Tax exemption for pensions rules revised

The Pensions (Tax Exemption) Rules have been updated by LN 53 of 2026 with effect from 1 January 2026. The changes include a new rule 4 which provides that an individual who, in the year of assessment 2027 or any subsequent year, benefits from the exemption granted under rule 3 and who is chargeable to tax at the rates specified in article56(1)(a)(i) of the Income Tax Act, shall be granted a tax rebate as a set-off against the tax on the chargeable income.

 

The Tax Rebate (Pensioners) Rules (SL 123.174) have, in virtue of LN 52 of 2026, ceased to apply with respect to income earned after 31 December 2025.