On 25 July 2012, the Inland Revenue Department (Malta) published the Guidelines on the Malta tax treatment of Retirement Benefits arising from Retirement Funds or Schemes. The Guidelines provide an insight into the taxation of QROPS (Qualifying Recognised Overseas Pension Schemes) in Malta. The Guidelines serve to clarify any grey areas which may exist by providing clear and straightforward guidance.
Malta’s vast treaty network (with around 60 Double Tax Treaties currently in force) and favourable fiscal regime (with high net worth individuals being taxed only up to 15% subject to satisfying certain conditions) are only two of the factors which are attracting various QROPS providers to the island’s shores. Furthermore, the income of any retirement fund/scheme which is licensed, registered or otherwise authorised is generally exempt from tax.