Tax deductions and special rates applicable for 2021
The following tax rebate and special rates can be availed of in relation to income earned in 2021.
Part-time Self Employment
If during 2021 you have earned part-time self employment income you are entitled to a reduced rate of 15% subject to certain conditions and cappings.
The aforementioned rate will be reduced to 10% with effect from YA 2023 (on income arising in 2022).
In order for the 15% option to be taken one must submit the TA22 application by not later than 30 April 2022.
15% on Rental Income
If during 2021 you have earned rental you are entitled to a reduced rate of 15% subject to certain conditions.
When it comes to private residential leases, a special rebate may apply. More information can be found here.
In order for the 15% option to be taken one must submit the TA24 application by not later than 30 April 2022.
School Transport Fees Claim for Deduction
If during 2021 you have paid school transport fees for your children that are under 16 years of age who have attended church school or private schools, you are entitled to claim a deduction against your income when submitting your tax return for 2021. The deduction is capped at a maximum of € 150 per child. Such deduction shall only be allowed where the payment and details have been confirmed to the Commissioner for Revenue by Transport Malta.
If the school transport fee is financed by the state, then one is not eligible for the said credit.
In order for the claim to be accepted by the Commissioner for Revenue, you are required to fill in a prescribed form with all the required details, sign it and file it with Transport Malta by sending it to the following address by not later than 28 February 2022 Driver & Passenger Operator Licensing Unit, A3 Towers, Arcade street, Paola PLA1212.
Deduction claim on fees paid for Sports Activities
If you have paid fees during 2021 for your children who are under 16 years of age and who have attended sports activities, you can claim a deduction against your personal income up to a maximum of €100 per child when submitting your tax return for 2021.
In order for the claim to be accepted by the Commissioner for Revenue, you are required to complete a prescribed form together with the sports entity providing the activities, sign it and file it with Sportmalta by sending it to the following address by not later than 28 February 2022: Sportmalta, Cottonera Avenue, Cospicua BML 9020.
Deduction claim on fees paid for Cultural and Creative Courses
If you have paid fees during 2021 for your children who are under 16 years of age in respect of cultural and creative courses, you are entitled to claim deduction against personal income of a maximum of €100 per child when submitting your tax return for 2021.
In order for the claim to be accepted by the Commissioner for Revenue, you are required to complete a prescribed form together the entity or individual providing the course, sign it and file it with Arts Council Malta by not later than 28 February 2022.
Such form can be submitted either by email on taxdoc@artscouncilmalta.org or by post to the following address, Culture & Creative Courses, Arts CouncilMalta, 16, Casa Scaglia, Mikiel Anton Vassalli Street, Valletta VLT 1311.
Documents
Want to know more?
Ruth Farrugia Tax Director - Birkirkara
15% Tax Rate on Rental Income
An optional 15% flat rate of taxation is available for rental income arising from immovable property rented out for residential and commercial purposes.
Tax rebate on private residential leases
Persons who derive income from a private residential lease which is registered with the Housing Authority as a long lease, are eligible for a tax rebate against the tax chargeable on such rental income.
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.
2021 Tax deduction claims
Tax Deduction Claims to be taken for the basis year 2021: School Transport Fees, Sports Activities and Cultural and Creative Courses.