Tax on money earned from another country sent to Malta

You will be liable to tax on income remitted to Malta from elsewhere unless it is from capital.
Some countries have double taxation agreements with Malta so that you can set tax already paid against what is due.

If you withdraw cash in Malta from that foreign based bank account, that is also considered remitted to Malta and thus taxable.

You can of course incorporate offshore and only withdraw the money you need to cover expenses (yes, i know that this company might be considered Maltese resident, but I think it is unlikely they will challenge that). It is expected that non domiciled residents have an offshore company.

oddis71 wrote:

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You can of course incorporate offshore and only withdraw the money you need to cover expenses (yes, i know that this company might be considered Maltese resident, but I think it is unlikely they will challenge that). It is expected that non domiciled residents have an offshore company.

@oddis71: How can an offshore company be considered Maltese resident just because company owner is residing in Malta while business is done and income is generated outside of Malta?

If you are a director and Maltese resident, company can be regarded as Maltese resident because it is run and managed from Malta. But as I said, it is not likely they will challenge that.

What about using an overseas credit card for payments? Would it still be considered a remittance? Is it likely to be checked by the tax man?

Ask yourself if you get audited and someone asks the question "did you do this to deliberately try to avoid paying taxes on money that you could have brought here in the normal fashion?" if the answer anything but unequivocal "no" then don't take the chance.

Gerdhado wrote:

What about using an overseas credit card for payments? Would it still be considered a remittance? Is it likely to be checked by the tax man?

If you have used it to pay for goods or services in Malta or delivered to Malta, then it is 'monies remitted to Malta' and is taxable. If it is to pay for services or goods payed for from a foreign account and delivered elsewhere then you will probably be OK but still a grey area.

For instance, use your foreign card to pay for a flight with Air Malta from Malta to Germany, then that is 'monies remitted to Malta' but use it to pay for flights with Lufthansa from Malta to Germany and it has not been 'remitted to Malta' but to Germany, even though they use the same flights, so you 'might' be ok.

Ray