Tax benefits for employment in aviation in Malta

Chetcuti Cauchi | 08 Jun 2016

Tax benefits for employment in aviation in Malta

As the aviation sector continues to strengthen its presence in Malta, a new programme was introduced, granting tax benefits for employment in aviation in Malta. The option may be exercised with effect from the year of assessment 2017. 

With the introduction of the Qualifying Employment in Aviation (Personal Tax) Rules, 2016, certain employees working within the aviation sector in Malta may opt for a flat rate of tax of 15% on their salaries rather than being taxed at the standard rates applicable to residents. The 15% rate applies on the full amount, without any right to claim any relief or deduction. 

This tax treatment may be applied to salaries earned in connection with certain positions a listed in the law, provided the employee earns at least EUR 45,000 annually. The law lists a wide range of positions with employers recognised by the Authority of Transport, and include Chief Executive Officer, Chief Technical Officer, Flight Operations Manager, Ground Operations, Safety Manager, Head of Public Relations, Key Account Manager, Engineering Reporter, Aviation Systems Developer and Key Aviation Specialist among others. 

The employee must also satisfy a number of conditions to enjoy this beneficial tax treatment such as provide to Transport Malta that he possesses adequate professional qualifications and experience; that he resides in appropriate accomodation; is in possession of a valid travel document and health insurance; and is not domiciled in Malta for tax purposes. 

EU / EEA and Swiss nationals may benefit from this tax treatment for a period of 5 years, whilst third country nationals may request its application for a period of 4 years. 

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