Three important deadlines are approaching for Maltese taxpayers this month. The 30th of June is the last day for filing the income tax return, as well as to declare any income from part-time self-employment and/or rental of properties.
Tax return for year of assessment 2019
The general basis of personal taxation in Malta is that any domiciled and ordinarily resident individual should declare all his/her income (including that of spouses and dependent children) from whatever source. If you are either not domiciled or not ordinarily resident in Malta, you should declare all income accruing to you in Malta or derived from Malta, as well as any income which was remitted to Malta. Due to certain limitations, individuals to whom the remittance basis of taxation applies are subject to special rule providing for minimum tax liability.
Income from part-time self-employment
The deadline for reporting of part-time self-employed profits in terms of Article 90A has been extended to the 30th of June 2019, for any income earned during calendar year 2018. The tax must be paid together with the submission of the prescribed form TA22.
Income from the rental of properties
The reporting deadline for rental income derived in basis year 2018 from both residential and commercial property, to be reported under the final withholding tax regime of 15% has been extended to the 30th of June 2019. Alternatively, taxpayers may opt to declare the gross income less allowable deductions (in line with specific subsidiary legislation) to be taxed at the applicable rate of 35% in case of companies or progressive rates for individuals.
In order to benefit from the 15% rate, taxpayers must declare such income in a prescribed form, thereafter excluding such income from declaration in their tax return.
Do you need help to file your tax return?
We must remember that tax can be saved as well as paid. The only way one can avoid unexpected drawbacks and identify opportunities to mitigate tax is by working with someone who is experienced and knowledgeable of the current tax laws and their implications.
At Grant Thornton we make it a point that you receive the most effective tax solutions to help you achieve your targets, no matter if you're an individual or a small business.
Speak now to one of our experts, who can help you to comply with all your tax obligations and guide you to file your return.