Commonwealth Relief

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Commonwealth Tax Relief is available in respect of income tax or tax of a similar nature charged under any law in any country of the Commonwealth, if the law of such Commonwealth country has provided for relief in respect of tax charged on income both in that Country and in Malta.

Unilateral Tax Relief can be applied, insofar that the following conditions are satisfied:

(i) If any person resident in Malta, can furnish documentary evidence, attesting that he/she has suffered Commonwealth income tax in respect of any part of his/her income, he/she shall be relieved from tax in Malta paid on that part of his/her income at a rate, determined as follows-

• If the Commonwealth rate of tax appropriate to his/her case does not exceed the rate appropriate to his /her case under the Maltese Income Tax Act, the rate at which relief is to be given shall be one-half of the Commonwealth rate of tax;
• In any other case, the rate at which relief is to be given shall be half the rate of tax appropriate under the Maltese Income Tax Act.

(ii) If any person not resident in Malta who has paid, by deduction or otherwise, or is liable to pay, tax under the Maltese Income Tax Act, tax under the Maltese Income Tax Act for any year of assessment on any part of his/her income, proves that he/she has paid, by deduction or otherwise, or is liable to pay, Commonwealth income tax for that year of assessment in respect of the same part of his/her income, he/she shall be entitled to relief from tax paid or payable by him/her under the Income Tax Act on that part of his/her income at a rate to be determined as follows-

• If the Commonwealth rate of tax appropriate to his/her case does not exceed the rate appropriate to his/her case under the Maltese Income Tax Act, the rate at which relief is to be given shall be one-half of the Commonwealth rate of tax;
• If the Commonwealth rate of tax appropriate to his/her case exceeds the rate of tax appropriate to his/her case under the Maltese Income Tax Act, the rate at which relief is to be given shall be equal to the amount by which the rate of tax under the Maltese Income Tax Act, exceeds one-half of the Commonwealth rate of tax.

List of Commonwealth Countries

	Antigua and Barbuda		Namibia
	Australia		Nauru
	Bahamas		New Zealand
	Bangladesh		Nigeria
	Barbados		Pakistan
	Belize		Papau New Guinea
	Botswana		Rwanda
	Brunei		Saint Kitts and Nevis
	Cameroon		Saint Lucia
	Canada		Saint Vincent and the Grenadines
	Cyprus		Samoa
	Dominica		Seychelles
	Gambia		Sierra Leone
	Ghana		Singapore
	Grenada		Solomon Islands
	Guyana		South Africa
	India		Sri Lanka
	Jamaica		Swaziland
	Kenya		Tanzania
	Kiribati		Tonga
	Lesotho		Trinidad and Tobago
	Malawi		Tuvalu
	Malaysia		Uganda
	Maldives		United Kingdom
	Malta		Vanuatu
	Mauritius		Zambia
	Mozambique

Tax Structures can legally mitigate one’s tax liabilities. More information can be provided on request. However, it must be noted that since some of the structures may be technically complex, they are ideally discussed at a meeting with Focus Business Services’ Directors.  For bespoke tax advice, please click here to contact our tax advisors or send us an email on enquiries@fbsmalta.com 

• Unilateral Relief
• Commonwealth Relief
• Flat-Rate Foreign Tax Credit