The last day of June is the deadline for landlords of residential property to regularise their tax position through the current government scheme. Finance Minister Edward Scicluna has called upon all landlords who have rented property for residential purposes between 2005 and 2012 to make use of the scheme.
The Minister stated that the government will be intensifying its effort at handling tax evasion. Those who are caught evading their tax obligations will not only have to pay the standard 35% tax on income resulting from rented property, but also any additional penalty charges and fees that may result. Through the scheme, the rate of tax on income generated from renting residential property, including garages, will be reduced from the standard maximum of 35% to 15%.
Landlords who declare their income through the scheme will pay 15% tax on the average 2-year rental avenue of the declared time. In addition, no interest or penalty fees will be charged.
Those who intend to make use of the scheme should send in the required forms along with a cheque to the Inland Revenue Department. The documents are to reach the Department by no later than 30th June.