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Employment Income Taxation in Malta

Employment Income Taxation in Malta

If you are a resident and work in Malta, you are subject to pay Income Tax to the Inland Revenue Department. Taxation in Malta follows similar employment brackets to the rest of the EU.

Income Tax contributions scale up as income increases and there are five brackets where the range spans from 0% up to 35% taxation on income. There are three rates - one for single individuals, one for married couples and one for parents.

Married couples can also choose to calculate their Income Tax due on single rates if they so wish. It is also pertinent to note that Malta recognises same sex marriage and such couples are eligible to married Income Tax Rates.

Parent rates can be claimed by individuals who have a child under the age of 18 in their care (up to 23 if attending university) and that same dependent is not earning more than € 2,400 per annum.
Registered athletes, players and licensed sports coaches are taxed at a reduced Income Tax rate of 7.5%.

Employer’s Taxation in Malta

Employment Income Taxation in Malta is normally handled by the employer and is deducted at source.

Single employment income taxation rates in Malta start at 0% on earnings up to € 9,100 and increase to 15% for earnings between € 9,101 to € 14,500; 25% for earnings between € 14,501 up to € 19,500; 25% for earnings between € 19,501 and € 60,000 and finally, 35% for earnings over € 60,001.

The brackets for married couples increase to 0% on joint earnings up to € 12,700; 15% on earnings between € 12,701 up to € 21,200; 25% on earnings between € 21,201 up to € 28,700; 25% on earnings between € 28,701 up to € 60,000 and finally 35% on joint income of over € 60,001. 

For parents in employment, joint income of up to € 10,500 is not taxed but increases to 15% for joint incomes of up to € 15,800; 25% for joint incomes of between € 15,801 and € 21,200; 25% on incomes between € 21,201 and € 60,000 and 35% on incomes of € 60,001 and over.

Taxation Deductions

Once a year, the Inland Revenue Department will send a form to the employee with tax deducted from wages or salary. If the employee is in agreement with the assessment, they needn’t do anything and should only contact the tax authorities if they believe that there is a discrepancy.  The employee can compare what is sent to them in the post by the Inland Revenue Department to the FS3 - Payee Statement of Earnings that is issued by the employer.

Malta Inland Revenue Department

If the Inland Revenue Department detects any discrepancies, it will issue a statement to the employee requesting dues to be settled, but if there is a discrepancy where the employee has paid extra into the system for whatever reason, then a cheque will be sent to them through the post.

Rates

Single Rates

Married Rates

Parent Rates

From

To

Subtract

From

To

Subtract

From

To

Subtract

0%

€0

€9,100

€0

€0

€12,700

€0

€0

€10,500

€0

15%

€9,101

€14,500

€1,365

€12,701

€21,200

€1,905

€10,501

€15,800

€1,575

25%

€14,501

€19,500

€2,815

€21,201

€28,700

€4,025

€15,801

€21,200

€3,155

25%

€19,501

€60,000

€2,725

€28,701

€60,000

€3,905

€21,201

€60,000

€3,050

35%

€60,001

and over

€8,725

€60,001

and over

€9,905

€60,001

and over

€9,050

114/3 The Strand, Gzira, Malta | Tel.: [+356] 2385 0611 | Fax.: [+356] 21 334405 | Email: info@integritas-trustees.com

Integritas Group Ltd is authorised by the MFSA under the Trusts & Trustees Act