‘Elective tax’ Regulations published

In exercise of the powers conferred by article 22B of the Income Tax Act, the Final Income Tax Without Imputation Regulations, 2025 have been published by Legal Notice 188 of 2025.

Article 22B of the Income Tax Act permits the Minister responsible for finance to make regulations for the charging and levying on an elective basis of a tax higher than that established in relation to the profits of Malta entities as defined in such regulations.

The Regulations, published on 2 September, permit an ‘entity’ as defined to elect to be taxed in Malta on its chargeable income at the rate of 15%, in lieu of the rate determined in article 56(6)of the Act, without the application of the imputation system. Said election may be made in respect of income accruing to or derived by the entity in the fiscal year preceding the year of assessment 2025 and subsequent years.