Legislation

Income Tax Act (Cap. 123)

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• Art. 2(1) In this Act, and in any rules made under this Act, unless the subject or contex t otherwise requires - "a
• Art. 3The administration of this Act shall be vested in the Commissioner, and the provisions of articles 3 and 4 of
• Art. 4(1) Subject to the provisions of this Act, income tax shall be payable at the rate or rates specified hereafte
• Art. 4AWhen a person - (i) changes his residence and becomes resident in Malta and he was at no time domiciled or res
• Art. 5A(1) Notwithstanding any other provision of the Income Tax Acts, tax shall be chargeable and payable on any tra
• Art. 6(1) For the purposes of this article, an "investment services expatriate" shall mean any individual who is an
• Art. 7(1) No tax shall be payable upon the income of any person which but for the provisions of this article would h
• Art. 8(1) Notwithstanding the provisions of this Act and of the Succession and Donation Duties Ordinance, hereinafte
• Art. 9(1) Subject to the provisions of this article, article 8 shall also apply to the income of any person not retu
• Art. 9A(1) Notwithstanding any other provision of the Income Tax Acts, a person, apart from th e return for the year
• Art. 9B(1) In this article: "relevant laws" means the Income Tax Acts, the Succession and Donation Duties Ordinance (
• Art. 10Tax shall be charged, levied and collected for each year of assessment upon the chargeable income of any perso
• Art. 11(1) Every person shall each year make up the accounts of his trade or business which he is required to keep in
• Art. 12(1) There shall be ex empt from the tax - (a) (i) the income of the University of Malta; (ii) the income of th
• Art. 13Tax shall not be payable in respect of any income arising outside Malta to any person who is in Malta for some
• Art. 14(1) For the purpose of ascertain ing the total income of any person there shall be deducted all outgoings and
• Art. 14ANotwithstanding anything to the contrary contained in this Act, if an individual proves to t he satisfaction o
• Art. 14B(1) Notwithstanding anything to the contrary contained in this Act, if an individual proves to the satisfactio
• Art. 14CNotwithstanding anything to the contrary contained in this Act, if an individual proves to the satisfaction of
• Art. 14DNotwithstanding anything to the contrary contained in this Act, if an individual proves to the satisfaction of
• Art. 14ENotwithstanding anything to the contrary contained in this Act, if an individual proves to t he satisfaction o
• Art. 14FIf an individual proves to the satisfaction of the Commissioner that he has paid fees in respect of his studie
• Art. 15(1) For the purposes of this article investment services company shall mean a company which on the 1st October
• Art. 15AThe provisions of article 15 relating to investment services companies shall, where applicable, apply mutatis
• Art. 16For the purposes of this article and of articles 17 to 22, hereinafter collectively referred to (including thi
• Art. 17(1) Subject to, and in accord ance with, the provisions of this article and of articles 18 to 22, allowable lo
• Art. 18(1) ( a) If in the year preceding a year of assessment the surrendering company has incurred an allowable loss
• Art. 19If, apart from this article, a company is a member of a group of companies, and arrangements are in existence
• Art. 20(1) Relief shall not be given more than once, whether by giving group relief and by giving some other relief (
• Art. 21A claim for group relief: (a) need not be for the fu ll amount available, (b) shall include the consent of the
• Art. 22For the purpose of the group relief provisions: (a) a reference to "allowable loss" or "allowable losses" shal
• Art. 22AThe Minister for finance may make rules providing for bodies of persons under common ownership to be entitled
• Art. 22B* The Minister responsible for finance may make regulations for the charging and levying on an elective basis
• Art. 23(1) Where any person engaged in the business of exploration for, and the production of, petroleum (hereinafter
• Art. 24(1) Where, under the provisions of article 14(1)( f) and (j), any deduction has been allowed in any year of as
• Art. 25For the purposes of articles 14 to 24 both inclusive, expenses incurred in the producti on of, and allowable d
• Art. 26For the purpose of ascertaining the total income of any person no deduction shall be allowed in respect of - (
• Art. 27(1) Where any person derives gains or profits wholly or in part from the business of insurance as insurer, the
• Art. 27ANotwithstanding the provisions contained in the Income Tax Acts, the Minister may make rules regulating the ta
• Art. 27B(1) Where at least one of the trustees of a trust is a person resident in Malta, tax shall be payable on any i
• Art. 27CThe trustee of a trust shall be answerable for doing all matters and things required to be done under the Inco
• Art. 27D(1)( a)The trustee of a trust that has been granted authorisation under article 43(3) of the Trusts and Truste
• Art. 27EThe Minister may make regulations in relation to the tax treatment of a foundation, including the application
• Art. 27FThe Minister may make regulations in relation to the tax treatment of any conversion of a legal person into an
• Art. 28(1) Subject to the provis ions of article 12(1)( k), where a person not resident in Malta carries on the busin
• Art. 29(1) The provisions of this Act relating to non-resident shipowners and charterers, including the provisions re
• Art. 30(1) Notwithstanding anything to the contrary contained in this Act, the provisions of this article shall apply
• Art. 31The income of a person arising from a dividend paid by a company liable to tax under this Act shall, where suc
• Art. 31A(1) Notwithstanding any other provision of the Income Tax Acts or any regulations issued thereunder, this arti
• Art. 31B(1) Notwithstanding any other provision of the Income Tax Acts or any regulations made thereunder, this articl
• Art. 31C(1) Notwithstanding any other provision of the Income Tax Acts, this article shall apply to any person who is
• Art. 31D(1) Notwithstanding any other provision of the Income Tax Acts or any regulations made thereunder, the provisi
• Art. 31E(1) Notwithstanding any ot her provision of the Income Tax Acts except for article 31B, this article shall app
• Art. 31F(1) Notwithstanding any other provision of the Income Tax Acts, the provisions of this article shall apply to
• Art. 32Notwithstanding anything to the contrary contained in this Act, articles 32A to 42, both inclusive, and which
• Art. 32AA payor shall register as such with the Commissioner in such manner as may be prescribed. Obligation of payor
• Art. 33(1) A payor shall deduct tax from every payment to a recipient of investment income, howsoever made, at a rate
• Art. 34(1) A payor shall not deduct tax under article 33 where a recipient elects under the provisions of article 35,
• Art. 35(1) Except in respect of investment income referred to in article 41( a)(viii)(2), (3) and (4), a recipient ma
• Art. 36Where an election under the p rovisions of article 35 has been made, a recipient shall, s ubject to the provis
• Art. 37Where any tax has been withheld under article 33(1), such tax shall not be available as a credit against the r
• Art. 38Except in respect of a year of assessment for which an election under article 35 applies, it shall be presumed
• Art. 39Where the presumption referr ed to in article 38 applies: (a) a recipient who is an individual shall not be ob
• Art. 40(1) Where a payor fails to deduct and pay tax in accordance with the investment in come provisions, the provis
• Art. 41For the purposes of the investment income provisions, the following phrases shall have the meanings given belo
• Art. 41AFor the purposes of the investment income provisions and notwithstanding anything to th e contrary contained t
• Art. 41BThe Minister may make regul ations determining how the investment income provisions shall apply in relation to
• Art. 42Where, in the opinion of the Commissioner, a series of transactions is effected with the sole or main purpose
• Art. 43(1) Where the Commissioner is of the opinion that any company (other than a company incorporated or registered
• Art. 44(1) A company (other than a company incorporated or registered outside Malta and not resident therein) may app
• Art. 45Any distribution made by a company after the 1st January, 1990 in respect of its profits for any year precedin
• Art. 45ANotwithstanding anything contained in this Act, where: (i) in accordance with the provisions of the Companies
• Art. 45BNotwithstanding anything contained in this Act, where, in accordance with the provisions of the Companies Act,
• Art. 46(1) If any amounts are advanced or any assets distributed by a company to any of its shareholders by way of ad
• Art. 47Distributions to shareholders of a company or to partners in any partnership by a liquidator in the course of
• Art. 48( 1 ) W h e r e a n y t r a d i n g s t o c k i s s o l d t o g e t h e r w i t h o t h e r assets of a busine
• Art. 48A(1) Where a V AT registered person engages any individual for the carrying out of hand knitting, lace making,
• Art. 48BThe Minister responsible for finance may make regulations prescribing the manner in which the chargeable incom
• Art. 49(1) The income of a married couple, where both spouses are living together, shall be charged to tax in the nam
• Art. 49A* (1) In the case of a married couple, where both spouses are living together, any of the spouses may make an
• Art. 50(1) Notwithstanding the provisions of article 49, where in any year immediately preceding the year of assessme
• Art. 50ANotwithstanding anything to the contrary contained in this Act, where during the year immediately preceding th
• Art. 51(1) Where any scheme which reduces the amount of tax payable by any person is artific ial or fictitious or is
• Art. 51AThe Minister responsible for finance may make rules in relation to transfer pricing ge nerally and may, in par
• Art. 52(1) The Commissioner shall, on the application of a company which is a party to any transaction, notify his ru
• Art. 52AThe Minister responsible for finance may make rules for carrying out the provisions of the Income Tax Acts wit
• Art. 52B(1) The Minister responsible for Finance may by regulations under this article make provision implementing and
• Art. 53Repealed by: XX.1996.15. Non-resident allowance. Amended by: XV .1958.2; XXV .1960.8; XXV . 1962.2,4; L.N. 4 o
• Art. 54Repealed by: XX.1996.15. Claims under this Part. Amended by: VIII.1969.7. Substituted by: XXVI.1977.12. Amende
• Art. 55Repealed by: XX.1996.15. 166 CAP. 123.] INCOME TAX PART VII RATE OF TAX Normal rate of tax on individuals and
• Art. 56(1) Saving the other provisions of this article, the tax upon the chargeable income of every person shall be d
• Art. 57(1) An amount which is equal to the lower of: (a) fifteen per centum (15%), or such other amount as may be pre
• Art. 58Repealed by: XX.1996.17. PART IX PERSONS ASSESSABLE Deduction of tax. Amended by: XLI. 1961.2; VIII. 1969.9; X
• Art. 60Any tax which a company had deducted or is entitled to deduct under article 59 from a dividend paid to a share
• Art. 61For the purposes of ar ticles 62 to 69: (a) a "recipient" shall mean: (i) a person, other than a company, resi
• Art. 62(1) Every company shall, on payment of untaxed dividend to a recipient, deduct therefrom tax at a rate of fift
• Art. 63It shall be presumed, so far as the tax liability of the recipient of a dividen d is concerned, that a deducti
• Art. 64Where the presumption referred to in article 63 applies: (a) a recipient of a dividend shall not be obliged to
• Art. 65A recipient of an untaxed dividend may declare such dividend on his tax return and where a declaration is made
• Art. 66Where an untaxed dividend is p aid to a person, who is not a recipient as defined under artic le 61, such divi
• Art. 67(1) Where a company pays a dividend to a person resident in Malta out of profits allocated to immovable proper
• Art. 67A(1) Notwithstanding the provisions contained in the definition of "foreign income account" in article 2, but w
• Art. 68(1) ( a) Any person who is not resident in Malta or any individual who is resident in Malta and who is in rece
• Art. 69Where any person fails to deduct and pay tax in accordance with the provisions of article 62, 67 and 67A, the
• Art. 70(1) A receiver, administrator, guardian, tutor, curator, judicial sequestrator or committee, having the direct
• Art. 71Where any individual dies dur ing the year preceding the year of assessment and such individual would but for
• Art. 72(Deleted by Act XIII. 2004.57. ). INCOME TAX [CAP. 123. 199 Income paid to non-resident. Amended by: XXIV .196
• Art. 73(1) Where any person pays to a person not resident in Malta, or to a person resident in Malta on behalf of suc
• Art. 74There shall be four types of reliefs of double taxation, namely: (a) double taxation relief, as provided in ar
• Art. 75In respect of any claim fo r relief of double taxation: (a) the provisions concerning unilateral relief shall
• Art. 76(1) If the Minister responsible for finance by order declares that arrangements specified in the order have be
• Art. 77(1) The provisions of this article shall have effect where, under arrangements having effect under article 76,
• Art. 78(1) Where the tax paid or payable by a company is affected by double taxation reli ef the amount to be set off
• Art. 79In this Act the phrase "unilateral relief" means the relief given pursuant to the provisions of articles 80 to
• Art. 80Unilateral relief may be available in respect of a claim for relief of double taxation where tax under this Ac
• Art. 81The amount of the tax referred to in article 80(b) is to be allowed as a credit against the income tax chargea
• Art. 82The provision concerning unilateral relief shall, where the income under article 80 includ es a dividend distr
• Art. 83The credit given under art icle 81 shall not exceed the amount which would be produced by computing the income
• Art. 84Without prejudice to the provisions of article 87, the total credit to be allowed pursuant to article 81 to a
• Art. 85In computing the amount of the income for purposes of unilateral relief: (a) no deduction shall be allowed in
• Art. 86The provisions of article 85( a) and (b) shall apply to the computation of total income for the purposes of de
• Art. 87The provisions of article 77(8) , (9) and (10) and of article 78 shall apply mutatis mutandis in relation to u
• Art. 88Unilateral relief shall not be available to a person unless that person has proved to the satisfaction of the
• Art. 89(1) If any person resident in Malta who has paid, by deduction or otherwise, or is liable to pay, tax under th
• Art. 90(1) If it be proved to the satisfaction of the Commissioner that any person has paid levy in any year in respe
• Art. 90A(1) With effect from the 1st day of January 1996, where an individual is receiving full-time instruction at a
• Art. 90B† (1) With effect from 1 January 2020, income derived by an individual that represents qualifying overtime inc
• Art. 91Where through the operation of the provisions of article 56, 78 and 90 a part of the income subject to tax fal
• Art. 92(1) For the purposes of the Income Tax Acts, the flat-rate foreign tax credit shall be credit given in respect
• Art. 93(1) The flat-rate foreign tax credit shall be twenty-five per cent of the income or gains receivable by the co
• Art. 94(1) Where the flat-rate foreign tax credit is due in respect of the income or gains referred to in article 92,
• Art. 95Where, in the opinion of the Commissioner, a series of transactions is effected with the sole or main purpose
• Art. 96(1) The Minister responsible for finance may from time to time make rules generally for carrying out the provi

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