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Part Time Employment

​Are there any other conditions that I must satisfy so that I can qualify for the 15% rate?

If you are employed full-time and you are also employed part-time and you want to benefit from the 15% rate, you also have to satisfy the following conditions: 

  • your full-time employment and your part-time employment must both be registered with the Employment and Training Corporation (ETC);
  • the government is not to be considered as the "same employer" where the entities involved are different from one another;
  • you cannot work part-time for more than an average maximum of 30 hours a week (if a Wage Regulation Order establishes a lower number of hours, then the maximum will be less than 30).

 

What do you mean by saying that the work cannot be carried out with the same employer?

If the part-time work is carried out with the same employer with whom you work full-time or with another company within the same group of companies, that work does not qualify for the 15% rate but will be taxed at the normal rates.

Companies controlled a beneficially owned, directly or indirectly, to the extent of more than 50% by the same shareholders shall be considered as the same employer.

Notwithstanding that a government employee would still qualify for the part time rules if he or she works also on part time basis with another government department or entity.

(see also here​)

 

What are the employer's obligations?

The employer is obliged to follow the instructions given to him by the employee on the FS4. This form is to be filled-in in every case. A copy of the FS4 must always be kept by the employer as evidence of the authorisation given by the employee to stop deducting tax or to resume the deduction of tax, as the case may be.

The employer is also obliged to pass on the tax withheld every month to the Office of the Commissioner for Revenue together with the tax deducted from the other full-time employees, if any.

The 15% tax withheld has to be shown separately on each form FS3, FS5 and FS7 from other tax deducted from the other full-time employees.

 

What should a part-time employee do if he is not taxable on his total income, including his part-time income?

He should notify his employer by filling in an FS4 and ticking the appropriate box. In case the employee's circumstances change and he/she becomes taxable, a new FS4 must be filled-in so that the 15% tax will be withheld.

 

If after having advised my employer not to deduct tax I realise during the year that I am going to be taxable after all, what should I do?

You have to fill in a new FS4 and tick the appropriate box to authorise your employer to deduct tax at 15% from that month onwards.

 

If I realise that it would have been more to my benefit had the 15% started to be deducted before, or I realise that my employer has not deducted all the tax at 15%, what should I do?

If you realise that it would have been more favourable had your employer started to deduct tax before, you can either inform your employer to deduct the tax due by the end of the year or pay the difference directly to the Department using form TA23.