Last Updated: 06/04/2022
There are cases where the CFR needs to issue a refund to the taxpayer (whether an individual, a company, a partnership or an organisation), due to overpaid tax or a tax credit/deduction resulting in a refund. In the case of non-filers, or where the tax returns are filed within the relevant “tax return date”, the CFR is bound to refund such overpaid tax within six (6) months starting from the tax return date, generally by the end of December of the Year of Assessment for Individuals. If the CFR fails to do so, he is obliged to pay interest at 0.33%.
If a person
terminates his/her employment and does not take up any other employment during
the same year it may result that the tax deducted from the previous employment
is excessive. In this case, a refund will be due.
In the case of
non-filers this refund will be issued automatically without the need for the
person to file a return. On the other hand, persons who are generally obliged
to file an income tax return can determine the tax payable/refundable through
the filing of the income tax return.
All the above
applies to all taxpayers including EU Nationals (Cross-Border) taxpayers.
If the return was submitted late by the taxpayer, then the CFR may issue the refund a year from the acknowledgment date of the tax return.
If the taxpayer has missing returns, whether these are pending/missing returns for VAT or Income Tax, the refund will not be issued until all the forms are submitted. In the case of non-filers who opt to fill a tax return after receiving their tax statement, no additional tax for late filing is being imposed as long as the return is submitted by 31 st December.
It is the taxpayer’s responsibility to check that the refund being issued is correct.
In those cases of refund notification (non filer), where the taxpayer needs to add employment income and any other income/deductions, one may do so by filing a correction form (AF).
Taxpayers are encouraged to access MyAccount Profile to check their tax position with the Office of the Commissioner for Revenue and insert their personal details such as the IBAN number.