Budget 2008

You are here: Home > Business Tools > Budget 2008

Recommended Titles @ Amazon

Personal Tax Bands - 2008 (as per Budget 2008)
Single Rates					Married Rates
Chargeable Income (Lm)	Chargeable Income (€)	Tax Rate (multiply by)	Subtract Lm	Subtract €	Chargeable Income (Lm)	Chargeable Income (€)	Tax Rate (multiply by)	Subtract Lm	Subtract €
0 - 3498	0 -8150	0	0	0	0 - 4894	0 - 11400	0	0	0
3499 - 6010	8151 - 14,000	0.15	525	1223	4895 - 8800	11401 - 20500	0.15	734	1710
6011 - 8156	14001 -19,000	0.25	1126	2623	8801 - 12021	20501 - 28000	0.25	1614	3760
8157 & Over	19001 & Over	0.35	1942	4523	12022 & Over	28001 & Over	0.35	2817	6561

Cost of Living Allowances Increases

Children allowances

A minimum of Lm107.33 (€250) per child per annum who have not yet attained the age of 16.
Children allowances shall be the same for every child in the same household.

Other allowances

Social security and maternity leave

Employers shall not pay any social security contributions of persons employed with disability for the first 3 years in employment.
Personal assistants in employment of disabled persons shall be exempt from paying the employers share of social security.
Paid maternity leave will be 14 weeks.
Social security contributions shall be paid by government for persons over 45 who have been unemployed for 5 years and become self-employed.

Duty on inheritance of residential property

No duty will be payable upon the transmission of the residential home of the surviving spouse, provided the surviving spouse does not sell this property before his demise. Commencement date immediate.

Duty on acquiring sole ordinary residence

The discounted duty of 3.5% on the acquisition of immovable property for the purpose of one’s ordinary residence shall apply on the value of the first Lm50,000 (€116,469).
This concession shall apply for any transfers made by parents to their children for the purpose of their children’s ordinary residence.

Tax incentives on private kindergartens

A deduction from chargeable income of a maximum of Lm429 (€1,000) per child will be allowed

Culture

Leasing of spaces for artistic and cultural activities, entry fees to museums, art exhibitions, concerts will be at 5% VAT.
All arts education shall be VAT exempt.
Corporate donations for cultural causes to nonprofit cultural groups will be tax deductible.
Corporate scholarship grants to Maltese artists for up to Lm7,985 (€18,600) will be tax deductible.

Sports

A tax deduction against personal income of up to Lm42.93 (€100) will be granted to parents sending their children to practice organised approved sports.
Grants by businesses towards sports organisations will be allowed a tax deduction of their grant.
VAT paid by sports associations on their sports facilities will be refunded.

Pensions

Pensioners to get full cost-of-living increase to their pension and non two-thirds.
The first Lm200 (€467) of ex-servicemen’s service pension will be ignored for the purpose of calculating the social security pension.
Persons who become of pensionable age may continue working and earn any amount of income without limitation, without losing any part of their pension.
The maximum deduction on taxable income shall be capped at Lm859 (€2,000) per annum for payments for private residential services for the elderly. This also applies for persons paying for persons of their family to make use of these services.

Environmentally friendly benefits

Budget 2007 Links

Budget Speech (English)

2008 Budget Matters - Notice

The Budget 2008 Excerpts are a brief summary and intended solely for general information and should not be acted upon without prior consultation.

The full version of the Budget Speech 2008 may be obtained from the Department of Information website.

Specific detail may become clearer on the enactment of the specific legislation.