Tax rebate for pensioners

In 2017, the Government had introduced new tax rebates for pensioners in line with what was announced in the Budget Speech for 2017.  This new measure ensured that pensioners whose pension income exceeds the tax free bracket will have an increased amount of their pension income which will not be subject to income tax.

Pensioners that are over 61 years of age and who are in receipt of pension income will for the year 2017, be exempt from income tax on their pensions up to certain amounts, depending on the tax status of the individual.  This applies to all types of pensions including social security pensions, treasury pensions as well as other local and foreign pensions. 

By means of LN 22 of 2018, the Government has announced that the maximum tax rebates applicable to pensioners has been increased as follows with effect from the 1st January 2018. 

The maximum tax rebate applicable to pensioners taxed at the single rates of tax will be increased from Eur210 to Eur615, while that applicable to those taxed at the parent rates of tax has been increased from Eur150 to Eur405.

Those pensioners who opt for the married rates, will have their rebates increased from Eur45 to Eur75, while the further rebate to which they are entitled to has been increased from Eur75 to Eur150.

The tax rebates cannot give rise to any refunds of tax nor can be carried forward if not fully utilized.

For further information please contact the firm’s tax partners Stephen Balzan on [email protected] or Elaine Camilleri on [email protected].

Apart from its offices in St. Julian’s Malta, ACT operates from a second office in Gozo, which is situated in the capital city of Victoria.  For an appointment in our Gozo office, please call on 00356 21378672 or send us an email on [email protected].

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