Income Tax Exemptions

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Tax exemptions are set forth in Article 12 of the Income Tax Act, Chapter 123 of the Laws of Malta, and include the following:

Income of the University of Malta;
Allowances and benfits payable under the Social Security Act;
Any interest, discount, premium or royalties accruing to a person not resident in Malta, provided that such person is not engaged in trade or business in Malta through a permanent establishment;
Any gains or profits accruing to or derived by any person not resident in Malta on a transfer of units in a Collective Investment Scheme or any units and instruments related to linked long term business of insurance;
The income of any Retirement Fund registered or otherwise authorised under the Special Funds (Regulation) Act;
The income of any institution, trust, bequest or foundation of a public character which is engaged in philanthropic activities;
The income of any political party including the income of clubs adhering to political parties;
Wound and disability pensions;
Capital sums received by way of commutation of pension, retiring or death gratuity or received as consolidated compensation for death or injuries;
The income arising from a scholarship held by a person receiving full time instruction at a university, college or similar education institution;
The income of trade unions;
The profits of non-resident ship-owners;
The income of a club or similar institution operated exclusively for social welfare, civic improvement, pleasure or recreation and for non-profit purposes;
The income of a philharmonic society which constitutes a band club;
The income of a club or similar institution that constitutes a sports club;
Any dividend paid or payable out of gains or profits deriving from the production of petroleum in Malta;
The income of a co-operative society;
Any subsidy related to the Common Agricultural Policy;
The income of a Collective Investment Scheme other than income from immovable property situated in Malta;
Any financial assistance received by an individual from his estranged spouse in respect of the maintenance of a child;
Any income or gains derived by a company registered in Malta from a Participating Exemption;
Royalties and similar income derived from patents in respect of inventions, whether in the course of a trade, business, profession, vocation or otherwise.

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