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Direct Tax

The administration of income tax in Malta is regulated by the Income Tax Management Act.Under Malta’s direct tax system, the total income from all sources (including capital gains) is aggregated, and then exemptions and allowances are deducted. After that, the final income is taxed according to the rates applicable.Companies in Malta are taxed at a flat-rate of 35% on profits. However, company shareholders can claim back part or even the whole of the tax paid by the Maltese company.There are certain types of investment income taxed at 15%, while transfers of immovable property in Malta are taxed at 12% of the transfer value.

I pay sports fees for my children. Are these tax deductible?

Parents who pay sports fees for their children who are under 16 years of age may deduct against their taxable income the equivalent of the sports fees paid up to…

What is the corporate tax rate in Malta?

The normal corporate tax rate in Malta is 35%, however through appropriate tax planning this rate can be substantially reduced to a level of 5%.   For more information, kindly…

What is an International Trading Company (ITC)

The international trading company (ITC) regime was introduced in Malta in 1994 and allowed shareholders of certain companies an effective tax rate of 4.17%. The regime was abolished and replaced…

Asset depreciation in Malta

Minimum number of years over which assets may be depreciated for tax purposes: ASSET USED IN PRODUCTION DEPRECIATION (years) Air-conditioners 6 Aircraft 12 Cable Infrastructure 20 Catering Equipment 6 Communication…

Can all my part-time income be taxed at 15%?

In order for the employer to deduct 15% FSS, the maximum amount from which an employee can benefit under the Part-time rules is €7000. If one's income for example is…