Because freelancers are not employees and Solar Staff does not pay taxes on their payouts, they must declare any income received via Solar Staff by themselves.
To carry on tax accounting in Malta for your Solar Staff income, you need to:
Be a tax resident
Determine the applicable tax obligations
Tax residence
Malta taxes its residents domiciled in the country on all their worldwide income (including that of their spouse and dependent children), while non-residents are taxed on income from Maltese sources only.
Individuals are considered tax residents of Malta if they spend more than 183 days in the country during the tax period (calendar year).
Residents domiciled abroad are taxed on a remittance basis: they pay taxes on income sourced from Malta, as well as income derived from foreign sources that is brought into Malta or spent within its territory.
Additionally, such individuals are required to pay a minimum tax of EUR 5,000 if their income (including that of a spouse, if any) from sources outside Malta (and not brought into the country) amounts to at least EUR 35,000 for the reporting year. If the tax liabilities calculated under the worldwide income taxation principle are less than the minimum tax, the individual may opt out of the remittance basis. In this case, Malta will tax them on their worldwide income.
Malta also offers various special schemes that adjust tax obligations and the taxation of income compared to the standard regulations. These include:
Malta has double taxation agreements with a number of countries (full list), the provisions of which may override the applicable tax residence rules and other provisions of national legislation.
Taxpayer ID number
The Social Security Number (SSN or National Insurance (NI) number) is a unique identifier used in Malta for tracking contributions to the state social security system. It consists of nine characters: one letter and eight digits. For holders of a Maltese identity (ID) card, the SSN is assigned automatically upon reaching the age of 16, with a certificate of assignment sent by the Department of Social Security (DSS) a few days before the birthday.
To obtain an SNN, an individual needs to submit an online application along with documents that verify their identity (with a photo) and the grounds for legal residency and activity within the country (list of required documents). Typically, the application processing time is two weeks, provided that all accompanying documents meet the requirements. Following a successful review, the certificate of the SNN assignment is sent to the applicant by email.
The Tax Identification Number (TIN) is used to identify individuals and legal entities within the tax system. Citizens of Malta use their Maltese ID card number as a TIN. The ID number is indicated on the back of the ID card and consists of eight characters (seven digits and one letter, e.g., 0247314A).
Citizens of the European Union (EU) or third-country nationals residing in Malta under a Single Permit, who have previously obtained an SNN, are automatically assigned a TIN within ten days.
In other cases, to obtain a TIN, applicants must complete an online form and submit documents verifying their marital status (if applicable). They must also sign a declaration affirming the accuracy of the information provided. After this, the Office of the Commissioner for Revenue (CFR) will assign a TIN, which consists of nine digits.
The Value-Added Tax (VAT) Registration Number is assigned by the CFR when a person registers as a VAT payer. It consists of eight digits and may include the prefix MT (for example, MT12345678). To register as a VAT payer, it is essential to select the appropriate basis for VAT registration when registering as a sole trader. Registration can be completed online or by printing the application and sending it to the CFR by mail. Once the application is processed, the applicant will receive a certificate of registration as a VAT payer.
The Permission to Employee (PE) Number is required for taxpayers that employ individuals in Malta. Taxpayers must register as employers within 15 days of making their first payment to an employee. Registration can be completed online (see instructions here) and takes one business day, after which the taxpayer will be assigned their PE number. It is possible to register simultaneously as both a VAT payer and an employer (learn more).
Taxes and contributions payable by freelancers
Malta offers various forms of conducting business; however, earning income via Solar Staff is only possible as a sole trader.
IMPORTANT! Solar Staff does not have the option to choose a tax status for freelancers based in Malta, but you can fill in your taxpayer ID in your account.
Taxpayers can register on the Servizz.gov portal (part of the Servizz Pubbliku public services system) to interact with tax authorities, as well as on the MyTax portal to submit tax returns and make tax payments online (view available payment methods). To access these services, taxpayers will need to obtain an electronic identity card (e-ID).
Useful links: FAQ (e-ID); registration in CFR services.
Read on for more details.
Sole traders
The sole trader is an individual who engages in entrepreneurial activities, solely owns their business, and bears the associated risks.
Eligibility requirements: to register as a sole trader, foreign nationals must have a residence permit in Malta that permits business activities, as well as an employment license and both a TIN and SSN.
This status is suitable for both providing services and selling goods under one’s own name. Registration as a sole trader can be completed by filling out a single online form, which combines registration as a VAT payer and an employer (if applicable), along with registration with the Jobsplus public employment service, and also provides information to the National Statistics Office (NSO). Applicants must attach documents verifying their identity. The registration process takes a few business days, after which the freelancer will receive information about their assigned PE and VAT numbers by email. Alternatively, registration as a sole trader can be completed through an online form on the Jobsplus portal (see the online submission guide). Those who do not have an account on the portal will need to submit a Declaration of Commencement of Employment for Self-Employed Persons, which should be sent to [email protected] along with the required supporting documents. After this, the freelancer must also register as a VAT payer and, if necessary, as an employer (see FAQ).
Sole traders with employees must familiarize themselves with their employer obligations (CFR service functions for employers).
When ceasing operations as a sole trader, the individual must complete the appropriate online form.
Key aspects of operating as a sole trader:
Licenses/permits: Certain types of activities require sole traders to obtain a license or special permit.
Bank account: Sole traders need to open a bank account to keep proper records of their business income and expenses.
Intellectual property protection: Sole traders can obtain patents and register trademarks.
Business insurance: Depending on the nature of the business and whether there are employees, sole traders may be required to obtain insurance.
Record keeping. Sole traders must maintain regular records of income and expenses. All invoices, receipts, delivery notes, and other financial documents must be kept for at least nine years. Learn more about record keeping
Sole traders can be either full-time or part-time self-employed.
The obligations of a sole trader for each type of self-employment are detailed below.
Full-time self-employed sole traders
Taxes and contributions are paid as follows:
Income tax is charged at a progressive rate depending on the taxpayer category.
Tax rates | Annual income of married persons, EUR | Annual income of singles / married with separate filings, EUR | Annual income of parents, EUR |
0% | Up to 12,700 | Up to 9,100 | Up to 10,500 |
15% | 12,701–21,200 | 9,101–14,500 | 10,501–15,800 |
25% | 21,201–60,000 | 14,501–60,000 | 15,801–60,000 |
35% | Over 60,000 | Over 60,000 | Over 60,000 |
The tax calculation also subtracts the amount set for each of the ranges depending on the income level.
Deductions are available for documented business expenses as well as losses that can be carried forward without time limits.
Tax returns. Taxpayers must file an Income Tax Return and Self-Assessment along with the relevant Return Attachment (RA) Form verifying the deductions applied (guide on completing RA Forms), as well as a Profit and Loss Account (guide on completing tax returns). The tax return can be submitted either online, in person at the CFR office, or by mail to the CFR address (if submitting in person or by mail, a tax return form must be requested in advance). The deadline for submitting the tax return and accompanying forms and accounts is no later than June 30 of the year following the reporting year. If the tax return is not submitted, the tax authority will send the taxpayer a tax statement detailing the calculation of their tax obligations. Late submissions or submissions of incomplete tax returns will result in penalties and additional tax charges.
Income tax is payable through provisional tax (PT) payments as follows: 20% by April 30, 30% by August 31, and 50% by December 21 of the current year. The amounts of PT payments are detailed in the PT1 Form, which is sent to the taxpayer by the tax authority at the beginning of the year. A sample PT Form can be found here (see the last page). The PT amount due is calculated based on the income earned in the previous year (PT benchmark). The PT benchmark can be reduced by filing the PT Reduction Form in person or by mail. If the tax return for the reporting year results in a tax due, it must be paid by the same deadline as the one set for submitting the tax return; otherwise, a penalty of 0.33% will be charged for each month of delay. In the first year of the sole trader's operation, no provisional tax payments are required, and the income tax must be paid by the same deadline as the one set for submitting the tax return.Social security contributions (SSC) are payable by sole traders under Class 2 if their annual income exceeds EUR 910 and their age is between 16 and 65. Contributions are calculated based on gross income (income less expenses) for the previous year at a rate of 15%. In the first year of operation, they are paid at the minimum SA category rate, which in 2024 was EUR 34.70 per week. Additionally, there is a 1% monthly surcharge on any unpaid or late contributions (more details).
Information on the amount of contributions due is provided in the PT1 Form, which is sent by the tax authority to the taxpayer at the beginning of the year. No separate SSC filings are required. A sample PT1 Form is available here (see the last page).
Contributions are payable in the same manner as income tax.Value-added tax (VAT) is payable when the sole trader’s annual turnover exceeds a threshold of EUR 30,000 and can also be paid voluntarily (FAQ).
To pay VAT, one must register as a VAT payer by submitting an application online or by mailing a printed application form to the CFR , choosing the appropriate basis for VAT registration. Upon registration, the taxpayer is assigned a VAT registration number.
The standard VAT rate is 18%, with reduced rates of 7%, 5%, and 0% applied to certain goods and services. VAT exemptions may apply if specific criteria are met (see the guide for details).
VAT returns must be submitted electronically through the CFR service designed for VAT returns filing (see instructions for completing VAT returns depending on the basis chosen for registering as a VAT payer). For VAT payers registered under Article 10 of the VAT Act, the reporting period is three months and their VAT returns must be submitted no later than six weeks after the end of the reporting period.
VAT payments must be made by the same deadline, either online or at the post office (Maltapost).
When selling goods or providing services to foreign clients registered in the European Union, freelancers are also required to submit a recapitulative statement detailing VAT numbers of the buyers (check VAT number validity). This statement must be submitted electronically via the CFR service designed for VAT returns filing (see filing instructions). The deadline for submission is no later than the 15th day of the month following the reporting period, with frequency depending on the amount of income received from such transactions:If the income amount is less than EUR 50,000 in the current quarter or any of the four preceding quarters, the statement is submitted quarterly.
If the income amount exceeds EUR 50,000 in any month of the current quarter, the statement is submitted monthly (a separate statement for each month in which the threshold was exceeded is required).
If a freelancer only provides services and does not sell goods, the recapitulative statement is submitted quarterly, regardless of income amount.
Part-time self-employed sole traders
To qualify for this status, the following conditions must be met:
The individual must be officially employed (full-time), be a pensioner, or a full-time student
The application to register as sole trader submitted via Jobsplus must opt for part-time employment
The sole trader is not allowed to have more than two employees, who must also work part-time
The sole trader is required to maintain proper accounting records
The sole trader cannot provide services to the company where they are employed full-time
The sole trader must register as a VAT payer
Taxes and contributions are paid as follows:
Income tax is paid at a reduced rate of 10% on net income (income less expenses, with the possibility of deducting losses), provided that it does not exceed EUR 12,000 per year. Taxpayers may opt out of the reduced rate; in this case, their income will be taxed in a way similar to that set for full-time self-employed sole traders, which also applies if the income threshold is exceeded.
Tax returns are submitted online, using the TA22 Form, by April 30 of the year following the reporting year.
Tax payments are due by the same deadline as the return submission.Social security contributions are not payable if the sole trader is self-employed on a full-time basis. In other cases, contributions are payable in the same way as those set for full-time self-employed sole traders.
Value-added tax (VAT) is payable in the same way as by full-time self-employed sole traders.
Additional information
Income received via Solar Staff is declared using certificates and invoices, and in accordance with the offer agreement.
If you have any questions, get in touch via the chat in your Solar Staff account or email us at [email protected].