GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW) | ||||
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16:25 Dec 13, 2018 |
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English language (monolingual) [PRO] Bus/Financial - Law: Taxation & Customs / Malta | |||||||
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| Selected response from: Charles Davis Spain Local time: 00:23 | ||||||
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SUMMARY OF ALL EXPLANATIONS PROVIDED | ||||
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4 | interest earned in Malta that forms part of declarable income |
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Discussion entries: 8 | |
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local interests in basis... interest earned in Malta that forms part of declarable income Explanation: I think the document Lorena has cited in the discussion area enables us to decipher this rather strangely expressed phrase. Here it is: https://cfr.gov.mt/en/inlandrevenue/personaltax/Documents/ta... First, "basis" is what they call taxable, or more precisely declarable, income in a given year. The document itself is headed "Basis Year 2014 Year of Assessment 2015" This means that it refers to the tax declaration submitted in 2015 on income in 2014. (It's the same in Spain, for example: in June this year I submitted my income tax return for my earnings in 2017.) There's a section on p. 9 headed "General Basis of Taxation". It begins: If you are domiciled and ordinarily resident in Malta you should declare all your 2014 income (including that of your spouse and dependent children) from whatever source." So "basis" means declarable income for the year, the income that has to be entered on the form (and that may or may not be taxable). "Local interests" is covered on p. 19. Although "interests" is pluralised, which is not idiomatic in English, what they mean is interest, potentially from multiple sources. It begins: "All local interest income (including foreign currency accounts held at local banks) that did not suffer tax deductions at source must be included in box 9b. Interest income from local banks, which has already suffered 15% tax should not be declared in your tax return." https://cfr.gov.mt/en/inlandrevenue/personaltax/Documents/ta... This is part of section 9, "Local Investment Income". Section 10 is "Foreign Investment Income". So clearly "local" means domestic: within Malta, as opposed to foreign. Interest on which withholding tax has been paid does not need to be declared, so it is not "in basis", as they put it. -------------------------------------------------- Note added at 23 hrs (2018-12-14 16:20:36 GMT) -------------------------------------------------- Yes, that's right, on the understanding that "local" means "within Malta". It is possible that in some cases local capital income may not be taxable (in the case of non-residents, for example). but it is always declarable unless tax has been withheld. |
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Notes to answerer
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