Uglobal Immigration Magazine Volume 1, Issue 1 | Page 70

69 MALTA VISA PROGRAM | 马耳他签证项目 BASIS OF TAXATION The extent of an individual’s Malta tax liability is dependent on such individual’s residence/ordinary residence and domicile 2 . An individual who is ordinarily resident and domiciled in Malta, would be subject to tax on a worldwide basis, like on their worldwide income and gains. This typically applies to Maltese persons and/or their spouses. An individual resident / ordinarily resident but not domiciled in Malta should be subject to tax in Malta on: • Malta source income and gains (irrespective of where such income / gains are received); • Foreign source income which is received in Malta; • Foreign source capital gains should not be subject to tax in Malta, irrespective of whether such gains are received in Malta or not. The above ‘source and remittance basis of taxation’ typically applies to non-Malta domiciled individuals taking up residence in Malta (unless such individual is a spouse of an individual ordinarily resident and domiciled in Malta, in which case the worldwide basis of taxation would apply). Non-resident, non-domiciled individuals are only subject to tax on Malta sourced income and/or gains. Typically this source basis of taxation would apply to non-residents or temporary residents, for example tourists or any other individuals not resident in Malta. MALTA TAX RATES Malta applies progressive rates of tax from zero to 35 percent. The 35 percent rate is for chargeable income in excess of 60,000 euros. The progressive rate tax brackets vary depending on whether an individual is resident/non-resident, single, married or parent. Also, tax programs exist, in terms of which, a reduced rate of tax of 15 percent applies on foreign source income remitted to Malta. The tax year in Malta applicable to individuals runs from 1 January to 31 December, with income tax returns due the following June. It is also important to note that Malta does not levy wealth taxes, capital taxes, entry or exit taxes and does not impose any domestic withholding tax on outbound dividends, interest and royalties.