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Malta income tax rates

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Postby gozomark » Fri 30 Dec 2011 09:22 GMT

"Malta’s tax legislation provides for relief from double taxation, whether through negotiated double tax agreements with a substantial number of countries worldwide, or through unilateral provisions. Certain foreign income remitted to Malta qualifies for a reduced withholding rate of foreign tax (this applies typically to dividends, interest and royalties), or is exempt from foreign tax (this applies typically to private pensions and to certain capital gains)."
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Postby gozomark » Fri 30 Dec 2011 09:28 GMT

OK, its inferred from this IR page

http://www.ird.gov.mt/expatriateemployees.aspx

The main principles on which the Maltese tax net is based are the following:

income arising worldwide to persons who are ordinarily resident and domiciled in Malta is taxable in Malta, and
income arising in Malta to any person is taxable in Malta.
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Postby cbarclay2 » Sat 21 Jan 2012 18:46 GMT

Hi Harry,

i am in the same position as yourself where my family will be residing in Malta while I work abroad, I will be paid and taxed in the UK, I have looked at the IR website, it seems to me that as long as we are not in Malta for more than 183 days in one year then we are not liable to pay any Maltese tax...............do you reach a similiar conclusion???


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Postby gozomark » Sat 21 Jan 2012 18:52 GMT

welcome to the forum :-)

as long as you have no Malta income, then based on what you have said, correct - so even your family won't be in Malta more than 183 days per calendar year ?

ps tax year is the calendar year
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Postby gozomark » Sat 21 Jan 2012 18:55 GMT

of course, if you are already taxed in the UK, then you can offset this against your Malta tax liability anyway (on your non-Malta earnings)
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Postby cbarclay2 » Sat 21 Jan 2012 20:43 GMT

Hi Mark,

great info you have provided here, many thanks!

As for me

It's complicated........

I work in the offshore industry on an equal time rotation, so my family will be permantly in Malta while I will be away for half the year working, this work is not carried out in the UK although I am paid and taxed there, I also pay foreign tax but this is subsidised by my employer. The 183 days can be any 12 month period I believe not just Jan to Jan or April to April ( financial year)but as I work a four week rotation this should not affect me as we will have visits home also....

I have just begun to research this but do you know if I can have daul residency by obtaining OR status in Malta?

on a more personal note if you don't mind how do you find living in Malta ??

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Postby gozomark » Sat 21 Jan 2012 23:34 GMT

The 183 days is per calendar year.

"my family will be permantly in Malta while I will be away for half the year working" so your family will be liable to tax - I'd suggest discussing with an accountant in Malta or with the Inland Revenue to make sure of your status.

"do you know if I can have daul residency by obtaining OR status in Malta? " - if you tell Malta you are resident, then you are resident - do you mean citizenship ?



"how do you find living in Malta" great
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Postby cbarclay2 » Sun 22 Jan 2012 07:13 GMT

Family will be liable for tax but they won't have any income other than access to mine, so they shouldn't have any problems.....

I thought OR just meant that I was having an extended stay in malta and would still also be a UK resident if keeping an address there, but this is a very grey area for me, I need to ask someone who knows for sure......

Do I have to have resident status (OR) to rent a property?

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Postby cbarclay2 » Sun 22 Jan 2012 07:15 GMT

My better half has been in touch with the tax department here in the UK to find out their thoughs on our situation..........I'll let you know how we get on :)
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Postby gozomark » Sun 22 Jan 2012 07:30 GMT

"Do I have to have resident status (OR) to rent a property? " no

"I thought OR just meant that I was having an extended stay in malta" - as an EU citizen, you are either a resident or a tourist when in another EU country.

"would still also be a UK resident if keeping an address there" having an address in a country doesn't mean you are resident
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Postby gozomark » Sun 22 Jan 2012 07:32 GMT

"Family will be liable for tax but they won't have any income other than access to mine, so they shouldn't have any problems..... " thats definitely one to clarify with tax man and/or accountant - if your wife is resident and brings in money you earned, I presume she would be liable to tax on it.
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Postby cbarclay2 » Sun 22 Jan 2012 09:27 GMT

mmm more complicated than I first thought, I will wait and see what the tax man says, and take your advice to see an accountant.

I definatly don't want my income double taxed!
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Postby gozomark » Sun 22 Jan 2012 09:58 GMT

it won't be double taxed in Malta and UK, due to double taxation agreement
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Postby gozomark » Sun 22 Jan 2012 10:01 GMT

You will find plenty of accountants in Malta. There is one used by several (incl me) on this forum, who is listed in the recommended suppliers (RS) forum. RS costs £ 25 pa to subscribe to, with 50% going to Gozo SPCA.

Details on http://www.britishexpat.com/expatforum/ ... =suppliers
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Postby boogiewoogie » Mon 30 Jan 2012 11:06 GMT

CAin, welcome. I have been missing in action for a while so just catching up on weeks of posts here. Just to say that you have a similar situation to us, my husband is also on a 4 and 4 rotation outside of UK and my understanding is that if your LIFE is in Malta, ie wife and kids are resident (which if they are in school they would need to be) then you too will be classed as being resident whether you like it or not.
Once you can Private Message people (by joining the RS forum as Mark suggests) then do feel free to get in touch with me directly as I have now spent YEARS preparing for a move and piecing together the answers to our very specific circumstances. I would recommend paying to see the private boards as the recommended suppliers are VERY useful. In particular an accountant's name which Mark mentioned - I think it is Maltese tax advice you need more than UK. Quick question - have you approached your employers yet about the move? Husband's company have to give the green light now technically as they are getting fussy about these things and extra flight costs etc. He hasn't said anything yet. But he has found out from other expats offshore about things like the company pension (there is an international version) and healthcare (think he just loses this benefit altogether). IT would be great to share experiences and info. And it would be great to have another offshore wife on the islands to get to know.
There's loads more to see and do on British Expat— why not check out our home page?
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