The first presenter, Mr. Noel Agius, explains the two schemes under the Social Security Act: contributory benefits (requiring social security contributions) and non-contributory benefits (means-tested). He details who needs to pay contributions (employed, self-occupied, and certain self-employed persons), how contributions are paid, and exemptions. He also discusses lower rates (pro-rata contributions) and contribution credits which are granted for various circumstances like volunteer work, childcare, and studies.
The second presenter, Ms. Josephine Vella explains income tax, who is taxable, and the main tax rates. He outlines income tax responsibilities, including registration, filing tax declarations, and paying taxes. He differentiates between employed and self-employed individuals and details how to calculate net profit for self-employed persons. He also covers the final settlement system (FSS) for employers to deduct tax and social security contributions.
The video concludes with a Q&A session, addressing queries about voluntary contributions for self-employed individuals and social security exemptions for Third Country Nationals.