Malta Tax Refund

Income Tax Refund from Malta

Individuals who are resident and domiciled in Malta are subject to income tax in Malta on their worldwide income and on certain capital gains. Employees pay tax under the Final Settlement System, which provides for the payment of tax on employment income and on pensions by means of deductions from emoluments. The deductions are remitted to the Inland Revenue Department by the employer.
Individuals who are either:
  • not ordinarily resident in Malta OR
  • not domiciled in Malta
are subject to Maltese income tax on:
  • their income arising in Malta and
  • their foreign income remitted or received in Malta.
As a general rule, an individual who spends a total of 183 days in Malta during a calendar year is considered to be a resident of Malta.

In Malta you are obliged to pay the following types of taxes:

Income tax: Tax on personal earnings (wages from employment or self-employment), capital gains, and business income. The tax rates applicable for taxpayers residing in Malta for 2005 and 2006 vary from 15 to 35 % of their gross income.
A resident who obtains his income from part-time work is taxed at the fixed rate of 15%. For non-residents the tax rates vary from 20 to 35 % of their gross income.
Social Security Taxes: Employers and employees make social security contributions in Malta on a gradual scale: A maximum weekly pay of Lm 129.78 will see the employee and employer each pay 10% (Lm 12.98). The employer then deducts the social security contribution along with the income tax. The self-employed are also obliged by law to make the contributions.
We advise you to register on the Dendax web site for Tax Support Service
Dendax will then, should you wish, inform you about regulation changes and any other changes by email or SMS.

What is a Form FS3?

The FS3 form is the the final year document which summarizes the wages and taxes you have incurred during the year. You should receive this document from your employer at the end of the tax year.

What is Payee's IDcard/IT reg Number?

The Payee's IDcard/IT reg Number is issued to the taxpayer after he registers in the TAX office. The number consists of 7 digits and can be found at the front of your IDcard.

How many years back can I apply for a tax refund?

You can apply for tax refund 5 years back from the date of your tax refund application.

How long does it take to get the refund?

On average, the process takes up to 6 months from the time your documents are sent to the Tax Authorities, however this is only a guideline and ultimately it depends on the time it takes to process in the relevant revenue documents.

How much is the service fee?

The price is 14% from the refunded amount. There is a minimum fee of 130 EUR.
Price does not include VAT or bank charges!