Glossary entry (derived from question below)
English term or phrase:
Local interests in basis...
English answer:
interest earned in Malta that forms part of declarable income
- The asker opted for community grading. The question was closed on 2018-12-17 16:54:07 based on peer agreement (or, if there were too few peer comments, asker preference.)
Dec 13, 2018 16:25
5 yrs ago
4 viewers *
English term
Local interests in basis...
English
Bus/Financial
Law: Taxation & Customs
Malta
At the very end of a tax statement from the Maltese "Commissioner for Revenue" is the following sentence:
Local interests in basis From 2013 onwards are shown.
A bit doubtful as to how to interpret the first part of the sentence.
Only information that is actually shown is the taxpayer's income, tax and social security contributions owed, type of employment (full-time/part-time), and employer.
Anyone with a better understanding of Maltese tax jargon?
Local interests in basis From 2013 onwards are shown.
A bit doubtful as to how to interpret the first part of the sentence.
Only information that is actually shown is the taxpayer's income, tax and social security contributions owed, type of employment (full-time/part-time), and employer.
Anyone with a better understanding of Maltese tax jargon?
Responses
23 hrs
Selected
interest earned in Malta that forms part of declarable income
I think the document Lorena has cited in the discussion area enables us to decipher this rather strangely expressed phrase. Here it is:
https://cfr.gov.mt/en/inlandrevenue/personaltax/Documents/ta...
First, "basis" is what they call taxable, or more precisely declarable, income in a given year. The document itself is headed
"Basis Year 2014
Year of Assessment 2015"
This means that it refers to the tax declaration submitted in 2015 on income in 2014. (It's the same in Spain, for example: in June this year I submitted my income tax return for my earnings in 2017.)
There's a section on p. 9 headed "General Basis of Taxation". It begins: If you are domiciled and ordinarily resident in Malta you should declare all your 2014 income (including that of your spouse and dependent children) from whatever source." So "basis" means declarable income for the year, the income that has to be entered on the form (and that may or may not be taxable).
"Local interests" is covered on p. 19. Although "interests" is pluralised, which is not idiomatic in English, what they mean is interest, potentially from multiple sources.
It begins: "All local interest income (including foreign currency accounts held at local banks) that did not suffer tax deductions at source must be included in box 9b. Interest income from local banks, which has already suffered 15% tax should not be declared in your tax return."
https://cfr.gov.mt/en/inlandrevenue/personaltax/Documents/ta...
This is part of section 9, "Local Investment Income". Section 10 is "Foreign Investment Income". So clearly "local" means domestic: within Malta, as opposed to foreign.
Interest on which withholding tax has been paid does not need to be declared, so it is not "in basis", as they put it.
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Note added at 23 hrs (2018-12-14 16:20:36 GMT)
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Yes, that's right, on the understanding that "local" means "within Malta". It is possible that in some cases local capital income may not be taxable (in the case of non-residents, for example). but it is always declarable unless tax has been withheld.
https://cfr.gov.mt/en/inlandrevenue/personaltax/Documents/ta...
First, "basis" is what they call taxable, or more precisely declarable, income in a given year. The document itself is headed
"Basis Year 2014
Year of Assessment 2015"
This means that it refers to the tax declaration submitted in 2015 on income in 2014. (It's the same in Spain, for example: in June this year I submitted my income tax return for my earnings in 2017.)
There's a section on p. 9 headed "General Basis of Taxation". It begins: If you are domiciled and ordinarily resident in Malta you should declare all your 2014 income (including that of your spouse and dependent children) from whatever source." So "basis" means declarable income for the year, the income that has to be entered on the form (and that may or may not be taxable).
"Local interests" is covered on p. 19. Although "interests" is pluralised, which is not idiomatic in English, what they mean is interest, potentially from multiple sources.
It begins: "All local interest income (including foreign currency accounts held at local banks) that did not suffer tax deductions at source must be included in box 9b. Interest income from local banks, which has already suffered 15% tax should not be declared in your tax return."
https://cfr.gov.mt/en/inlandrevenue/personaltax/Documents/ta...
This is part of section 9, "Local Investment Income". Section 10 is "Foreign Investment Income". So clearly "local" means domestic: within Malta, as opposed to foreign.
Interest on which withholding tax has been paid does not need to be declared, so it is not "in basis", as they put it.
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Note added at 23 hrs (2018-12-14 16:20:36 GMT)
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Yes, that's right, on the understanding that "local" means "within Malta". It is possible that in some cases local capital income may not be taxable (in the case of non-residents, for example). but it is always declarable unless tax has been withheld.
Note from asker:
| *local* taxable capital income |
| That's how I rendered it in my SV target lang - guess it's fairly close. Thank you very much for elucidating. |
4 KudoZ points awarded for this answer.
Comment: "This has already been delivered, but thanks anyhow for elucidating. My Swedish rendition ended up in the proximity of "taxable capital income", which I guess is fairly close..."
Discussion
Lorena: would you care to post an answer?