The Government has launched a new withholding tax on rent, whereby the rate of tax on income from rented properties would be reduced from a maximum of 35% to 15%, tax evasion will be discouraged, and government revenue will increase.

 

 

The 15% tax rate would be applicable to rented properties for residential purposes, including garages. Both individuals and companies are eligible for this new reduced tax rate, which is applicable on rental income earned as from 1st January 2014.

Once an individual or company declares the annual income from such rented property and gives the required details in respect of the property, on the prescribed form to be attached with the income tax return, the individual or company will pay a flat rate of 15% in tax on the total gross rental income received.

The scheme is a voluntary one, meaning that the Government is allowing rental earners to opt to retain the existing tax regime for rental income.

The Government is also giving the opportunity to individuals to regularise their tax position with respect to previous years’ undeclared rents. To avail themselves of this opportunity such individuals will have to declare income from rent for the period 2005-2012 and pay the 15% tax on a two year averaged rental revenue received for the mentioned period of time. No interest or penalties would be charged on such declarations.

Such tax and relative declarations are also to be made on a form prescribed for this purpose.

Should taxpayers, whether companies or individuals persist in not declaring income from rent, or declare only part of their undeclared rental income, they will be obliged to pay the full 35% tax rate, in addition to any penalties and interests, following an investigation carried out by tax authorities.

Procedure to pay the 15% tax on rental revenue received during 2014

1. One is to file Form TA 24, which form can be downloaded from the website of the Inland Revenue Department.
2. The person (individual or company) is to give the details of the rented properties and garages, which properties and garages are being used for residential purposes. For each property and garage the gross rental revenue is to be given.
3. The person is to calculate 15% of the rental revenue received as the tax due to the Inland Revenue Department.
4. The duly filled and signed Form together with a cheque covering the amount of tax due is to be sent to the Inland Revenue Department by latest 30th June of the following year. For the year 2014, it means that this Form and payment of tax is to be effected by latest 30th June 2015.

Procedure to declare any undeclared rental revenue received up to 2012

1. One is to file Form TA 24A, which form can be downloaded from the website of the Inland Revenue Department.
2. The individual is to give the details of the rented properties and garages, which properties and garages were rented for residential use. For each property and garage the gross rental revenue received along the years is to be given.
3. The years which this information is needed refer to the years between 2005 and 2012.
4. The individual is to calculate the 15% of the rental revenue received, as described in the same Form TA 24A.
5. The duly filled and signed Form together with a cheque covering the amount of tax due is to be sent to the Inland Revenue Department by latest 30th June 2015.

Note: rental income received in 2013 should be or have been declared in the tax return for that year and subject to the normal tax rates.

For more information call on 25998500, call the Inland Revenue Department Customer Care on 22962296, or email on taxpayerservice.ird@gov.mt.

Download the form TA 24 from here.
Download the form TA 24A from here.

 

 

 

Taxxa mnaqqsa fuq id-Dħul mill-Kirjiet

 

Il-Gvern introduċa taxxa finali ġdida fuq id-dħul mill-kirjiet. Ir-rata tat-taxxa f’dan il-każ qed titnaqqas minn massimu ta’ 35% għal waħda finali ta’ 15%. B’dan il-mod, se tkun qed tiġi skuraġġita l-evażjoni tat-taxxa filwaqt li jiżdied id-dħul tal-Gvern.

Ir-rata ta’ taxxa ta’ 15% se tkun applikabbli għall-proprjetajiet mikrija għal skop residenzjali jew bħala garaxxijiet. Kemm l-individwi kif ukoll il-kumpaniji huma eliġibbli għal din it-taxxa ġdida mnaqqsa, li hija applikabbli fuq id-dħul mill-kirjiet li wieħed daħħal mill-1 ta’ Jannar 2014 ‘l hawn.

Ladarba individwu jew kumpanija jiddikjaraw id-dħul annwali minn tali proprjetajiet mikrija u jagħtu d-dettalji mitluba dwar il-proprjetà fil-formola apposta li trid tinhemeż mal-formola tad-dikjarazzjoni tat-taxxa fuq id-dħul, iħallsu rata fissa ta’ 15% taxxa fuq id-dħul gross totali mill-kirjiet.

L-iskema hija waħda volontarja, li jfisser li l-Gvern qed iħalli l-possibiltà li min qed idaħħal il-flus mill-kirjiet jagħżel li jibqa’ jagħmel użu mis-sistema tat-taxxa tas-soltu fir-rigward tad-dħul li jkollu mill-kirjiet.

Il-Gvern qed jagħti wkoll lill-individwi l-opportunità li jirregolarizzaw il-pożizzjoni tagħhom fir-rigward tat-taxxa jekk fis-snin li għaddew naqsu milli jiddikjaraw id-dħul li kellhom mill-kirjiet. Biex jibbenefikaw minn din l-opportunità, dawn l-individwi jridu jiddikjaraw id-dħul mill-kirjiet għall-perjodu bejn l-2005 u l-2012 u jħallsu r-rata ta’ 15% taxxa fuq il-medja ta’ sentejn dħul, ikkalkulata fuq id-dħul li jkunu daħħlu mill-kirjiet fil-perjodu ta’ żmien imsemmi. Fuq dawn id-dikjarazzjonijiet mhu se jkun hemm l-ebda mgħax jew penali. Anki dawn id-dikjarazzjobnjiet tat-taxxa jkoll jsiru fuq formola li nħarġet apposta.

Jekk individwu jew kumpanija jippersistu f’li ma jiddikjarawx id-dħul tagħhom mill-kirjiet, jew jiddikjaraw biss parti minnu, se jkunu obbligati jħallsu r-rata sħiħa ta’ 35%, u magħha kwalunkwe penali u mgħax li jirriżultaw wara investigazzjoni mill-awtoritajiet tat-taxxa.

 

Il-proċedura biex tħallas il-15% taxxa fuq id-dħul mill-kirjiet li kellek matul l-2014:

1. Niżżel il-formola TA 24 mis-sit elettroniku tad-Dipartment tat-Taxxi Interni, u imlieha.
2. Agħti d-dettalji tal-proprjetajiet mikrijin, inklużi garaxxijiet, li qed jintużaw għal skop residenzjali. Niżżel id-dħul gross li rċevejt mill-kirja ta’ kull proprjetà.
3. Ikkalkula 15% tad-dħul li kellek mill-kirjiet bħala t-taxxa dovuta lid-Dipartiment tat-Taxxi Interni.
4. Imla’ l-formola kif suppost u ffirmaha, u ibgħatha lid-Dipartiment tat-Taxxi Interni flimkien ma’ ċekk li jkun ikopri l-ammont ta’ taxxa dovut. Dan għandu jsir mhux aktar tard mit-30 ta’ Ġunju tas-sena ta’ wara dik li matulha tkun irċevejt id-dħul. Għad-dikjarazzjonijiet fuq is-sena 2014, il-formola u l-pagament iridu jaslu mhux aktar tard mit-30 ta’ Ġunju 2015.

 

Il-proċedura biex tiddikjara kwalunkwe dħul mhux iddikjarat mill-kirjiet li rċevejt sal-2012:

1. Niżżel il-formola TA 24A mis-sit elettroniku tad-Dipartiment tat-Taxxi Interni, u imlieha.
2. . Agħti d-dettalji tal-proprjetajiet mikrijin, inklużi garaxxijiet, li qed jintużaw għal skop residenzjali. Niżżel id-dħul gross li rċevejt sena b’sena mill-kirja ta’ kull proprjetà.
3. Is-snin li għalihom hija mitluba din l-informazzjoni huma bejn l-2005 u l-2012.
4. Ikkalkula 15% tad-dħul li rċevejt mill-kirjiet, skont kif spjegat fil-formola TA 24A.
5. Imla’ l-formola kif suppost u ffirmaha, u ibgħatha lid-Dipartiment tat-Taxxi Interni flimkien ma’ ċekk li jkun ikopri l-ammont ta’ taxxa dovuta. Dan għandu jsir mhux aktar tard mit-30 ta’ Ġunju 2015.

Nota: Id-dħul mill-kirjiet li rċevejt fl-2013 kellhom jiġu ddikjarati fid-dikjarazzjoni tat-taxxa għal dik is-sena, u fuqu japplikaw ir-rati normali tat-taxxa.

Għal aktar tagħrif, ċempel lis-servizz ta’ assistenza lill-konsumatur tal-Ministeru tal-Finanzi fuq 25998500, lis-servizz ta’ assistenza lill-konsumatur tad-Dipartiment tat-Taxxi Interni fuq 22962296, jew ibgħat imejl fuq taxpayerservice.ird@gov.mt.

Niżżel il-formola TA 24 minn hawnhekk.
Niżżel il-formola TA 24A minn hawnhekk.

 

– Tuesday, 9th June, 2015