Know Your Parent Tax Benefits: Part Two – Tax Deductions.

We know income tax may not be the most exciting subject, and it can seem complex and overwhelming, so we’ve teamed up with NM Group, a professional services firm specialising in finance, tax, and legal, to help us put together a concise, 3-part guide explaining exactly what benefits are available to you as a parent and how you can claim them.

Welcome to part two of our Parent Tax Benefits guide. We’re looking into the tax deductions you can benefit from as a parent in Malta. These can add up, so depending on your circumstances, you could get a real boost!

Claiming tax deductions

In addition to registering on the parent tax band, as discussed in part one of our guide, another area where parents can benefit when it comes to tax is by claiming deductions against their income, in respect of any fees you pay for your child as outlined in the table below. In this way, income chargeable to tax will be reduced by the fees you are paying. Which means that you’ll be reducing your tax burden!

Important note: in order to qualify as a deduction against your income, the private schools, institutions or childcare centres must be approved by the Commissioner for Revenue.

DeductionMax. Amount Per Year
Private School Fees:
Secondary Level
Primary Level
Kindergarten Level

€2,660
€1,900
€1,600
Fees payable for the services of a facilitator€9,320
Fees paid for private childcare services€2,000
Fees paid for approved sports activities€100
Fees paid for approved creative or cultural courses€100
Fees paid for school transport€150

Note that the maximum amount allowed as a deduction will vary and may change from one year to another.

As new parents, we might not be able to take a break. But at least we can make sure we’re getting any tax breaks we’re entitled to. It’s important to note that finances should be examined on a case-by-case basis. This 3-part series functions as a general guide. If you’d like further advice on the parent tax benefits, or any other financial guidance specific to your circumstances, NM Group can help.

For more expert advice and guidance on a range of subjects, visit our Island Experts section.

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