The Malta Tax and Customs Administration (MTCA) issued Guidelines concerning the application of Article 6 of the Maltese Income Tax Act (ITA). The Guidelines do not set out any changes to the qualifying conditions or the tax benefits granted under this Article but now clarifies that no reporting obligations should be required by the employer and the qualifying employee when availing of the exemption concerning personal expenses paid by the employer on behalf of the qualifying employee and/or one’s family members.
Broadly speaking, qualifying expatriates are individuals who are employees or service providers for licensed investment services or insurance companies recognised by the relevant competent Authority. Additionally, qualifying expatriates should meet one of the following criteria:
Qualifying expatriates under this Article may not qualify as a beneficiary under the Highly Qualified Persons Rules.
How we can help
Our in-house tax and payroll experts may help you with:
Identifying qualifying expatriates who may benefit under this Article;
Consider other tax programmes which may be beneficial to the respective individual;
Advising on the required process to benefit under this Article or other tax programmes;
Discuss how the changes in the Guidelines may impact the employer and/or the employee;
Advice on the reporting obligations by the employer and the employee;
Assistance in connection with payroll matters;
Assistance with the preparation of the employee’s Maltese income tax return;
Providing employment and payroll health checks.
The above is not intended to be exhaustive and other considerations may arise according to the specific circumstances. Contact us if you wish to discuss this in more detail.