Capital
Valletta
Currency
Euro
Languages
Maltese, English
Population size
0.52M
Average Monthly Salary
€1400
EU
Since 2004
Region
Southern-Europe
Gift Giving Norms
Small gifts, often local produce
Major Corporate Gift Days
Christmas, Carnival
Customs Complexity
Low
VAT - Standard Rate
18%
Duty Free Threshold
€150
Ave Duty Rate
2%
1. Employee Merch vs. Gifts
Under Maltese law, non-cash benefits provided to employees could be taxable unless they have a demonstrable work-related purpose. The Office of the Commissioner for Revenue (CFR) determines whether an item qualifies as essential for the role or if it is a personal benefit.
1.1 Merchandise for Employees
Work-Related (Generally Non-Taxable)
Uniforms & Necessary Equipment
If branded apparel or tools are critical for performing everyday tasks (e.g., official uniform, safety gear), they typically remain non-taxable.
Branded Accessories
T-shirts, mugs, or stationery featuring a clear company logo, uniformly given to staff, may be treated as corporate identity items rather than personal perks.
Potentially Taxable Benefits
High-Value or Personal-Use Goods
Electronics, designer items, or merchandise without clear relevance to the job can be viewed as taxable income. Employers should then manage additional wage tax or social contributions.
Repetitive Gifting
Multiple gifts in a tax year could draw scrutiny, suggesting disguised remuneration. Seek local tax advice if you plan to distribute various corporate merchandise throughout the year.
1.2 Gifts for Non-Employees (Clients, Partners, Event Attendees)
Tax & Deductibility
Gifts with a legitimate promotional or business intent are typically tax-deductible. However, overly lavish or frequent gifts lacking commercial justification might face scrutiny by tax authorities.
Compliance & Anti-Corruption
Malta has tightened anti-bribery laws, especially in public sector contexts. Maintain records of high-value or recurring gifts to avoid any perception of improper influence.
1.3 Marketing Merch
Items such as T-shirts, bags, or pens distributed at trade fairs or conferences generally qualify as marketing expenses, provided their promotional function is recorded and evidenced.
2. Shipping, Customs & Duties
2.1 Shipping
2.2 Importing
Import Duties & VAT
Merchandise shipped from non-EU locations above certain thresholds (often €150) may incur customs duties, plus Maltese VAT (18%) on (value + duties + shipping).
Documentation
Having a commercial invoice, correct HS codes, and precise product descriptions is crucial for smoother customs clearance.
2.3 DDP vs. DAP
Delivered Duty Paid (DDP)
The sender covers import taxes/fees, simplifying receipt for the Maltese recipient.
Delivered At Place (DAP)
The recipient is responsible for duties/VAT on arrival, which can delay delivery if they’re unprepared.
2.4 With Monday Merch
From our Dutch warehouse in Rotterdam, we provide duty-free deliveries to Malta, assisting with VAT compliance to ensure your process is tax compliant.
3. Cultural & Local Etiquette
3.1 Gifting customs
4. Sustainability & Local Regulations
4.1 Sustainability & Regulations
5. HR & Employee Relations Considerations
5.1 HR & Employee Relations
6. Summary and Key Takeaways
6.1 Summary & Takeaways
7. Frequently Asked Questions
7.1 Questions & Answers
Does branded merchandise count as employee income?
If it’s purely for work identity, no; personal goodies might be taxed.
Are business gifts deductible here?
Yes, if used for promotion or goodwill, within reasonable cost limits.
Local culture?
Maltese business culture respects warmth and modest practicality—excess can feel off-putting.
