Tax in Malta |  Nov 18, 2014

Overview of the Malta Budget 2015

The Maltese Government has published the budget for 2015.  Below is a quick snapshot of what has been announced for the coming year:

  • One off €35 bonus shall be given to those individuals who did not benefit from the income tax cut for high earners
  • The income tax for high earners shall be reduced to 25%
  • Bus fares are not being raised and subsidy is being increased to €23 million
  • Petrol to go down by 2c and diesel by 1c in January
  • Gas price shall remain as they are
  • Cigarettes, wine and mobile phones, car licenses and swimming pool prices will be increased
  • New crane tax of €10 – €15 a day
  • Credit for school transport to be given to parents of independent and church schools
  • Private companies invited in the coming year to participate in projects to reduce hospital waiting lists, maintain roads, renovation of St. Luke’s hospital, motorsport track as well as the Mediterranean Film Studios.
  • There is currently a partial tax waiver for new property owners which will be extended by 6 months
  • Capital gains tax reformation to reduce risk of abuse from next year through the introduction of the final withholding tax (founded on value of the property)
  • Those who sell a property (used as their residence) after two years are to pay 3%, while after 5 years it will be 5% of the value
  • 8% tax on property built by contractors for businesses (rather than the current 12%)
  • Capital gains will not be due in case of couples (engaged, married or divorced) who break up when one of them buys the property .
  • Pre-2004 property tax will be 10%
  • Eco tax is being phased out
  • Electricity tariffs of business to be reduced by 25%
  • Strict measures against individuals up to the age of 23 who refuse to work or study
  • Better integration measures for people with disabilities including employment opportunities
  • Low income earner benefits including a €1000 grant per child for couples who are employed (employment must be declared)
  • If individuals who are at risk of poverty show that their children attend school at least 95% of the time, they will also benefit from grants
  • Maternity leave pay will be raised to amount equivalent to minimum wage (in the last four weeks) as well as other measures to better protect women in terms of their maternity leave (Maternity Leave Fund)
  • Adoptive parents will share the same maternity leave benefits as natural parents
  • Further benefits are being introduced for those who recycle
  • VAT on e-books reduced to 5%
  • Tax credits are being introduced to encourage new investment,
  • A tax reduction is being allowed on a transfer of a business between family members
  • Stipend to rise in accordance with cost of living

For further information about how GVZH Advocates can help you with your Tax requirements kindly contact us here.

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