Many people in Malta earn income from a side activity alongside their full-time job. If you sell property on weekends, tutor students in the evenings, or do freelance design work after hours, there is a specific tax mechanism designed for you: the TA22 form.
Understanding how the TA22 works could save you a significant amount in tax. Here is what you need to know.
What Is the TA22?
The TA22 is a tax form that allows individuals who are in full-time employment to declare income from a part-time self-employed activity at a flat tax rate of 10%. Instead of adding your side income to your regular salary and paying tax at your marginal rate (which could be 25% or even 35%), you pay a flat 10% on that part-time income.
This is one of the most generous tax provisions in Malta for people earning supplementary income, and yet many eligible individuals either do not know about it or do not take advantage of it.
Who Qualifies?
To use the TA22, you must meet all of the following conditions:
You must be in full-time employment. Your primary source of income must be from an employer who pays your social security contributions. This is the fundamental requirement.
Your part-time self-employed income must not exceed €12,000 per year. This is the gross income from your side activity, not your profit. If you earn more than €12,000 from your part-time work, you cannot use the TA22 and must declare that income through the standard tax return instead.
You must be registered with Jobsplus as part-time self-employed. This is a separate registration from your full-time employment status. You cannot simply declare income on the TA22 without first registering the activity.
You may employ a maximum of two persons in your part-time activity. If your side business has more than two employees, you no longer qualify for the TA22 scheme.
The 10% Flat Tax Rate
The appeal of the TA22 is straightforward. Let us say you earn €8,000 from part-time property viewings and commissions. Under the TA22, you pay €800 in tax on that income, full stop.
Without the TA22, that €8,000 would be added to your employment income and taxed at your highest marginal rate. For someone earning a reasonable salary, that could mean paying 25% or more on the additional income, resulting in a tax bill of €2,000 or higher instead of €800.
The savings are real, and they are immediate.
How Does It Interact with Your Regular Tax?
Your full-time employment income continues to be taxed normally through your employer's payroll. The TA22 income is taxed separately and does not affect your tax band for your salary. Think of it as a completely separate calculation.
This is what makes it so attractive. The two streams of income are not combined for tax purposes, as long as you meet the conditions.
The Filing Deadline
The TA22 must be filed by 30 April of the year following the income year. So for income earned during 2025, you would need to file your TA22 by 30 April 2026.
This is a hard deadline. Late filing can result in penalties, and missing it entirely could mean you lose the ability to use the flat rate for that year.
How to File the TA22
Filing the TA22 is done through the CfR (Commissioner for Revenue) online portal. The process involves:
- Logging in to your CfR account
- Selecting the TA22 form for the relevant year
- Declaring your gross part-time self-employment income
- Calculating the 10% tax due
- Submitting the form and making payment
The form itself is not complex, but accuracy matters. You need to report the correct gross figure and ensure you meet all the qualifying conditions.
What Expenses Can You Deduct?
Here is where it gets slightly tricky. Under the TA22, you are taxed on gross income, not net profit. That means you generally cannot deduct business expenses against your TA22 income the way you would on a standard self-employed tax return.
However, this is often still favourable. Even without deductions, 10% of gross income is typically lower than what you would pay at marginal rates on net income, especially if your expenses are modest.
If your expenses are significant and would substantially reduce your taxable income, it may be worth running the numbers both ways to see whether the standard tax return is actually more beneficial. This is rare, but it does happen.
Common Scenarios
Real estate agents with a full-time job who earn commission from occasional property sales are classic TA22 candidates. As long as the commission income stays under €12,000, the 10% rate applies.
Teachers or office workers who do private tutoring, consulting, or freelance work on the side frequently use the TA22.
Tradespeople who have a day job but take on private work in the evenings or weekends can also qualify, provided they register with Jobsplus.
Mistakes to Watch For
Not registering with Jobsplus first. You need the part-time self-employment registration before you can file a TA22. Some people file the form without registering and run into problems.
Exceeding the €12,000 threshold. If you go even slightly over, you lose access to the flat rate for that entire year. Track your income carefully.
Missing the 30 April deadline. This deadline does not move. Mark it in your calendar well in advance.
Assuming expenses are deductible. Remember, the TA22 taxes gross income. Do not reduce the amount you declare by subtracting costs.
Is the TA22 Right for You?
If you have a full-time job and earn up to €12,000 on the side, the TA22 is almost always the most tax-efficient option. It is simple, the rate is low, and it keeps your side income separate from your salary.
The key is to register properly, track your income, and file on time.
Michael Cutajar, CPA — Founder of Accora.