Qualifying Employment in Aviation (Personal Tax) Rules

By means of Legal Notice 177 of 2016, the Authority for Transport in Malta has been designated as the authority responsible for determining the eligibility or otherwise of an individual wishing to apply for the Qualifying Employment in Aviation (Personal Tax) Rules (the “Rules”). The Rules have been introduced to attract to Malta foreign nationals (both EEA/Swiss nationals and third-country nationals), who hold an eligible office within the aviation industry. Successful applicants will have the option, in terms of Article 56(21) of the Income Tax Act to be taxed in Malta at an advantageous rate of tax of 15%, provided the following conditions are satisfied.

1. The applicant is receiving a minimum annual income of €45,000 (excluding fringe benefits);
2. The applicant’s contract of employment is subject to Maltese laws;
3. The applicant must be in possession of professional qualifications or relevant experience pertaining to his/her role;
4. The employment income is paid out income from a qualifying contract of employment and is subject to Malta tax;
5. The applicant must be able to prove that the occupation and the tasks performed fall within an eligible office title;
6. The applicant must prove that he receives stable and regular income, which is considered to be enough to sustain himself and his family members;
7. The applicant must prove that he is residing in standard accommodation which is akin to accommodation typically occupied by Maltese families;
8. The applicant must be in possession of a valid travel document;
9. The applicant must be in possession of sickness insurance for himself and his family members;
10. The applicant must not be domiciled in Malta; and
11. The individual applicant does not control directly or indirectly (in terms of ordinary share capital, voting rights or other interests) more than 25% of the undertaking.

The tax incentives are available to EEA and Swiss Nationals for a maximum period of five (5) consecutive years, while the tax incentives are available for third-country nationals for a maximum period of four (4) consecutive years. The Schedule to the Legal Notice contains a list of eligible employment and offices.