Qualifying Employment in Aviation (Personal Tax) Rules – Subsidiary Legislation 123.168
The significance of the aviation sector in Malta and its contribution to the country’s economy led to the drafting of such tax rules in relation to Qualifying Employment in Aviation targeting specific skills and professions in the aviation area. Such rules are effective in relation to employment income from eligible offices as from 1st January 2016 (year of assessment 2017).
A reduced tax rate of 15% will be charged for such qualifying employment. This rate is applicable for 5 consecutive years if the individual is domiciled in and EEA country and for 4 consecutive years if the individual is a third country national. A list of eligible offices has been prescribed.
The following are some of the conditions that need to be satisfied, for such rules to apply:
An individual must not be domiciled in Malta;
Employment income must amount to at least €45,000 per annum;
A qualifying contract of employment must confirm that work or duties are to be carried out in Malta;
An individual must provide evidence of his qualifications and experience;
An individual must have a permanent home; a valid travel document; sickness insurance and stable resources to maintain himself and his family;
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