INCOME TAX & DUTY
- The full imputation system of taxation shall continue to be applicable next year.
- The OECD Pillar 2 measures which introduces a global minimum effective tax of 15% for companies forming part of MNEs (Multi-National Enterprises) with a combined annual turnover of at least €750 million, shall not be implemented in Malta in 2024.
- For another year, employees earning less than €60,000 shall receive again an ex-gratia tax refund of up to €140. The highest income earners below the €60,000 bracket would receive a refund of €60:
INCOME TAX AND DUTY
- The stamp duty exemption for first time buyers, second-time buyers on the acquisition of their residential property have been extended.
- The reduced duty rate of 2% on acquisitions by individuals of residential property in Gozo will not be extended after 31 December 2023.
- The concession of stamp duty reduction from 5% to 1.5% shall be extended when family businesses shall be transferred inter vivos to descendants and younger generations.
- Beneficiaries of Housing Authority Schemes shall benefit from an exemption from capital gains and stamp duty on the first €200,000 in value.
- The first-time buyers scheme of €1,000 annually for 10 years announced last year will continue in 2024.
- Renewal of tax incentive in relation to the those buying or selling a property that has been built for more than 20 years and has been vacant for more than 7 years or a property that is located in a UCA area. An exemption from capital gains tax and stamp duty on the first €750,000 whilst saving a maximum of €54,000 in VAT on the first €300,000 incurred in restoration expenditure. First time buyers shall receive €15,000 for property situated in Malta and €40,000 for property situated in Gozo.
- Organisations who give a donation to voluntary organisations registered with the Commissioner for Voluntary organisations that operate in social sectors shall be entitled to a tax credit of up to €500.
- The reduced tax rate of 7.5% currently applicable to players, coaches and athletes shall be extended to other persons involved and employed in the sports sector.
- The removal of the inheritance tax on agricultural land leased or worked by professional farmers.
- Tax credits shall once again be granted to students who continue advancing in tertiary education specifically in Masters and PhD courses through schemes like Get Qualified and Higher Educational Qualifications.
- The establishment of the Climate Action Authority shall seek to take action against climate change and to achieve climate neutrality by 2050.
- Renewal of schemes for installation of photovoltaic panels, batteries for storing renewable energy, heat pump water heaters, solar water heaters and the restoration of wells of old houses.
- Installation of more electric charging points throughout Malta, with the intention of having 1,200 charging points.
- Renewal of grant in relation to the purchase of electric vehicles including electric motorcycles.
- Renewal of various eco-friendly measures including:
- the renewal of the grant provided to persons who change their vehicles from being dependant on petrol to gas
- scrappage of old vehicles
- the buying of electric bikes and pedelecs
- exemption of registration tax and annual car licence fees (for the first five years from the first registration) for electric vehicles and plug-in hybrid vehicles
- Those individuals buying a personal e-kick scooter shall benefit from financial assistance.
THE ELDERLY AND PENSIONS
- 60% of the pension income shall be non-taxable – an increase of 20% from last year.
- Pensioners will benefit from a weekly increase to €15 per week with effect from 2024, summing up to an additional €780 annually, inclusive of the Cost-of-Living-Adjustment.
- Those pensioners who started receiving a pension from 2009 onwards will receive an additional bonus for the cost of living increase up to a maximum of €1 per week.
- The mechanism distinguishing those who were born before 1962 and after such year shall be removed and shall be entitled to an increase calculated on rises in salaries and inflation.
- Also, those citizens born before 1962 whose current salary is higher than their maximum pensionable income shall receive an additional top-up.
- Widows under the age of 61 will no longer have their pensions taxed whilst also being entitled to receive the pension amount their deceased spouse would have been entitled to.
- Once again, the portion of any service pension will be increased further by an addition of €200.
- A new measure shall be introduced covering the service pensioners who has not yet reached the retirement age and who neither are engaged in employment and neither receive a social security pension. As from next year, such individuals shall receive an additional bonus for the increased cost of living which shall be equivalent to the cost-of-living adjustment.
- From 2024 onwards, those entitled to the retirement pension but
choose to remain in employment, shall be entitled to an increase as
- 1.5% if the pension is postponed by a year
- 3% if the pension is postponed by 2 years
- 4.5% if the pension is postponed by 3 years
- 6% if the pension is postponed by 4 years
- The bonus for those who paid less than 5 years in social security shall increase from €450 to €500 per year and for those who paid more than 5 years (capped to 10 years) the bonus will increase from €550 to €600 per year.
- Those pensioners who still live in their residential home or pay for private care home and reached 80 years of age shall receive a grant of €450 per year whilst those who reached 75 years of age shall receive €300 a year.
- The Carer At Home Scheme shall see an increase of €1,000 per year, taking the total assistance to €8,000 annually.
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