Fiscal Measures

An increase in excise duty on cigarettes, tobacco, fuel, cement, alcoholic drinks and beer.
An increase of one cent excise duty on fuel shall be introduced in January 2014.
An introduction of a refund on expenses on banderoles.
An increase in car licence fees in respect of vehicles that were registered after 2009. Car licences for vehicles with emissions from 0 to 100 grammes shall remain the same.
The personal tax bracket of 32% applicable to persons who earn up to €60,000 shall be reduced to 29%.
This tax bracket is applicable to single, married and parent rates.
The parent rate of €9,300 shall be increased to €9,800.
A tax allowance for parents who maintain a child in tertiary education is to be extended to children up to the
age of 23 years.
In respect of part-timers, part time withholding tax limit of 7,000 has now been increased to €10,000 and
€12,000 in case of part-time self-employed persons.
Part-timer self-employed persons are now allowed to employ up to a maximum of two employees and continue to avail of the 15% withholding tax rate.
Employees who earn the minimum wage shall not have any tax burden. This will also apply to pensioners who
do not exceed the minimum wage threshold.
Pensioners who continue to work as self-employed on a part-time basis shall be subject to a tax rate of 15%
in case that the total part time income does not exceed the minimum rate of social security contribution.
The rate of income tax for footballers shall be reduced to 7.5%.
Tax charged on auctions shall be removed.
Interest due from stamp duty on a transfer causa mortis cannot exceed the duty paid.
The gross rental income shall be subject to a final tax rate of 15%. Properties which are not registered and are rented out shall be subject to a final tax rate of 35%, and the said rental income shall be subject to penalties and interests which shall be introduced at a later stage.
First home buyers who enter into the final deed of transfer in 2014 shall be exempt from duty payment on the first €150,000.
It is now possible for private architects to evaluate a property which valuation may be used for tax assessment purposes.
A pilot project is to be introduced to identify government properties situated in Valletta.
As from January, persons who declare VAT on time and effect the respective payment on time, shall have their VAT amount deducted in full even if they would have older previous balances not yet settled.
The penalty of non-filing shall be removed if a VAT return is submitted without a payment.
The current interest rate on overdue VAT and income tax balances shall be reduced.
Currently, self-employed persons who fail to pay VAT/Income Tax on time can be sent to imprisonment in case of a second default. An amendment will be introduced whereby in such a case the court shall have the discretion to either imprison or extend a fine of €2,000.
Property developers who cannot provide proper evidence of work carried out on their properties will be subject to VAT on the construction estimate of that property.
An introduction of the Investment Registration Scheme whereby persons who would like to declare funds, stocks and investments which are not declared in Malta or elsewhere, may declare these investments subject to a fine.
An introduction of a Reporting Online Portal whereby persons may report other non-Maltese persons who undertake work or services in Malta without paying the necessary VAT and Eco-contributions.