Can I Claim Improvements to Property as a Business Expense in Malta?
No. Improvements are disallowed as deductions under article 26. Only qualifying assets earn a wear and tear allowance.
Finn does your books in Malta
AccountsOS runs full accounting for Malta businesses, tax, expenses and deadlines, in plain English. Ask Finn about yours, no signup needed.
What Malta Tax and Customs Administration (MTCA) says
Improvements are disallowed under article 26 of the Income Tax Act. Industrial buildings and structures receive a wear and tear allowance of 2% a year under S.L. 123.01. Repairs and capital works need separate treatment, so confirm with MTCA or a licensed practitioner.
When you can claim
- Wear and tear of 2% a year on qualifying industrial buildings
- Allowances on plant and machinery
- Repairs that do not improve the asset, confirmed with a practitioner
- Furniture and fittings allowances
When you cannot claim
- Structural improvements to property
- Extensions to premises
- Upgrades that add value
- Improvements to property the company does not own
Good to know
Pro tip: Ask a practitioner to classify building works before paying for them, because repairs and improvements are treated differently.
Stop guessing what you can claim in Malta
AccountsOS automatically categorises expenses with Malta Tax and Customs Administration (MTCA)-aware rules and tells you exactly what is claimable.
Try Free