Final Settlement System (FSS) Amendment Rules, 2026

On 3 July 2026, the Government of Malta published Legal Notice 176 of 2026, introducing amendments to the Final Settlement System (FSS) Rules (S.L. 372.14). These amendments, effective from 1 January 2026, modernise the filing framework governing tax deductions at source on income subject to article 4(1)(b) of the Income Tax Act.

The amendments to the Final Settlement System Rules (the ‘Rules’) aim towards streamlining the Payee Status Declaration form (the ‘FS4’) and introducing further legislative flexibility in its structure.

Key changes

The FS4, previously a prescribed paper form reproduced in full in Schedule A to the Rules and structurally divided into “Section 1” and “Section 2”, has been modified.

Schedule A has been removed from the annex to the Rules, and the Payee Status Declaration form is now publicly available on the Tax and Customs Administration website. The Commissioner for Tax and Customs has been granted discretion to determine how the FS4 is made available.

Additionally, the form no longer features rigidly labelled sections and instead, payees and payers complete designated “Payee’s parts” and “Payer’s parts” respectively.

Impact

Decoupling the form from the legislation and removing rigid section labels creates additional flexibility. Administrative changes to the FS4 can now be implemented without requiring amendments to the subsidiary legislation itself, streamlining the revision process.

Overall, the core obligations on the payee and payer remain in place, without significant changes to the previous process.

Deloitte can help

Should you require further assistance in connection with these changes please reach out to the below.