10% on Part Time Self Employment
An optional flat rate of 10% is available on the first € 12,000 arising from part-time self-employment income.
Do you have part-time self-employment income?
If you do, then you can avail yourself from a flat tax rate of 10% on the first € 12,000 arising from such part-time self-employment.
The 10% rate has been reduced from 15% and is applicable on any part time self employment income arising from 2022 onwards. The 10% will apply on the first € 12,000 of part-time self employment income earned and if the said income exceeds this amount one would have to declare the excess in his income tax return.
How is 10% calculated?
The 10% rate is calculated on the profits, meaning the difference between the revenue and any expenses which are directly incurred in the production of such turnover.
How to apply for 10%?
If you wish to avail yourself of this reduced rate, you need to fill in and file a prescribed form as provided by the Commissioner for Revenue. Such form needs to be signed and submitted to the Commissioner for Tax & Customs by not later than 30 April 2024.
Can the process be done electronically?
Yes, the said prescribed form can be completed and submitted through the Commissioner for Tax & Customs' portal.
How can we assist?
We can help you in assessing if the 10% tax rate is beneficial for you as well as providing you assistance with your compliance obligations. We can also assist you in preparing your personal income tax return as well as to prepare the prescribed form through which you can avail yourself of the 10% tax regime.
Should you require any further assistance or require any further information about the reduced rate of tax, do not hesitate to contact us so that we may assist you.
Want to know more?
Elaine Marie Debono Tax senior manager - Birkirkara
Ruth Farrugia Tax Director - Birkirkara
