Malta Budget 2013: Proposals for reductions in personal tax rat

In the Malta Budget 2013 speech, the Minister of Finance proposed a reduction in the tax rates applicable to individuals. The proposal envisages the introduction of a tax bracket whereby income up up to €60,000 which is currently subject to tax at 35% would be subject to a lower tax rate of 32% in 2013, 29% in 2014 and 25% in 2015. 

In summary:

• a person earning €45,000 will save €500 in 2013, €1,000 in 2014 and €1,500 in 2015,
• a person earning €60,000 will save €1,200 in 2013, €2,400 in 2014 and €3,600 in 2015.

The proposals do not effect income over €60,000 which shall continue to be taxed at 35%. The income tax bands for parents introduced last year have been retained.