Finance Minister Clyde Caruana has disclosed detailed tax revenue figures for 2019–2023 in response to parliamentary questions, shedding light on Malta’s fiscal landscape. The data reveals significant growth across all taxpayer categories, underscoring the resilience of the islands’ economy despite global challenges.
Self-employed individuals paid €76.8 million in taxes in 2019, rising steadily to €111.6 million by 2023 – a 45.4 per cent increase over five years. This growth suggests an expanding entrepreneurial sector or possibly improved tax compliance.
Meanwhile, employees contributed the largest share, with tax payments surging from €742.1 million in 2019 to €1.18 billion in 2023, a 59.5 per cent rise. The sharpest annual jump occurred between 2020 and 2021 (23.9 per cent), likely reflecting post-pandemic economic recovery and or wage adjustments.
Corporate tax revenues showed volatility, dipping to €384.1 million in 2020 – likely due to pandemic relief measures – before rebounding to €626.2 million in 2023. This recovery suggests improved business performance and profitability in subsequent years.
Income Taxes Paid (2019-2023)
(in euros)
| Year | Self-Employed | Employees | Companies | Total Income Taxes |
|---|---|---|---|---|
| 2019 | 76,792,150 | 742,095,103 | 481,353,904 | 1,300,241,157 |
| 2020 | 76,735,255 | 769,707,381 | 384,084,306 | 1,230,526,942 |
| 2021 | 84,408,949 | 953,370,214 | 482,834,912 | 1,520,614,075 |
| 2022 | 96,536,689 | 1,069,062,073 | 541,164,750 | 1,706,763,512 |
| 2023 | 111,619,097 | 1,183,727,051 | 626,221,381 | 1,921,567,529 |
Key Observations:
- Employee taxes dominate, making up 57-62 per cent of total income taxes annually.
- Corporate taxes dipped in 2020 (likely due to pandemic relief) but rebounded strongly by 2023.
- Self-employed contributions grew 45 per cent over five years.
National insurance contributions followed a similar upward trajectory. Self-employed contributions grew by 26.4 per cent (€51.1 million to €64.6 million), while employee payments rose by 40.7 per cent (€513.9 million to €723.1 million). The temporary dip in 2020 for employees may reflect workforce reductions during the pandemic’s peak.
Employees across the years paid the most income tax (57 percent in 2019 to 62 per cent in 2023), second to companies (37 per cent in 2019 and 33 per cent in 2023). Self-employed persons paid roughly the same amount of the shares at 6 per cent. However, companies’ share decreased between 2019 and 2023.
National Insurance Contributions (2019-2023)
(in euros)
| Year | Self-Employed | Employees | Total NI |
|---|---|---|---|
| 2019 | 51,100,000 | 513,900,000 | 565,000,000 |
| 2020 | 50,744,779 | 492,165,196 | 542,909,975 |
| 2021 | 51,955,320 | 591,507,425 | 643,462,745 |
| 2022 | 60,074,088 | 665,969,323 | 726,043,411 |
| 2023 | 64,568,365 | 723,061,703 | 787,630,068 |
Key Observations:
- Employee NI contributions rose 41 per cent (2019-2023), reflecting employment/wage growth.
- Self-employed NI grew more slowly (+26 per cent), but 2022-2023 saw significant jumps.
- 2020’s dip aligns with pandemic workforce disruptions.
The figures released by Minister Caruana suggest Malta’s strong fiscal recovery, driven by significant contributions from employees, businesses, and the self-employed.
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