What can Malta businesses claim as expenses?
10 common business expenses with Malta Tax and Customs Administration (MTCA)-compliant rules for limited companies, sole traders and contractors in Malta.
Company Car Fringe Benefits
Partially. A company car given to an employee is a taxable fringe benefit valued by a formula, so flag every company car for a benefit calculation.
Computer Software
Yes. Computer software qualifies for a wear and tear allowance, straight-line over 4 years.
Computers and IT Equipment
Yes. Computers and electronic equipment qualify for a wear and tear allowance over 4 years, which is 25% a year, straight-line.
Employer Social Security
Yes. Employer Class 1 contributions of 10%, capped at €55.93 a week per employee in 2026, plus the 0.3% Maternity Fund, are payroll costs.
Furniture and Fittings
Yes. Furniture and fittings qualify for a wear and tear allowance over 10 years, which is 10% a year, straight-line.
Improvements to Property
No. Improvements are disallowed as deductions under article 26. Only qualifying assets earn a wear and tear allowance.
Industrial Buildings and Structures
Yes. Industrial buildings and structures, including hotels, qualify for a wear and tear allowance of 2% a year.
Motor Vehicles
Partially. Motor vehicles qualify for a 20% a year wear and tear allowance over 5 years, but only for business use, and private use creates a taxable benefit.
Plant and Machinery
Yes. Plant and machinery qualify for straight-line wear and tear allowances, with the period set by asset type, for example 10 years for other plant and 5 years for other machinery.
Private and Non-Business Expenses
No. An expense must be incurred wholly and exclusively in producing the income. Private expenses are disallowed.