Personal Tax Returns 

CSB Group provides support relating to personal income tax. We will ensure the timely submission of income tax returns and provide the right advice to minimise the tax incidence whilst ensuring full compliance with the respective tax statutes.

Personal Tax Returns

Certain individuals are non-tax filers meaning that they do not need to file an income tax return on an annual basis. However, there are other individuals that would need to file a self assesment tax return yearly. The personal tax return would need to be completed and submitted by 30th June of the following year; ie. the tax return in relation to the basis year 2024 would need to be submitted by 30th June 2025.

At CSB Group, the taxation team would be able to guide you in the completion and submission of the personal tax return to be sure it is accurately completed.

It is also to be noted in accordance to Article 11 of the Income Tax Management Act (Chap: 372), that if any person needs to pay tax which has not been deducted at source, and that person has not received the tax return, it shall accordingly be the duty of that person to ask the CFR to furnish it with the tax return.

Non-resident rates of taxation  

One would need to apply the tax rates applicable to him/her when computing the tax for the year. In the case of any individual who is not resident in Malta during the year immediately preceding the year of assessment, the non-resident rates shall apply;

It is also to be pointed that Individuals who are ordinarily resident but not domiciled in Malta will be subject to a minimum tax of €5,000 annually if:

Tax Professionals

Page 2 of the Personal Tax Return form makes reference to "tax professional" meaning an individual being the holder of a warrant issued under the Accountancy Profession Act, or a member of the Malta Institute of Taxation, or a member of the legal profession in Malta who specialises in taxation, or a partnership of such individuals the majority of whom are so qualified: provided that the Commissioner shall be entitled to request such proof as he may deem appropriate to the effect that an individual qualifies as a tax professional as aforesaid.

Sections of the Personal Tax Return

The Personal Tax return includes various sections for the different types of income.

1. Employment or office 

Any income declared in this section must be supported by a Payee Statement of Earnings (FS3);

2. Trade, Business, Profession or Vacation

In this section, in cases of business income, a profit and loss account statement must be attached even if a loss was incurred. 

Page 3 of the Form delves into Investment, Capital Gains and Other income. This would include dividend income, interest income upon which 15% was not withheld, rental income with the exception of the rental income declared through the TA24 and upon which 15%was paid and capital gains. 

3. Deductions

There are various deductions including school fees, fees for sports activities, transport, trading losses brought forward in the case of self-employed that may be deducted. 

The actual Tax computation would be the next section whereby the chargeable income is taxed at the appropriate rates of tax, being single, married or parent. In order to apply the parental rates, certain conditions would need to be satisfied. In addition, upon satisfying certain conditions single parents can also apply the married rates of taxation. 

After computing the actual tax charge, there is a section for Tax Credits which if applicable can reduce the whole tax charge. This might apply in the case of ‘Women returning to work’ and other scenarios.

Hereby Tax credits may amount to a maximum of €2,000 spread over 2 years, €2,000 per year depending on number of children under 16 years of age, or a one time credit of €5,000. For these and other different forms of tax credits, return attachments (RA) would generally need to be completed and enclosed with the tax return once submitted.

Majority of RA forms are provided by CFR together with the Tax Return. If otherwise, forms are found downloadable or by request to CFR.

4. Tax Payments

It's important to note that certain tax payments, such as FSS (Final Settlement System) deductions, should be included in your calculations. These deductions can be used to reduce your overall tax liability, as they represent amounts that have already been paid. If your self-assessment results in a refund, the refund will be issued by the CFR (Commission for Revenue) by December 31, 2025, provided your submission is timely.

How To Pay Any Tax Due

If your self-assessment shows that you owe additional tax, you have several options to settle the payment:

1. Cheque: You can write a cheque payable to the Commission for Revenue. Ensure that the cheque is properly filled out and includes your taxpayer reference number.
2. Bank Transfer: Payments can also be made via bank transfer. Be sure to include your taxpayer reference number in the transfer details to ensure the payment is correctly allocated to your account.

How to File a Personal Tax Return

Filing a personal tax return in Malta involves a few straightforward steps. Here's a simple guide to help you understand the process:

1. Gather Necessary Documents

• Income Statements: Collect your FS3 forms (similar to a P60 in the UK), which summarize your annual income and the tax already deducted by your employer.
• Other Income Records: Include any other sources of income such as rental income, investments, or self-employment earnings.
• Receipts for Deductions: Gather receipts or documents for any allowable deductions like donations, medical expenses, or educational costs.

2. Access the Tax Return Form

• Online: Most people in Malta file their taxes online using the online portal. You can log in to this portal using your e-ID.
• Paper Form: Alternatively, you can fill out a paper form, but this is less common.

3. Fill Out the Tax Return

• Personal Information: Provide your personal details such as name, address, and ID number.
• Income Declaration: Enter all your income sources in the relevant sections. This includes salary, rental income, and any other earnings.
• Deductions and Credits: Include any deductions or tax credits you are eligible for. These reduce the amount of tax you owe.
• Calculate Tax: The system or form will help you calculate how much tax you owe or if you’re entitled to a refund.

4. Review and Submit

• Double-Check Information: Ensure all the details are correct and complete.
• Submit Online or by Mail: If filing online, you can submit your return directly through the CFR portal. If using a paper form, mail it to the address provided on the form.

5. Pay Any Outstanding Tax

• Payment Methods: If you owe tax, you can pay through various methods including online banking, direct debit, or at a bank.
• Payment Deadline: Make sure to pay any tax due by the deadline to avoid penalties.

6. Receive Confirmation and Keep Records

• Confirmation: After submission, you should receive a confirmation of receipt. Keep this for your records.
• Keep Documents: Retain all your tax-related documents for at least 5 years in case of an audit.

7. Tax Refund (if applicable)

• If you’re entitled to a refund, the tax authorities will process it and send it to your bank account or via cheque, depending on what you specified.

Key Points to Remember

• Deadline: Personal tax returns are usually due by the end of June each year.
• Penalties: Late submissions or payments can incur penalties, so it's important to file on time.
• Assistance: If you’re unsure, you can seek help from our tax professionals.

This process helps ensure that you pay the correct amount of tax or receive any refund due to you.

What are the Penalties for Late Submission of Personal Tax Returns in Malta

In Malta, failing to submit your personal tax return on time can result in significant penalties. The standard penalty for late submission is €50, which is charged immediately after the due date.

 If the delay continues, additional penalties may accrue until the tax return is submitted. Furthermore, interest may be charged on any unpaid tax from the original due date until the payment is made. 

Persistent non-compliance can lead to more severe consequences, such as legal action or additional fines imposed by the Commissioner for Revenue. It's crucial to submit your tax return on time to avoid these penalties.