Companies which are registered in Malta and which engage in employment activities are required to comply with a number of legislative criteria. Each company must be registered with the Inland Revenue Department (IRD) as an employer and all employees must be registered with Jobsplus.
Non-EU nationals are also required to obtain an employment license to be able to work legally in Malta. Employment income is deemed to arise in Malta if it is paid in relation to services performed in Malta.
For each employee performing services in Malta, companies are required to tax their income under the Final Settlement System (FSS) and to submit monthly returns to the IRD providing certain details which would include the number of employees, amount of tax deducted and the amount of National Insurance (N.I.) contributions for the month.
The monthly return, together with payment covering wages tax and national insurance contributions, must be filed with the IRD by not later than 30 days after the end of the previous month. At the end of each fiscal year a reconciliation statement is submitted to the Department consolidating the data derived from the monthly returns.