What is Provisional Tax (Malta)?
Provisional tax is paid during the basis year in three instalments of 20%, 30% and 50%, on 30 April, 31 August and 21 December.
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Current Rate (Basis year)
20% on 30 April, 30% on 31 August, 50% on 21 December of the provisional tax benchmark
Example
A company with a provisional tax benchmark of €10,000 pays €2,000 on 30 April, €3,000 on 31 August and €5,000 on 21 December.
How Provisional Tax (Malta) works in Malta
The benchmark is normally the latest assessed tax. A company expecting lower profit can apply to MTCA for a provisional tax reduction. Companies with non-calendar year ends start with whichever instalment falls first in their basis period.
Late income tax bears interest of 0.6% per month or part of a month, capped at 100% of the tax.
The rules are the Payment of Provisional Tax Rules, S.L. 372.18. Finn tracks the three dates and flags when a reduction application may be worth considering.
Related terms
Maltese corporate income tax is 35% on the worldwide income and capital gains of Maltese companies. Under the full imputation system, shareholders can reclaim part of it on distribution, so the effective rate is often far lower.
From year of assessment 2025, a Maltese company may elect the Final Income Tax Without Imputation, a flat 15% final tax on chargeable income instead of the 35% tax and shareholder refunds.
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