Income tax for individuals: Upcoming deadlines

A number of personal income taxpayers are required to comply with tax obligations by 30 April 2025. We are setting out below the salient obligations and deadlines on taxpayers under the various schemes.

Income from part-time self-employment and employment

Individuals deriving income from part-time self-employment may benefit from a flat rate of income tax of 10% on the first €12,000 of profits. Income tax is calculated on the profit rather than on turnover (i.e. revenue less expenses that were wholly and exclusively incurred in the production of the income). Furthermore, the respective part-time self-employment activity must be registered for VAT purposes, where required, and must not engage more than two employees, themselves also on a part-time basis.

Similarly, individuals having a qualifying part-time employment, who may not have elected for, and instructed their employer to apply, a 10% tax withholding, may still benefit from such rate on the first €10,000 of income arising from said part-time employment.

This is applicable to individuals who are (i) in full time employment or (ii) pensioners or (iii) full time students/apprentices, AND whose part-time activity is registered as such with Jobsplus. This reduced rate of tax on income from part-time work may be extended to the spouse in certain instances.

With respect to the year of assessment 2025 (with reference to part-time activities carried on during 2024), the self-employed and employed individuals, opting for such income to be taxed in this manner, would be required to submit a TA22 form or TA23 form respectively, to the Commissioner for Tax and Customs, and settle the tax payment due, by no later than 30 April 2025.

Income from full-time or part-time self-employment in artistic activities

Similarly, individuals earning income from artistic activities, whether through part-time or full-time self-employment, may opt to benefit from a flat income tax rate of 7.5% on gross income earned during 2024 up to €50,000, with no option to deduct relevant expenses.

Such tax treatment may be applicable to qualifying individuals whose income from artistic activities is certified by the Arts Council Malta.

For the year of assessment 2025, self-employed individuals opting for this tax treatment must prepare and submit the TA26 form to the Commissioner for Revenue and settle the tax payment due by no later than 30 April 2025.

Those individuals who may not wish to opt to have said income reported and taxed through submission of a TA26 form, or where such income exceeds the relevant threshold, such excess must be reported in terms of a self-assessment tax return. Allowable deductible expenses incurred in generating income from artistic activities can be claimed against the gross receipts reported in the tax return. However, these deductions cannot exceed the amount of the excess income.

Rental income from letting of tenements

Taxpayers in receipt of rental income in the course of 2024 may opt to subject the gross income derived from such rentals, without the possibility to claim any deductions, to a flat rate of 15%, through the submission of a TA24 form, together with payment, by 30 April 2025.

Furthermore, certain tax rebates may be available against qualifying residential leases that are valid for at least two years in terms of the Private Residential Leases (Tax Rebate) Rules, S.L. 123.201 and which may be claimed through the aforementioned TA24 form.

The option to be taxed at a flat rate of 15% may be availed of both in case of commercial and residential rents, and is open to both individual and corporate taxpayers, whether resident in Malta or not. Nonetheless, a taxpayer may still opt to declare the rental income through the annual self-assessment personal income tax return, subject to the progressive rates of income tax, and avail of certain deductions. It is to be noted that all respective income from the rental of tenements derived by a taxpayer should be declared in the same manner.

Provisional tax and social security contributions

Individual taxpayers who may be requested to pay provisional tax by the Commissioner for Revenue are expected to settle the first payment by 30 April 2025.

The first settlement of provisional tax equals 20% of the provisional tax benchmark, which is established on the tax charge with respect to year of assessment 2024, basis year 2023. Subsequent provisional tax payments would be requested in August and December 2025, and requested amount is set at 30% and 50% of the provisional tax benchmark respectively.

Beneficiaries in terms of the the High Net Worth Individuals Rules, the Malta Retirement Programme Rules, the Residence Programme Rules, the Global Residence Programme Rules and the United Nations ("UN") Pensions Programme Rules are required to settle the minimum amount of tax liability in terms of the respective rules, also by 30 April 2025.

Self-employed and self-occupied individuals may also be required to settle their first payment of Class 2 Social Security Contributions with respect to the current year 2025, by 30 April 2025. Payments are to be made to the Commissioner for Revenue.

Class 2 social security contributions falling due on 30 April 2025, are calculated on the basis of net income for the preceding taxable year i.e. 2024. The second and third instalment of social security contributions for the year would be due in August and December accordingly.

Individual income tax return

The default income tax return deadline for individuals, for the basis period 1 January 2024 to 31 December 2024 is 30 June 2025, and which is typically extended to 31 July for submissions by electronic means. Individual taxpayers who may be requested, or are required, to file an income tax return are required to do so, and settle any income tax due, by such date.

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