During the budget speech delivered on the 17th of October, the
Minister for Finance, Profs. Scicluna, announced that during the
course of this year there will be fiscal incentives for employers
who wish to contribute into Malta occupational pension schemes.
The incentives will include an income tax deduction for the
employer, equivalent to the amount contributed by the employer into
the pension scheme for the employee, as the contribution will be
deemed to be an expense for the employer in question.
Moreover, the employer will also be entitled to a credit of
€150 on its tax bill for every €1,000 contributed into
occupational pension schemes for the benefit of its employees. The
same incentives will also be available for self-employed
From an employee's perspective, any pension contributions
will not be deemed to be a fringe benefit for income tax purposes
and any contribution made to the same occupational pension scheme
will benefit from a deduction of up to €150, depending on the
Finally, as from 1st January 2017, an amount of pension income
(starting from €10,500 and increasing to €13,000) will be
exempt from income tax in Malta.
For more information on how to set up pension schemes, on the
regulatory framework surrounding pensions and on the various
pension options available to employers, please contact
Dr Matthew Brincat.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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