By means of Legal Notice 98 of 2022, the Government of Malta has introduced new rules, by virtue of which pension income derived by individuals on or after 1st January 2022 will be partially exempt from income tax as from year of assessment 2023 with the aim of becoming fully exempt as from year of assessment 2027 as follows:
- Pension income derived in the year immediately preceding year of assessment 2023 – 20% of pension income to be exempt
- Pension income derived in the year immediately preceding year of assessment 2024 – 40% of pension income to be exempt
- Pension income derived in the year immediately preceding year of assessment 2025 – 60% of pension income to be exempt
- Pension income derived in the year immediately preceding year of assessment 2026 – 80% of pension income to be exempt
- Pension income derived in the year immediately preceding year of assessment 2027 and in subsequent years – 100% of pension income to be exempt
