confused about tax in Malta

189POSTS

15 years ago

Can someone shed any light on this for me? At the moment I am not being taxed as I haven't met the amount for tax to kick in. No one seems to be able to tell me what that is but from WIKIPEDIA it looks like its 8500.

From wiki it says I will be taxed 25%. This seems like a lot. Plus NI which this month was 聙108 and apparently this is on a weekly basis so will be more in months with 5 mondays.

So I will actually be taxed more than when I was in the UK? NI of 108 or more PLUS 25% of my original wage?

I've spoken to my companies 'HR' department but they have so far not been able to answer! If anyone can explain the figures to me or let me know if the above is correct that'd be great.

See also

Taxes in Malta - Guide
Tax advisors in Malta - Business
Income tax in Malta - 23 Replies
Tax in Malta - 11 Replies
Tax refund when leaving Malta - 17 Replies
Malta Tax - 2 Replies
Relocating definitively to Malta - Tax on pension? - 7 Replies

JohnS Active member

76POSTS

15 years ago

I can't explain it, I'm afraid, but for what it's worth here is the government's Inland Revenue website.聽 No disrespect to Wikipedia, but this should be more authoritative and perhaps more thorough.聽 I guess you will want to look at both the tax and SSC (=NI) rates.

hammersfan ViP

532POSTS

15 years ago

There's a caculator on that website that should help you - it is accurate (I checked against my own income and tax figures).

I don't know your income and deductions etc, but for a single person earning 20,000聙 pa the tax for the full year would be 2,325聙

Hope that helps.

hammersfan ViP

532POSTS

15 years ago

Here's how that figure of 2,325聙 is arrived at:

Assuming annual income of 20,000聙

The first 8,500 is taxed at 0%, thus total of 0 tax
Income from 8501 to 14500 is taxed at 15%, so (14500-8501)*.15=899.85
Income from 14501 to 19500 is taxed at 25%, so (19500-14501)*.25=1249.75
Income 19501 and over is taxed at 35%, so (20000-19501)*.35=174.65

Add them all up:
0
+ 899.95
+ 1249.75
+ 174.65
-------
2324.25

Tim

iamharibo Contributor

189POSTS

15 years ago

thanks everyone. I was hoping that the 25% would be including NI as to pay 100+ NI plus 25% is a really high amount but all the links etc confirm the same thing.

Thanks for all your help!

hammersfan ViP

532POSTS

15 years ago

It doesn't look that much different than the UK to me (again using the 20k 聙 income amount) - in the UK that would be approx 17.5k GBP income and the tax (at 20% less personal allowance) for a single person would be 2,170 GBP a year or approx 2,500 聙.

The NI in the UK on that income would be 106 GBP a month which is approx 122 聙.

My numbers might be off (I used this website - listentotaxman.com/index.php) as I'm not a tax accountant, but if they're close then someone earning 20k 聙 in Malta is a little better off than someone earning 17k GBP in the UK as far as income tax and NI contributions are concerned.

Tim