New legislation has entered into Malta’s aviation industry in relation to qualifying employment. The Inland Revenue Department has issued a list of those roles which are considered qualifying. Although the rules came into force on the 24th May 2016, the applications are now available. One should note that the rules apply to individuals not domiciled in Malta.
Individual income from a qualifying contract of employment qualifies under these rules when it is received by a beneficiary in an eligible office. Such income is subject to tax at a
flat rate of 15% provided that the income amounts to at least 45,000 euros (forty-five thousand euros) annually. The 15% tax rate applies for a consecutive period of five years for European Economic Area (that is, EU countries as well as Norway, Iceland and Liechtenstein) and Swiss nationals and for a consecutive period of four years for third country nationals.
Before applying for this scheme one has to consider all the conditions laid out in the law in order to benefit from the 15% tax.