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Malta: Personal Taxation

Income Tax

Income is comprehensively defined, under the same headings as for business income, and permitted deductions also follow the corporate model (see Domestic Corporate Taxation for details). Capital gains are also treated in the same way, and included in taxable income.

Certain types of income, and certain individuals (apart from returned migrants and holders of Permanent Resident Permits, both dealt with above), may benefit from reduced rates of tax:

  • the special 27.5% rate of tax applicable to non-resident shareholders in International Trading Companies (see Offshore Legal and Tax Regimes);
  • the special regimes applicable to officers and/or employees of offshore companies, Freeport companies, insurance and mutual fund companies (see Offshore Legal and Tax Regimes);
  • the 'final withholding tax' of 15% on income from certain types of investment and income from part-time employment or self-employment, also at 15% (subject to various rules).

Apart from these special situations, the rates of income tax as of 2013 are as follows for residents:

Married Single
Income, Euros Tax rate Income, Euros Tax rate
0 - 11,900 nil 0 - 8,500 nil
11,901 - 21,200 15 8,501 - 14,500 15
21,201 - 28,700 25 14,501 - 19,500 25
28,701 - 60,000 32 19,501 - 60,000 32
over 60,000 35 over 60,000 35

The creation of a new tax band was announced during the budget speech in November, 2011. The 'parental computation' is for working parents supporting children up to the age of 18, or 21 if they are in full-time education. The rates are as follows:

Income, Euros Tax Rate
0 - 9,300 nil
9,301 - 15,800 15
15,801 - 21,200 25
21,201 - 60,000 32
over 60,000 35

For non-residents, the rates are as follows:

Income, Euros Tax Rate
0 - 700 nil
701 - 3,100 20
3,101 - 7,800 30
over 7,800 35

 

 

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