Filing your income tax return is one of those tasks that most self-employed people in Malta put off until the last possible moment. But understanding the process, knowing what you need, and getting it right the first time can save you stress, penalties, and unnecessary back-and-forth with the Inland Revenue Department.
Here is everything you need to know about filing your income tax return in Malta.
Who Needs to File a Tax Return?
If you are self-employed, you are required to file an annual income tax return in Malta. This applies whether you operate as a sole trader, a partnership, or through a one-person company. Even if your income falls below the tax-free threshold, filing is still mandatory once you are registered as self-employed with the Commissioner for Revenue.
Employed individuals who earn only employment income and have no additional sources of revenue may not need to file, as their employer handles final settlement system deductions. But the moment you have rental income, freelance earnings, or investment gains on top of your salary, you are generally required to submit a return.
Manual vs Online Filing
Malta offers two ways to file your tax return: the traditional paper-based method and online submission through the CFR's e-services portal.
Paper filing involves completing the physical tax return form, attaching supporting documents, and submitting everything to the Inland Revenue offices. While some people still prefer this approach, it is slower and more prone to errors.
Online filing through the CFR portal is faster, more convenient, and gives you an extended deadline. You can save your progress, review calculations before submitting, and receive confirmation instantly. To use the e-services portal, you need an e-ID account, which you can set up through Identity Malta.
For most self-employed professionals, online filing is the clear winner. It is quicker, easier to correct, and gives you more time.
Key Deadlines
This is where many people get caught out. The deadlines for income tax returns in Malta differ depending on how you file:
- Paper returns: Due by 30 June of the year following the tax year
- Online returns: Due by 31 July of the year following the tax year
So for the 2025 tax year, your paper return must be in by 30 June 2026, while online filers get until 31 July 2026. That extra month is another strong reason to file electronically.
Missing the deadline can result in penalties, interest charges, and additional administrative headaches.
What Information Do You Need?
Before you sit down to file, gather the following:
- Income records: All invoices issued, payment receipts, and bank statements showing business income
- Expense records: Receipts and invoices for business expenses you intend to claim as deductions
- SSC contributions: Records of social security contributions paid during the year
- Provisional tax payments: Details of any provisional tax already paid
- Bank interest statements: If you earned interest on business or personal accounts
- Rental income details: If applicable, including expenses related to rental properties
- Capital gains information: Details of any property or asset sales during the year
Having everything organised before you start makes the process significantly smoother.
Common Mistakes to Avoid
Self-employed taxpayers in Malta frequently make the following errors:
Forgetting to declare all income. Every euro of business income must be declared, including cash payments. The CFR cross-references data from multiple sources, so omissions can trigger audits.
Claiming personal expenses as business costs. Only expenses wholly and exclusively incurred for business purposes are deductible. Mixing personal and business expenses without proper apportionment is a red flag.
Missing the deadline. Late filing attracts penalties and interest. Set a reminder well in advance.
Not reconciling figures. Your declared income should match your VAT returns, bank deposits, and other records. Inconsistencies raise questions.
Ignoring provisional tax. If you received a provisional tax assessment, those payments should be reflected accurately in your return.
What Happens After You File
Once your return is submitted, the CFR processes it and issues a tax assessment notice. This notice confirms the amount of tax you owe or, in some cases, a refund due to you.
If the CFR accepts your return as filed, the assessment will match your calculations. However, the department has the right to review and adjust your return if they identify discrepancies.
If you receive an assessment that differs from your submission, you have the right to object within 30 days. This objection must be in writing and should clearly state why you disagree with the assessment.
Any tax due as per the assessment must be paid by the date specified on the notice. Failure to pay on time results in additional interest charges.
Make It Easier on Yourself
Filing your income tax return does not have to be a stressful experience. Keep your records organised throughout the year, set aside time well before the deadline, and do not hesitate to seek professional help if anything is unclear.
A proactive approach to tax filing not only keeps you compliant but also helps you identify opportunities to reduce your tax liability legitimately.
Michael Cutajar, CPA — Founder of Accora.