Malta Budget 2014 Highlights
The 2014 Budget presented in Parliament by the Minister of Finance seeks to set up a fiscal policy to reduce the deficit to GDP ratio to less than 3% whilst retaining the economy's momentum.
This budget aims to continue with the fiscal consolidation and economic sustainability whilst strengthening the social safety net and providing enough incentives for further investment and the creation of more jobs.
These are the main highlights:
• First home buyers who enter into the final deed of transfer in 2014 shall be exempt from duty payment on the first €150,000.
• Reduction of top progressive income tax rate for individuals from 32% to 29% on income up to €60,000
• Widening the tax free bracket in the case of single and parent tax computations
• Introduction of an investment registration scheme
• Increase in the ceiling for part-time work taxed at 15%
• Part-timer self-employed persons are now allowed to employ up to a maximum of two employees and continue to avail of the 15% withholding tax rate.
• No tax to be paid by pensioners who do not exceed the minimum wage threshold. No tax to be paid by employees who earn the minimum wage.
• Final Withholding tax of 15% on rental of residential property
• Increase in tax deduction for payment of child-care facilities
• Changes in motor vehicle registration tax
• Introduction of a vehicle scrappage scheme
• Measures to increase employment
• Changes in allocation of VAT payments
• Reduction of domestic water and electricity bills by up to 25%.
• The rate of income tax for footballers shall be reduced to 7.5%.