As soon as the new income tax rates became effective in employers’ payroll, the Final Settlement System (FSS) mechanism automatically started to adjust tax deductions so extra tax that had been levied in the first months of 2013 would be updated by the year’s end.
Answering a parliamentary question by the PN’s Chris Said, Finance Minister Edward Scicluna said tax payments in the next few months would be “lower than usual” to compensate for the early deductions.
The FSS took previous deductions into consideration to ensure all would be correct by year-end, he said.