Permanent Residents no longer eligible for Remittance basis of taxation

In virtue of the recently issued Subsidiary Legislation 123.160, persons falling under the definition of ‘Permanent Resident of Malta’ will no longer avail of the remittance basis of taxation. This entails that such persons will be subject to Maltese taxation in respect of their world-wide income, irrespective if remitted to Malta or not.

A ‘Permanent Resident of Malta’ is:

1. a person who has right of permanent residence in terms of article 6 and is in possession of a permanent residence certificate issued in terms of article 7 of the Free Movement of European Union Nationals and their Family Members Order; or
2. a person who applies for right of permanent residence in terms of article 6 of the Free Movement of European Union Nationals and their Family Members Order.

For further information or clarifications, please contact Benjamin Griscti (Senior Advisor, Tax Services) on bgriscti@ksimalta.com