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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:

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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.

GREEN ECONOMY

  • 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 following;
    • 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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