Malta: Tax measures in budget implementation legislation

Tax provisions to implement certain budget measures for the financial year 2022

Tax measures in budget implementation legislation

Bill No. 247—which includes provisions to implement certain budget measures for the financial year 2022 as well as other administrative measures—has been published, and is expected to be enacted in the first quarter of 2022.

The tax measures proposed in the budget implementation bill include the following income tax items:

  • Amended tax exemption for transfers of securities listed on stock exchanges within the European Union / European Economic Area (similar to the exemption for securities listed on the Malta Stock Exchange)
  • An expansion of the exemption from tax for gains or profits derived by non-Maltese residents from the transfer of certain securities, partnership interests, and units in collective investment schemes or relating to linked long-term business of insurance; the exemption to be extended to any “transfer of any right over” such assets
  • A cap on the tax deduction of capital expenditure incurred on intellectual property (IP) and IP rights when used or employed in the production of the income
  • Changes to the taxation of income derived by individuals from employment outside Malta
  • Changes to the tax treatment of the income of sport players, athletes, and coaches, to allow the tax at a rate of 7.5% chargeable on the gross emoluments and not refundable

Read an October 2021 report prepared by the KPMG member firm in Malta


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