Malta Tax Return – A Guide for Businesses and Individuals (2023)

As in almost all countries,there is also an obligation in MaltaFiling an income tax return once a year. This applies not only to entrepreneurs and freelancers, but also to people who have moved the center of their life to Malta.

At DW&P, we support almost all clients in filing their tax returns, so we know that some people have basic questions about this topic. Therefore, the following piece intendsexplain the basics of tax returns in Malta and provide answersto frequently asked questions, including two case studies that will make you feel more familiar with the complex topic. Continue reading to the end for a short additional checklist to help you get started.

Basic information on tax returns in Malta: dates and deadlines

In Malta, tax returns for the previous year must be submitted by 30 June (personal returns are mailed in May).

Who must submit a tax return form?

ALL! Everyone living in Malta must file a tax return, whether they are employed, retired, self-employed or living off savings. everyone must file a tax return.

Which authority is responsible for the private tax return?

The Ministry of Financeis responsible for tax returns in Malta. Here, the forms are sent by post. if you don't receive one, you can call them(en 153) o parada en (Bloque 4, Triq Vincenzo Dimech, Il-Floriana).Our experience is that the site workers are very helpful and courteous.

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Who can I contact if I have problems submitting my tax return form?

If you need help with general or very specific questions,Inland Revenue (IRD)he is there to help. If it is a very specific question, the customer service representative may ask you to write an email request (). Don't expect an immediate response, it may take a few days or more.

Why haven't I received a tax return form yet?

The most common reason for not receiving your formIt is a move that was not communicated to the authoritiesthe announcement too late.

Even if you change your main residence in Malta, you may not receive the form if you are not properly registered.

If you have lived in Malta for several years andIf you have not received your form, you may be listed as "not on file".

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"Not reporting" means that the IRDI will no longer send you a tax returnand that your income data could be provided, for example, by your employer. Attention: in this case you do NOT need to submit a tax return, you are exempt!

Can I register as a "Non-File"?

No, the authorities decide who is or will be a "non-filer". There is no formal process here and you will not be notified by mail either.

If you want to know if you're down like a"no files,You can call 153 (if you are currently in Malta) and ask over the phone.

From our experience,the status from "reporter" changes to "non-reporter" after 3 years.This means that if you have submitted your form for 3 consecutive years, you will gain 'non-submission' status in Malta from the fourth year onwards. It must, however,alwaysconfirm it with the authorities.

Do you have something to declare/need to pay tax on something but haven't received a tax declaration from the authorities?

Don't think you have nothing to report just because you haven't received a return in the mail. You may still be asked!

Call IRD 153 and explain that you need a tax return so that you can declare everything correctly.

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New to Malta and not sure how to proceed?

Whether you have something to report (such as income, expenses, rental income or pension payments) or not, you need to file a tax return. You can be retired or employed or living off your savings—Everyone resident in Malta must provide documents.

Are you not generating income in Malta but have a worldwide income of more than €35,000?

As of 2018, a new rule has come into force. There is a minimum tax liability on a worldwide incomeover €35,000.This means that if you have won more than €35,000 anywhere in the world,You have to pay a fixed fee of €5,000.This is also stated in the tax return.

In calculating this minimum tax liability, account must be taken of any tax payable under Maltese law, whether by withholding or otherwise, unless it is final tax payable on the transfer of immovable property situated in Malta.This minimum tax liability of €5,000 must be calculated before the double tax exemption.

Is "global income"addresses the case of unlimited tax liability (which applies in most countries). In this case, you will inevitably have to tax both domestic and foreign income. In particular, this means that, regardless of the source of your income, you are subject to tax in the country in which you have your residence (employee, tax) or place of work. To avoid double taxation, there are double taxation agreements between countries in most cases.

Did you leave Malta without giving proper notice of departure?

When you leave Malta you must inform the authorities such as JobsPlus and the IRD.


For JobsPlus, a short email informing you that you are leaving Malta is sufficient(). It is best to ask for recognition in return. Employers are required to notify employees, but it's an often overlooked step.

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Tax Service

With the Inland Revenue, the process is similar: you can go in person(Expat Section, 4, Triq Vincenzo Dimech, Il-Floriana) or send an email (). Be sure to include the following information in your email:

  • When will you be leaving Malta?
  • Your new place of residence.
  • Request your form for the current year. This means that if you leave Malta in 2022, apply for the 2022 tax return.
  • Ask for confirmation that the above three points have been processed.

Regarding the open tax return, it is important to inform the authorities of the place where you want to receive the form. Once you receive it, fill it out and return it to the IRD. In the last year of your residence, i.e. the year you leave Malta, you will normally receive a tax credit.

Practical case study

Now that you have answers to some of the most frequently asked questions, we will give you two examples from our practice to help you better understand tax returns in Malta.

Example 1: Pensioners who do not file tax returns

Two years ago we were approached by two pensioners because of the new global income regulation. In previous years, they had lived off their savings, assumed there was nothing to tax and didn't file a tax return. His assumption, however, was flawed.

Even if you have nothing to pay in taxes, you must file a tax return. To receive documents, you will first need to obtain an ID or tax registration number.

Example 2: The employee leaves Malta

Here is another example: a woman who has been working in Malta for 3 years and has not filed a tax return for 3 years. It wasn't until after she left that she found out she needed to apply, so she turned to Dr. Werner & Partner for assistance. Together, we file tax returns for the past three years. We were also able to offset late filing penalties with a tax credit in the final year of filing.

(Video) Malta - EU Tax Haven? (CBI, Banking, Company Formation, Residency, Taxes, Lifestyle, and more)

If you have any questions about this topic, please feel free to contact us at any time.

Checklist: how to file your tax return correctly in Malta

Be sure to contact the Inland Revenue Department (IRD) to confirm

  • you are duly registered with your current address.To do this, just call them on 153.

Check if you are registered with your current address

See the first two points and you should receive a tax return in your mailbox

Fill in everything that needs to be declared and send it back to the IRD in the envelope provided

  • Address: FSS Section, 4, Vincenzo Dimech Street, Floriana
  • Feedback or confirmation from the IRD usually takes several months. If you have done everything correctly, you will get "account status". If there are problems, the tax return is returned with a note.

Disclaimer: The article mentioned above is based solely on independent research by Dr. Werner and partner and cannot constitute legal advice of any kind. If you would like to meet with one of our representatives to learn more, please contact us to schedule an appointment.


How do I get answers to tax questions? ›

Internal Revenue Service Helpline

You can also call the IRS helpline at 800-829-1040 with your tax questions.

Should I use 540 or 540 2EZ? ›

What is the difference between Form 540 and 540 2ez? Form 540 2EZ is one of two California Income Tax Forms used by California full-year residents. The other California Income Form used by full-year residents is Form 540.

How do I file my Malta tax return online? ›

You can submit your income tax return online by logging into using your e-id account. Through this service you can submit your income tax form in as easier and more efficient manner. For further information, one should call freephone 153.

What is the tax rate for a business in Malta? ›

Corporate Tax in Malta is charged on income from all sources and capital gains on the transfer of immovable property, securities and certain intangible assets. The Malta corporate tax rate is a flat rate of 35%. Other taxes include VAT, stamp duty and customs and excise duty.

Can TurboTax answer tax questions? ›

("Intuit"). For Federal tax questions, this service is available at no additional charge in select TurboTax products; otherwise fees may apply. You understand that as part of the Service, an Intuit tax advisor will answer your questions related to U.S. federal tax laws (for individual Form 1040).

Who is qualifying for form 540 2EZ? ›

Qualifying to Use Form 540 2EZ

Be 65 years of age or older and claim the senior exemption. If your (or your spouse's/RDP's) 65th birthday is on January 1, 2023, you are considered to be age 65 on December 31, 2022.

Who must file form 540? ›

If you have a tax liability for 2022 or owe any of the following taxes for 2022, you must file Form 540. Tax on a lump-sum distribution. Tax on a qualified retirement plan including an Individual Retirement Arrangement (IRA) or an Archer Medical Savings Account (MSA).

When should I use 540ez? ›

Form 540 is used by California residents to file their state income tax every April. This form should be completed after filing your federal taxes, such as Form 1040, Form 1040A, or Form 1040EZ, because information from your federal taxes will be used to help fill out Form 540.

How does tax return work in Malta? ›

The tax return, together with a self-assessment, must be submitted by the end of June of the year following the basis tax year. In certain instances and subject to the discretion of the Commissioner for Revenue, an individual may not be required to file a tax return.

How do I claim tax back in Malta? ›

VAT Refund Process

An electronic refund claim is submitted to the claimant's national tax authority portal providing the following. Details of each invoice related to the VAT refund application. Malta request scanned images of original invoices above 1000€ excluded VAT and above 250€ excluded VAT for fuel.

What is the penalty for filing taxes late in Malta? ›

Late returns attract penalties ranging from €10 to €500 for individuals, depending on the lateness of the return. Also, If the return was submitted late by the taxpayer, then the tax office may issue the refund a year from the acknowledged date of the tax return.

Does Malta USA have double taxation? ›

The 'Convention between the Government of Malta and the Government of the United States of America for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income,' also known as the Double Taxation Agreement (DTA), became effective on January 1, 2011.

What is the tax rate in Malta for foreigners? ›

The Global Residence Programme provides individuals with residence permits and a special tax regime: 15% on foreign income transferred to Malta; the minimum annual tax is €15,000 for a family; 0% on foreign income not transferred to Malta; 35% on income earned in Malta.

Does Malta tax foreign income? ›

A non-resident individual is taxed only on income and chargeable gains arising in Malta. Individuals are subject to tax on income arising in a calendar year (i.e. the basis year), which is assessed to tax in the year following the year in which it arises (i.e. the year of assessment).

What are the 3 most common tax structures? ›

progressive tax—A tax that takes a larger percentage of income from high-income groups than from low-income groups. proportional tax—A tax that takes the same percentage of income from all income groups. regressive tax—A tax that takes a larger percentage of income from low-income groups than from high-income groups.

What are the 5 major types of taxes? ›

Here are five types of taxes you may be subject to at some point, along with tips on how to minimize their impact.
  • Income Taxes. Most Americans who receive income in a given year must file a tax return. ...
  • Excise Taxes. ...
  • Sales Tax. ...
  • Property Taxes. ...
  • Estate Taxes.

Is TurboTax accurate with tax returns? ›


100% Accurate Calculations Guarantee – Individual Returns: If you pay an IRS or state penalty or interest because of a TurboTax calculation error, we'll pay you the penalty and interest.

Can TurboTax give tax advice? ›

With Live Assisted, a team of tax experts is available to provide you with answers and advice as you do your taxes, and can review your return before you file. With Live Full Service, you're matched to a dedicated tax expert who will do your taxes, start to finish, and review them with you before filing.

Is it possible to mess up taxes on TurboTax? ›

If you used TurboTax Online, simply log in to your account and select “Amend a return that was filed and accepted.” If you used our CD/download product, sign back into your return and select “Amend a filed return.” You must file a separate Form 1040-X for each tax return you are amending.

What is tax form 540 used for? ›

Use Form 540-ES, Estimated Tax for Individuals, and the 2022 California Estimated Tax Worksheet, to determine if you owe estimated tax for 2022 and to figure the required amounts. Estimated tax is the tax you expect to owe in 2022 after subtracting the credits you plan to take and tax you expect to have withheld.

What is a 540 EZ? ›

2022 Form 540 2EZ California Resident Income Tax Return.

What is the middle class tax refund? ›

The Middle Class Tax Refund (MCTR) is a one-time payment to provide relief to Californians. If you are eligible, you will automatically receive a payment. Payments are expected to be issued between October 2022 and January 2023. For questions or to activate your card, visit the Contact information on this page.

What is the minimum income to file taxes in 2023? ›

Single filers who are younger than 65 years old must file taxes if they earn more than 12,950 dollars per year, while those who are 65 or older need to do so if they make more than 14,700 dollars.

Do I need to attach 1040 to 540? ›

Attach both the federal Schedule A (Form 1040) and California Schedule CA (540) to the back of your tax return.

Do you have to file taxes if you have no income? ›

Individuals who fall below the minimum may still have to file a tax return under certain circumstances; for instance, if you had $400 in self-employment earnings, you'll have to file and pay self-employment tax. If you have no income, however, you aren't obligated to file.

What is the difference between 540 and 540NR? ›

Use Form 540NR if either you or your spouse/RDP were a nonresident or part-year resident in tax year 2022. If you and your spouse/RDP were California residents during the entire tax year 2022, use Form 540, California Resident Income Tax Return, or 540 2EZ, California Resident Income Tax Return.

Where do I file a 540? ›

FormWithout paymentOther correspondence
540 (Scannable)Franchise Tax Board PO Box 942840 Sacramento CA 94240-0001Tax Forms Development and Distribution MS F-284 Franchise Tax Board PO Box 1468 Sacramento CA 95812-1468
1 more row
Sep 22, 2021

Where do I file 540 ES? ›

Using black or blue ink, make your check or money order payable to the “Franchise Tax Board.” Write your social security number or individual taxpayer identification number and “2022 Form 540-ES” on it. Mail this form and your check or money order to: FRANCHISE TAX BOARD, PO BOX 942867, SACRAMENTO CA 94267-0008.

What is the 6 7ths refund in Malta? ›

Upon a distribution of profits by a company registered in Malta (i.e. a company resident in Malta or a non-resident company with a branch in Malta), its shareholders may claim partial tax refund. The most common tax refund is of 6/7ths, i.e. 30% (6/7ths of 35%) of the taxable profits.

How much is tax refund in Malta? ›

A 100% full tax refund payable in Malta.

Why is Malta a tax haven? ›

Malta's well-developed infrastructure, strategic position, and diverse economy have made it an attractive destination for corporations and people looking for a tax haven. The country's emphasis on innovation and entrepreneurship and pro-business regulations have led to its status as one of Europe's major tax havens.

What is the tax refund in Malta 2023? ›

Eligibility for the Tax Refund Che​que​
Single ComputationEntitled
€0 - €15,000​€125
€15,001 - 30,000€95
€30,001 - €59,999​€60

What is tax deductible Malta? ›

Maltese tax law provides for a tax deduction for expenditure of a capital nature on IP or any IP rights incurred in the production of income.

Can I claim all my VAT back? ›

If any items are also for personal use, you can only claim the business proportion of the VAT . Half of your mobile phone calls are personal. You can reclaim 50% of the VAT on the purchase price and the service plan. You work from home and your office takes up 20% of the floor space in your house.

What are the tax laws in Malta? ›

Resident and non-resident companies are subject to tax at the rate of 35%. However, shareholders are entitled to claim a refund of the tax paid in Malta on some of the dividends they receive from Maltese companies. 5% is the effective tax rate for non resident & non domiciled shareholders.

What is provisional tax Malta? ›

What is the Provisional Tax System? The Provisional Tax system is one of two main systems whereby 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.

What is the penalty for missing the tax deadline? ›

Let's dig into the details. The combined penalty is 5% (4.5% late filing and 0.5% late payment) for each month or part of a month that your return was late, up to 25%. The late filing penalty applies to the tax that remains unpaid after the due date.

Is US Social Security taxed in Malta? ›

It means that when it comes to Social Security and other public pensions, they will only be taxed in the first-mentioned state. In other words, if the United States pays Social Security to a US person who resides in Malta, then only the United States will be able to tax that Social Security income.

How can a US citizen avoid double taxation? ›

Foreign Tax Credit

Well, if you qualify for the Foreign Tax Credit, the IRS will give you a tax credit equal to at least part of the taxes you paid to a foreign government. In many cases, they will credit you the entire amount you paid in foreign income taxes, removing any possibility of US double taxation.

Do American expats pay taxes in both countries? ›

The United States is one of only two countries that taxes based on citizenship, not place of residency. That means it doesn't matter where you hang your hat — if you're legally a U.S. citizen, you have a tax obligation to the U.S. Taxable foreign income for U.S. citizens living abroad includes: Wages.

What is a good salary in Malta? ›

The average annual gross salary in Malta is around €18,660 according to the National Statistics Office. However, specialists can earn much more. For example, a financial controller might earn up to €88,440, while a UX/UI designer could expect to make up to €36,610 and a project manager could bring in €144,000.

How much is income tax for self-employed in Malta? ›

Do Self-Employed Pay Tax? A person who is self-employed must arrange their own social security, unlike someone who has an employer who deducts the income tax and social security from wages on your behalf. For self-employed people, the tax rate on yearly income is 15%.

What is the tax rate for self-employed in Malta? ›

Overview. A self-employed individual who works part-time is taxed at a fixed rate of 10%. This tax is final, therefore the income derived from part-time work need not be declared in the annual income tax return because it is not subject to further tax. It is applicable up to a maximum net profit of €12,000 per annum.

What is the business tax in Malta? ›

Companies are subject to income tax at a flat rate of 35%. There is no corporate tax structure separate from income tax.

What is the business tax rate in Malta? ›

The corporate tax rates in Malta

The tax rate on corporate income in Malta is 35% on the chargeable income. However, certain types of companies benefit from reduced tax rates up to 5% of tax and, among these, there are international trading companies and international holding companies.

Is there capital gains tax in Malta? ›

Capital Gains Tax in Malta Attributed to Stocks and Shares

This duty is calculated based upon the market value of the assets at the time (the net value of the combined stocks and/or shares). The rates of taxation are as follows: A flat 2% of the current market value.

Will H&R Block answer questions for free? ›

Yes. Free help is available when you file taxes online with us. H&R Block provides online product support for a broad range of topics, including: Answers to tax questions.

Can I chat with IRS online? ›

IRS Customer Service, Online Live Chat

The IRS live chat feature can be found on many of their pages by clicking the "Start a conversation" button found at the bottom of a limited number of IRS webpages. If you plan to chat with the IRS online, have your information ready for verification.

How do I challenge an IRS assessment? ›

Use Form 12203, Request for Appeals ReviewPDF, the form referenced in the letter you received to file your appeal or prepare a brief written statement. List the disagreed item(s) and the reason(s) you disagree with IRS proposed changes from the examination (audit).

Can you email the IRS questions? ›

You should not send personal information to us via email unless it is through a secure IRS online application via We will only send you general information via unsecure email. You should be reminded that email may not necessarily be secured against interception.

Is it worth paying for H&R Block? ›

Its online options make it easy to import tax documents and to look at tax returns from previous years (if you're a returning customer). If you can afford it, H&R Block is a solid option for you. It's also a good choice if you want in-person help from a tax expert.

How much does H&R Block charge? ›

How Much Does H&R Block Cost?
DIY online filingComputer software
Federal return cost$0 - $110$29.95 - $89.95
State return cost$0 - $37$0 - $39.95, plus $19.95 to e-file
Federal + state$0 - $147$54.95 (for Deluxe + State) - $89.95, plus $19.95 to e-file
Feb 21, 2023

Does H&R Block pay for their mistakes? ›

If the H&R Block tax preparation software makes an error on your return, we will reimburse you for any resulting penalties and interest up to a maximum of $10,000. Terms and conditions apply; see H&R Block's Accurate Calculations Guarantee for details.

What is the fastest way to talk to an IRS agent? ›

Contact an IRS customer service representative to correct any agency errors by calling 800-829-1040 (see telephone assistance for hours of operation).

How do I talk to a real person at the IRS without waiting? ›

Here's how to get through to a representative:
  1. Call the IRS at 1-800-829-1040 during their support hours. ...
  2. Select your language, pressing 1 for English or 2 for Spanish.
  3. Press 2 for questions about your personal income taxes.
  4. Press 1 for questions about a form already filed or a payment.
  5. Press 3 for all other questions.
Mar 1, 2023

What is the best time to call the IRS? ›

A good rule of thumb: Call as early in the morning as possible. Phones are open from 7 a.m. to 7 p.m. (your local time) Monday to Friday, except: Residents of Hawaii and Alaska should follow Pacific time. Puerto Rico hours are 8 a.m. to 8 p.m. local time.

How do I survive an IRS audit? ›

How to Survive an IRS Audit
  1. Don't ignore the notice. You generally have 30 days to respond to an audit notice. ...
  2. Read and follow the notice. ...
  3. Organize your records. ...
  4. Replace missing records. ...
  5. Bring only what you're asked for. ...
  6. Don't be a jerk! ...
  7. Provide only copies. ...
  8. Stay on point.

What are your chances of being audited? ›

The vast majority of more than approximately 150 million taxpayers who file yearly don't have to face it. Less than one percent of taxpayers get one sort of audit or another. Your overall odds of being audited are roughly 0.3% or 3 in 1,000. And what you can do to even reduce your audit chances is very simple.

How do I ask the IRS for forgiveness? ›

Use Form 843 to claim a refund or request an abatement of certain taxes, interest, penalties, fees, and additions to tax.

Can I talk to an IRS agent in person? ›

You can visit your local IRS office for in-person tax help. Call for an appointment after you find a Taxpayer Assistance Center near you. IRS Offices are closed on federal holidays.

How do I contact the IRS to ask a question? ›

You can call 1-800-829-1040 to get answers to your federal tax questions 24 hours a day. Tax forms and instructions for current and prior years are available by calling 1-800-829-3676. You can also order free publications on a wide variety of tax topics.

How can I ask a question to the IRS? ›

Call the IRS toll free at 800-829-1040 or make an appointment to visit an IRS Taxpayer Assistance Center (TAC).


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