Malta’s Highly Qualified Persons income tax scheme for high ranking personnel in the financial services, gaming, and aviation sectors has been extended. This extension is valid for EEA or Swiss nationals residing in Malta. An application must be made before 2020 in order to benefit from the extension of a further 5 years. No changes have been made to the range of positions qualifying from the scheme.
Special Income Tax Rules for Highly Qualified Persons
Malta’s Highly Qualified Persons income tax scheme allows persons occupying high ranking roles within companies that are licensed or recognised by the Malta Financial Services Authority, licensed by the Malta Gaming Authority, and undertakings holding an Air Operators’ Certificate or an Aerodrome Licence issued by the Authority for Transport in Malta to opt for a reduced rate of income tax.
Individual income from a qualifying contract of employment and which is subject to income tax in Malta will benefit from a reduced flat tax rate of 15%, provided that the income amounts to at least €81,457 for basis year 2015, adjusted annually in line with the Retail Price Index. The 15% flat rate is imposed up to a maximum income of €5,000,000, the excess of this amount is exempt from tax.
The option applies to EEA and Swiss nationals for a consecutive period of five years from the year preceding the first year of assessment, and applies for a period of four years to third country nationals. New rules enacted this July 2015 allow EEA or Swiss nationals not resident in Malta before 2008 to extend this period for a further five years upon application. Applications for determinations by the competent tax authorities allowing persons to benefit from this favourable tax scheme will be received until the end of 2020.
WH Partners can provide you with further information on your eligibility for an application to benefit or extension extend your qualifying period of benefit under this scheme. Kindly contact Ramona Azzopardi on firstname.lastname@example.org.