Individuals who are ordinarily resident, but not domiciled in Malta, are subject to income tax on:
- • Income and capital gains arising in Malta
- • Income arising outside Malta which is received in Malta
- • No tax is chargeable on foreign capital gains even if such gains are remitted to Malta
A person who is resident non domiciled (or a married couple who opts for the joint computation) and who derives at least €35,000 income or capital arising outside Malta which has not been received in Malta, will be subject to a tax liability of not less than €5,000 per annum. Tax paid in Malta on all income, apart from the transfer property tax, is deductible from the minimum tax.
Personal income tax is charged at progressive rates of tax up to a maximum of 35 per cent, as illustrated by the following tables:
| SINGLERATES -BASIS YEAR 2020 | ||
| Taxable Income € | Rate % | Deduct € |
| 0- 9,100 | 0 | 0 |
| 9,101-14,500 | 15 | 1,365 |
| 14,501-19,500 | 25 | 2,815 |
| 19,501 – 60,000 | 25 | 2,725 |
| 60,001 & over | 35 | 8,725 |
| MARRIED RATES -BASIS YEAR 2020 | ||
| Taxable Income € | Rate % | Deduct € |
| 0-12,700 | 0 | 0 |
| 12,701-21,200 | 15 | 1,905 |
| 21,201-28,700 | 25 | 4,025 |
| 28,701 – 60,000 | 25 | 3,905 |
| 60,001 & over | 35 | 9,905 |
| PARENT RATES- BASIS YEAR 2020 | ||
| Taxable Income € | Rate % | Deduct € |
| 0- 10,500 | 0 | 0 |
| 10,501-15,800 | 15 | 1,575 |
| 15,801-21,200 | 25 | 3,155 |
| 21,201 – 60,000 | 25 | 3,050 |
| 60,001 & over | 35 | 9,050 |
In order to qualify for the parental rate computation, a parent must satisfy the following conditions:
- he / she maintained under his/her custody a child or paid maintenance (established or authorised by courts) in respect of his or her child;
- such child was not over 18 years of age, or not over 21 years if receiving full-time instruction at a tertiary level;
such child did not earn income in excess of €2,400 from gainful occupation.
