CFR Income Tax Brackets in Malta for 2024

Malta has worked to create an optimal economic environment to meet the demands of the global investment market. It has a high inward Foreign Direct Investment (FDI) performance, established trade links with Europe, Africa and the Middle East, and a multilingual educated workforce. The Business Promotion Act provides attractive fiscal incentives for companies, both tax-related and otherwise.

Additionally, Malta’s tax system is transparent, competitive, and backed by a highly professional financial services sector. The tax system in Malta is administered by the official tax body, the Commissioner for Revenue (CFR). 

The Income Tax Act, Chapter 123 provides guidance and support in the form of income tax tables for individuals and businesses. Taxpayers must familiarize themselves with these tax tables and the corresponding income tax brackets and income tax rates, for effective tax planning and to remain compliant with the tax laws of Malta.

Here you will learn more:

• headline tax rates
• personal income tax (PIT) rates
• corporate income tax (CIT) rates
• capital gains tax (CGT) rates
• withholding tax rates for residents and non-residents
• value-added tax (VAT) rates

Headline Tax Rates in Malta

Personal Income Tax (PIT) Brackets for Individuals in Malta for 2024

An individual who is ordinarily resident in Malta must declare all income regardless of its source and must include income of a spouse and dependent children. A non-resident, however, is only taxed on income sourced in Malta.

Taxation is applied progressively in a self-assessment system: the higher an individual’s income, the higher the rate of tax paid. There are three categories of personal income tax based on whether an individual is a single person, married or a parent.

Personal Income Tax (PIT) Brackets for Single Individuals

PIT rates for single individuals in Malta are tabulated below:

Personal Income Tax (PIT) Brackets for Married Individuals

PIT rates for married individuals in Malta are tabulated below:

Personal Income Tax (PIT) Brackets for Parent Individuals

PIT rates for parent individuals in Malta are tabulated below:

Personal Income Tax Due Dates

Corporate Income Tax (CIT) Rate in Malta for 2024

Corporations in Malta are taxed on corporate income at a flat rate of 35%.

Corporate Income Tax Due Dates

Capital Gains Tax (CGT) in Malta

Capital gains tax (CGT) is levied on individuals and corporations.

Individuals

CGT is imposed on any gain realised on a transfer of immovable property, shares or securities, and any form of intellectual property (IP). It is important to note that certain transfers are CGT-exempt. Capital gains that arise outside Malta by an individual who is not domiciled in Malta, or by a non-resident, is not subject to tax even if it is remitted to Malta.

Corporations

CGT is levied on gains realised on the transfer of immovable property, shares and securities, IP, interest in a partnership and several other items. However, no tax is levied on investments that yield a fixed rate of return. Where the gain arises outside Malta and is derived by a company that is not domiciled or resident in Malta, no CGT is levied.

Withholding Tax Rates for Residents and Non-Residents in Malta

In general, withholding tax is levied on residents and non-residents in Malta. These rates may vary depending on the source of payment such as dividends, interest and royalties. Additionally, Malta has signed over 70 double taxation treaties (DTTs) which can impact the WHT rates. A taxpayer may benefit from the provisions of these DTTs.

Value-Added Tax Rates in Malta

The Value-Added Tax (VAT) rates in Malta are tabulated below with application examples.