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Tax refund when leaving Malta

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mantonas

Hi, I wonder if anyone can assist me one this!

Does anyone knows how it works when you leave the country and you try to apply for your tax return. I did it previously through a company called taxback.com when I was in Ireland but they don't provide assistance for Malta. For example, if I was to leave the country now, would I be entitled to claim the tax I have paid during 2015? Do you know how can I calculate the amount to receive? And how about the process, is it straight forward and how long more or less takes to receive those funds?

I hope someone went through this process before and will be able to give me some tips. Thanks in advance :)

Antonio

blackangelheart

No idea about Malta but don't use companies like taxback.com next time! Everything is so easy in Ireland, if you need any help with taxes or just info on how the tax system works let me know. I know it off by heart and have helped lots of ex colleagues get their money back :)

tearnet

Isn't the tax you paid in 2015 based on your earnings in 2014?

2015 tax is paid this coming year in April / May isn't it ?

Terry

mantonas

That's correct Terry but normally I would not get any tax return in case I would stay in Malta. But I am asking in case I leave Malta and get back the amount of tax I have paid in 2015. By my calculations and towards my earnings from 2015, a paid over 4k in taxes, so, can I get this money back if a leave the country for good?

tearnet

If you leave Malta you would be entitled to  a refund on any overpaid tax but it would only be paid the following year and I guess you would have to submit a tax return showing that you had little or no income in Malta for the year you moved.

As always its best to contact the tax department and ask them the what the correct  procedure is.

Terry

Spiridonov

If you mean the tax withheld from your salary/income - no, it wouldn't be returned even if you leave Malta (unless it was calculated incorrectly).

The simple scheme is the following:
1. You collect the information about your income and tax from all the sources.
2. After the year end you decided in what country you were tax resident
3. You declare your income in the country of your tax residence
4. Depending on the existence/terms of Double Tax Treaty between Malta and your country of residence you can apply for tax refund or sometimes even pay more tax in your country of residence

And this is very simple scheme. If your income involves something related to real estate, or passive income; if you remit or not any money from the previous country; if there are any passive income or capital gains - scheme can be more and more complicated.

An the cherry on top: the default rule of 183 days is not applicable for all countries, so at the end of the year you can be tax resident of 2-3-4 countries, and all of them want your tax :)

mantonas

Thanks for your detailed information Spiridonov. And yes, that's what I meant! I thought that in Malta as happened in other countries where I have worked previously, I could request part of the tax that has been deducted from my salary/income while working here, in case I would leave the country at some point.
But that's fine, your explanation was pretty clear and I wasn't aware about this scheme.

Thanks again :)

anaromano

Hi Mantonas,
Did you manage to get your tax refund? I'm looking to do the same.

anaromano

In here:

Becky84

Hi I wondered if you could give me a bit of advise regarding tax if you could send a pm that would be great as I can't contact you thank you

Becky84

Sorry I tried to send that message to blackangleheart but it went in the wrong place not very tech savvy sorry

Leanne17

Hi, have you applied for it? How did it go?
Is it only applicable if you want to move out Of Malta?
Sorry for asking too much :) im on the same predicament.

mantonas

Leanne17 wrote:

Hi, have you applied for it? How did it go?
Is it only applicable if you want to move out Of Malta?
Sorry for asking too much :) im on the same predicament.


Hi Leanne,
I did not apply yet as I am still in Malta and as someone explained on previous comments above, don't think I can get anything if I leave out the country. However, I am in contact with a company that deals with these kind of requests and I am waiting to hear from them. They are supposed to provide me with a pre-calculation in case I am entitled to something. I will let you know when I have more news

Leanne17

mantonas wrote:
Leanne17 wrote:

Hi, have you applied for it? How did it go?
Is it only applicable if you want to move out Of Malta?
Sorry for asking too much :) im on the same predicament.


Hi Leanne,
I did not apply yet as I am still in Malta and as someone explained on previous comments above, don't think I can get anything if I leave out the country. However, I am in contact with a company that deals with these kind of requests and I am waiting to hear from them. They are supposed to provide me with a pre-calculation in case I am entitled to something. I will let you know when I have more news


Thanks! ;)

Fionn

Re: Your question - 'Is it only applicable if you want to move out Of Malta?'

Answer: No - apply for your income tax refund now.

mantonas

Fionn wrote:

Re: Your question - 'Is it only applicable if you want to move out Of Malta?'

Answer: No - apply for your income tax refund now.


That's correct, just had the confirmation today. If I am not entitled for a tax refund at the end of the tax year, that's it.

Leanne17

Oh great! 🙂 Thanks!
Do you know which block at the tax department shall we go to file?
I have to work out mine too.

mantonas

Leanne17 wrote:

Oh great! 🙂 Thanks!
Do you know which block at the tax department shall we go to file?
I have to work out mine too.


You will need to go to the tax office in floriana and you will need to complete the tax year form by the end of this month.

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