{"id":957,"date":"2019-03-11T15:17:00","date_gmt":"2019-03-11T14:17:00","guid":{"rendered":"https:\/\/www.act.com.mt\/?p=957"},"modified":"2019-12-17T15:22:41","modified_gmt":"2019-12-17T14:22:41","slug":"malta-tax-rates-dates-2019","status":"publish","type":"post","link":"https:\/\/www.act.com.mt\/articles-publications\/malta-tax-rates-dates-2019\/","title":{"rendered":"Malta Tax Rates & Dates 2019"},"content":{"rendered":"\n

Malta Income Tax Rates (year of assessment 2020)<\/strong><\/h3>\n\n\n\n
Company rate of tax<\/td>35%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Resident married couples opting for joint computation1<\/sup><\/h4>\n\n\n\n
Taxable income (\u20ac)<\/td>Rate (%)<\/td>Deduct (\u20ac)<\/td><\/tr>
0 – 12,700<\/td>0<\/td>0<\/td> <\/td><\/tr>
12,701 – 21,200<\/td>15<\/td>1,905<\/td><\/tr>
21,201 – 28,700<\/td>25<\/td>4,025<\/td><\/tr>
28,701 – 60,000<\/td>25<\/td>3,905<\/td><\/tr>
60,001 and over<\/td>35<\/td>9,905<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Resident parents not qualifying \/ opting for joint computation<\/h4>\n\n\n\n
Taxable income (\u20ac)<\/td>Rate (%)<\/td>Deduct (\u20ac)<\/td><\/tr>
0 – 10,500<\/td>0<\/td>0<\/td> <\/td><\/tr>
10,501 – 15,800<\/td>15<\/td>1,575<\/td><\/tr>
15,801 – 21,200<\/td>25<\/td>3,155<\/td><\/tr>
21,201 – 60,000<\/td>25<\/td>3,050<\/td><\/tr>
60,001 and over<\/td>35<\/td>9,050<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Resident single individuals and married couples opting for separate computation2<\/sup><\/h4>\n\n\n\n
Taxable income (\u20ac)<\/td>Rate (%)<\/td>Deduct (\u20ac)<\/td><\/tr>
0 – 9,100<\/td>0<\/td>0<\/td> <\/td><\/tr>
9,101 – 14,500<\/td>15<\/td>1,365<\/td><\/tr>
14,501 – 19,500<\/td>25<\/td>2,815<\/td><\/tr>
19,501 – 60,000<\/td>25<\/td>2,725<\/td><\/tr>
60,001 and over<\/td>35<\/td>8,725<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Non-resident individuals<\/h4>\n\n\n\n
Taxable income (\u20ac)<\/td>Rate (%)<\/td>Deduct (\u20ac)<\/td><\/tr>
0 – 700<\/td>0<\/td>0<\/td> <\/td><\/tr>
701 – 3,100<\/td>20<\/td>140<\/td><\/tr>
3,101 – 7,800<\/td>30<\/td>450<\/td><\/tr>
7,801 and over<\/td>35<\/td>840<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
Employment outside Malta (subject to certain conditions)<\/td>15%<\/td><\/tr>
Employment income earned by expatriates in respect of eligible offices carried out in Malta (subject to certain conditions)<\/td>15%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
\n\n\n\n
Rental income derived from property used for residential or commercial purposes (applicable to both individuals and companies)   <\/td>15%<\/td><\/tr>
Football Income (subject to conditions)<\/td>7.5%<\/td><\/tr>
Waterpolo Income (subject to conditions)<\/td>7.5%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Returned Migrants<\/strong><\/h4>\n\n\n\n
Married<\/td>Single<\/td><\/tr>
First \u20ac5,900<\/td>0%<\/td>First \u20ac4,200<\/td>0%<\/td><\/tr>
Excess<\/td>15%<\/td>Excess<\/td>15%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
Taxation is subject to a minimum annual tax liability of \u20ac2,325 after double taxation relief.<\/em>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.<\/em><\/td> <\/td><\/tr>
Permanent residence permit holders<\/strong>Subject to a minimum annual tax liability of \u20ac4,192 after double taxation relief<\/em><\/td>15%<\/td><\/tr>
Residents of Malta in terms of The Residence Programme Rules (TRP)<\/strong>This scheme is applicable to EU\/EE and Swiss nationals. Tax is subject to a minimum annual tax <\/em>liability of \u20ac15,000 after double taxation relief.<\/em><\/td>15%<\/td><\/tr>
Residents of Malta in terms of the Global Residence Programme Rules (GRP)<\/strong>This scheme is applicable to non-EU\/non-EEA and non-Swiss nationals. Tax is subject to a minimum annual tax liability of \u20ac15,000.<\/em><\/td>15%<\/td><\/tr>
Residents of Malta in terms of the Malta Retirement Programme Rules (MRP)<\/strong>This scheme is applicable to EU\/EEA and Swiss nationals. Tax is subject to a minimum annual tax liability <\/em>of \u20ac7,500 and an additional \u20ac500 for every dependent and carer.<\/em><\/td>15%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Capital allowances<\/h4>\n\n\n\n
Asset type   <\/strong>     <\/td>Max (%)<\/strong><\/td><\/tr>
Computers and electronic equipment, computer software<\/td>25<\/td><\/tr>
Aircraft interiors and other parts<\/td>25<\/td><\/tr>
Motor vehicles, other machinery<\/td>20<\/td><\/tr>
Air conditioners<\/td>16.67<\/td><\/tr>
Communication and broadcasting equipment<\/td>16.67<\/td><\/tr>
Catering equipment<\/td>16.67<\/td><\/tr>
Equipment used for construction of buildings and excavation<\/td>16.67<\/td><\/tr>
Equipment mainly designed or used for the production of water & electricity<\/td>16.67<\/td><\/tr>
Medical equipment<\/td>16.67<\/td><\/tr>
Aircraft airframe, engines and \/ or airframe overhaul, interiors and other parts<\/td>16.67<\/td><\/tr>
Furniture, fixtures, fittings and soft furnishings<\/td>10<\/td><\/tr>
Ships and vessels<\/td>10<\/td><\/tr>
Lifts and escalators<\/td>10<\/td><\/tr>
Other plant<\/td>10<\/td><\/tr>
Electrical & plumbing installations and sanitary fittings<\/td>6.67<\/td><\/tr>
Cable and pipeline infrastructure<\/td>5<\/td><\/tr>
Industrial buildings and structures<\/td>2<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
Personal tax deductions            <\/strong><\/td> <\/td> Maximum<\/strong><\/td><\/tr>
Alimony payments to estranged spouse<\/td> <\/td>Actual amount paid(capped at the chargeable income for the year)<\/td><\/tr>
School Fees<\/td> <\/td>  <\/td><\/tr>
Secondary School<\/td> <\/td>    \u20ac2,300<\/td><\/tr>
Primary school<\/td> <\/td>    \u20ac1,600<\/td><\/tr>
Kindergarten<\/td> <\/td>    \u20ac1,300<\/td><\/tr>
Facilitator Services<\/td> <\/td>    \u20ac9,320<\/td><\/tr>
Homes for the elderly and the disabled<\/td> <\/td>    \u20ac2,500<\/td><\/tr>
Child care fees<\/td> <\/td>    \u20ac2,000<\/td><\/tr>
Sports fees<\/td> <\/td>    \u20ac100<\/td><\/tr>
Cultural activities<\/td> <\/td>    \u20ac100<\/td><\/tr>
School transport fees<\/td> <\/td>    \u20ac150<\/td><\/tr>
Tertiary education institution fees<\/td> <\/td>    \u20ac10,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Provisional tax<\/h4>\n\n\n\n
On transfers of immovable property and securities<\/td>7% on consideration<\/td><\/tr>
On transfers of immovable property held by listed companies that opt out of A.5A<\/td>8%<\/td><\/tr>
On transfers of immovable property held by listed companies that opt out of A.5A and which property was acquired prior to 1st January 2004<\/td>10%<\/td><\/tr>
On profits of companies and self employed persons<\/td><\/tr>
1st installment<\/td>20% of benchmark<\/td><\/tr>
2nd installment<\/td>30% of benchmark<\/td><\/tr>
3rd installment<\/td>50% of benchmark<\/td><\/tr>
Provisional tax on part time self employment<\/td>15% of profits<\/td><\/tr>
Provisional stamp duty on transfers of immovable property (payable on the preliminary deed)<\/td>1% of transfer value<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Social Security Contributions for the year 2019<\/h4>\n\n\n\n
 <\/td>Rate<\/td>Minimum<\/td>Maximum<\/td><\/tr>
Employed persons (born up to 31 December 1961)<\/strong><\/td><\/tr>
Deductible from emoluments<\/td>10%<\/td>\u20ac17.58<\/td>\u20ac35.70<\/td><\/tr>
Payable by employer<\/td>10%<\/td>\u20ac17.58<\/td>\u20ac35.70<\/td><\/tr>
Employed persons (born on or after 1 January 1962)<\/strong><\/td><\/tr>
Deductible from emoluments<\/td>10%<\/td>\u20ac17.58<\/td>\u20ac46.53<\/td><\/tr>
Payable by employer<\/td>10%<\/td>\u20ac17.58<\/td>\u20ac46.53<\/td><\/tr>
Self-occupied and self-employed persons<\/strong><\/td><\/tr>
Born up to 31 December 1961<\/td>15%<\/td>\u20ac30.25<\/td>\u20ac53.54<\/td><\/tr>
Born on or after 1 January 1962<\/td>15%<\/td>\u20ac30.25<\/td>\u20ac69.79<\/td><\/tr>
Full time farmers<\/strong><\/td><\/tr>
Born up to 31 December 1961<\/td>10%<\/td>\u20ac20.16<\/td>\u20ac35.70<\/td><\/tr>
Born on or after 1 January 1962<\/td>10%<\/td>\u20ac20.16<\/td>\u20ac46.53<\/td><\/tr>
 <\/td>April 2019<\/td>August 2019<\/td>December 2019<\/td><\/tr>
No. of contributions due in 2019<\/td>17<\/td>17<\/td>18<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
\n\n\n\n

Withholding tax<\/h4>\n\n\n\n
Payments to residents<\/strong><\/td>Payments to non-residents<\/strong><\/td><\/tr>
Investment income (as defined)<\/td>15%3<\/sup><\/td>Dividends, interest and royalties<\/td>NIL<\/td><\/tr>
Part time work (as defined)<\/td>15%<\/td>Capital gains on transfers of securities (s.t.c)<\/td>NIL<\/td><\/tr>
Dividends from the untaxed account<\/td>15%<\/td>Taxable income paid to a non-resident company<\/td>35%4<\/sup><\/td><\/tr>
Dividends paid out of profits which<\/td>
<\/td>		Taxable income paid to other non-resident persons<\/td>25%<\/td><\/tr>
have been taxed at 32.5%<\/td>2.5%<\/td>Investment Income (as defined)<\/td>15%5<\/sup><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Transfers of immovable property (final tax)<\/strong><\/p>\n\n\n\n

Immovable property transferred before 1 January 2015:<\/td> <\/td><\/tr>
Property that had been acquired through inheritance prior to 25\/11\/1992<\/td>7% of consideration<\/td><\/tr>
Property inherited after 25\/11\/1992<\/td>12% on transfer value less cost of acquisition6<\/sup><\/td><\/tr>
Restored property (subject to certain conditions)<\/td>10% of TV<\/td><\/tr>
Other property<\/td>12% of TV <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
Immovable Property Transferred after 1 January 2015:<\/td> <\/td><\/tr>
Property transferred within 5 years of acquisition and which does not form part of a project     <\/td>5% of TV<\/td><\/tr>
Restored property (subject to conditions)<\/td>5% of TV<\/td><\/tr>
Property acquired prior to 1st<\/sup> January 2004<\/td>10% of TV<\/td><\/tr>
Property that had been acquired through inheritance prior to 25\/11\/1992<\/td>7% of consideration

<\/td><\/tr>
Property inherited after 25\/11\/1992<\/td>12% of TV less cost of acquisition<\/td><\/tr>
Transfer of sole residence within 3 years from acquisition<\/td>2% of TV<\/td><\/tr>
Property forming part of a project and property situated in a Special Designated Area (subject to conditions)<\/td>8%\/10%\/12% of TV<\/td><\/tr>
Other Property<\/td>8% of TV<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Taxation of fringe benefits<\/h4>\n\n\n\n

Category 1 – Use of business car<\/strong><\/p>\n\n\n\n

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 \u20ac28,000) 
Fuel value = 5% of the vehicle value (3% if the value of the vehicle does not exceed \u20ac28,000)<\/p>\n\n\n\n

The private use percentage of a vehicle is determined by reference to the vehicle value as follows:<\/p>\n\n\n\n

Car value<\/strong><\/td>Private use percentage<\/strong><\/td><\/tr>
Not exceeding \u20ac16,310<\/td>30%<\/td><\/tr>
Exceeding \u20ac16,310 but not \u20ac21,000<\/td>40%<\/td><\/tr>
Exceeding \u20ac21,000 but not \u20ac32,620<\/td>50%<\/td><\/tr>
Exceeding \u20ac32,620 but not \u20ac46,600<\/td>55%<\/td><\/tr>
Exceeding \u20ac46,600<\/td>60%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Allowance for use of employee owned car<\/strong><\/p>\n\n\n\n

Allowance<\/strong><\/td>Fringe benefit<\/strong><\/td><\/tr>
0 \u2013 \u20ac2,340<\/td>50% of the allowance<\/td><\/tr>
More than \u20ac2,340<\/td>Cash allowance less \u20ac1,170<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Category 2 – Use of other business assets<\/strong><\/p>\n\n\n\n

Accommodation<\/strong><\/p>\n\n\n\n

5% of the higher of the market value and the original cost of the property<\/p>\n\n\n\n

Fringe benefit value is increased by the cost of making the property available for use (e.g. water and electricity, repairs etc.)<\/p>\n\n\n\n

Use of other assets<\/strong><\/p>\n\n\n\n

12% of the higher of the market value and the original cost<\/p>\n\n\n\n

The original cost is reduced by 40% in the case of assets that are more than 6 years old<\/p>\n\n\n\n

Category 3 – Other benefits<\/strong><\/p>\n\n\n\n

Generally, the fringe benefit value is the actual cost to the employer or the market value. Special rules and certain exemptions apply.<\/p>\n\n\n\n

\n\n\n\n

Statutory dates for the year 2019<\/h4>\n\n\n\n
Filing of income tax return by individualsAn extension of 1 month is usually given if the return is filed electronically<\/em><\/td>30 June 2019 <\/td><\/tr>
Filing of income tax returns by companies:<\/td> <\/td><\/tr>
Companies having a 30th June year end or earlier<\/td>31 March 2019 <\/td><\/tr>
Companies having a 31st July year end<\/td>30 April 2019<\/td><\/tr>
Companies having a 31st August year end<\/td>31 May 2019<\/td><\/tr>
Companies having a 30th September year end<\/td>30 June 2019 <\/td><\/td><\/tr>
Companies having a 31st October year end<\/td>31 July 2019 <\/td><\/tr>
Companies having a 30th November year end<\/td>31 August 2019 <\/td><\/tr>
Companies having a 31st December year endAn extension of two months is usually given if the return is filed electronically<\/em><\/td>30 September 2019 <\/td><\/tr>
Filing of income tax returns by Partnerships which have not elected to be treated as companies<\/td>30 June 2019 <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
\n\n\n\n
Payment of settlement tax by individuals, companies and other bodies of persons<\/td>On tax return date<\/td><\/tr>
Payment of provisional tax by self-employed\/self-occupied individuals, companies and other bodies of persons<\/td><\/tr>
1st payment (20% of the benchmark amount)<\/td>30 April 2019<\/td><\/tr>
2nd payment (30% of the benchmark amount)<\/td>31 August 2019       <\/td><\/tr>
3rd payment (50% of the benchmark amount)<\/td>21 December 2019<\/td><\/tr>
Payment of Social Security Contributions by self-employed\/self-occupied individuals<\/td><\/tr>
1st payment<\/td>30 April 2019<\/td><\/tr>
2nd payment<\/td>31 August 2019<\/td><\/tr>
3rd payment<\/td>21 December 2019<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
\n\n\n\n
Monthly remittance of FSS and social security contributions deducted by employers<\/td>The last working day of the following month<\/td><\/tr>
Annual reconciliation statement (FS 7) and employees\u2019 FS 3<\/td>15 February of the following year<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
\n\n\n\n
Filing of corporate statutory documents with the Registry of Companies:<\/td><\/tr>
Annual return<\/td>42 days after the anniversary of registration<\/td><\/tr>
Financial statements<\/td>10 months + 42 days after the accounting reference date<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
\n\n\n\n
Value Added Tax<\/strong><\/td><\/tr>
Filing of vat returns by:<\/strong><\/td><\/tr>
Persons registered under Article 10 VAT Act<\/td>The 15th day of the second month following the month during which the tax period ends<\/td><\/tr>
Persons registered under Article 11 VAT Act<\/td>15th February of the following calendar year<\/td><\/tr>
Persons registered under Article 12 VAT Act<\/td>The 15th day of the month\/second month following the date on which the transaction becomes chargeable to Maltese VAT<\/td><\/tr>

<\/td><\/tr>
Recapitulative Statements<\/strong><\/td><\/tr>
Goods<\/td>The 15th day of the month following the relative calendar month<\/td> <\/td><\/tr>
Services<\/td>Quarterly<\/td><\/tr>
 <\/td><\/tr>
Refund of VAT in terms of the 8th Directive<\/td>30th September of the calendar year following the refund period<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
\n\n\n\n

VALUE ADDED TAX<\/h4>\n\n\n\n
18%<\/td>Standard rate<\/td><\/tr>
7%<\/td>Accommodation in hotels and licensed premises<\/td><\/tr>
5%<\/td>Supply of electricity, importation of works of art, collector\u2019s 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.<\/td><\/tr>
0%<\/td>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<\/td><\/tr>
Exempt<\/td>Immovable 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<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Registration threshold<\/h4>\n\n\n\n
 <\/td>Entry threshold<\/td>Exit threshold<\/td><\/tr>
Supply of goods<\/td>\u20ac35,000<\/td>\u20ac28,000<\/td><\/tr>
Supply of services with a relatively low value added<\/td>\u20ac24,000<\/td>\u20ac19,000<\/td><\/tr>
Other<\/td>\u20ac20,000<\/td>\u20ac17,000<\/td> <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

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.<\/p>\n\n\n\n

Intra-community acquisitions threshold<\/td>\u20ac10,000<\/td> <\/td><\/tr>
Distance sales threshold<\/td>\u20ac35,000<\/td> <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
\n\n\n\n

STAMP DUTY<\/h4>\n\n\n\n
Inter vivos transfers<\/strong><\/td>Transmissions causa mortis<\/strong><\/td> <\/td><\/tr>
Immovable property- 5%7<\/sup><\/td>Immovable property – 5%<\/td><\/tr>
Shares in property companies – 5%<\/td>Shares in property companies – 5%<\/td><\/tr>
Other shares – 2%<\/td>Other shares – 2%<\/td> <\/td><\/tr>
 <\/td>Other assets – NIL<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n