September 6, 2022
An amended SL 123.204 has been published last August through LN 220 of 220 to the Pensions (Tax Emption) Rules and which are applicable from 1 January 2022. The revisions introduce a capped exemption on the pension amounts progressing over the years at the different rates until the 100% exemption is reached.
The exemption thresholds are as follows:
- Basis Year 2022 – Amount exempt 20%, not exceeding EUR 2,864
- Basis Year 2023 – Amount exempt 40%, not exceeding EUR 5,727
- Basis Year 2024 – Amount exempt 60%, not exceeding EUR 8,591
- Basis Year 2025 – Amount exempt 80%, not exceeding EUR 11,454
- Basis Year 2026 – Amount exempt 100%, not exceeding EUR 14,318
Amended rules also include a definition of “pension income” mirroring that of SL 123.127.
Updated Legislation can be accessed at https://legislation.mt/eli/sl/123.204/eng
