Qualifying Employment in Aviation (Personal Tax) Rules

The Qualifying Employment in Aviation (Personal Tax) Rules programme relates to employees who hold certain management, technical and executive positions engaged operators in Malta in the aviation sectors.

The applicant can be a national of any country.

General conditions

The applicant:

  • should be in possession of sickness insurance;
  • should be in receipt of stable and regular resources which are sufficient to maintain himself and the members of his family;
  • should be in possession of a valid travel document;

Employment conditions

The applicant:

  • should carry out his employment in Malta except for reasonable and related foreign travel and holiday time;
  • be protected as an employee under Maltese law;
  • should hold a qualifying employment contract;
  • should declare his emoluments for Malta income tax purposes;
  • should disclose income from an employer who is a relation;
  • should hold relevant qualifications or experience;
  • should hold an eligible office being one regulated by the Malta Transport Authority;
  • should be earning a salary, excluding fringe benefits, in Malta of at least €45,000.

Exclusions

The applicant

  • should not be domiciled in Malta;
  • the employer or a relation to applicant should not be benefiting under the Malta Enterprise Act and Business Promotion Act.

Property

The applicant should reside in accommodation that would be regarded as normal for a comparable person or family in Malta.

Term of benefit

European Economic Area nationals (EU member states, Iceland, Norway and Liechtenstein) and Swiss nationals can benefit from this programme for a maximum 10 years. Non EEA and non Swiss nationals can benefit from this programme for a maximum of 8 years.

Taxation

The applicant’s remuneration from his qualifying contract will be considered as the first part of his total income for tax purposes.

Taxation will be levied at a final rate of 15% on a maximum value of annual remuneration and fringe benefits of €5,000,000.

The applicant cannot benefit from any reliefs or set-offs.

Should the amount of remuneration and fringe benefits exceed €5,000,000, the excess would be exempt from tax.

All other Malta source income will be taxed at a flat rate of 35%.

The above is only intended to highlight the main features of the programme and more detailed rules apply. Please contact David Marinelli directly or contact us for further information or assistance.