The tax returns for the following income derived during the basis year 2015 are to be filed by not later than 30 June 2016 with the Inland Revenue Department:

  • the personal tax returns;
  • the separate tax return for part-time income to be taxed at the flat rate of 15%;
  • The tax return to be filed by any persons opting to declare any income derived from the rental of residential properties and pay tax thereon at the flat rate of 15% (the TA24 form).

For further information about the TA24 form for residential lets kindly click here. 

* Kindly note that the optional election for the 15% final tax on rental income has been extended to income derived as from 1 January 2016 from the rental of commercial tenements and clubs when the property is not rented to or from a related body of persons. In this respect the Income Tax Act provides that:

(i) a body or persons is related to an individual if it is owned or controlled, directly or indirectly, as to more than
25% by that individual; and
(ii) two bodies of persons are related if they are owned or controlled, directly or indirectly, as to more than 25% by the same persons.

For the purposes of the above the Income Tax Act refers to the terms ‘commercial tenement‘ and ‘club‘ as defined in the Civil Code, where they are defined as follows:

 (a) Commercial Tenement – this term shall mean an urban tenement which is not a residence and which is leased to house an activity primarily intended to generate profit and includes, but is not limited to, an office, a clinic, a tenement leased out for the sale of merchandise by wholesale or retail, a market stall, a warehouse, a storage used for commercial purposes as well as any tenement licensed to sell things, wines, spirits or foodstuff or drinks, theatre, or tenement mainly used for any art, trade or profession.

However, notwithstanding the above, a tenement leased to a society or leased to a musical, philanthropic, social, sporting or political entity that is used as a club shall not be considered as a commercial tenement, even if part of it is used for the purpose of generating profit.

(b) Club – on the other hand this term refers to any club which is registered as such with the Commissioner of Police in accordance with the provisions of the law.

* N.B. – As describe above, the option to include any income derived from the rental of a commercial tenement or a club for the flat rate of income tax at 15% shall only be applicable from 1 January 2016. Accordingly, any such income derived in 2016 is to be reported in the relevant tax forms which are to be submitted in 2017 (and not in 2016). The deadline of 30 June 2016 described above only applies for rental income to the extent that such income was derived from the rental of residential properties.