Double Tax Considerations On Certain Personal Retirement Scheme Benefits - A Quick Reference Guide

Introduction and scope

Maltese legislation allows the setting up of pension schemes towards which individual members can voluntarily make contributions with the intention of deriving benefits. Depending on the setup of the retirement scheme and the tax residence of the individual member, the payment of retirement benefits may be subject to tax in Malta. Where the member is not resident for tax purposes in Malta, the same pension income (hereinafter "pension income") may also be subject to tax in the country of residence of the recipient in terms of the tax legislation of that jurisdiction. The purpose of this analysis is to provide a high-level comparison of how double taxation on certain pension income may be eliminated in terms of the double taxation treaties Malta currently has in place with sixty other tax jurisdictions.