Malta Payroll Services

At Bradford Jacobs, we navigate the administration of the Maltese payroll system for you. We do the work, so you do not have to.

Malta Payroll

Successful international expansion depends on making the right moves from day one. This is vital for foreign companies establishing a presence and operating payroll on the Mediterranean island of Malta – a European Union (EU) member since 2004 and part of the Eurozone since 2008.

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How We Can Help You

Bradford Jacobs’ Professional Employer Organisation (PEO) and Employer of Record (EOR) platforms provide complete answers to every question you will face before your move into the Maltese economy.

Our teams step in from the start, sourcing local talent then guiding you through the local payroll laws and regulations. We offer dedicated Malta Payroll solutions that can be personalised to your requirements.

We aim to make business expansion easy. At Bradford Jacobs, we navigate the administration of the Maltese payroll system for you, and we also make the returns and associated payments for income tax and social security contributions directly from our payroll system to the local tax authorities. We do the work, so you do not have to.

  • Remote payroll: This option allows businesses to operate under a single payroll system, by adding employees on Malta to your parent company’s payroll. However, these employees must operate under different regulations, which is likely to cause problems.
  • Internal payroll: You may operate payroll for your subsidiary, especially if you are committed to growing your company’s presence on Malta. However, this does require hiring dedicated HR staff who understand Maltese employment and compliance laws.
  • Malta payroll processing company: If you are considering outsourcing, then working with a Maltese payroll company will help in processing your payroll – but not when it comes to compliance.
  • Malta payroll outsourcing: However, there is another option available that solves both concerns – by working with Bradford Jacobs. We can handle payroll and compliance for all your employees in Malta. We take the administrative stress off your shoulders so you can focus on what you do best.

International companies expanding into Malta open a wealth of opportunities for expansion throughout the European Union and further afield, with the island’s relatively close proximity to North African and eastern Mediterranean markets.

However, challenges come alongside the potential benefits and payroll management is among them. Whether your company is considering moving employees abroad or hiring new staff in-country, employment laws, payroll and income tax regulations are areas where you cannot afford mistakes.

Bradford Jacobs’ Employer of Record (EOR) payroll solutions will navigate around these potential problems effectively and efficiently by putting into action our comprehensive knowledge of tax and payroll regulations.

Running Maltese payroll requires an in-depth knowledge of employment, payroll, and taxation laws – and keeping up to date with changes. As part of our service, we file returns and associated payments for wages tax and social security contributions directly from our payroll system to the relevant authorities.

Outsourcing your payroll in Malta will streamline your operations by dealing with the following:

  • Registering with the Maltese Commissioner for Revenue Office.
  • Registering with the Maltese Directorate of Social Security.
  • Registering the company with the Financial Services Authority.
  • Obtaining a Tax Identification Number (TIN) online for completing mandatory annual tax returns. Professional support is advisable for submitting tax returns.
  • Obtain a PE number, online from the Commissioner for Revenue’s website. The PE number is mandatory for companies to withhold and pay the taxes and national insurance for their employees. These payments are established under Final Settlement System (FSS) tax reporting procedures.
  • Registering with the Employment and Training Centre (formerly ETC, now known as Jobsplus). A form must be completed for every employee, with further forms completed on termination.
  • Creating employment contracts.
  • Calculating monthly salary and creating pay slips.
  • Researching available tax-free allowances.
  • Submitting wage tax returns and national insurance forms.
  • Corresponding with involved parties.
  • Producing annual accounts, administration, and year-end statements.
  • Creating payment schedules for wage tax, national insurances, and net wages.

A foreign company launching a subsidiary in Malta and running their own payroll must initially decide which form of company to open. The most popular choice is a limited liability company, which protects the owners from liability but comes with additional paperwork, such as yearly audits and two named shareholders on the registration documents. The registration process includes:

  • The company’s Memorandum and Articles of Association must be lodged with the Registry of Companies. These documents detail the role and obligations of directors and are best composed with expert advice.
  • Showing minimum share capital of around €1,200 (US$1,375) to cover initial costs, although only 20% needs to be deposited and will be held separately by the bank until registration is complete.
  • Registering the company with the Financial Services Authority, producing the Memorandum and Articles of Association with a bank receipt proving deposit of share capital.
  • Obtaining a business license from the Maltese Commerce Department, which must be renewed annually.
  • Obtaining a Tax Identification Number (TIN) online for completing mandatory annual tax returns. Professional support from Bradford Jacobs is advisable for submitting tax returns.
  • Register for Value Added Tax (VAT), administered by the   Ministry of Finance. Companies with a turnover above €35,000 (US$40,118) must register for VAT, but registration is optional for turnover between €7,001 (US$8,024) and €35,000. It is best to seek advice on the options regarding VAT.
  • Limited liability companies must obtain a PE number, online from the Commissioner for Revenue’s website, to be able to withhold and remit taxes and national insurance.
  • Register with the Employment and Training Centre (formerly ETC, now known as Jobsplus). A form must be completed for every employee engaged, and further forms must be completed and filed on termination.
  • Data protection: Companies must take steps to guard data, as theft or loss can result in huge fines. Malta is in the European Union and companies must comply with General Data Protection Regulations (GDPR).

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