Chapter 123

In short

This law, called the Income Tax Act, establishes and regulates a tax on incomes. It outlines how income tax is imposed, calculated, and administered.

What it regulates

• The imposition of income tax.
• Exemptions from income tax.
• Deductions that can be made from income.
• The rate at which income tax is applied.

Who it concerns

• Any person or body of persons earning income.
• Companies, including those registered in Malta and certain foreign entities operating in Malta.

Key points

• The Act defines various terms related to income tax, such as "company," "chargeable income," and "distributable profits."
• "Company" includes limited liability companies, certain partnerships, European Economic Interest Groupings (EEIGs), and co-operative societies.
• For cell companies, each cell and the non-cellular assets part are considered separate companies for tax purposes.
• "Distributable profits" are allocated to specific accounts: final tax, immovable property, foreign income, Maltese taxed, and untaxed accounts.