Malta’s Tax Refund System - Making The Complex Simple

Basis of Malta Taxation

Income tax in Malta is governed by the Income Tax Act and the Income Tax Management Act, together with their respective subsidiary legislation, and collectively referred to as the Income Tax Acts ('ITA'). In terms of the ITA, any person that is considered to be ordinarily resident and domiciled in Malta is subject to Malta tax on a worldwide basis, that is on any income or gains whether arising in Malta or not.

Persons that are either resident or domiciled in Malta are subject to Malta tax on income and gains arising in Malta and on so much of their income arising outside Malta (excluding capital gains) that is remitted to or received in Malta. Income subject to Malta tax includes capital gains arising on the transfer of immovable property, securities, business , permits, goodwill and intellectual property rights.