Malta | Part-time self employed – TA22 eligibility and procedure
A taxpayer working as self-employed on a part-time basis may qualify for the 15% flat tax rate on the declared net profit up to a maximum of €12,000 (maximum tax charged at 15% = €1,800). If eligible the taxpayer is to submit a TA22 Form and make the necessary payment annually by the 30th June of the following year. Only the remainder of the net profit in excess of €12,000 is to be declared by the taxpayer in the personal income tax return.
2014 - 2016 part-time self employed reduced tax rates
2008 - 2013 part-time self employed reduced tax rates
- The taxpayer must be employed full-time, or a pensioner or a full-time student/apprentice;
- The part-time work must be registered with the ETC (Declaration of Commencement of Employment – Self-Employed – Form;
- The part-time business must not employ more than 2 employees and these employees must be registered as working on a part-time basis (Application for a PE Number Form for registration of an employer – self-employed with employees);
- The taxpayer must be VAT registered (VAT application for registration) and must keep proper accounting records;
- The taxpayer cannot perform any part-time work for his/her full-time employment entity.
- A profit and loss account is to be prepared as extracted from the books of account for each year;
- A TA22 Form is to be prepared and submitted by the 30th June of the following year to the IRD (vide paper or online forms);
- The maximum eligible net profit to be charged at the 15% tax flat rate is €12,000 and the maximum tax on this portion of the net profit is €1,800;
- Payment payable to the DGIR is to be made with the TA22 Form (by cheque or online);
- Net profits below €12,000 and charged to tax at the 15% flat rate utilising the TA22 Form should not be declared in the taxpayer’s personal income tax return;
- Net profits in excess of €12,000 (taxed on the TA22 Form) are to be declared separately on the taxpayer’s income tax return.