The Government of Malta has by means of Legal Notice 1 of 2024 amended the Deduction (income from Employment) Rules. The revised rules shall be applicable as from year of assessment 2025.
These rules apply to individuals (including any spouse where the responsible spouse has opted for a separate computation) who
- derives income from employment (other than income derived from the holding of an office of a director) and
- such income does not exceed €11,620 per annum (increased from €10,535) and
- does not derive any other income chargeable to tax
Such individuals who are chargeable to tax at the single rates, but not at the rates applicable to parents and unmarried individuals, surviving spouses or separated / divorced spouses who wholly maintained under their sole custody a child, shall be allowed as a deduction against their income from employment, an amount determined by deducting €9,100 from the said income
On the other hand, individuals who are chargeable to tax at the parent rates shall be granted a deduction against their income from employment, an amount determined by deducting €10,500 from the said income.
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