Tax Guidelines on Private Residential Leases rebate published

Deloitte Malta Tax Alert

05 March 2021

The Commissioner for Revenue has published guidelines (the ‘Guidelines’), in relation to the Private Residential Leases (Tax Rebate) Rules, S.L. 123.201 (the ‘Rules’), which is applicable to qualifying rental income derived on or after 1 January 2020.

In terms of the Rules, taxable persons who derived rental income from a long private residential lease of at least two years, duly registered with the Housing Authority, are eligible for a tax rebate against the tax chargeable on such rental income taxable at 15% in terms of article 31D of the Income Tax Act.

The calculation of the rebate amount, as set out within the Rules and the Guidelines, is computed on the basis of the duration of the lease and the number of bedrooms of the leased premises as stated in the contract, up to a maximum of €500 per year, or 15% of the rental income derived.

The Guidelines specify that the rebate may be claimed through the submission of the TA24 form, which is due by 30 April 2021 with respect to rental income received during the year 2020.

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