Ordinarily resident and domiciled in Malta: are liable for income tax in Malta on their worldwide income and certain capital gains,
Not ordinarily resident or not domiciled in Malta: are liable for income tax on Maltese-source income and on any foreign income remitted to Malta,
Temporarily resident in Malta: are liable for income tax on Maltese-source income. They are not liable to pay tax on income or capital gains arising outside Malta, whether remitted or not.
Individuals will be regarded as resident if they permanently reside in Malta, except for temporary absences.
Individuals will be regarded as temporarily resident if their stay in Malta is temporary and they do not reside there for 6 months or more in a year.
Ordinary residence and domicile:
The terms ordinary residence and domicile are not defined under Maltese law, but they adhere to the same principles as in English law. Normally, expatriates who are not of Maltese origin and who do not intend to permanently establish themselves in Malta are not considered to be domiciled in Malta for tax purposes.
Married persons are jointly responsible for filing tax returns and they must declare which of them is to be registered as taxpayer.
Taxable income includes:
Certain deductions are permissible for 2014 including:
A personal tax credit is granted to married or single women who return to employment, provided certain conditions are satisfied.
Income tax rates for 2014:
For single taxpayers
For joint computation
Individuals are taxed on a preceding year basis. Three provisional payments have to be made by the individual by April 30th, August 31st, and December 21st, except for income on which tax has been withheld at source (employment income). The balance must be paid by June 30th of the year of assessment.