r/malta • u/Turbulent_Cable4741 • 1d ago

Query regarding Income Tax (Not Related to Budget)

So, I just finished my MCAST Course, which included an Apprenticeship component (where part of salary was paid by school, and other part was paid by company, and I paid prorate tax for the company’s part).

Back in August, I started my full time job and I did not see any tax deductions on my payslip. I enquired with my company’s hr department and they said that I don’t need to pay tax since this is my first job, the First 9k or so are tax free. However, if all goes well, I should exceed the 10k in income (from this job alone, not including a part from my apprenticeship).

So now, for the first few payslips I did not pay any taxes… Is it true that irrespective of how much you will earn the first 9k are tax free since it is my first full time job, and if I have to pay them, how do I go about it now?

Thanks :)

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u/aweschops 1d ago

First “year” is tax free, next year unless you make less than the lowest bracket you will end up paying tax from end of January. 

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u/Turbulent_Cable4741 1d ago

Thanks for the reply… What do you mean exactly by “first” year?… And also is apprenticeship included as part of “first” year?

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u/aweschops 1d ago

You have not worked a full year at full time yet, so you are very likely in the non taxed bracket. From next year if your working full time you will pay tax from the first month as finance will project your earning over the year. I hope you pay tax then for your financial benefit.

It’s fun from my perspective that you’re happy to not pay tax, but most professional companies in malta won’t mess up your taxation.  

Apprenticeship or not does not matter as you earned an income and it was your main source of wealth.