This guide will walk you through the individual tax deductions in Malta specified in Articles 14A to 14G of the Malta Income Tax Act (ITA), ensuring you can take full advantage of these benefits.
Alimony Payments (Article 14A of ITA)
If you are paying alimony to an estranged spouse, you can deduct the lesser of the amount actually paid as per the court’s order or your chargeable income for the year. This deduction helps lessen the financial burden of alimony payments and ensures fair taxation.
School Fees (Article 14B of ITA)
Parents in Malta who pay school fees for their children attending registered private kindergartens or schools named by the Minister are eligible for deductions. The allowable amounts are the lesser of:
The amount actually paid as certified by the head of the relative school or kindergarten;
- €2,600 per child in secondary school
- €1,900 per child in primary school
- €1,600 per child in kindergarten
Additionally, if you have a child with special needs and have paid for a facilitator, you can claim up to €9,320. These deductions can make private education more affordable and accessible.
Child Care Fees (Article 14C of ITA)
For parents utilizing bona fide childcare services for children under 12 years, a deduction of the lesser of the actual amount paid or €2,000 per child is available. This can substantially offset the costs of childcare, making it easier for parents to balance work and family life.
Fees for Homes for the Elderly and Disabled (Article 14D of ITA)
Individuals paying for residence in private homes for the elderly or disabled, or respite centers for the disabled, can deduct the lesser of the amount paid or €2,500. This deduction supports families in caring for elderly or disabled members, reducing the financial burden of specialized care.
Sports Fees (Article 14E of ITA)
Parents can claim a deduction of the lesser of the actual amount paid or €300 per child under 16 years for fees paid towards sports activities. This encourages physical activity and the overall well-being of children by making sports more affordable.
Tertiary Education (Article 14F of ITA)
Investing in higher education comes with its own set of tax benefits. Individuals in Malta who pay for their tertiary education at recognized institutions can claim a deduction of up to €10,000 in the year their studies are completed. This deduction is a significant incentive for continuing education and skill enhancement.
Fees for Cultural Activities (Article 14G of ITA)
A deduction of the lesser of the actual amounts paid or €300 per child under 16 years is available for fees paid towards creative or cultural courses. This makes cultural enrichment activities more accessible, promoting the artistic development of children.
Keywords: Individual Tax Deductions Malta
