If you are employed full-time and you are also employed part-time and you want to benefit from the 15% rate, you also have to satisfy the following conditions:

• your full-time employment and your part-time employment must both be registered with the Employment and Training Corporation (ETC);
• your part-time employment may not be carried out with the same employer who is also employing you full-time;
• you cannot work part-time for more than an average maximum of 30 hours a week (if a Wage Regulation Order establishes a lower number of hours, then the maximum will be less than 30).

If the part-time work is carried out with the same employer with whom you work full-time or with another company within the same group of companies, that work does not qualify for the 15% rate but will be taxed at the normal rates.

For this purpose it is important to note that the Government, Local Councils, the University of Malta and parastatal bodies are considered to be the same employer. This means that if you are a Government employee and also work part-time at, for instance, the University, this income is not taxed at 15% but at the normal rates.

However, a company in which the Government has a controlling interest is not considered to be the same employer as the Government or the other entities mentioned in the preceding paragraph.

(see also here)

The employer is obliged to follow the instructions given to him by the employee on the FS4. This form is to be filled-in in every case. A copy of the FS4 must always be kept by the employer as evidence of the authorisation given by the employee to stop deducting tax or to resume the deduction of tax, as the case may be.

The employer is also obliged to pass on the tax withheld every month to the Inland Revenue Department together with the tax deducted from the other full-time employees, if any.

The 15% tax withheld has to be shown separately on each form FS3, FS5 and FS7 from other tax deducted from the other full-time employees.

He should notify his employer by filling in an FS4 and ticking the appropriate box. In case the employee's circumstances change and he/she becomes taxable, a new FS4 must be filled-in so that the 15% tax will be withheld.

You have to fill in a new FS4 and tick the appropriate box to authorise your employer to deduct tax at 15% from that month onwards.

If you realise that it would have been more favourable had your employer started to deduct tax before, you can either inform your employer to deduct the tax due by the end of the year or pay the difference directly to the Department using form TA23 by 15th February of the following year.

If you realise that your employer has not deducted all the tax at 15% you should pay the difference directly to the Department using form TA23 by 15th February of the following year.

As from 1st January 2005 there was a major change in the part time rules (Legal Notice 110/2005). This change will effect those married persons were one of the spouses has a full time employment income and the other is employed on a part-time basis. In order for part-time employees to benefit from the new rules, the 15% withholding tax should be deducted from the total yearly emoluments. These payments should reach the Department of Inland Revenue through the employer by the end of January (attached to the December monthly remittance). If the employer fails to effect the payment, the employee can still benefit from the scheme by paying personally with the prescribed form TA23 by not later than the 15th February.