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The government body in charge of taxation in Malta is the Malta Inland Revenue.

Malta Inland Revenue
Enrico Mizzi Street
Floriana, Malta

Block 4, Vincenzo Dimech Street
Victoria, Gozo

Email: taxpayerservice.ird@gov.mt
Tel.: +356 2296 2296 (Available Monday to Friday, 0800-1630 hrs)

Winter office hours: Monday, Wednesday & Friday: 0800-1530 hrs. Tuesday & Thursday: 0800-1230 hrs.

Summer office hours: Monday to Friday: 0800-1230 hrs.

Dual Taxation Agreements

Malta has dual taxation agreements with many countries, including EU countries, Australia, Canada, the United States, Switzerland, Kuwait, Libya, and the UAE. A full list of participating countries is published by the Malta Financial Services Authority.

Individual Tax

Income tax rates in Malta for 2012 are based on income brackets and martial status and parental status.

Income tax is applicable on all taxable income, including employment income. Self employed persons are also subject to these income tax rates.

Tax rates for married persons filing jointly are:

• 0-€11,900 income: 0% income tax
• €11,901 to €21,200 income: 15% income tax
• €21,201 to €28,700 income: 25% income tax
• €28,701+ income: 35% income tax

Income tax rates for single persons, or married persons filing separately in Malta, are:

• 0-€8,500 income: 0% income tax
• €8,501 to €14,500 income: 15% income tax
• €14,501 to €19,500 income: 25% income tax
• €19,501+ income: 35% income tax

Income tax rates for parents in Malta are:

• 0-€9,300 income: 0% income tax
• €9,301 to €15,800 income: 15% income tax
• €15,801 to €21,200 income: 25% income tax
• €21,201+ income: 35% income tax

Income tax rates for non-residents in Malta (this applies to all expats who have not obtained permanent residency/a work license in Malta) are:

1. 0-€700 income: €0 income tax
2. €701-€3,100 income: €140 income tax
3. €3,101-€7,800 income: €450 income tax
4. €7,801+ income: €840 income tax

You are generally not considered a taxable resident in Malta if:

• You are residing in Malta for less than six months in a year
• You are in Malta for a temporary purpose only and do not intend to establish your residence in Malta

For the technologically inclined, you can even calculate your taxes in Malta using smart phone apps!

Taxable Income

The following income is subject to taxation in Malta:

• Income derived from a trade or business
• Income derived from a profession or vocation
• Income derived from employment or office, including salaries, fringe benefits payable to employees and directors' remuneration
• Income derived from self-employment
• Dividends, interest or discounts
• Pensions (except for war disability pensions and war widows' pensions which are exempt), annuities or annual payments
• Rents, royalties, premiums and any other profits arising from property
• Certain capital gains
• Other gains or profits
• Fringe benefits (e.g. provision of a company car, accommodation, etc.)

The following are exempt from taxation in Malta:

• Capital gains which do not fall within the scope of the capital gains provisions
• Certain pensions
• Scholarships
• Child maintenance
• Certain royalty income

Reporting

Compared to many countries, the personal income tax return process is quite easy in Malta. Income tax returns can be completed by mail, in person at the Inland Revenue Department in Floriana or submitted online. Once registered with the Inland Revenue Department, your income tax returns will be delivered to your mailing address in January. This 3-page return will be accompanied with a brochure that explains how to fill out each part of it.

The deadline for filing tax returns in Malta is June 30 of the year of assessment (the year following the calendar year in which income arises). The tax year-end in Malta is December 31. It is the expat's responsibility to complete, sign, and file their tax return to Malta's Inland Revenue Department by this deadline.

You are exempt from filing taxes in Malta if:

• Your total income does not include income from trade, business, profession or vocation and does not exceed the applicable tax free threshold
• Your total income for the year of assessment consists solely of income that was subject to tax withheld at source

Refunds

Income taxes are deducted from salaries or pensions. If at the end of any calendar year, you have overpaid or underpaid your income taxes, you will receive an income tax refund or must send a cheque in with your return to make up the difference.

If you are owed an income refund, you will receive notification that your tax assessment has been approved and that a cheque will be issued from the Inland Revenue Department.

VAT

Malta falls under the EU VAT (value added tax) regime. The standard VAT rate in Malta is 18%. VAT is 5% for the letting of accommodation, electricity, medical accessories, books and newspapers.