Lower rate of tax on rental income

In terms of Article 31D of the Income Tax Act, any persons in receipt of rental income from a residential tenement (being a tenement that is used as a residence or a garage by an individual or individuals) during calendar year 2015 may opt to tax their rental income at a final flat rate of […]

Written By ACT Team

On May 4, 2016
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In terms of Article 31D of the Income Tax Act, any persons in receipt of rental income from a residential tenement (being a tenement that is used as a residence or a garage by an individual or individuals) during calendar year 2015 may opt to tax their rental income at a final flat rate of 15% on the gross rental income in lieu of declaring the rental income received in their tax return and be subject to tax at the progressive rates of tax in the case of individuals or 35% in the case of companies and other bodies of persons.  To benefit from this rate, the taxpayer must submit the relative TA24 form and pay the tax to the Inland Revenue Department by not later than 30th June, 2016.

How we can assist?

Our tax team can advise taxpayers to assess the most tax efficient method of taxing their rental income. We can also assist taxpayers in filling in the necessary form to be submitted with the Inland Revenue Department by 30th June 2016 and effect the relative tax payment.

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].