By virtue of Legal Notice 105 of 2022, the Minister for Finance and Employment has recently amended the existing Qualifying Employment in Aviation (Personal Tax) Rules S. L. 123.168 (Principal Rules).
New Amendments of Highly Qualified Persons Rules
1. Extending the definition of “artificial arrangement” (Rule 2) by specifying the activity from which a benefit or payment is received by the beneficiary, is substantively derived from the employment covered by the qualifying contract of employment and such beneficiary does not declare such benefit or payment, for tax purposes in Malta.
2.Extension of the eligibility renewal terms
- Two extensions, each of period of five years are allowed (instead of the previous one five-year extension)
- The eligibility to benefit under the Rules, should not exceed period of fifteen years (instead of ten years)
The Highly Qualified Persons Rules 2011 were ratified by virtue of Legal Notice 106 published in March 2011, retrospectively effective as of tax year starting 1 January 2010. The Rules are aiming at attracting highly skilled and experienced professionals in the aviation, financial services and online gaming sectors, providing beneficial tax rate of 15% on their qualifying employment in Malta, up to a maximum employment income of €5,000,000.00.
