Part Time employment in Malta as from 1st January 2022 can be taxed for individuals at a fixed rate of 10% subject to certain conditions. This tax is a final tax and thus does not need to be reported in the annual tax return.
Can I apply the 10% taxation final rate against all of my income?
No, the 10% final tax rate on part time employment income is capped at a maximum of 10,000 Euros income. If the income threshold is exceeded then the remaining portion should be declared in your tax return and taxed accordingly as per the standard tax rates.
How does it work?
As an example if you earn 14,000 Euros in a tax year, which remember in Malta runs from January to December, then 10,000 Euro will taxed at the 10% final tax rate with the remaining 4,000 Euros income taxed at the normal tax rates.
Who can benefit from the 10% Part Time Employment Tax Rate in Malta?
The following can benefit from the 10% final tax rate on part time employment:
- Full Time Employees
- Pensioners
- Students
If you are employed full time and also employed part time you will also have to satisfy the following conditions:
- Both full time employment and part time employment must be registered with Jobsplus
- You can not work part time for more than an average maximum of 30 hours per week
Can I work full time and part time for the same employer in Malta?
No, if you are employed by the same company or within the same group of companies then you would not qualify for the 10% Final Tax on Part Time Employment. However, if your employer is the government and you are employed by two different department you would likely qualify.
What about if I just have part time employment in Malta only?
Then you would not qualify for the 10% final tax rate on Part Time Employment. However, you may be entitled still to a lower rate of taxation through another mechanism.
Further information can be found at the CFR.