a 31st August year end31 May 2019
Companies having a 30th September year end30 June 2019 
Companies having a 31st October year end31 July 2019 
Companies having a 30th November year end31 August 2019 
Companies having a 31st December year endAn extension of two months is usually given if the return is filed electronically30 September 2019 
Filing of income tax returns by Partnerships which have not elected to be treated as companies30 June 2019 

Payment of settlement tax by individuals, companies and other bodies of personsOn 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 payment30 April 2019
2nd payment31 August 2019
3rd payment21 December 2019

Monthly remittance of FSS and social security contributions deducted by employersThe last working day of the following month
Annual reconciliation statement (FS 7) and employees’ FS 315 February of the following year

Filing of corporate statutory documents with the Registry of Companies:
Annual return42 days after the anniversary of registration
Financial statements10 months + 42 days after the accounting reference date

Value Added Tax
Filing of vat returns by:
Persons registered under Article 10 VAT ActThe 15th day of the second month following the month during which the tax period ends
Persons registered under Article 11 VAT Act15th February of the following calendar year
Persons registered under Article 12 VAT ActThe 15th day of the month/second month following the date on which the transaction becomes chargeable to Maltese VAT

Recapitulative Statements
GoodsThe 15th day of the month following the relative calendar month 
ServicesQuarterly
 
Refund of VAT in terms of the 8th Directive30th 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
ExemptImmovable 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 thresholdExit 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 transfersTransmissions causa mortis 
Immovable property- 5%7Immovable 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]


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

How can we help?  

For further information, please contact one of the firm’s tax partners, Stephen Balzan on [email protected] or Elaine Camilleri [email protected]. ACT can help you understand the changes to the tax rules and how these can impact your business.  

Apart from its offices in St. Julian’s Malta, ACT operates from a second office in Gozo, which is situated in the capital city of Victoria.  For an appointment in our Gozo office, please call on 00356 21378672 or send us an email on [email protected]. 

Disclaimer: This article contains general information only and is not intended to address the circumstances of any particular individual or entity. ACT, by means of this article is not rendering any accounting, business, financial, investment, legal, tax, or other professional advice or service. This article is not a substitute for such professional advice, nor should it be used as a basis for any decision or action that may affect your finances or your business. Although we endeavour 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 this article.