Malta Personal Tax Return: A Comprehensive Guide

Discover who needs to submit a personal tax return in Malta, the deadline for submission, what income to include, deductions available, tax rates, and how our experts can assist you in minimizing tax liability, while ensuring full compliance to optimize your tax situation in Malta.

Who needs to submit a personal tax return in Malta? 

While some individuals are exempted from filing personal tax returns due to automatic income tax deductions, for example, tax on employment income automatically deducted through the FSS system; others are required to submit self-assessment tax returns annually. This includes self-employed individuals who earn income from their trade or business.

When do you need to submit the personal tax return? 

The deadline for completing and submitting your personal tax return in Malta is June 30th of the following year. For example, if you’re filing a tax return for the basis year 2022, it must be submitted by June 30th, 2023. However, the Commissioner for Revenue has announced an extension for the year 2023, allowing individuals to electronically submit their returns by July 30th, 2023.

What income should be included in the tax return? 

When preparing your tax return, it’s important to include the following types of income:

1. Employment income: Ensure that your employment income is supported by an FS3 form. However, employment income declared through the TA22 (10% final tax) should not be included.
2. Director fees: Any fees received as a director should be included in your tax return.
3. Income from trade or business: If you earned income from a trade or business, include it in your tax return. Make sure to provide a profit and loss account statement to support the income.
4. Investment income, capital gains, rental income, and other income: Include any income derived from investments, capital gains, rental properties, or other sources. However, if a 15% final withholding tax was already deducted from your investment income or if your rental income was declared through the TA24, you do not need to include such income in the tax return.

What deductions are included in the tax return? 

Several deductions can be claimed in your tax return, such as:

1. School fees: Deductible expenses related to educational expenses.
2. Fees for sports activities: You can claim deductions for fees paid for sports activities.
3. Trading losses brought forward: Self-employed individuals can deduct trading losses carried forward from previous years.

What are the tax rates?

In Malta, individuals can be taxed under the single, married, or parent rates. The actual tax charge is computed based on these rates. However, there is a section for tax credits that can potentially reduce your tax liability. These credits may apply to scenarios such as ‘Women Returning to Work’, ‘Micro Invest’ tax credits, and more. Additionally, you should deduct any tax payments already made