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posted 9 months ago
Malta’s tax revenue reached a new high in 2023, amounting to €5,595.4 million, up €436.3 million from the preceding year and accounting for 85.3 per cent of the government’s overall revenue. As a result, the country’s tax burden decreased by 1.2 percentage points from 2022 to 27.1 per cent of GDP.
Direct Taxes amounted to €2,548.9 million, accounting for 45.6 per cent of total tax revenue. In comparison to 2022, this represented an increase of €194.5 million.
Personal Income Tax, which is still the primary component of this category, amounted to €138.2 million, while Corporate Income Tax increased by €41.3 million from the preceding year.
Significant changes were also observed in Indirect Taxes, which came to €1,978.3 million, up €164.3 million from 2022. This amounts to 35.4 per cent of the total amount of tax revenue. The Value Added Tax for this category was €1,268.8 million, which was €79.3 million more than in 2022. Additionally, Taxes on Products came to €566.4 million, up €52.8 million from the year before.
Social Contributions paid by employees, employers, as well as self- and non-employed persons, accounted for 19.1 per cent of the total tax revenue in 2023, amounting to €1,068.2 million. This reflects an increase of €77.6 million when compared to the preceding year.
A total of €1,514.4 million, or 63.7% of income tax revenues, came from households. Financial corporations also contributed significantly amounting to €102.9 million. In 2023, Malta’s total tax burden (the term “tax burden” refers to the proportion of national GDP represented by total tax revenue, reflecting the extent to which economic output has been allocated to taxes and social expenditures) dropped by 1.2 percentage points to 27.1% of GDP, compared to 28.3% in 2022. According to the data, the average tax burden for the years 1995–2023 was around 30.4%. This reflects a somewhat constant tax environment during these years, stable tax planning, and tax collection across diverse sectors. For more details refer to the Malta National Statistics Office: Tax Revenues 2023.
If you require additional assistance and guidance with your business or personal tax affairs, please contact us, and we will schedule an appointment with one of our experienced advisors to review your requirements in greater detail.
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