S.L. 123.2 ст. 4Deduction of tax from emoluments.

(1) When emoluments are paid to a payee, the payer shall deduct therefrom a tax at the rate determined and communicated to him by the Commissioner:

Provided that no such deduction shall be made from any payment to which article 23 of the Employment and Industrial

Relations Act and the Weekly Allowance National Standard Order, refer unless the Commissioner otherwise directs.

(2) (a) In cases where the payer has not received directions from the Commissioner regarding the rate at which tax is to be deducted, he shall notify the Commissioner accordingly on the form supplied for this purpose by the Commissioner.

(b) The notification required by this sub-rule shall be made within three days of the coming into operation of the contract under which emoluments are paid by the payer.

(3) Where the payer has not received from the Commissioner directions regarding the rate at which tax is to be deducted he shall, until such time as directions are received, deduct tax at the rate of ten per cent: provided that if the payee is not resident in Malta, the payer shall deduct tax at the rate of twenty-five per cent.

(4) Notwithstanding the provisions of sub-rule (3), but saving the provisions of sub-rule (6), no deductions shall be made from emoluments paid to a resident payee where directions have not been received by the payer in the following cases:

(a) where the payee is unmarried or a widower and the emoluments, if expressed to be due -

(i) on an annual basis, represent an income of less than two thousand and three hundred and ninety-nine euros and twenty-five cents (2,399.25) per annum;

(ii) on a monthly basis, represent an income of less than one hundred and ninety-eight euros (198.00) per month;

(iii) on a fortnightly basis, represent an income of less than ninety euros and eighty-five cents (90.85) per fortnight;

(iv) on a weekly basis, represent an income of less than forty-five euros and forty-two cents (45.42) per week;

(v) on a daily basis, represent an income of less than nine euros and twenty-two cents (9.22) per day;

(b) where the payee to the best of the payer’s knowledge is living with and maintaining a wife and the emoluments, if expressed to be due -

(i) on an annual basis, represent an income of less than four thousand and twenty-nine euros and eighty-two cents (4,029.82) per annum;

(ii) on a monthly basis represent an income of less than three hundred and thirty-five euros and forty-three cents (335.43) per month;

(iii) on a fortnightly basis, represent an income of less than one hundred and fifty-three euros and seventy-four cents (153.74) per fortnight;

(iv) on a weekly basis, represent an income of less than seventy-six euros and eighty-seven cents (76.87) per week;

(v) on a daily basis, represent an income of less than fifteen euros and forty-nine cents (15.49) per day.

(5) For the purposes of sub-rule (4), where emoluments are expressed to be due on some basis other than one of the alternatives therein contemplated, the test as to whether tax is to be deducted or not shall be made by using the alternative which is most appropriate.

(6) Where the emoluments are gains or profits chargeable under article 4(1)(b) of the Income Tax Act, the provisions of sub-rules (4) and (5) shall not be applicable if the emoluments are paid to an employee who -

(a) to the best of the payer’s knowledge is a married woman; or

(b) is not expected to render full time services to the payer by whom the emoluments are paid during the period or periods in respect of which they are expressed to be payable.