profit and loss statement, foreign income?

Last activity 29 May 2014 by sailor75

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sailor75New member20 May 2014 20:23:50

hi
i am a self employed permanent resident, working from malta for companies in other countries.
i am now considering to leave malta.
until now, i have not been reporting the money that i spent here for living. I suppose this was a mistake and needs to be amended. However, how detailed does this report have to be? I am not trying to avoid the tax i need to pay, just didnt realise it. But i am afraid i do not have all the details to reconstruct what i spent i the last few years while on the island.

Secondly, does the profit and los acount need to include turnover generated outside of Malta, that was not brought into the country? I have been assuming that returning a profit and loss account of the money as long as it is valid for Maltese Tax reasons, i.e. nil, would have sufficed. As such, i have sometimes included a pl acct with all zeroes, amd sometimes did not attach the profit and loss account.

Now i am in doubt, should i file a change to my tax returns for the last years, and should the accompanying profit and loss account include the foreign turnover?

thanks

tearnetViP21 May 2014 07:01:44

2179

Your posting is not very clear on what you are currently doing.
Do you have a Maltese tax number and have you filed tax returns for the years you have lived / worked in Malta?
Are you registered as self employed in Malta?
You should have declared any monies remitted to Malta regardless of where it is earned.

It may pay you to ask advise from an accountant who understands Malta's tax system.

Terry

sailor75New member23 May 2014 07:11:21

hi Terry, sorry for omitting those details.
Yes, i have a tax number, registered as self employed. Did only spend some of the money in Malta, rest is not remitted.

I did file the tax returns, as I mentioned only with all zeroes. The main question I have is, should the profit loss statement show the money generated outside Malta, just for the part that is remitted, or not at all?

tearnetViP23 May 2014 07:49:33

2179

sailor75 wrote:
hi Terry, sorry for omitting those details.
Yes, i have a tax number, registered as self employed. Did only spend some of the money in Malta, rest is not remitted.

I did file the tax returns, as I mentioned only with all zeroes. The main question I have is, should the profit loss statement show the money generated outside Malta, just for the part that is remitted, or not at all?

"Did only spend some of the money in Malta"
Don't see how you can file a zero tax return?
The question regarding your accounts should be addressed to an accountant or telephone the tax office and ask.
A few Euros spent on advise from a tax accountant in Malta could save you a lot of money.

Terry

georgeingozoViP23 May 2014 09:49:00

3703

you have to declare earnings in Malta, and earnings remitted to Malta - this includes bank transfers, cash taken out of an ATM and credit card payments done in Malta

sailor75New member29 May 2014 09:15:33

Hi,

thanks for the replies. However I am aware of that (and will take action). Again my question is, do I have to show the income generated outside Malta, on the profit and loss account?

Secondly, any advice re. a good tax advisor would be mostly welcome

thanks

tearnetViP29 May 2014 12:23:31

2179

sailor75 wrote:
ps I just noticed the following fragment, on a tax advisory website:
Foreign source capital gains are not taxed even if remitted to Malta.
This would be the case in my situation, i guess
However once again, the main question here is: should I have filled in the income generated outside malta on the profit and loss account, even if not remitted to malta?

"A capital gains tax (CGT) is a tax on capital gains, the profit realized on the sale of a non-inventory asset that was purchased at a cost amount that was lower than the amount realized on the sale. The most common capital gains are realized from the sale of stocks, bonds, precious metals and property. "

If your money was obtained by working for a company abroad how can it be capital gains?

Your question regarding what to put in your profit and loss account is specific to your circumstance and will require an accountant to give advice after seeing your accounts and understanding your business.

Terry.

sailor75New member29 May 2014 12:27:40

hi Terry,
thanks for the quick reply - i had just realised the mistake myself as well, hence deleted the question - only to find that you already replied to it
thanks
i have contacted a firm who are going to help me in filling in the forms.

thanks

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