New guidance clarifies that election must be made via the income tax return and remains binding for five consecutive years of assessment.
Malta’s Tax and Customs Administration announced on 27 March 2026 that taxpayers opting for a final income tax without imputation must make the election through their income tax return.
The authority confirmed that once exercised, the election is binding for five consecutive Years of assessment, limiting the ability to switch treatment during that period.
The measure forms part of updated guidance aimed at clarifying compliance procedures within Malta’s tax framework. The election introduces a fixed-term approach, requiring taxpayers to commit to the selected treatment for the full duration.
The administration also continues to provide broader regulatory guidance covering VAT, social security contributions, property transfers, and customs matters, including excise duties and cross-border trade rules.
Earlier, Malta’s government issued Legal Notice 188 of 2025, titled the Final Income Tax Without Imputation Regulations, 2025, under Article 22B of the Income Tax Act on 2 September 2025.
