PART-TIME WORK RULES

SUBSIDIARY LEGISLATION 123.39

PART-TIME WORK RULES

1st January, 1996

LEGAL NOTICE 157 of 1996, as amended by Legal Notices 321 of 2001,

105 of 2005, 3 of 2006, 409 of 2007, 320 of 2012, 185 of 2014 and 125 of

2016; Act XXVII of 2016 and Legal Notice 67 of 2022.

The title of these rules is the Part-time Work Rules.

Added by

L.N. 105 of 2005.

(Rule 7)

Amended by

L.N. 409 of 2007.

Deleted bby

L.N. 320 of 2012.

Added by

L.N. 125 of 2016.

Deleted by Legal Notice 67 of 2022.

The provisions contained in article 90A of the Income Tax

Ac t, h er e in af t er r ef e rr e d t o a s "t h e Ac t" , sh al l a pp l y t o an

individual deriving income from part-time work and who is

resident in Malta during the year immediately preceding the year of

assessment and who moreover -

(a) derived other income from a full time employment

registered as such with Jobsplus established under the

Employment and Training Services Act; or

(b) was in receipt of a pension taxable in Malta; or

(c) was receiving full time instruction at any university,

college or other educational establishment, or was

serving an apprenticeship with a view to qualifying in

a trade or profession.

Added by

L.N. 3 of 2006.

(Rule 8)

Amended by

L.N. 409 of 2007;

L.N. 320 of 2012;

L.N. 185 of 2014.

Deleted by Legal Notice 67 of 2022.

(1) For the purpose of these rules but subject to the other

provisions of this rule, income from part-time work shall be

construed as consisting only of that income of an individual which

is chargeable to tax under article 4(1)(a) or (b) of the Act.

(2) Where the income from part-time work derived by the

individual or the individual’s spouse from any part-time activities

exceeds ten thousand euro (€10,000) in the case of income

chargeable under article 4(1)(b) of the Act or twelve thousand euro

(€12,000) in the case of income chargeable under article 4(1)(a) of

the Act, such excess shall be charged to tax under the Act without

having regard to the provisions of article 90A thereof and shall be

declared by that person in a return furnished in accordance with the

provisions of article 10 of the Income Tax Management Act,

together with all his other income

Provided that in the case of a married couple, where the

provisions of article 90A of the Act would not have applied to the

income derived by one of the spouses were it not for the provisions

of subarticle (9) of the said article, then the income from part-time

work derived by such spouse shall so qualify only if it is not in any

way derived from the individual’s spouse or adoptive child, either

of the spouses’ ascendant or descendant in the direct line, the

spouse of any such ascendant, descendant or adoptive child, either

of the spouses’ brother or sister or their spouses, or any company in

which the individual or any of the aforementioned persons is

directly or indirectly a shareholder.

(3) For the purpose of these rules, any income which is deemed

to constitute a benefit provided by reason of an employment or

office in terms of article 4(1)(b) of the Act or regulations made

thereunder and the value of any such benefit shall not be construed

as constituting income derived from part-time activities for the

purpose of sub-rule (2) and shall be declared in a return furnished

in accordance with the provisions of article 10 of the Income Tax

Management Act together with all the other income.

Where income from part-time work falls to be charged

under article 4(1)(a) of the Act, the provisions of article 90A of the

Act shall apply only where the individual -

(a) has registered the part-time work with Jobsplus;

(b) does not engage more than two employees (and such

employees shall be on a part-time basis) in the part-

time activity he carries out;

(c) keeps proper books of accounts as provided for in

article 19 of the Income Tax Management Act;

(d) performs such work for a company, organisation,

enterprise or entity other than that with which he is

employed on full-time basis; and

(e) is registered for value added tax purposes, unless the

economic activity engaged in is one in respect of

which such registration is not required or the

individual is exempt from registration under the Value

Added Tax Act.

(1) Where income from part-time work falls to be charged

under article 4(1)(b) of the Act, the provisions of article 90A of the

Act shall only apply if the individual -

(a) has registered the part-time work with Jobsplus; and

(b) performs such work against remuneration with a

company, organisation or enterprise other than that

with which he is employed on full-time basis

Provided that the requirements of paragraphs (a) and (b)

shall not apply to situations where the income from part-time work

consists of remuneration referred to in rule 6(3).

(2) Work shall only be considered to be part-time work if the

individual is not engaged therein for more than thirty hours in any

one week

Provided that where under a wage regulation order under

the Employment and Industrial Relations Act, a person engaged for

thirty hours is considered as full-time, the individual shall only be

considered to be engaged in part-time work if he is so considered

under the relevant wage regulation order.

(1)

For the purpose of rules 4(d) and 5(1)(b)

(a) companies controlled and beneficially owned, directly

or indirectly, to the extent of more than 50% by the

same shareholders shall be considered as the same

employer;

(b) a Government entity which is controlled directly or

indirectly by another Government entity shall be

considered as the same employer as that controlling

entity. For the purposes of this paragraph, a

Government entity shall mean the University of Malta

and MCAST, Local Councils, any Government

ministry, department or authority, parastatal bodies,

corporations,

foundations

and

other

similar

organisations or companies in which the Government

or any of the aforementioned entities has a controlling

interest.

(2)

Income from part-time work shall not consist of

(a) remuneration paid by Government to holders of an

office, including members on boards or tribunals, and

to Members of Parliament and Local Councils;

(b) fees and other similar payments made to members of

the Board of Directors of companies or to members on

boards of public corporations established by law.

(3) Remuneration paid to police officers for performing extra

duty work shall be considered as income from part-time work

qualifying under these rules. For the purpose of this sub-rule,

"extra duty" refers to work that is not part of the police officer’s

normal duties and is not overtime.

Any person who derives income from a qualifying sale as

defined in the Sale of Agricultural Produce Rules, and who also

qualifies under these rules in respect of such income shall fill in and

deliver such form as the Commissioner may require by the 30th June

of the year following that in which the income was derived.

Where, in the circumstances described in article 90A(6) of

the Act, the tax is paid by the individual directly to the

Commissioner, such payment shall be made by the 21st December

of the year following that in which the income from part-time work

was derived, and it shall be accompanied by a complete and

correctly filled in Commissioner may approve.

(1) The statement of accounts indicating the taxable net

profits for the relevant year which shall accompany a payment to be

made by a self-employed person, which shall be given by an

i n d i v i d u a l i n t e r m s o f a r t i c l e 4 2 ( 4 ) (a ) o f t h e I n c o m e Ta x

Management Act, shall be according to such form as the

Commissioner may approve.

(2) For the purposes of sub-rule (1), the term ''self-employed''

means a person who is performing part-time work in terms of

article 90A(1) of the Act and whose gains or profits from such

trade, business, profession or vocation fall under the provisions of

article 4(1)(a) of the said Act.

The notices referred to in article 90A(3) and (5) of the Act

shall be made through the FS4 form prescribed in Schedule A to the

Final Settlement System (FSS) Rules.

PART-TIME WORK