7.5% Tax Rate for creative practitioners

An optional flat rate of 7.5% is available on the first €50,000 arising from artistic activities conducted on a self-employed basis.

Do you have self-employment income arising from artistic activities?

If you do, then you can avail yourself from a flat tax rate of 7.5% on the first €50,000 arising from such full-time or part-time self-employment.

The 7.5% is applicable on any self-employment income arising from 2023 onwards by creative practitioners from:

  • theatrical, stage, motion picture and TV productions
  • exhibitions 
  • paintings, sculptures, literary and musical works
  • intellectual property, royalties.

The 7.5% will apply on the first €50,000 of such income earned and if the said income exceeded this amount one would have to declare the excess in the tax return.

How is the 7.5% calculated?

The 7.5% rate is calculated on the turnover, meaning the gross amount of the income so derived.

How to apply for the 7.5%?

If you wish to avail yourself from this reduced rate, approval needs to be obtained from the Arts Council Malta. Following certification, you need to fill in and file a prescribed form approved by the Commissioner for Tax and Customs.

Such form needs to be submitted and tax thereon payable by not later than 30th April 2024.

How can we assist?

We can help you in assessing if the 7.5% 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 of the 7.5% tax regime.

If you require further guidance or details in relation to this process, please do not hesitate to contact us so that we may assist you.

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