Pensions (Tax Exemption) (Amendment) Rules, 2022

Deloitte Malta Tax Alert

18 October 2022

Earlier this year, by means of Legal Notice 98 of 2022, Malta introduced a gradual exemption from income tax on pension income. Such measure had been announced in the Budget speech for 2022 in a bid to encourage pensioners to continue working beyond retirement age. At the time, Deloitte Malta had published an alert in this regard, which can be found here.

By virtue of Legal Notice 220 of 2022, published on 26 August 2022, the Finance Minister has announced amendments to the Pensions (Tax Exemption) Rules, now also introducing a capping on the tax exemption previously announced and applicable on the qualifying pension income, with such capping set to increase gradually over the years, as illustrated in the table below.


Year of Assessment
Tax Exemption


20% of pension income, capped at €2,864


40% of pension income, capped at €5,727


60% of pension income, capped at €8,591


80% of pension income, capped at €11,454


100% of pension income, capped at €14,318

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