Tax and Finance

This form is to be filled conjointly by the employee (payee) and the employer (payer) and establishes the correct tax deduction method that is to be deducted through the Final Settlement System.

This form provides a reconciliation between the Payee Statement of Earnings (FS3) and the Payer’s Monthly Payment Advices (FS5).

This payment form is to be lodged by the last working day of the month, following that during which the employer (payer) has paid emoluments or provided fringe benefits to employees (payees) and should include remittance to the Commissioner of the total amount of tax, social security contributions and maternity fund contributions.

Exemption from duty on the first €200,000 when purchasing your first residence.

The employer is required to apply on the FB2 form in order to have the private car use value reduced to 0% when the car is solely or mainly used for point-to-point service. A point-to-point service exists when the relevant car is heavily used for business purposes such as in the case when an employee is required to deliver goods or services or provide transport to clients and other employees.

Tax at 2% upon purchase of residential property in Gozo.

The Ministry  for Finance has launched the following grant scheme, that aims to incentivise and assist first time buyers that purchase residential properties within Urban Conservation Areas (UCAs), properties that have been built for more than 20 years and have been vacant for more than seven years, and new properties that are developed in conformity with approved criteria as defined by the established guidelines and approved by the Board appointed by the Minister responsible for finance.

The Grant on the Purchase of Special Equipment will provide support and financial assistance to persons with disability in relation to the purchase of special equipment required to live an independent life. A definite list of eligible equipment is provided by the respective Government Notice.

The Ministry for Finance has launched the following grant scheme, that will reimburse eligible expenditure that is incurred by the applicant related to the restoration and finishing of privately owned residential properties within Urban Conservation Areas (UCAs), properties that have been built for more than 20 years and have been vacant for more than seven years, and new properties that are developed in conformity with approved criteria as defined by the established guidelines and approved by the Board appointed by the Minister responsible for finance.

A self-employed individual who works part-time is taxed at a fixed rate of 10%. This tax is final, therefore the income derived from part-time work need not be declared in the annual income tax return because it is not subject to further tax. It is applicable up to a maximum net profit of €12,000 per annum.