The Inland Revenue Department has issued guidelines on the Remittance Basis of Taxation for Individuals under the Income Tax Act, making reference to the minimum tax for persons who are ordinarily resident but not domiciled in Malta.
Remittance Parameters and Global Income Option
With effect from the year of assessment 2019 (basis year 2018), non-domiciled individuals whose foreign income is more than €35,000, will be subject to a minimum tax of €5,000 annually. In the case of married couples whose income is taxed jointly, the €35,000 threshold includes both spouses’ income.
Individuals shall also have the option to be taxed on a worldwide basis if their worldwide tax liability would be less than the minimum tax.
Tax to be Included in the Annual Minimum Tax Payable
In computing the minimum tax, account shall be taken of any Maltese tax withheld at source and any double taxation relief due to the individual. Any tax payable upon the transfer of immovable property situated in Malta is not taken into account.
Other Residence Programmes
The minimum tax does not apply to individuals benefitting under the returned migrant scheme, the resident scheme, the scheme for high net worth individuals, the residence programme, the global residence programme or the Malta retirement programme.
The IRD guidelines can be found here.
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