Personal Tax Returns 2015

The Inland Revenue Department is currently submitting the personal tax returns to individual taxpayers for 2015 (basis year).

Some points worth highlighting are the following:

  1. Tax returns are to be submitted to the Inland Revenue Department, together with the respective tax payment by the end of June 2016.  If you are considered to be a non-filer by the Inland Revenue Department, yet during 2015 you have received income which is not taxed at source, then you may request the Inland Revenue Department to send you a tax return;
  2. The responsible spouse of a couple who has married during 2015 should declare all his/her income for 2015, plus the spouse’s income from the date of marriage onwards.  The other spouse should fill a separate tax return covering his/her income earned before the date of marriage;
  3. Couples who have separated or divorced during 2015 should be registered separately with the Inland Revenue Department.  Each individual is responsible for submitting his/her personal tax return covering income earned from the 1st January to the 31st December 2015;
  4. Tax credits for women returning to employment are still applicable for 2015.  The credit amounts to €2,000 which can be used in the date of return and the subsequent year, or a full tax credit of a maximum of €5,000 to be used in the year of return;
  5. Micro Invest Tax Credits of a maximum of €30,000/€50,000 can be claimed by taxpayers in possession of a certificate issued by Malta Enterprise;
  6. Non-domiciled individuals holding an eligible office with companies licensed by MFSA, MGA or Transport Malta may qualify for a reduced tax rate of 15%;
  7. Individuals who are established in a field of excellence and who have returned to Malta after an absence of 10 consecutive years may qualify for a reduced tax rate of 15%;
  8. Women aged 40 or over, whose income does not exceed €9,200 and who return to employment after an absence of 5 years may claim an exemption from tax;
  9. A tax credit is available for individuals who are investing in a personal retirement scheme or a long term contract of insurance may claim tax credit equivalent to the lower of 15% of contributions made or €300;
  10. Part-time employment income capped at €10,000, and part-time self-employment income, capped at €12,000, can be taxed at a flat tax rate of 15%.  The TA22 form for part-time self-employment income together with the respective tax payment should be made by the 30th June.  If the part-time income is in excess of capping, the difference should be declared in tax return;
  11. Employment income exercised outside of Malta may qualify for a flat tax rate of 15%;
  12. Local dividend income that can be declared is capped if the individual’s income is in excess of €19,500, €28,700 or €21,200, depending on the tax rates used;
  13. Investment income taxed at 15% should not be included on the tax return;
  14. Rental income received from residential tenement should be included in the TA24 if the 15% option is taken.  Rental income should only be declared on the tax return if not included in the TA24; and
  15. University stipends are exempted from tax.

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