Personal Income Tax
Malta applies the remittance basis of taxation which has been a crucial feature of Malta’s success as financial centre. In accordance with the Income Tax Act a person who is both domiciled and resident in Malta is subject to tax in Malta on its worldwide income. However a person who is resident but not domiciled in Malta is subject to tax in Malta only on Malta source income i.e. income accruing or derived in Malta and on income arising abroad but remitted to Malta. As regards capital gains the same person is subject to tax in Malta only if capital gains arise in Malta. The remittance basis of taxation applies to both individuals and corporate entities.
As of basis tax year 2015, where the spouse is ordinarily resident and domiciled in Malta, then a worldwide basis of taxation should apply for the other spouse. Income is taxable at graduated rates.
Maltese Residents
Tax rates for basis tax year 2016 are as follows:
Single rates (or married couples opting for a separate computation)
| Taxable income (EUR) | Rate (%) | Deduct (EUR) | |
| From | To | ||
| 0 | 9,100 | 0 | 0 |
| 9,101 | 14,500 | 15 | 1,365 |
| 14,501 | 19,500 | 25 | 2,815 |
| 19,501 | 60,000 | 25 | 2,725 |
| 60,001 | and above | 35 | 8,725 |
Married rates
| Taxable income (EUR) | Rate (%) | Deduct (EUR) | |
| From | To | ||
| 0 | 12,700 | 0 | 0 |
| 12,701 | 21,200 | 15 | 1,905 |
| 21,201 | 28,700 | 25 | 4,025 |
| 28,701 | 60,000 | 25 | 3,905 |
| 60,001 | and above | 35 | 9,905 |
Parent rates
| Taxable income (EUR) | Rate (%) | Deduct (EUR) | |
| From | To | ||
| 0 | 10,500 | 0 | 0 |
| 10,501 | 15,800 | 15 | 1,575 |
| 15,801 | 21,200 | 25 | 3,155 |
| 21,201 | 60,000 | 25 | 3,050 |
| 60,001 | and above | 35 | 9,050 |
Non-Malta Residents
The following table should be used by taxpayers not residing in Malta for computing the amount of tax on their chargeable income.
Tax rates for basis year 2008 onwards:
| Taxable income (EUR) | Rate (%) | Deduct (EUR) | |
| From | To | ||
| 0 | 700 | 0 | 0 |
| 701 | 3,100 | 20 | 140 |
| 3,101 | 7,800 | 30 | 450 |
| 7,801 | and over | 35 | 840 |
