Malta operates a remittance basis of taxation for persons who are resident or domiciled in Malta for tax purposes. The Budget Implementation Act (Act VII of 2018), introduced a new proviso to article 4 of the Income Tax Act (Chapter 123 of the laws of Malta), which proviso impacts on the application of the remittance basis of taxation to certain individuals.
By virtue of the Budget Implementation Act, individuals who are the holders of Long Term Resident Permits and Permanent Residence Permits/ Certificates, issued in accordance with the Status of Long-Term Residents (Third Country Nationals) Regulations (S.L217.05) and the Free Movement of European Union and their Family Members Order (S.L460.17), respectively, may no longer benefit from a remittance basis of taxation and are subject to tax in Malta on a worldwide basis.
Whereas such individuals would no longer be able to benefit from the remittance basis of taxation, Malta currently has in force over 70 double tax treaties, which where relevant may seek to relieve double taxation accordingly.
For more information about Malta’s fiscal regime and other opportunities available to private clients in Malta, please contact Dr. Rebecca Diacono, Associate at the Firm.
This bulletin is not intended to offer professional advice and you should not act upon the matters referred to in it without seeking specific advice.
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