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

John Huber and associates Tax Malta

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

By means of Legal Notice 1 of 2017,  the Qualifying Employment in Aviation (Personal Tax) Rules (originally issued by means of Legal Notice 177 of 2016 were amended.  The new amendments came into force on the 1^st January 2017.

The legal notice has brought into effect amendments to the Rules, in particular to the qualifying periods for which individuals will be eligible to opt for the 15% reduced tax rate. , With effect from 1^st January 2017, EEA and Swiss nationals are now eligible, to a one-time extension of five years to their qualifying period, while third country nationals are eligible for a one-time extension of four years to their qualifying period. This one-time extension is provided for on application and is subject to the continued observance to the provisions and minimum qualifications of the Rules.The maximum qualifying period for individuals benefitting from the Qualifying Employment in Aviation (Personal Tax) Rules, shall not exceed tenyears of assessment commencing from the year the individual is first liable to tax under the Income Tax Act.

An applicant must hold an eligible office with companies licensed and recognised within the remit of the Authority for Transport in Malta (TM), and the applicant’s annual salary must be of at least €45,000 for basis year 2016 in order to qualify for the Rules.

Qualifying Employment in Aviation (Personal Tax)(Amendment) Rules, 2017 can be accessed  on http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lp&itemid=28223&l=1