Letting Of Residential Tenement Rules

On the 7th November 2014, the Government of Malta published the forms pertaining to the recently introduced final withholding tax on rental of residential tenements. This system is currently complementing the current legislation (Deduction of Expenses in Respect of Immovable Property Rules) which allows for the deduction of interest allowable, any rent, licence fees and 20% maintenance deduction on the income remaining with the result taxed at your applicable rate of income tax."

Alternatively, should the following conditions be satisfied, one may opt to tax the gross rental income (i.e. no deductions allowed) at a flat rate of 15%.  The following are the salient features of the final withholding tax on rental income as provided for under Article 31D of the Income Tax Act: