Payroll and Personal Taxation
Malta claims taxing rights on individuals based on their residence, domicile and source of income. Individuals who are ordinarily resident and domiciled in Malta are taxed on their worldwide income being on all income and capital gains whether arising in Malta or not. On the other hand, individuals who are resident but not domiciled in Malta are taxable on their income and capital gains arising in Malta and on any foreign income that is remitted to Malta. Thus, any foreign capital gains derived by individuals’ resident but not domiciled in Malta will not be subject to income tax in Malta even if such capital gains are received in or remitted to Malta.
In accordance with Article 56 of the Income Tax Act, individuals’ resident in Malta have their income taxed in Malta on the basis of progressive rates, which rates vary from zero percent (0%) to thirty five percent (35%), depending on the chargeable income and whether the individual is eligible to apply the single, parent or married rates.
We have a dedicated team of specialists at Zampa Debattista who can assist with the following services related to payroll and personal taxation:
- Preparation of the payroll set-up for new employers including application to register as an employer, to obtain a resident permit for an employee and applications with Jobsplus
- Preparation of the monthly and annual statutory submissions
- Advice on the eligibility and assistance with the application under the Residence Programme, Global Residence Programme and the Highly Qualified Persons Rules
- Provision of payroll and tax advisory services tailored to client’s requirements
- Assistance to self-employed individuals with vat compliance, preparation of income statement and income tax return, payments of social security contributions and provisional tax
- Assistance to part-time self-employed individuals with the preparation and submission of TA22
- Assistance to employed individuals with preparation and submission of income tax return