Income from Artistic Activity Rules, 2024

L.N. 8 of 2024

INCOME TAX ACT

(CAP. 123)

Income from Artistic Activity Rules, 2024

IN EXERCISE of the powers conferred by articles 56(26A)(c)

and 96 of the Income Tax Act, the Minister responsible for finance has

made the following rules:-

The title of these rules is the Income from Artistic Activity Citation.

Rules, 2024.

In these rules, unless the context otherwise requires

Interpretation.

"Act" means the Income Tax Act;

"Commissioner" shall have the same meaning as assigned

to it in the Act.

The provisions of article 56(26A) of the Act shall be Limitations and

subject to the following limitations and conditions and to the other conditions.

provisions of these rules

(a) they shall apply to income derived by an individual

on or after 1st January 2022 from a trade, business, profession or

vocation that is chargeable to tax in terms of article 4(1)(a) of the

Act;

(b) the tax at the rate provided for in the said article

56(26A) of the Act shall be chargeable on gross receipts before

any deduction whatsoever and shall be applied

(i) for the year of assessment 2023, to an amount

not exceeding thirty thousand euro (€30,000); and

(ii) for any other year of assessment, to an amount

not exceeding fifty thousand euro (€50,000);

(c) the income subject to the said rate of tax shall be

reported on a form approved by the Commissioner together with

such details as may be required on such form or otherwise

requested by the Commissioner by not later than 30th April of

the relative year of assessment and the tax thereon shall be

payable by not later than the said date.

(1) When the gross receipts derived by an individual

from an artistic activity to which article 56(26A) of the Act applies

exceed the amount mentioned in sub-paragraph (i) or (ii) of paragraph

(b) of rule 3, whichever is applicable, or the amount reported in

accordance with rule 3(b), whichever is the lower, the said individual

shall report such excess in a tax return submitted in accordance with

article 10 of the Income Tax Management Act.

(2) Deductions allowable in terms of article 14 of the Act in

respect of expenses incurred in the production of income derived from

an artistic activity may be claimed against the gross receipts that are

reported in a return as aforesaid, but such deductions shall not exceed

the amount of the said excess.

(3) The income that shall be reported in a return in accordance

with sub-rule (1) net of the said deductions shall form part of the

chargeable income of the individual in question and shall be subject to

tax at the rates laid down in article 56(1)(a) or (b) of the Act. The

provisions of article 90A of the Act shall not apply to such income.

For the purpose of issuing a certificate in terms of article

56(26A)(b) of the Act, the Arts Council Malta may require such

information and evidence, and may adopt such criteria and guidelines

as it may, in its discretion, consider appropriate.

A person who derives income from an artistic activity and

who does not report such income as provided in rule 3(c) shall be

deemed to have exercised the option referred to in article 56(26A) of

the Act.

€0.18