Course Overview

Session 1 – Basic Concepts of Income Tax

Concepts of Income Tax

• Who and what is subject to income tax? Where does income arise?
• Understand the tax concept of residence and domicile
• Understand the difference between income and capital

Deductible Expenses

• Understand the need to adjust the accounting profit to calculate the tax profit
• Determine what are the allowable expenses (positive test) and the disallowed expenses (negative test)
• Understand capital allowances
• Understand NID

Session 2 – Taxation of Companies and Tax Accounting Rules

Exemptions

• Understand exempt income for companies and non-resident
• Understand the meaning of the participating holding and its relevance

Arriving at the Tax Charge

• Practical examples of different scenarios and how to calculate chargeable income

Tax Accounting Rules

• Identify the different types of tax accounts
• Identify to which tax account profits should be allocated to

Session 3– Double Taxation Relief & The Refundable Tax Credit

Double Taxation Relief

• Understand the nature and causes of double taxation
• Understand the operation of the 4 mechanisms contemplated in the Maltese tax system for the elimination of double taxation
• Understand how double taxation is eliminated through examples

The Refundable Tax Credit

• Understand who is eligible for the refundable tax credit
• Understand how to register shareholders’ for this purpose
• Understand how to calculated the refundable tax credit through examples
• Understand how to complete a refundable tax credit application

Session 4 – Completing The Income Tax Return

Completing the Income Tax Return

• Practical session, preparing an income tax return from beginning to end
• Going through the different tax return attachments and provide examples of when these must be used and how these should be reported in the tax return