Topic
Corporate & income tax
Income tax rules, returns and deadlines, deductions, guidelines and rulings.
352 news items and articles, newest first
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Tax deadlines for the month of August 2022
The following are the tax deadlines for this month. 30 August 2022 – Online submission of income tax returns in respect of year of assessment 2022 by companies whose accounting year ended on 30 September 2021 31 August…
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Allowable deductions surrendered under the Group Relief Provisions
Article 16 to 22 of the Income Tax Act Chapter 123 of the Laws of Malta (hereinafter referred to as the ‘ITA’), referred to as ‘The Group Relief Provisions’ contemplates the possibility for companies forming part of the…
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Assignment of a lease agreement of immovable property – Income tax, stamp duty and VAT implications
Businesses operating an establishment in Malta, held by a title of lease may assign their lease agreement to a third party for consideration. What are the income tax, stamp duty and VAR implications contemplated by the…
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Capital allowances on Industrial Buildings or Structures
Article 2 of the Income Tax Act (Cap. 123 of the Laws of Malta), hereinafter referred to as ‘the ITA’ states that an “industrial building or structure” includes a building used as a hotel or a car park or offices, as…
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Tax Deadlines for the month of July 2022
The following are the tax deadlines for this month. 29 July 2022 – Online submission of income tax returns in respect of year of assessment 2022 by companies whose accounting year end is between the 31 January 2021 and…
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COVID-19 fiscal assistance – Repayment of taxes eligible under the Tax Deferral Scheme
The Ministry for Finance and Employment has released a Press Release in relation to the repayment of taxes that were eligible under the Tax Deferral Scheme which was launched in March 2020. Beneficiaries that have been…
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Tax deadlines for the month of June 2022
The following are the tax deadlines for this month. 30 June 2022 – Submission by employers of Form FS5 for the month of May 2022 together with the relative payment of FSS, national insurance and maternity fund…
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The Debt Equity Bias Reduction Allowance (DEBRA)
On the 11 May 2022, the European Commission published a proposal for a Directive, whose intended purpose is to reduce the present inequality which exists and which is the result of financing an enterprise through equity…
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The Debt Equity Bias Reduction Allowance (DEBRA)
On 11 May 2022, the European Commission published a Directive proposal to tackle the tax bias in favour of debt funding. The proposal includes both a notional deduction on growth in equity and an additional limitation…
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Digital Nomads – What you need to know about your taxation in Malta
Malta has over the past year attracted a number of expatriates to work in Malta, both nationals of one of the EU member states as well as third-country nationals. Some of the expatriates are digital nomads who have been…
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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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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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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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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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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…
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Exemption from tax on property transfers
The Government of Malta has by means of Legal Notice 419 of 2021 published new rules entitled ‘Exemption from tax on property transfers (set-off of tax arrears) Rules’. The legal notice is applicable to any person who…
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Budget 2022 – 50% reduction in stamp duty and tax on capital gains
Minister Clyde Caruana has on the 11th October 2021 presented the Government’s budget for the year 2022. The Minister announced that stamp duty and tax on capital gains on acquisitions and disposals of property (up to…
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Budget 2022 – Tax free pension income
Minister Clyde Caruana has on the 11th October 2021 presented the Government’s budget for the year 2022. In a bid to encourage pensioners to continue working beyond retirement age, with effect from the year 2022 and…
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Extension to the exemption from tax on certain property transfers rules
By means of LN 325 of 2021, 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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Budget Measures Implementation Act – Changes to the Income Tax acts
The Malta Government has on the 16th April 2021, by means of ACT XVIII of 2021 published and enacted a new Act which will be implementing the budget measures for the year 2021. The budget measures were announced by the…
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Amendment to the Exemption from Tax on Certain Property Transfers Rules
By means of LN 129 of 2021, 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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Golden Handshakes, Termination Payments and Long-Service Awards
Maltese tax law is somewhat silent when it comes to the tax implications of golden handshakes and other payments made upon termination of employment. For such reason, in order to determine the tax implications…