Qualifying Employment in Aviation (Personal Tax) (Amendment) Rules

On 2 April 2020, a legal notice was published whereby the Qualifying Employment in Aviation Personal Tax Rules were amended. These updates are applicable with effect from 1 January 2020.

The option available under article 56(21) of the Income Tax Act, which provides for a beneficial flat rate of 15% on employment income, shall apply for a consecutive period of 5 years commencing from the first year of assessment in which that person is first liable to tax. This will apply not only to EU/EEA/Swiss nationals but also to well as non-EU/EEA nationals.

Any person who qualifies for such special tax status shall be eligible for a one-time extension of five years to his qualifying period, subject to the continued adherence to the other provisions of these rules.

Provided that the eligibility under these rules shall not exceed a consecutive period of ten years commencing from the year preceding the first year of assessment in which that person is first liable to tax. This extension applies to both EU/EEA nationals as well as non-EU/EEA nationals. 

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Qualifying Employment in Aviation

The tax regime allows individuals, who are not domiciled in Malta and employed within the Aviation Industry, can avail themselves of a flat tax rate of 15%.