The Income Tax Act has been amended through the Budget Implantation Act (No. VII of 2018) to introduce a minimum tax applicable to resident but not domiciled individuals in Malta. In general, a person who is resident but not domiciled in Malta is only taxable on income and capital gains arising in Malta and income arising abroad but received in or remitted to Malta.

As of 2018 (year of assessment 2019), resident but not domiciled individuals will have a minimum tax of EUR 5,000 applicable if their foreign income earned and not received in Malta in a year amounts to not less than EUR 35,000. Should the individual have income taxable in terms of the Income Tax Act from other sources they will contribute towards this minimum tax, however it should be noted that taxes on capital gains will not be included in this calculation.

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