Thinking about leaving Malta and ceasing your tax residency? Whether you're moving for work, family, or a change of scenery, it's crucial to understand the process of officially ending your tax residency status. Follow these comprehensive steps to ensure a smooth transition.
Step 1: Notify the Commissioner for Revenue
The first step in ceasing your tax residency in Malta is to formally notify the Commissioner for Revenue. This is done by filling out the necessary forms and providing detailed information about your departure date, new residence, and reasons for leaving. This notification should be done well in advance of your departure to ensure all paperwork is processed in a timely manner.
Step 2: Settle Outstanding Taxes
Before you can cease your tax residency, you must settle any outstanding tax liabilities. This includes filing any pending tax returns and paying any due taxes. Ensure all financial obligations to the Maltese tax authorities are cleared to avoid any legal complications.
Step 3: Deregister from Local Authorities
It is important to deregister from various local authorities, such as the Electoral Office and the Health Department, to confirm that you are no longer residing in Malta. This also includes notifying your local council of your departure.
Step 4: Close or Update Bank Accounts
Ensure that you either close or update your bank accounts to reflect your new non-resident status. Inform your bank of your change in residency to avoid any unnecessary tax withholdings or complications.
Step 5: Obtain a Tax Residency Certificate
Request a Tax Residency Certificate from the Maltese tax authorities. This certificate will serve as proof that you have officially ceased to be a tax resident in Malta. It may be required by tax authorities in your new country of residence.
Step 6: Confirm New Tax Residency
Ensure that you have established your tax residency in your new country of residence. This often involves registering with the local tax authorities and complying with their residency requirements. This step is crucial to avoid being taxed in two jurisdictions.
Legal References
- Income Tax Act, Chapter 123 of the Laws of Malta
- Double Taxation Relief (Taxes on Income) (General) Rules, Subsidiary Legislation 123.91
- Commissioner for Revenue Guidelines
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