Pensioners, Self-Employed and Provisional Tax Payments

Pensioners may also continue to work on a self-employed basis even after retirement. If a pensioner opts to continue on a self-employed basis whether receiving income from trade, business or on a professional or vocational basis, they are still required to comply with all tax compliance obligations as is applicable to all other taxpayers operating on a self-employed basis. This includes the payment of provisional tax which is collected in the year in which income is earned. Provisional tax payments are required from all individuals who are required to submit an income tax return and self-assessment.

It is important to note that the provisional tax benchmark after retirement will be affected not only by the pension income, but consideration must also be taken for rebates and exemptions which are available to pensioners.

Where the provisional tax benchmark is significantly affected by any change in taxable income after retirement the taxpayer should submit a Provisional Tax Reduction Form by either downloading it from the MTCA website by clicking on the following link or else by completing an online form through MTCA My Account online services. In case of any difficulty, pensioners should call customer care on 153 or send an email to [email protected].

More information about provisional tax payments can be obtained by reading the Provisional Tax and Social Security Contributions booklet which can be found by clicking on the following link.