Malta tax is payable on income:

• which arises in Malta (the territorial source of such income is Malta);
• which occurs abroad but which is derived by persons who are both ordinarily resident and domiciled in Malta (this is known as the worldwide basis of taxation, persons who are ordinarily resident and domiciled in Malta are liable to tax in Malta wherever such income arises);
• which arises abroad but which is received in Malta by persons who are either ordinarily resident or domiciled in Malta (this is known as the remittance basis of taxation, persons who are either not ordinarily resident in Malta or not domiciled in Malta pay tax on income arising abroad only if such payment is received Malta).

Therefore, individuals who are ordinarily residents and domiciled in Malta are subject to full or unlimited taxation (taxable on all their income wherever the income arises).

Individuals who are either ordinarily residents or domiciled in Malta (but not both) are subject to limited tax liability in Malta (they are subject to tax in Malta only on income arising in Malta and on foreign source income received in Malta).