The Malta Independent 14 April 2024, Sunday
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2014 budgetary measure implemented: Reduced tax rate on property rental income

Duncan Barry Thursday, 30 October 2014, 17:41 Last update: about 10 years ago

Finance Minister Edward Scicluna today announced a 15% withholding tax rate, instead of the current 35%, on property rental income, and the new rate has been backdated to January 1 this year.

Speaking during a news conference held at the finance ministry in Valletta, Prof Scicluna said that this measure is part of the government's fight against tax evasion.

The new scheme includes garages but which are not used for commercial purposes.

"This scheme has been created so as to encourage landlords to declare their property rental income since we are very well aware that a number of persons were evading tax.

"This would also encourage more individuals to rent out properties which are vacant," he said.

Prof Scic

He said that in order to register for the scheme, one would have to do so through the Inland Revenue Department.

Prof Scicluna also highlighted that a one time arrangement for those persons who eveaded tax in the last eight years would be given the chance to regularise their position and given the opportunity to declare their past income on property and will pay 15% on the weighted average of eight years and not 35%.

"In this way one can regularise his or her position once and for all and all ends well," he continued.

 

 

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