Malta tax guide
TA22: Malta's 10% part-time tax rate, explained
If you have a full-time job (or a pension, or a place at university) and do a bit of freelance work on the side, Malta lets you tax that side income at a flat 10% instead of dropping it on top of your salary at the normal rates. That scheme is called TA22, after the form you file.
It's one of the friendlier corners of the Maltese tax system, but it's optional, it's capped, and it isn't automatically the cheaper route. Here's how it works, who can use it, and when to leave it alone.
What TA22 actually is
TA22 is a flat-rate scheme for part-time self-employment. Instead of adding your side income to your main income and taxing it through the progressive bands, you pay a single flat 10% on the net profit from the part-time activity. The rate was reduced from 15% to 10% on 1 January 2022, and 10% is where it sits today.
"Net" means after your allowable expenses, the costs wholly and exclusively incurred in earning that income. You tax the profit, not the turnover.
The 10% rate and the €12,000 cap
The flat rate only covers the first €12,000 of net part-time profit in a year. That caps the TA22 payment at €1,200 (10% of €12,000). Anything above €12,000 net doesn't vanish: it goes into your normal annual tax return and is taxed at the standard rates on top of your other income.
Who qualifies
You can use TA22 only if all of the following hold:
- You're employed full-time, OR a pensioner, OR a full-time student or apprentice (the part-time work is genuinely on the side)
- The part-time activity is registered with Jobsplus
- You have no more than two part-time employees
- You keep proper books and records
- The work is not done for your own full-time employer (you can't reclassify your day job as part-time self-employment)
- You're VAT-registered if you're obliged to be
If you don't meet these (for example, freelancing is your main gig), TA22 isn't for you, and your income is taxed the ordinary way. See the standard Income Tax Bands for how that works.
Worked example: TA22 vs the standard bands
Say you're employed full-time earning €30,000, and you make €8,000 net profit tutoring on the side. Your salary already uses up your 0% and 15% bands, so as a single person that side income would otherwise stack on top at the 25% rate (the €16,001–€60,000 band).
| Route | Tax on the €8,000 side profit |
|---|---|
| TA22 (flat 10%) | €800 |
| Standard bands (stacked at 25%) | €2,000 |
Here TA22 saves €1,200. The saving is largest when your main income has already pushed you into the 25% or 35% bands, which is exactly the situation TA22 was designed for.
| Single 2026 band | Rate |
|---|---|
| €0 – €12,000 | 0% |
| €12,001 – €16,000 | 15% |
| €16,001 – €60,000 | 25% |
| €60,001+ | 35% |
When it's NOT worth it
TA22 isn't automatically the better deal. Run both routes and pick the cheaper lawful one:
- If your total income is low and you still have unused 0% or 15% band, the standard rates can beat a flat 10%: paying 0% obviously wins over paying 10%
- If your net part-time profit is well above €12,000, the excess is taxed at standard rates anyway, which dilutes the benefit
- TA22 is a per-activity election, so it's worth comparing every year rather than setting and forgetting
The scheme is genuinely optional. Nobody makes you use it. You choose it because, on your numbers, 10% flat comes out ahead.
The deadline: form TA22 by 30 April
You settle TA22 by filing form TA22 and paying the 10% by 30 April of the following year. TA22-route users pay through this form rather than through the provisional tax (PT) instalments that ordinary self-employed people use.
Common questions
Is TA22 compulsory?
No. TA22 is optional. You elect into it because the flat 10% works out cheaper than taxing your part-time profit through the standard bands. If the standard route is cheaper (for instance, because you still have unused 0% or 15% band), you simply don't use it. Compare both and pick the cheaper lawful route.
What is the TA22 cap?
The 10% flat rate applies to the first €12,000 of net part-time profit per year, so the most you pay under TA22 is €1,200. Net profit above €12,000 is added to your annual return and taxed at the standard rates.
Can I use TA22 for work I do for my own employer?
No. TA22 explicitly cannot be used for part-time work done for your own full-time employer. You also need the activity registered with Jobsplus, no more than two part-time employees, proper books, and VAT registration if you're obliged to have it.
When is form TA22 due?
By 30 April of the year following the income year. You file form TA22 and pay the 10% then, instead of settling through the provisional tax instalments used by ordinary self-employed people.
Settlano works all of this out from your own numbers, automatically, and reminds you before every deadline.
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