Malta Tax Agency Issues Guidance on Remittance Basis of Taxation for Nonresident Individuals

The Maltese Inland Revenue March 29 issued guidance on the remittance basis of withholding taxation, which applies to individuals who are either not domiciled or not ordinarily a resident in Malta. Under this basis: 1) all income arising in Malta is subject to tax regardless of where it’s received; 2) income arising outside Malta is subject to tax only if received in Malta; and 3) capital gains arising outside Malta aren’t subject to tax even if received in Malta. The guidance also explains that, subject to certain limitations, non-domiciled individuals must pay the 5,000 euro (US$5,612) minimum tax liability if ...