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Malta | Budget 2017 – Pensioners – Tax Rebate

Malta | Budget 2017 – Pensioners – Tax Rebate

Legal Notice 42 of 2017 has clarified the Government Budget 2017 measures on Pensions. The Legal Notice does not mention exemptions but tax rebates allowable as a set-off. The tax rebates allowed against taxed income earned in the year 2017 shall in no case give rise to a tax refund and shall not be allowed to be carried forward to following years.

The workings for the tax rebate for pensioners over 61 years of age are the following:

Persons applying the Single Tax Rates with pension exceeding €9,100:
Pension Tax Rebate = [(Pension Income – €9,100) * 0.15]
Condition: Maximum tax rebate cannot exceed €210

Persons applying the Parent Tax Rates with pension exceeding €10,500:
Pension Tax Rebate = [(Pension Income – €10,500) * 0.15]
Condition: Maximum tax rebate cannot exceed €150

Persons applying the Married Tax Rates with pensions exceeding €12,700:
Pension Tax Rebate = [(Pension Income – €12,700) * 0.15]
Condition: Maximum tax rebate cannot exceed €45
An additional further tax rebate is being granted for pensioners earning additional taxable income:
Total Tax Rebate = [(Total Income – €12,700) * 0.15] – [Pension Tax Rebate as above]
Condition: Maximum tax rebate cannot exceed €75

  Government Budget 2017 Highlights   Click here for full Government Budget 2017 Highlights

Downloads:
  Budget 2017 Speech in Maltese

Links:
  Relevant Government budget measures 2017
  Relevant Government Budget 2017 measures affecting pensioners
  Relevant Government Budget 2017 measures affecting 1st time buyers

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4 thoughts on “Malta | Budget 2017 – Pensioners – Tax Rebate

    • If you retired at 61 and started receiving a pension because you were born on or before 31st December 1951 then must be 65 years or older. In the case that you are over 65 and are in employment then no Social Security Contributions are payable and the employer is not obliged to pay the maternity fund contribution.

      If on the other hand you have retired before your official retirement age, as indicated in this link, and you continue working you will lose your pension until you reach your official retirement age. If you decide to work anyway you will have to pay your National Insurance Contributions until you reach your official retirement age. Once you reach your official retirement age you will not have any NI deducted and you will start receiving your pension again.

  1. I want to know what was my total pension earnings and how much I paid income tax for 2017 on my pension earnings.
    Where do I get this information from?


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