Voluntary Occupational Pension Scheme Rules

The Voluntary Occupational Pension Scheme Rules, introduces a number of incentive tax measures to encourage an occupation pension system in Malta.

The recently published legal notice 228 of 2017 has introduced these tax incentives for contributions paid to qualifying schemes established under an employment relationship. The scope is to provide retirement benefits.

The rules apply in respect of contributions made to the qualifying scheme(s) by or on behalf of an individual who;

  • Earns an employment income, and
  • Is employed by a qualified employer.

This, including self-occupied persons and associations representing both employers and self-occupied persons.

Employer Benefits

  • An annual deduction against the employer’s taxable income amounting to the actual contribution made capped at €2, 000 per employee
  • An annual tax credit against the employer’s tax charge amounting to the actual contribution made capped at €150 per employee

Employee Benefits

  • An annual tax credit against the employee’s tax charge amounting to the actual contribution made capped at € 150
  • These contributions will not constitute a Fringe Benefit in relation to the employee’s taxable income.

For further information, contact our team of experts at Firstbridge to help you better understand how you can benefit from this scheme.


Related Service(s): Tax