Income Tax Refund from Malta

19th Jul 2017

Individuals which are planning to live in Malta or are already living in Malta are subject to pay income taxes in Malta from their worldwide income.

Employees pay taxes under the Final Settlement System, which provides for the payment of tax on employment income and on pensions by means of deductions from emoluments. The deductions are remitted to the Inland Revenue Department by the employer.

Individuals who are either:

  • not ordinarily residents in Malta OR
  • not domiciled in Malta

are subject to Maltese income tax on:

  • their income arising in Malta and
  • their foreign income remitted or received in Malta.

As a general rule, an individual who spends a total of 183 days in Malta during a calendar year is considered to be a resident of Malta.

In Malta you are obliged to pay the following types of taxes:

Income tax

Tax on personal earnings (wages from employment or self-employment), capital gains, and business income. Tax rates applicable for taxpayers in Malta vary from 15 to 35%. A resident who obtains his income from working part-time is taxed at a fixed rate of 15%. Non-residents' tax rates vary from 20 to 35% depending on their incomes.

Social Security Taxes

Both employers and employees make social security contributions in Malta on a gradual scale. Employers deduct social security contributions from salaries along with the income taxes. The self-employed are also obliged by law to make the contributions.

What is a Form FS3?

FS3 form is the yearly final document which summarizes an individual's wages and taxes for the fiscal year. You should receive this document from your employer at the end of the year.

What is Payee's IDcard/IT reg Number?

The Payee's IDcard/IT reg Number is issued to taxpayers after they register in at tax office. The number consists of 7 digits and can be found on the frontside of your IDcard.

How many years back can I apply for a tax refund?

You can apply for a tax refund 5 years back from the date of your tax refund application.

How long does it take to get the refund?

On average, the process takes up to 6 months from the time your documents are sent to the tax authorities However this is only a guideline and the time range depends on how long it takes for the tax authorities to process individual cases.

How much is the service fee?

The price is 22% from the refunded amount. There is a minimum fee of 99 EUR. Price does not include VAT or bank charges!

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