Increase in tax exempt pension income

It was announced within the 2022 Budget speech that, in order to encourage pensioners to continue working beyond retirement age, that certain qualifying pension income would gradually not be considered as part of taxable income over a period of 5 years starting from 2022.

In order to address this measure, Legal Notice 98 of 2022 introduces the gradual exemption of pension income derived in the year immediately preceding the relative year of assessment in accordance with the following table:

This is particularly relevant for pensioners earning additional income in addition to their pension income.