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Read all about ACT and relevant news from advisory, corporate, tax and other related services.
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Extension to the Exemption from Tax on Certain Property Transfers
By means of LN 121 of 2022, the Government of Malta has amended the above-mentioned rules, which were originally issued in 2020 after announcing a recovery package with the aim of restoring the economy following the…
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Long Term residents
Long term residents are defined by Subsidiary Legislation 217.05 as third country nationals who are granted long term resident status as provided for under regulations 4 to 7 of the said rules. In 2021, following…
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Tax Deadlines for the month of May 2022
The following are the tax deadlines for this month. 31 May 2022 – Submission by employers of Form FS5 for the month of April 2022 together with the relative payment of FSS, national insurance and maternity fund…
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Reduced rate of tax on overseas employment income
By means of ACT VII of 2022, Article 56(17) of the Income Tax Act has been amended with effect from the calendar year 2022. Article 56(17) of the ITA provides that an individual may opt to be taxed at the reduced rate…
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Increase in interest and additional tax rates
By means of Legal Notice 99 of 2022, the Government of Malta has increased the interest and additional tax rates as follows: With effect from 1st June 2022, the additional tax due by a tax payer on late payment of…
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Pensions to become exempt from income tax
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…
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Qualifying employment in aviation
By means of Legal Notice 104 of 2022, the Government of Malta has made changes to the above-mentioned rules which grant a reduced rate of income tax of 15% on income derived from a qualifying contract of employment by a…
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Tax deadlines for the month of April 2022
The following are the tax deadlines for this month. 30 April 2022 – Submission by employers of Form FS5 for the month of March 2022 together with the relative payment of FSS, national insurance and maternity fund…
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Tax on overtime employment income
In 2020, Article 90B was introduced in the Income Tax Act (ITA), which provided that with effect from 1st January 2010, an individual can opt to have his qualifying overtime income be subject to tax at the a reduced…
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Exemption from duty to first time buyers extended by another year
By means of Legal Notice 460 of 2021, the Government of Malta has extended the date by virtue of which an exemption from duty is applicable to first-time buyers of residential immovable property on the first Eur200,000…
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Reduced rate of duty on acquisitions of residential immovable property in Gozo extended by another year
By means of Legal Notice 460 of 2021, the Government of Malta has extended the date by virtue of which a reduced rate of duty of 2% is applicable on acquisitions of residential immovable property in Gozo. The…
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Reduced Rate of Duty on Donations of Marketable Securities and Immovable Property used for Business extended by another year
By means of Legal Notice 460 of 2021, the Government of Malta has extended the date by virtue of which a reduced rate of duty is applicable on donations of assets referred to below, made by individuals to persons…
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Refund of Duty on Acquisition of the 2nd Immovable Property to be Used as Sole Residence extended by another year
By means of Legal Notice 460 of 2021, the Government of Malta has extended the date by virtue of which a refund of duty is granted to an individual who transfers his residential immovable property (‘the replaced…
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Tax Deduction against Employment Income
By means of Legal Notice 28 of 2022, the Government of Malta has increased the annual amount of employment income that can be earned by an individual to benefit from a tax deduction against his employment income. The…
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15% tax on qualifying overtime income
By means of Legal Notice 68 of 2022, the Government of Malta has amended the Tax on Overtime Rules which were originally published by means of Legal Notice 245 of 2020. The rules provide for a reduced rate of tax of 15%…
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Compromise Arrangements in VAT
The Government has on the 17th December 2021 published a set of guidelines for the application of compromise arrangements (in lieu of criminal prosecution) in terms of article 84 of the VAT Act.
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GUIDANCE NOTE ON TAX RELATED SUSPICIOUS REPORTING PUBLISHED BY THE FIAU
The FIAU has published a guidance note in relation to tax-related suspicious reporting. The aim of this guidance note is to provide subject persons with important tax-related ML/FT indicators that are found on goAML…
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Transfer Pricing Rules – Consultation Document
The Commissioner for Revenue (CfR) has recently published a proposed draft set of specific transfer pricing rules for consultation, which consultation ends on the 28th February 2022. It is envisaged that the transfer…
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Taxation on gains derived from the assignments of rights acquired under a promise of sale agreement
The Government of Malta has recently published LN 490 of 2021 entitled ‘Assignments of Rights Acquired under a Promise of Sale Agreement (Amendment) Rules, 2021. The LN is intended to amend LN 191 of 2020, by virtue of…
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Taxation of Royalties on Qualifying Literary Works
A flat tax rate of 15% has been introduced with effect from 1st January 2021and applies to royalties derived by individuals in their capacity as authors of qualifying literary work by virtue of their title to the…