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Tax, asked to pay 2400€ in 15 days. Please help!

Last activity 16 November 2016 by Fionn

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illerill

Hi guys,

I have sent an e-mail to the payroll department at my work asking for help and I will of course call the tax office as well. Before doing this I was however hoping to get some help here as well as I have no idea what's going on.

Yesterday I received a paper in my mail from the inland revenue saying that I was to pay 2400€ in tax before the end of November because I hadn't handed in any tax return. At the company I'm working with, we received the information that only a randomly selected number of people needs to hand in a tax return and those will be notified by post. I have not received such notification. My address is correctly registered and have been the same since I moved to Malta 1½ years ago.

So they have registered that I paid 1800€ in tax last year (I started working in April), but have estimated by tax to be 4000€. Then they have added some fees for not handing in the tax return and will also charge me with interest should I not pay before the end of November.

I'll call them tomorrow, but if you have any valuable information you could give me, please help. I really hope do not have to pay this amount or any amount for that matter.

Thank you in advance.

nicknamero

hi, same situation here...let me know if you have more info.
thanks

Fionn

Please see:

1)  https://www.expat.com/forum/viewtopic.p … 06#2806112

2)  Excerpt:

‘…..Residency Status:

Different rates of tax apply to taxpayers who are not residents of Malta.

Therefore you are to indicate your residency status for income tax purposes in your tax return.
|
Non resident taxpayers:

As a general guideline, a non-resident may be defined as a foreign employee whose stay in Malta is less than 183 days……’

Source: See page 7 of - Help to complete your Tax Return. Basis year 2014. Year of Assessment 2015. Published by the Inland Revenue Department Malta:

https://ird.gov.mt/downloads/individual … 014_en.pdf

3)  Basis year 2016 personal income tax rates for those regarded as non-residents by the Inland Revenue Department:

https://ird.gov.mt/services/taxrates_nr.aspx

4)  Basis year 2016 personal income tax rates for those regarded as residents by the Inland Revenue Department:

https://ird.gov.mt/services/taxrates.aspx#2016

illerill

Thanks for the reply, but I'm not sure that helped me a lot. On the paper I received it clearly states that I should pay residential tax rates but as they have not received a tax return, they are assuming that I'm making millions (not literally speaking) and therefore want to tax me more than twice as much as my company has already paid in taxes.

However they never requested a tax return from me so surely they can't ask me to pay this?

I'm calling them tomorrow as I slept all day today (worked night shift).

volcane

As far as I understand everyone have to file a tax return if you got a form in the post or not. Else they work on estimates and this might be what happened with you

If you are self employed you might also have to pre pay on next years tax based on current earning level.

illerill

volcane wrote:

As far as I understand everyone have to file a tax return if you got a form in the post or not. Else they work on estimates and this might be what happened with you

If you are self employed you might also have to pre pay on next years tax based on current earning level.


If that's the case it's sick. I work for tha largest I-gaming company on Malta and they should know these things.

I'm trying to call inland revenue but there's a queue I think. No idea really as the automated voice is in Maltese...

illerill

Alright so I just spoke to them. According to the lady I spoke to my company should do the tax return and it seems they haven't. So I need to go to their office and get this form and then speak to my company to have them have it done.

Fionn

illerill wrote:

Thanks for the reply, but I'm not sure that helped me a lot. On the paper I received it clearly states that I should pay residential tax rates but as they have not received a tax return, they are assuming that I'm making millions (not literally speaking) and therefore want to tax me more than twice as much as my company has already paid in taxes.

However they never requested a tax return from me so surely they can't ask me to pay this?

I'm calling them tomorrow as I slept all day today (worked night shift).


Re: Excerpt from your comment: ….’However they [the Inland Revenue Department] never requested a tax return from me so surely they can't ask me to pay this?....’

Reply: They will try to do so, but if you display the will to resist and escalate the matter, they will (eventually) desist.

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