Exemption from tax on pension income

By means of Legal Notice 48 of 2023, the Government has announced that pension income derived by an individual on or after 1st January 2022 shall be exempt from tax as follows: Year of assessment                         Exempt amount   2023                                                   20% capped up to €2,864 2024                                                   40% capped up to €5,987 2025                                                   60% capped up to […]

Written By Stephen Balzan

On June 12, 2023
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By means of Legal Notice 48 of 2023, the Government has announced that pension income derived by an individual on or after 1st January 2022 shall be exempt from tax as follows:

Year of assessment                         Exempt amount
 
2023                                                   20% capped up to €2,864
2024                                                   40% capped up to €5,987
2025                                                   60% capped up to €8,981
2026                                                   80% capped up to €11,974
2027 and subsequent years         100% capped up to €14,968

This follows what has been announced in the budget speech for the year 2022 that pension income received by an individual who is at least 61 years of age will be partially exempt, gradually rising to full exemption by the year 2026.  The exempt portion shall be omitted from the individual’s tax calculation.

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For further information, please contact us on [email protected]. ACT can help you understand the changes to the income tax, accounting, corporate and VAT 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 +356 21378672 or send us an email on [email protected].