Malta’s Finance Minister, Edward Scicluna has delivered his Budget Speech for the year 2014. The following are the main highlights from his speech:

  • 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, now to be taxed at 15%;
  • Final Withholding tax of 15% on rental of residential property;
  • Increase in tax deduction for payment of childcare facilities;
  • Changes in motor vehicle registration tax;
  • Introduction of a vehicle scrappage scheme;
  • Measures to increase employment;
  • Changes in allocation of VAT payments; and
  • Reduction of domestic water and electricity bills.