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Reduced Rate of Tax for qualifying Expatriates employed in Malta’s Aviation Industry

Following the publication of Legal Notice 177 of 2016 new tax incentives have been introduced to attract foreign nationals to Malta (both EEA/Switzerland and third country nationals) who hold an eligible position within the aviation industry.

Applicants holding the relevant eligible office will have the option to be taxed in Malta on income earned after 1 Jan 2016 at an advantageous flat rate of 15% tax.

Criteria

There are a number of conditions applicable as follows:

  1. Applicants must receive a minimum income of €45,000 per annum (excluding fringe benefits);
  2. Employment contract must fall under Maltese Law
  3. Applicants must be in possession of professional qualifications or relevant experience pertaining to the role
  4. Employment income must be paid out from a qualifying employment contract and is subject to Maltese tax
  5. The applicant must be able to prove that the occupation and tasks carried out fall within an eligible role
  6. Applicant must prove that a stable and regular income is received which is sufficient to sustain him/herself and any family members
  7. Applicants must have suitable accommodation in Malta
  8. Must possess a valid passport
  9. Must be in possession of travel insurance for the applicant and any family members
  10. Must not be domiciled in Malta
  11. The applicant must not have more than 25% control, direct or indirect in the undertaking

Time Scales

The tax incentives will be available to the relevant applicant for 5 years if the individual is from an EEA member state or Switzerland and for 4 years for third country nationals.

Applicability

Individuals who meet the requirements set out in the rules will need to apply to Transport Malta in order to obtain a formal determination of their eligibility. There will also be a requirement to attach a declaration form, duly endorsed by the competent Authority, to their income tax return.

To find out whether individual employment activity in the aviation sector can be considered as a qualifying position please contact us on enquiries@abacusiom.com