15% on Part Time Self Employment
An optional flat rate of 15% is available on the first € 12,000 arising from part-time self-employment income.
Do you have part time self-employment income?
If you do, then you can avail yourself from a flat tax rate of 15% on the first € 12,000 arising from such part-time self-employment.
How is the 15% calculated?
The 15% rate is calculated on the profits, meaning the difference between the revenue and any expenses which are directly incurred in the production of such turnover.
What do you need to do in order to apply for the 15%?
If you wish to avail yourself from this reduced rate, you need to fill in and file a prescribed form as provided by the Inland Revenue Department. Such form needs to be signed and submitted to the Commissioner for Revenue by not later than 30 April each year.
Can the process be done electronically?
Yes, the said prescribed form can be completed and submitted through the Inland Revenue Department’s portal.
How can Mazars Malta help?
We can help you in assessing if the 15% tax rate is beneficial for you as well as providing you assistance with your compliance obligations. We can also assist you in preparing your personal income tax return as well as to prepare the prescribed form through which you can avail yourself from the 15% tax regime.