Malta Tax Changes: Live Tracker

What changed

L.N. 188 of 2025 introduced the Final Income Tax Without Imputation. A company may elect a flat 15% final tax on chargeable income. The tax is final, with no credit, refund or set-off. The election locks in for 5 consecutive years, and an anti-arbitrage floor stops it undercutting the 35%-minus-refunds outcome.

Who it affects

• Maltese companies comparing tax routes
• Groups in scope of Pillar Two
• Shareholders who would otherwise claim refunds

What to do

Model the net position under 35% with refunds and under the 15% election, and take advice before electing, because of the 5-year lock-in.

What changed

Article 11 small enterprises have a unified domestic threshold of €35,000 of annual turnover from 1 January 2025. They have calendar-year VAT periods and no input VAT recovery, and related-party turnover is aggregated. The EU cross-border SME scheme has a €100,000 Union threshold.

Who it affects

• Small businesses and sole traders
• Businesses near the threshold
• Businesses with related parties

What to do

Track turnover, including related parties, against €35,000 and switch to Article 10 when input VAT recovery matters.

What changed

Personal income tax for basis year 2026 has a top rate of 35% above €60,000 for all categories. New child-based sub-categories widen the 0% band. A married person with 1 child pays 0% to €17,500, and with 2 or more children to €22,500. A parent with 1 child pays 0% to €14,500, and with 2 or more children to €18,500. A child means under 18, or under 23 in full-time education.

Who it affects

• Directors paid a salary
• Employees with children
• Payroll teams

What to do

Update payroll tax tables and confirm each employee's category, then check the personal return, due 30 June, for the correct band.

What changed

For 2026, Class 1 contributions are 10% from the employee and 10% from the employer of basic weekly wage, capped at €55.93 a week each for people born from 1962 and €49.04 for people born up to 1961. The employer also pays a 0.3% Maternity Fund contribution. Class 2 for the self-occupied is capped at €83.89 a week for people born from 1962.

Who it affects

• Employers
• Self-occupied individuals
• Payroll providers

What to do

Update payroll to the 2026 caps and check the birth-year category for each employee.

What changed

Malta transposed the EU Minimum Tax Directive through L.N. 32 of 2024 for groups with consolidated revenue of €750 million or more, but elected the Article 50 deferral of the income inclusion rule and the UTPR. It has not introduced a domestic top-up tax. The date shown is when Finn's Malta rules were last reviewed.

Who it affects

• Maltese entities of large groups
• Groups considering the 15% election
• Advisers planning for 2027

What to do

Re-check the position before the 2027 tax year, and consider the 15% election as the voluntary route to a 15% effective rate.