Taxation for Individuals

In this section you may find a general overview of personal tax-related matters, including information on your obligations and rights as a taxpayer. More detailed tax information is given on specific subjects such as tax credits, the income tax return and related forms used.

The general basis of personal taxation in Malta is that if, you are domiciled and ordinarily resident in Malta you should declare all your income (including that of your spouse and dependent children) from whatever source. If you are either not domiciled or not ordinarily resident in Malta you should declare all income accruing to you in Malta or derived from Malta (including that of your spouse and dependent children), as well as any income which was remitted to Malta.

In Malta the taxation of an individual's income is progressive; i.e. the higher an individual's income, the higher the tax paid. Payment of personal tax is mainly effected either through the Provisional Tax system, the FSS (Final Settlement System) or by means of the Self-Assessment. In the case of the Provisional Tax, the tax due for a particular year is collected during the same period in which income is earned.  It applies mostly to persons whose sources of income include trade, business, profession or vocation. The FSS (Final Settlement System) which mainly caters for employees and pensioners is designed to produce accurate tax deductions from emoluments. This methodology ensures that the correct amount of tax is deducted from gross emoluments as they are received, thus reducing the incidence of large refunds or tax claims.  Any tax due not collected by these two systems is to be paid by the tax-settlement due date i.e the 30th June of the year following the year in which income was earned by means of the Self-Assessment.