Malta taxes individuals who are both domiciled and ordinarily resident in Malta on their worldwide income.
Any person who is ordinarily resident in Malta but not domiciled in Malta is taxable only on income arising in Malta and on any foreign income remitted to Malta. Such persons are not taxable in Malta on capital gains arising outside Malta and income arising outside Malta which is not received in Malta.
However, persons who are married to an individual ordinarily resident and domiciled in Malta are subject to a worldwide basis of taxation (and not on a source and remittance basis).
Individuals are subject to tax on income arising in a calendar year (i.e., the basis year), which is assessed to tax in the year following the year in which it arises (i.e., the year of assessment).
The parent rates can be claimed by individuals who maintain under their custody a child or pay maintenance in respect of their child, where:
-the child is less than 18 years of age (or between 18 and 23 years of age if attending full-time tertiary education at a university, college, or another educational establishment), and
-the child is not gainfully occupied, or, if gainfully employed, does not earn more than EUR 3,400 per annum.
A reduced income tax rate of 7.5% applies in respect of income derived by registered professional football or water polo players, athletes, or licensed coaches and as of the year 2022 also to artists.
The following table should be used by taxpayers residing in Malta for computing the amount of tax on their chargeable incomein the respective basis year.
Tax Rates 2023
| TAX RATES 2023 | |||
| Chargeable Income (€) | |||
| From | To | Rate | Subtract |
| Single Rates | |||
| 0 | 9,100 | 0% | 0 |
| 9,101 | 14,500 | 15% | 1,365 |
| 14,501 | 19,500 | 25% | 2,815 |
| 19,501 | 60,000 | 25% | 2,725 |
| 60,001 | and over | 35% | 8,725 |
| Married Rates | |||
| 0 | 12,700 | 0% | 0 |
| 12,701 | 21,200 | 15% | 1,905 |
| 21,201 | 28,700 | 25% | 4,025 |
| 28,701 | 60,000 | 25% | 3,905 |
| 60,001 | and over | 35% | 9,905 |
| Parent Rates | |||
| 0 | 10,500 | 0% | 0 |
| 10,501 | 15,800 | 15% | 1,575 |
| 15,801 | 21,200 | 25% | 3,155 |
| 21,201 | 60,000 | 25% | 3,050 |
| 60,001 | and over | 35% | 9,050 |
Tax Rates for Non-Residents
A non-resident individual is taxed only on income and chargeable gains arising in Malta.
The following table should be used by taxpayers not residing in Malta for computing the amount of tax on their chargeable income in the respective basis year.
| Tax Rates 2008 – onwards | |||
| Chargeable Income (€) | |||
| From | To | Rate | Subtract (€) |
| 0 | 700 | 0% | 0 |
| 701 | 3,100 | 20% | 140 |
| 3,101 | 7,800 | 30% | 450 |
| 7,801 | and over | 35% | 840 |
Why GCS Malta?
Our Accounting team at GCS Malta offers sound advice on a vast range of accounting services, including tax. Get in touch today with GCS Malta for more information.
Article by Braden Debono
