Information on the Euro Changeover
Inland Revenue has approached the change over to the new currency with a view to facilitate its smooth introduction.
Forms, guidelines and thresholds have all indeed been reviewed, however the changes were few and with the least impact on forms and processes. You may download the revised versions of the following forms from the downloads page:
- FS3
- FS5
- FS7
- PT Reduction form
Every tax return and related information regarding income received during 2007 or earlier years must be reported in Maltese Lira during 2008. The Maltese Lira is the currency that was in use during the time being reported. This is in accordance with the guidelines published by the National Euro Changeover Committee (NECC).
Following the changeover, the tax for the basis year 2007 and for any preceding years is to be calculated according to the tax bands in Maltese Lira that applied for that year. Nonetheless, claims and tax statements issued by the Inland Revenue after the 1st January 2008 for these years will be in euro.
Information brochures have been prepared for the particular needs of employers and notaries. The short notes included in the brochures describe the few transitional arrangements for the first submissions of information during 2008. These brochures, which were distributed during December, can be accessed through the following links:
Individuals who do not need to submit the tax return according to the reform introduced this year, will now receive their tax statement in euro with values in Maltese Lira for information purposes. The statement describes the income earned according to information available to the Department. The income, any deductions, tax chargeable and tax payments are reported in euro, but where applicable the original value in Maltese Lira is printed on the statement next to the item description.
Income Tax Returns that report income earned in 2007 are to be declared in Maltese Lira. The person filling the self assessment must only convert to euro the final amount of the balance of tax underpaid or tax overpaid to determine the value of tax payable if applicable.
The guidelines issued by the National Euro Changeover Committee can be obtained from the NECC site:www.euro.gov.mt.
For any further questions you can contact the Taxpayer Service on telephone number 22962296 or email taxpayerservice.ird@gov.mt
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