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L.N. 22 of 2018 – Tax Rebate (Pensioners) (Amendment) Rules, 2018

The Tax Rebate (Pensioners) Rules (S.L. 123.174) (the ‘Rules’) are applicable to individuals who are in receipt of income from any pension chargeable to tax under Article 4(1)(d) of the Income Tax Act, Chapter 123 of the Laws of Malta and who were at least 61 years of age in the year when the said pension was received.

In cases where the individual is chargeable to tax at the rates specified under Article 56(1)(b) of the Income Tax Act but not at the rates indicated in the proviso of the said article, a tax rebate shall be allowed as a set-off against the tax on the chargeable income by using the formula provided for in Rule 3 of S.L. 123.174. The maximum tax rebate that may be given in this case has been increased from €210 to €615.

Individuals chargeable to tax at the rates under the second proviso to Article 56(1)(b) shall be given a tax rebate as a set-off against the tax on their chargeable income. The maximum tax rebate in this case has been increased from €150 to €405.

Rule 3(3) of these Rules states that an individual who is chargeable to tax at the rates under Article 56(1)(a) of the Income Tax Act shall be afforded a tax rebate as a set-off against the tax on his chargeable income worked out using the formula provided in the Rules. The maximum rebate in this case has been increased from €45 to €75.

Moreover, the additional maximum tax rebate provided for under Rule 3(3)(b) of the Rules has been increased from €75 to €150.