Malta | RA1 – Declaration of Agricultural Produce – 30th June
Agricultural produce derived from farming and other agricultural activities that has been temporary taxed at 3% is to be declared, for income tax purposes, on the Form RA1. Full-Time and Part-Time farmers (who have had part of their turnover taxed at the 3% rate by a licensed payor) are to declare their qualifying and non-qualifying sales on Form RA1 and submit the Form by not later than the 30th June to the Inland Revenue Department.
Taxpayers may opt to have their income on all qualifying produce to be taxed on a final flat tax rate of 3% calculated on the turnover. Part-time farmers (who qualify under the part-time rules) may submit to the IRD their part-time self-employed declaration of income on the appropriate TA22 Form by the 30th June and opt to be taxed at the tax rate of 15% (maximum tax of €1,800 – maximum income declarable on this form is €12,000). In both cases the income changed at 3% and the income charged at 15% is final and should not be declared again in the annual tax return.
Farmers may also choose not to have their income on their qualifying produce to be taxed on the final flat tax rate of 3% calculated on the turnover but may declare their net income for both their qualifying and non-qualifying agricultural produce on the TA22 (only for part-timers who qualify under the part-time rules) or in their income tax return and claim back the 3% tax withheld on the turnover by filling in the necessary declaration on the RA1.