Part time Income Rules (Amended)
The part time income rules have been revised through LN 185 of 2014 and LN 186 of
The following rules will be effective from year of assessment 2015.
Individuals Eligible to benefit from the Part time Income Rules
• Individuals receiving full-time instruction at a university, college or other similar
• Individuals serving an apprenticeship with a view to qualifying in a trade or
calling, or where an individual has income in his own right falling under article
4(1)(b) or (d) ITA
• Full time employees registered with the ETC;
• Recipients of a pension taxable in Malta from past employment; and
• A tax payer who is married to an individual who receives full-time instruction or
is serving an apprenticeship or has income in his or her own right which is eligible
to benefit from the Part time Income Rules.
Original Beneficial Tax Rate - 15% tax on the first Euro 7,000 of annual part time
employment. Any excess income generated from the part time work is added to the
tax payer's taxable income and taxed at the normal progressive rates
The Part time income rules have been amended as follows:
The Euro 7,000 threshold for the application of the beneficial tax rate of 15% has
been increased to Euro 10,000 when the income from part time work is related to
employment income and to Euro 12,000 when the income from part time work is
related to self employment income.
Conditions which should be satisfied by part time self employed individuals to be
eligible to benefit from the preferential rate of 15%:
• The trader must be VAT registered (if applicable);
• The trader has registered his part time work with the ETC;
• The trader cannot employ more than two employees on a part time basis;
• The trader must keep proper books and records as required by Art 11 ITMA;
• The trader performs such work for a company, organisation, enterprise or entity
other than that with which he is employed on full-time basis.
Conditions which should be satisfied by part time employed individuals to be eligible
to benefit from the preferential rate of 15%:
• The employee is registered with ETC;
• The full time employment and part time employment must not be carried out
with same employer or employers controlled and beneficially owned directly or
indirectly to the extent of more than 50% by the same shareholder.
The adequate forms TA 22 (with respect to part time self employed) and TA 23 (with
respect to part time employment income) should be prepared and submitted with
the Inland Revenue Department.
The TA23 and payment of tax on part time employment income should be submitted
with the Inland Revenue Department by not later than 21st December of the year in
which the part time income is being undertaken.
The TA22 which was previously sent to the Inland Revenue Department by the end
of May and September of the year in which the part time self employment was
undertaken and June of the year following the year in which the part time self-
employment was undertaken, will be prepared in one form (for the whole year).
This document should be submitted with the Inland Revenue Department (together
with the tax payment) by not later than 30 June of the year following the year in
which the part time self-employment was undertaken.