New Advantageous Tax Regime for United Nations Pensions

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By virtue of Legal Notice 184 of 2015, the Government of Malta issued new regulations under the Income Tax Act, which, inter alia, provide for an exemption from income tax to beneficiaries who are in receipt of a pension or a widow’s / widower’s benefit from the United Nations.

Furthermore, tax shall be charged at the reduced rate of 15% on any income (except for income and gains arising in Malta) arising outside Malta and received in Malta by the beneficiary, the beneficiary’s spouse and children, following the granting of the special tax status, with the possibility to claim relief of double taxation under the relevant provisions of the Income Tax Act. These rules will apply to both EU and third country nationals, but not to Maltese nationals.