The Maltese government made available tax credits to incentivize individuals to return to work. Once individuals are employed or self-employed, they may benefit from tax credits, provided that the conditions for eligibility are met.
The RA7 Form
The RA7 form is applicable when a woman returns to work after having a child, where the total tax due to gainful employment is less than €2,000. This tax credit is valid for two years. This tax credit is applicable if the woman returns to work after not being employed for a minimum of 5 years. During this time of unemployment, the woman cannot be on the unemployment register. Additionally, the woman would need to have been employed for 24 consecutive months.
The RA9 Form
The RA9 form is applicable when a woman returning to work after having a child, where the total tax due to gainful employment is more than €2000. The tax credit is capped at €5,000 and is valid for one year only.
The RA9 tax credit is applicable to women who have children under 16 years, who return to work on or after 1st January 2008, and who have not worked for a minimum of five years before returning to work. alternatively, the second condition for eligibility is that women who have children after 1st January 2007, and who continue or return to employment on or after 1st January 2007. The RA9 tax credit applies to women who give birth and also to those who adopt children.
Application & Submission
In both cases, the aforementioned tax credits are granted for each child. The respective form must be filled out and submitted one year after the woman returns to work along with the income tax return. The deadline for these forms is on July 31st, 2022. The tax credit is then off set against the taxable income for the year.
Disclaimer: This article is purely informational and does not replace the formal guidelines enforced by the authorities.