Malta income tax rates

[Greenknight]

Reassured- thanks SteveGill

[lloyd28]

Good morning I was flicking through and notice that you are an offshore wife and just wondered if you were still in Malta. We are hoping to move over in September and stay for 2-3 years. My husband will be working a 28/28 rotation so it would be great to hear from others in the same situation.

[Magic]

Okay Mark,

Your last post may be of some age now but it has certainly grabbed my attention

I have a Ltd Co in the UK. My clients (at this point in time) are all in the UK. Moving to Malta and not spending 90 full days in the UK, would leave me exempt from UK tax. So as the income in fact will be coming from a UK company, in terms of your post above, where does that leave me receiving dividends from a UK based company but not a salary per-se?

[gozomark]

As far as Malta is concerned - you only pay tax in Malta on income earned in or brought into Malta. Dividends are income.

As far as UK is concerned, you are generally liable to tax on income generated in the UK even if you are not resident.

[Magic]

Sorry Mark, it wasn't the last post you made,it was the last post on page one!

"Malta offers attractive residence schemes with associated tax advantages including no taxation on worldwide income, with taxation only on Maltese sourced income and foreign income received in Malta. "

I am now confused by the statement. I am sure it's not really there but I am reading a contradiction in "no taxation on worldwide income, but tax on income foreign income received in Malta?

Again,I must be missing one word somewhere

[gozomark]

Moving to Malta and not spending 90 full days in the UK, would leave me exempt from UK tax.

no, it would mean you weren't tax resident in the UK, rather than tax exempt

its also not a simple as 90 days - it could be as few as 15 or as many as 182 days
http://britishexpat.com/expatforum/viewtopic.php?t=24115

[gozomark]

Sorry Mark, it wasn't the last post you made,it was the last post on page one!

"Malta offers attractive residence schemes with associated tax advantages including no taxation on worldwide income, with taxation only on Maltese sourced income and foreign income received in Malta. "

I am now confused by the statement. I am sure it's not really there but I am reading a contradiction in "no taxation on worldwide income, but tax on income foreign income received in Malta?

Again,I must be missing one word somewhere

the Malta tax man is only interested in your worldwide income that enters Malta or is earned in Malta.

[Cuauhtli]

income that enters Malta or is earned in Malta.

The question is what does "earned in Malta" mean? Don't they have "controlled foreign corporation" regulations here? So simply having the company registered in another country (with the director in Malta and the work being performed in Malta) does not put it outside Maltese tax-jurisdiction or does it? I haven't looked into this at the moment but it will probably be relevant to our situation in the future.

[gozomark]

I suggest discussing the finer details with an accountant - there is a very good one I've used for 10 years now - listed in recommended suppliers forum- he will know exactly what the answer is, and how you can set it up best.

[fatmanfilms]

It's only off shore capital gains that can be sent to Malta tax free for non Maltese Domiciled residents Income remitted to Malta is always taxable.

[slimjim99]

Hi,

Could someone advise me with this? I moved away from Malta around a year ago when I quit my job on the island. I returned to my home country, which is an EU country as well. I kept my Maltese bank account as I had VISA card linked to it, which is something that I don't have in my home country. I've transferred some of my money (around 1000 eur in 2014) to my Maltese bank account from my bank account in my home country, in order to book flights & hotels etc, something that I am not able to do with my domestic card.

I've not been present in Malta for a year and in 2013 I was present for approximately 150 days. As the money I transferred to my Maltese account was my own money from my own account, am I subject to report anything to the Inland Revenue (the source of money is my income in my home country, made from employment in the home country & taxes are already paid there. However, if I receive for example an imaginary salary of 2500 EUR in my home country and transfer 1000 of it to Maltese bank account, what is the situation)? It is also worth mentioning that the Maltese account itself is now closed as I hardly used it.

Thanks!

[gozomark]

in 2013 I was present for approximately 150 days.

As you were in Malta for under half the year, and the money wasnt earned in Malta, there is nothing to declare

[slimjim99]

in 2013 I was present for approximately 150 days.

As you were in Malta for under half the year, and the money wasnt earned in Malta, there is nothing to declare

Thank you gozomark! Does the year 2012 have anything to do with this? In year 2012 I was present from the beginning of April (continuing to June 13). In 2013 I remember that I received some small transfers from my parents from their accounts in the home country (maybe under 100 EUR in total) to my Maltese account in order to 'keep it alive' (the fees were directly debited each month). How about this?

[gozomark]

The Maltese tax year is the calendar year, and each year treated separately. So if in any calendar year you were in Malta over half the year, you should fill in a tax return.

[slimjim99]

The Maltese tax year is the calendar year, and each year treated separately. So if in any calendar year you were in Malta over half the year, you should fill in a tax return.

Thanks for the answer. What is you opinion if for example my mom from another EU country transfered me 100 EUR (lets imagine that it was year 2012 when I was present in Malta for over 183 days) to my Maltese account? Is it subject to any tax? I read something that Malta does not impose gift tax, however, I am a total newbie in tax things and taxing 100 EUR received from my mom would sound a bit strange to be honest.