Malta payroll: FSS tax withholding, Class 1 social security, Maternity Fund, statutory bonuses and FS3/FS5/FS7

Scope (FSS Rules, S.L. 372.14)

This Guide covers what a Maltese employer (a "payer") must do for employees (the "payees"): register, withhold income tax under the Final Settlement System (FSS), pay Class 1 social security and the Maternity Leave Fund contribution, pay the statutory bonuses and the minimum wage, and file the FS5, FS3 and FS7.

• Primary year: emoluments paid in calendar 2026. Malta taxes a calendar basis year. 2026 income is charged for year of assessment 2027, so the FSS rate tables for 2026 pay are the ones in article 56(1) of the Income Tax Act as replaced by Act III of 2026.
• Returns being filed now: the 2025 FS3 and FS7 were due in January and February 2026. See "2025 year-end (already due)".

Sources. Everything here comes from the Laws of Malta (legislation.mt). The MTCA website (mtca.gov.mt) refused our automated source checks on 25 September 2026. Anything that exists only there is marked check, with no figure. That covers the FSS Main Tax Deduction Tables, the FS-form layouts and e-filing rules, the 2026 Class 1 weekly caps, and the statutory bonus amounts.

Not covered: the employee's own tax return, part-time final tax and personal reliefs (see the malta-income-tax Guide), self-employed Class 2 contributions, fringe-benefit valuation, the special expatriate regimes (highly qualified persons and similar), and sector Regulation Orders beyond what is named here.

Ask the client first

• Is the employer registered as an FSS payer? If not, when did the first emoluments start to accrue?
• How many full-time payees are on the payroll? Ten or more means the cumulative formula is compulsory.
• For each employee: do you hold a completed FS4 (Payee Status Declaration)? What status does it show: single, married (joint computation), parent, or a qualifying-child category?
• For a qualifying-child status: does the employee have custody or pay maintenance? How old is each child? Is the employee or spouse an EU/EEA national or a long-term resident? If not, was the child born in Malta and resident in Malta?
• Is this job the employee's main source of emoluments (FSS Main method), registered part-time work (part-time method), or other emoluments (Other Emoluments method)?
• Date of birth: on or before 31 December 1961, or on or after 1 January 1962? Age under 18, 17 or 18+? This drives the Class 1 category and minimum wage.
• What is the basic weekly wage, or the weekly equivalent of the basic monthly salary, before overtime, bonuses, allowances, benefits in kind and commissions?
• Overtime: is the post managerial? Is the basic weekly wage at or below €375 (Tax on Overtime Rules)? Has the employee opted out of the 15% overtime method?
• Any fringe benefits, tax-free (net) pay arrangements, or payments on termination?
• Any late FS5 payments or missing forms to fix?

The method, step by step

1. Register as a payer "within fifteen days from the date the first emoluments due to be paid by him to a payee start to accrue" (FSS rule 4(1)). A buyer of a going concern with employees has the same duty.
2. Collect the FS4. The payee must give it "within seven days from the commencement of a new source" of emoluments or of any change in its information (rule 3(1)). From 1 January 2026 the form is the one "publicly available on the appropriate website" rather than a schedule to the rules (L.N. 176 of 2026). The payer completes its parts and files the original "by the last working day of the month following that during which the said form was forwarded" (rule 3(3)).
3. No FS4? Deduct at the top rate (rule 3). Emoluments of a payee who has not complied are "subject to tax deduction at a rate equal to the maximum rate of tax provided under article 56(1)" (rule 3(2)), which is 35%. The payer must still complete and file the form to the best of its knowledge (rule 3(4)).
4. Pick the deduction method for each payment (rule 6(1)):
   • FSS Main for the one source the FS4 names as main, and for local pensions (rule 7);
   • FSS Part-Time for part-time work that qualifies under article 90A (rule 8; rates in the malta-income-tax Guide);
   • FSS Overtime for qualifying overtime income, at 15 cents per euro (rule 7A);
   • FSS Other Emoluments for anything else, at 20% (rule 9).
5. Compute FSS Main tax with the cumulative formula (Schedule B Part I) using the 2026 rate table for the FS4 status. A payer with fewer than ten full-time payees may instead use the Main Tax Deduction Tables, but never both in the same year (rule 7(4)).
6. Round the tax: "disregard any fraction of a euro being equal to or less than fifty cents, and round up to one euro any fraction of a euro exceeding fifty cents" (rule 6(3)).
7. Cap the deduction (rule 11) at 50% of the cash part of the pay, unless the payee consents or a listed exception applies (rule 11; Schedule B note). Termination payments are not capped (rule 34).
8. Compute Class 1 on the basic weekly wage: the employee's share, the employer's matching share, and the employer's Maternity Leave Fund contribution (Cap. 318, art. 7 and Tenth Schedule).
9. Give the payee a pay statement showing gross pay by category (fringe benefits separately) and the tax deducted (rule 19).
10. Remit and file the FS5 by the last working day of the next month (rules 15 and 20).
11. Year end: give each payee the FS3 by 31 January, and file the FS7 with the FS3 originals by 15 February (rules 21 and 22).

Order matters. If you compute tax before splitting out qualifying overtime and part-time pay, those amounts are taxed twice. If you compute Class 1 on gross pay including bonuses and overtime, you overcharge both sides.

FSS income tax: formula and 2026 rate tables

The cumulative formula (FSS Rules, Schedule B)

Payers "having ten or more full-time payees" must use the FSS Main Cumulative Tax Deduction Formula. For each pay period:

Step	Formula	Meaning
1	A = (E/C) N	Projected annual emoluments: main emoluments to date (E) ÷ current pay period number (C) × pay periods in the year (N)
2	P	Projected annual tax: apply the article 56(1)(a) or (b) table for the FS4 status to A
3	D = (P/N) C	Tax due to date
4	L = D − X	Deduct this period: tax due to date less tax already deducted (X)

If L is negative, deduct nothing that period. The deduction may not exceed 50% of the cash part of the period's pay.

Main Tax Deduction Tables (fewer than ten full-time payees). The tables are the ones "the Commissioner may ... declare to be applicable" in a communication, circular or on a Government website. They are not in the law, so the 2026 tables are check on mtca.gov.mt. A year-end adjustment is normally made in the last pay period: projected annual tax on actual year-to-date main emoluments, less tax already deducted. The payer can do this only with full information, which includes FS3s from earlier employers that year.

Rate tables for 2026 emoluments (year of assessment 2027) (Act III of 2026)

Tax = chargeable income × rate − subtraction. Act III of 2026, article 19, replaced article 56(1)(a) and (b) from year of assessment 2027. Each band is "exceeds [lower] but is less than [upper]". The formulas give the same tax at each band edge.

FS4 status (article 56(1))	0% up to	15% band (subtract)	25% band (subtract)	35% over €60,000 (subtract)
Single / other individual, (b)(i)	€12,000	€12,000–€16,000 (€1,800)	€16,000–€60,000 (€3,400)	€9,400
Married, joint, (a)(i)	€15,000	€15,000–€23,000 (€2,250)	€23,000–€60,000 (€4,550)	€10,550
Parent, (b)(ii)	€13,000	€13,000–€17,500 (€1,950)	€17,500–€60,000 (€3,700)	€9,700
Married, 1 qualifying child, (a)(ii)	€17,500	€17,500–€26,500 (€2,625)	€26,500–€60,000 (€5,275)	€11,275
Married, 2+ qualifying children, (a)(iii)	€22,500	€22,500–€32,000 (€3,375)	€32,000–€60,000 (€6,575)	€12,575
Parent, 1 qualifying child, (b)(iv)	€14,500	€14,500–€21,000 (€2,175)	€21,000–€60,000 (€4,275)	€10,270 (as enacted)
Parent, 2+ qualifying children, (b)(v)	€18,500	€18,500–€25,500 (€2,775)	€25,500–€60,000 (€5,325)	€11,325

The €10,270 point. The enacted text says "subtracting €10,270". At €60,000 the 25% formula gives €10,725 but the 35% formula gives €10,730, a €5 step. A continuous table would subtract €10,275, which is what some payroll software uses. Apply the enacted figure unless MTCA has published a correction (check).

Who may use which status. A payer applies the status the FS4 declares. It still helps to know the conditions, because a wrong FS4 gives the employee a year-end bill.

• Married tables (a): a married couple resident in Malta, taxed jointly. If either spouse elected a separate return (article 49A) or a separate computation (article 50), each uses the (b) tables. An EU/EEA national whose spouse is not resident in Malta can still use the married tables (a)(i) to (iii) if the other conditions are met and "at least ninety per cent (90%) of the couple’s world-wide income is derived from Malta".
• Parent (b)(ii): a parent who kept a child in custody, or paid maintenance under article 12(1)(t), for a child "not over eighteen (18) years of age, or not over twenty-three (23) years of age if receiving full-time education".
• Qualifying-child tables (a)(ii), (a)(iii), (b)(iv), (b)(v) need all of: custody (for (b)(iv) and (b)(v), custody of the individual's own child, a spouse's child, or a child of a cohabitant certified under the Cohabitation Act, or maintenance under article 12(1)(t)); the same age test; and at least one of the individual or spouse being an EU/EEA national or a long-term resident. If neither is an EU/EEA national, each child must also have been "born in Malta and was resident in Malta". If any condition fails, fall back to (a)(i) or (b)(ii).
• Single parent with sole custody (b)(iii) is taxed on the married table (a)(i), unless (b)(iv) or (b)(v) is better. The conditions (sole custody, child income not over €3,400, sole beneficiary of children's allowance, no maintenance from and not living with the other parent) are set out in the malta-income-tax Guide.

2026 timing. Act III of 2026 was assented on 10 March 2026. The cumulative formula recalculates tax to date each period, so any January–February under- or over-deduction unwinds through L = D − X. How MTCA told payers to handle those months is check.

Other FSS methods (FSS Rules; Tax on Overtime Rules, S.L. 123.200)

Method	Applies to	Deduction
Overtime (rule 7A)	Qualifying overtime income	"fifteen cents (€0.15) of every one euro (€1)", final: not part of chargeable income, not creditable, not refundable
Other Emoluments (rule 9)	Second jobs and other emoluments not under rules 7 or 8	"twenty per cent"; the payee may direct a higher rate. Pensioners and full-time students may direct nil or a lower rate; anyone else needs the Commissioner's written approval for a lower rate
Part-Time (rule 8)	Part-time work qualifying under article 90A and the Part-time Work Rules	Rate and cap: see malta-income-tax. A payee who expects to be under the tax threshold may direct no deduction on the FS4

Qualifying overtime. Overtime is qualifying only while "the rate of basic weekly wage for that employment does not exceed three hundred and seventy-five euro (€375) per week" and the post is not managerial (a director, partner or officer with managerial functions). It must be done in a full-time employment registered with Jobsplus. From year of assessment 2023 the 15% treatment covers overtime income up to the lower of "ten thousand euro (€10,000)" and actual qualifying hours × maxrate. Maxrate is the overtime hourly rate, capped at "twice the hourly equivalent of the basic weekly wage". The hourly equivalent is the basic weekly wage divided by forty. Overtime pay above the cap is not qualifying overtime income, so it is taxed with the other emoluments under the Main method. The payee may opt out in writing at any time (rule 7A(3)), or elect on the return to be taxed at normal rates with the 15% credited (rule 7A(6)). Each spouse's overtime is tested separately.

Class 1 social security and the Maternity Leave Fund (Social Security Act, Cap. 318)

Who pays. For every person in insurable employment "three contributions per week shall be payable ... one by the employed person, one by his employer, and one out of the Consolidated Fund" (article 7(1)). The State's share is 50% of the combined employee and employer contribution. The employer is liable in the first instance for both its own and the employee's share (article 8(1)). It recovers the employee's share only by deduction from wages paid for that contribution week (article 8(3)). It must not deduct its own share from the employee: doing so is an offence (article 8(2)).

What it is charged on. The base is the "basic weekly wage", or the weekly equivalent of the basic monthly salary. That means gross wage or salary "excluding any remuneration for overtime, any form of bonus, any extra allowances, any remuneration in kind and commissions" (article 2). A person with two insurable jobs is treated as employed in the one with the higher basic wage (article 7(1) proviso). The Tenth Schedule does not say how to turn a monthly salary into a weekly equivalent. Use the conversion MTCA prescribes (check).

Rate and categories. Both the employee and the employer pay 10% of the basic weekly wage, "calculated to the nearest cent", between a low-wage flat rate and a weekly maximum (Tenth Schedule, Part I). The maximum is higher for people born on or after 1 January 1962 because their pensionable income is higher.

Category	Who	Employee	Employer
A	Under 18, basic wage at or below the Category A/B threshold	flat rate	same
B	18 or over, basic wage at or below the threshold	flat rate, or 10% if eligible and elected	flat rate
C	Basic wage between the threshold and the Category D point (the band is higher for those born 1962 or later)	10% of basic weekly wage	10% of basic weekly wage
D	Basic wage above the Category D point	fixed maximum (higher for born 1962 or later)	same
E / F	Under 18 / over 18 on recognised student-worker or similar schemes	10%, capped	10%, capped

2026 weekly figures: check. The thresholds and flat and maximum amounts change each year. The Tenth Schedule on legislation.mt still carries the table substituted by L.N. 10 of 2025, backdated to 1 January 2024. Its Note 2 refers to pensionable income that "with effect from January 2024 is guaranteed at the amount of €27,679.09". That table sets Category B at "€21.35", the threshold at "€213.54", and Category D at "€42.31" (born 1961 or before) and "€53.23" (born 1962 or later). These are 2024 figures. Do not use them for 2026 pay. We found no legal notice updating Part I for 2025 or 2026 among the 2026 legal notices published to date. Take the 2026 weekly rates from MTCA's published Class 1 table.

Low earners. An employee whose basic weekly earnings are below the national minimum wage for age 18+ may elect to pay 10% of the actual basic weekly wage instead of the Category B flat rate. From 1 January 2018 this is limited to part-time employees whose part-time basic earnings do not exceed the National Minimum Wage (article 7(2)(a)). Paying less than the flat rate "may ... result in the payment of a reduced contributory benefit or contributory pension" (Tenth Schedule, Note 1). From 1 January 2022, a person with more than one part-time job and no full-time job may elect to pay on all part-time jobs up to forty hours a week.

Change of employer mid-week. If employment ends with one employer and starts with another in the same week, the former employer pays that week's contribution (article 7(3)).

Maternity Leave Fund (employer only). The employer also pays "0.3% calculated to the nearest cent of their basic weekly wage", with flat amounts at the bottom and a cap at Category D (Tenth Schedule, Part IV). The 2024-dated table caps it at "€1.60" (born 1962 or later) and "€1.27" (born 1961 or before). The 2026 caps are check. Nothing is deducted from the employee for this.

Late Class 1. From 1 January 2026, the extra contribution for Class 1 paid late or at the wrong rate under article 116(1)(c) and (d) is replaced by interest at the article 44(2A) Income Tax Management Act rate (Act III of 2026, article 27). See the malta-income-tax Guide for that rate.

Minimum wage, cost-of-living increase and statutory bonuses

National minimum wage from 1 January 2026 (L.N. 289 of 2025)

Age	Weekly minimum (normal working week)
18 and over	€229.44
17	€222.66
Under 17	€219.82

Part-time employees get the hourly rate of a comparable whole-time employee under the relevant Wage Regulation Order. Where no Order applies, the rate is at least the weekly minimum "divided by forty (40)". For age 18 and over that is €5.736 an hour. Where a sector Order applies, 2026 wages may not be less than its 2025 wages adjusted for the cost-of-living increase. The mandatory service supplements (after one and two years with the same employer) in the older order, S.L. 452.71, are not repeated in L.N. 289 of 2025. Check with the Department for Industrial and Employment Relations whether they still apply.

Cost-of-living increase for 2026 (L.N. 290 of 2025)

From 1 January 2026, "The wages of whole-time employees shall be increased by four euro and sixty-six cents (€4.66) per week". Part-time hourly rates rise by the matching hourly amount. Where there is no comparable whole-time employee or Wage Regulation Order, the rise is one-fortieth of €4.66. The increase is part of wages. It is taxable under FSS and forms part of the basic weekly wage for Class 1. It is a different thing from the statutory bonuses and income supplements below. Those are separate lump-sum payments made on top of wages at fixed times of the year.

Statutory bonuses (Employment and Industrial Relations Act, Cap. 452, art. 23)

• Statutory bonuses. Every employer must pay each whole-time employee the statutory bonuses. They are paid "between the 15th and the 30th day of the month of June and between the 15th and 23rd day of the month of December". Each payment "shall not be less than one-half of that which the Government shall have announced in the general estimates of any particular year as payable by the Government to each of its employees during that year" (article 23(1)).
• Income supplements are a separate obligation. The employer "shall also pay, or cause to be paid, to each of his whole-time employees any income supplements in the amount and at the times as may be established by legal notice" (article 23(1), second proviso). Do not fold them into the bonus or into wages.
• An employee who has worked for the employer for less than a year gets a proportionate amount of "the bonus or income supplement", "made on the basis of the annual hours worked". Whole-time employees with reduced hours get a pro rata share (article 24). Part-time entitlement follows the part-time employment regulations and the sector Order (check).
• 2026 amounts: check. The bonus amounts come from the Government's General Estimates, and the supplement amounts from legal notice. We found neither with a figure on legislation.mt. Use the amounts announced for 2026 and confirm them with MTCA or the Department for Industrial and Employment Relations before the June and December payroll runs.
• About the old "COLA" figure. An earlier version of this Guide listed a tax-exempt quarterly "COLA" paid as a yearly total. That total was really the two half-yearly statutory bonuses plus the two income supplements added together, under the wrong label. The bonuses and supplements are real, separate payments. The 2026 cost-of-living increase is the weekly €4.66 above.
• For tax, bonuses and income supplements are paid by the employer and go through FSS. Whether any exemption applies is check with MTCA. For Class 1, bonuses and extra allowances are excluded from the basic weekly wage.
• Payslips. Cap. 452 and its regulations set rules on itemised pay statements (payslips), including what they must show and when they are due. We have not verified them here, so treat them as check. The FSS pay statement under rule 19 (gross pay by category and the tax deducted) is covered above.

Working time and leave that affect payroll

• Annual leave (Organisation of Working Time Regulations, S.L. 452.87, reg. 8): "four weeks and thirty-two hours calculated on the basis of a forty-hour working week", which is 192 hours. Four weeks of it "may not be replaced by an allowance in lieu, except where the employment relationship is terminated". From 1 January 2021, a whole-time employee gets an extra day of leave for each public holiday that falls on a Saturday, Sunday or weekly rest day. The hours adjust pro rata where the 17-week average is below or above forty hours.
• Maximum hours (reg. 7): average working time, including overtime, "shall not exceed forty-eight hours" per seven days. The default reference period is seventeen weeks, or fifty-two weeks in manufacturing and tourism. Leave and sick leave are left out of the average.
• Overtime premium rates come from the applicable Regulation Order or the contract. The 2026 sector Orders were reissued as "(Conditions of Work) Regulation Order, 2026" legal notices. Check the sector's Order; no general rate was verified.
• Maternity leave (Protection of Maternity (Employment) Regulations, S.L. 452.91, reg. 6): "eighteen weeks" uninterrupted. How pay is split between the employer, the Maternity Leave Fund and the State benefit, and the 2026 benefit rate, are check.
• Sick leave, birth leave, bereavement, parental and other leave: set by the sector Order, the contract and separate regulations. They are not restated here. Check before relying on a figure.

Boundaries and exceptions (FSS Rules)

Situation	Rule	Source
No FS4 from the payee	Deduct at the article 56(1) maximum (35%) until the default ends. Payer still files the form	FSS rule 3(2), (4), (5)
FS4 returned as unacceptable and not corrected within fourteen days	Deduct at the maximum rate until the Commissioner directs otherwise	FSS rule 3(7)
Payer files an FS4 late, incomplete or wrong	Schedule C additional tax, plus liability for any under-deduction not recovered by 31 December	FSS rule 3(6)
Ten or more full-time payees	Cumulative formula compulsory. Fewer than ten: may opt for Tables, but not both in one year	FSS rule 7(4)
More than one employment	Only one source can be "main". Others go under Other Emoluments at 20%	FSS rules 7(1), 9
Deduction would exceed 50% of cash pay	Limit to 50% unless the payee consents, or articles 46 or 71 ITMA apply	FSS rule 11
Termination payment	Taxed under rule 6 and/or rule 10, with no 50% limit	FSS rule 34
Employer pays the employee's tax (net pay deal)	Gross up: emoluments = net pay + tax paid	FSS rule 33
Any agreement not to deduct tax	Null and void (except rule 33 arrangements)	FSS rule 36
Payer failed to deduct but has paid the tax	May recover only that amount from the payee, as the Commissioner approves	FSS rule 16
Over-deduction remitted	Payer repays the payee from its own funds, then sets it off on the next remittance or claims a refund	FSS rule 17
Basic weekly wage over €375, or managerial post	Overtime is not qualifying. Tax it under the Main method	S.L. 123.200 rule 2
Payee paid after death, or after the contract ended	Deduction rules still apply	FSS rule 12
Employer tries to recover its own Class 1 share	Offence	Cap. 318 art. 8(2)

Worked cases (2026 emoluments) (Act III of 2026; FSS Rules)

Case 1: single employee, cumulative formula. Basic salary €2,500 a month, FS4 status single, twelve monthly pay periods, no other pay. Month 1: A = (2,500 / 1) × 12 = €30,000. P = 30,000 × 25% − 3,400 = €4,100. D = (4,100 / 12) × 1 = €341.67, which rounds up to €342. Month 2: D = (4,100 / 12) × 2 = €683.33. L = 683.33 − 342 = €341.33, which rounds down to €341.

Case 2: same pay, married joint status. P = 30,000 × 25% − 4,550 = €2,950. Month 1 D = €245.83, which rounds to €246. Over the year the married status saves €1,150 against single (€4,100 − €2,950).

Case 3: no FS4. Same €2,500 monthly pay, and the employee has not handed in an FS4. Deduct 35% = €875. That is under the 50% cap (€1,250), so deduct it in full. File the FS4 to the best of your knowledge anyway.

Case 4: qualifying overtime. Full-time, Jobsplus-registered, non-managerial employee on a basic weekly wage of €360. They work 40 overtime hours in the month at €13.50 an hour, so overtime pay is €540. Hourly equivalent of basic = 360 / 40 = €9.00, and maxrate is capped at 2 × 9 = €18.00. The €13.50 rate is within the cap, and the year's qualifying overtime is under €10,000. Deduct 15% = €81.00 as a final tax. Report the €540 and the hours separately on the FS5 and FS3. The €540 is kept out of the Main formula.

Case 5: Class 1 and Maternity Fund. Employee born in 1990, basic weekly wage €400. We assume this falls within the 2026 Category C band (check the 2026 table; it was inside Category C even in the 2024-dated table). Employee Class 1 = 10% × 400 = €40.00. Employer Class 1 = €40.00. Maternity Leave Fund = 0.3% × 400 = €1.20. The employer's weekly cost on top of wages is €41.20, and €40.00 is deducted from pay.

Case 6: parent, one qualifying child, high earner. Projected annual emoluments €70,000. As enacted, P = 70,000 × 35% − 10,270 = €14,230. With the "continuous" €10,275 it would be €14,225. Record which figure your software uses.

Case 7: second job. An employee whose main job is elsewhere earns €1,000 in a month from you. Other Emoluments method: deduct 20% = €200, unless the employee has directed a higher rate, or (as a pensioner or full-time student) a lower one.

When to refuse or refer

• Refer questions about the employee's own return, part-time final tax, personal reliefs, or whether the child conditions are met in a disputed case. Use malta-income-tax or a warranted accountant.
• Refer expatriate regimes (highly qualified persons, key employee schemes), cross-border workers, social security for posted workers (A1 certificates), and directors' fees. They are outside this Guide.
• Refuse to give a 2026 Class 1 weekly cap, bonus amount or Main Tax Deduction Table figure from this Guide. Those figures must come from MTCA's current publications.
• Refuse to set up any arrangement not to deduct FSS tax. It is void under rule 36.
• Refer sector pay-rate, overtime-premium and leave questions to the applicable (Conditions of Work) Regulation Order and the Department for Industrial and Employment Relations.

Filing and payment (FSS Rules)

What	Who gets it	Deadline	Rule
Payer registration	Commissioner	Within fifteen days of the first emoluments starting to accrue	4(1)
FS4 (Payee Status Declaration)	Payee → payer; payer files the original	Payee: within seven days of a new source or a change. Payer: last working day of the following month	3(1), 3(3)
FS5 (monthly payment advice) with payment of tax deducted, including a nil advice	Commissioner	Last working day of the month after the month the emoluments were paid	15(1), 20
FS3 (Payee Statement of Earnings)	Payee (two copies)	By 31 January of the following year, or within seven days of termination	21(1)(b)
FS7 (Payer's Annual Reconciliation Statement) with the original FS3s	Commissioner	By 15 February of the following year	22(1)
FS7 when a payer stops paying emoluments	Commissioner	Last working day of the month after the last payment	22(1) proviso

The FS5 shows the number of payees and gross emoluments split into part-time, qualifying overtime and other pay. Fringe benefits are shown separately. Tax deducted is shown under each method, plus any arrears collected under rule 10. Class 1 contributions are collected "at the Malta Tax and Customs Administration" (Cap. 318, article 11, as amended by Act III of 2026, article 22). How they appear on the FS5 is check. The FS5 form layout and the e-filing duty are check, since the Commissioner may direct electronic payment and filing (rules 15(2) and 23).

Tax deducted is a debt to Government from the last working day of the following month. Late payment carries interest under article 44(2A) of the Income Tax Management Act (rule 25(1)).

FSS additional tax (Schedule C), "Subject to a maximum of €1000 for each default":

Default	Additional tax
FS4 not submitted to the Commissioner as required	"€2 for every form not submitted", or €23 whenever the defaults in any one month do not exceed ten
Failure to register or re-register as a payer	€115
Monthly payment advice (FS5) not filed on time or in the right manner	€15
Annual reconciliation (FS7) with FS3 originals not filed	€200

The Commissioner serves a default notice. The payer must rectify and pay "within ten days", and may contest by letter within ten days. Each further notice for a continuing default doubles the additional tax, up to the cap (rule 24). The Commissioner may remit it if the default was not the payer's fault.

Records. Keep an up-to-date record for each payee with name, address and ID or tax number, date of payment, gross pay (fringe benefits shown separately), and tax deducted, monthly and cumulative. Keep it for the period in article 23(12) of the Income Tax Management Act (rule 18).

2025 year-end (already due) (FSS Rules)

• 2025 emoluments are year of assessment 2026. FSS for 2025 used the article 56 tables as set by Act IX of 2025. The four qualifying-child tables did not apply to 2025 pay. See the malta-income-tax Guide for those tables.
• The 2025 FS3s were due to payees by 31 January 2026. The 2025 FS7, with the FS3 originals, was due by 15 February 2026. If either is still outstanding, file now. Schedule C additional tax (€200 for the FS7) can be doubled on each further default notice, up to €1,000.
• Employees need their FS3 to file their own returns. The employee's 2025 return date is covered in malta-income-tax.

Completion checklist

• Payer registered, and the date checked against the fifteen-day rule
• FS4 on file for every payee, the status checked against the child and nationality conditions, and the payer's copy filed with the Commissioner
• Payees with no FS4 are taxed at 35% (FSS rule 3)
• Method chosen per payment: Main, Part-Time, Overtime or Other Emoluments
• Cumulative formula used if ten or more full-time payees; Tables (MTCA 2026, check) only if fewer and never mixed
• 2026 article 56 table applied (Act III of 2026), with the parent-one-child €10,270 treatment recorded (Act III of 2026)
• Rounding to the euro and the 50% cap applied (FSS rules 6 and 11)
• Qualifying overtime tested (€375 basic, non-managerial, €10,000 and maxrate caps) at 15% (S.L. 123.200)
• Class 1 on basic weekly wage only, using the 2026 MTCA category table (check), and the employer's share not recovered from the employee
• Maternity Leave Fund 0.3% added (2026 cap, check) (Cap. 318)
• Minimum wage (€229.44 for 18+) and the €4.66 weekly cost-of-living increase reflected (L.N. 289 of 2025)
• June and December statutory bonuses paid within the windows, pro rata where needed (amounts, check)
• Pay statement to each payee showing gross by category and tax deducted
• FS5 and payment by the last working day of the following month, including nil months
• FS3 to payees by 31 January (seven days on termination); FS7 with FS3 originals by 15 February
• Any 2025 FS3 or FS7 still outstanding has been filed