It did not present major material changes to the Maltese system of taxation but a few changes are still significant, mainly those that relate to low income earners, and final tax on certain capital gains. Some changes and new plans for certain compliance matters were announced by the Minister, as well as amendments to the final tax on capital gains and some minor changes to definitions in Article 2.
The significant amendments are highlighted below:
- The definition of ‘company’ in relation to Cell Companies has changed :
- Provisional tax on transfers of shares in a property company or an interest in a property partnership :
- Amendments in compliance:
The minister of finance has pledged that there will be an exercise to increase efficiency in tax compliance.
Certain taxpayers will now become exempt from submitting an income tax return if they corroborate an assessment.
Tax refunds for companies should start to get settled within 6 months, thus reducing substantially the processing period which was around 10 months by the end of 2019.
- New tax benefits to low income earners:
- a reduced rate of 15% will apply on income derived from the first 100 hours of overtime work who does not earn more than €20,000 of employment income in a calendar year;
- pension income of less than €13,799 will not be taxed;
- the exempt portion of duty available to firsttime buyers of property situated in Malta has been extended for the coming year, also increasing the exempt portion subject to duty from €150k to €175k.
For more information, please contact Mark Ciappara at m.ciappara@rosemont.com.mt
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