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
No Customs Duties
As Malta is part of the EU, goods moving from other EU countries do not incur customs duties.
VAT Considerations
Intra-EU sales between VAT-registered companies may apply reverse-charge or local VAT, depending on the specific VAT statuses of both parties. Confirm details with a tax advisor.
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
Warm & Relationship-Focused
Maltese business culture values personal rapport and trust-building. A genuinely thoughtful or useful gift can help foster these connections.
Gift-Giving Occasions
Christmas is a primary corporate gifting season in Malta. Some companies also offer small tokens at major company milestones or around local feasts and events.
Practical & Modest
Overly opulent gifts may be seen as excessive. Practical, mid-range items often strike the right balance.
4. Sustainability & Local Regulations
4.1 Sustainability & Regulations
EU Environmental Rules
Malta enforces EU directives on packaging, waste management, and recycling. Opting for eco-friendly packaging can align your brand with environmental standards.
Product Labelling
Items like electronics, toys, or cosmetics must comply with CE marking regulations. If widely distributed, including Maltese or English instructions can be beneficial.
5. HR & Employee Relations Considerations
5.1 HR & Employee Relations
Remote Employees
Collect private addresses in compliance with GDPR. Obtain explicit consent, store data securely, and allow opt-out options if desired.
Onboarding & Retention
Providing welcome packs (like branded clothing or office gear) generally remains non-taxable if items are modest in value and obviously connected to the work environment.
6. Summary and Key Takeaways
6.1 Summary & Takeaways
Employee Items vs. Taxable Benefits
Uniforms or necessary tools are non-taxable. High-value items with no work link might be taxed as salary.
B2B Gifting & Marketing
Legitimate business gifts are deductible. Promotional merchandise is recorded as marketing expenses when properly evidenced.
Shipping & Customs
Within the EU: No customs duties.
Outside the EU: Potential duties + 18% VAT if above thresholds.
Monday Merch Warehouse: Rotterdam base ensures hassle-free EU deliveries.
Cultural Approach
Practical, moderate gifts resonate well; overly lavish items may raise eyebrows.
Christmas is the prime gifting season.
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.
Sources
Office of the Commissioner for Revenue – Official tax authority site.
Malta Customs – Guidance on import rules, thresholds, and procedures.
Malta Chamber of Commerce, Enterprise & Industry – Business resources, compliance updates, and local insights.
Disclaimer
This content is for informational purposes only and does not constitute legal or tax advice. Always check with Maltese authorities or a local tax specialist to remain fully tax compliant.
