What is Investment Income?
Article 41 of the Income Tax Act (Chap. 123) defines
investment income as any income paid by a payor in respect of specific categories of investment
income. Investment income includes bank interest, interest, discounts, or premiums payable by the
Government of Malta, or any agency, corporations or authorities. It also includes similar payments
made as a result of a public or private issue by a company, entity or other legal person, whether
resident in Malta or otherwise. Capital gains also fall within the definition of investment income
and refers to specific income arising from the disposal of shares or units in a collective investment
scheme, although exclusions apply in the case of the latter. Further details and a complete list of what
falls within the definition of investment income can be found in Article 41 of the Income Tax Act.
Obligation to File Annual Report
In terms of article 34(2) of the Income Tax Act (Chap. 123), an investment income payor has an obligation to render an account to the Commissioner of all
payments of investment income made during any year. The payor is requested to submit two reports,
the report of recipients who elected to be paid without deduction of tax and a report of those
recipients who were paid net of the withholding tax.
Required Format and Submission of Annual Report
The Office of the Commissioner for Revenue has produced a document that specifies the details and format that should be used to submit the investment
income provisions reports to the same. This document has been produced to help you to submit
your Investment Income Payor Data online in a complete and correct manner.
Click on the following link to access the full report.