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(PERSONAL INCOME TAX) QUALIFYING EMPLOYMENT IN MARITIME ACTIVITIES AND THE SERVICING OF OFFSHORE OIL AND GAS INDUSTRY ACTIVITIES -15% FLAT RATE

These rules allow senior employees engaged within the maritime and oil and gas industry to benefit from a flat tax rate of 15% on employment income / salaries in respect of work or duties which are carried out in Malta.

Conditions to benefit from these rules:

  1. Be employed to fill a senior position (or to perform equivalent activities) and be in possession of professional qualifications or acceptable professional experience
  2. Be entitled to remuneration of at least €65,000 for basis year 2018 (exclusive of the annual value of any fringe benefits) in terms of a contract of employment
  3. Reside in accommodation regarded as normal for a comparable family in Malta
  4. Not be domiciled in Malta
  5. Be in possession of a valid travel document
  6. Be in possession of adequate health insurance
  7. Does not benefit under any alternative incentives available in Malta
  8. Has signed a Qualifying Contract of Employment.

QUALIFYING EMPLOYMENT CONTRACT

An employment contract is deemed to be a Qualifying Contract of Employment if:

  • The employment contract stipulates that the employee derives employment income subject to income tax in Malta;
  • The employment contract is subject to the laws of Malta and proves to the satisfaction of the Authority for Transport in Malta that the contract is drawn up for exercising genuine and effective work in Malta;
  • Proves to the satisfaction of the Authority for Transport in Malta that the applicant is in possession of professional qualifications and has professional experience;
  • Fully discloses for tax purposes and declares emoluments received in respect of income from a qualifying contract of employment and all income received from a person related to his employer paying out income from a qualifying contract as chargeable to tax in Malta;
  • Proves to the satisfaction of the Authority for Transport in Malta that he performs activities of an Eligible Employment and Office.

ELIGIBLE EMPLOYMENTS AND OFFICES – MARITIME ACTIVITIES

  • Chief Executive Officer
  • Chief Operations Officer
  • Managing Director
  • Chief Financial Officer
  • General Manager
  • Crewing Manager
  • Technical Manager
  • Technical Ship Superintendent
  • Designated Person Ashore
  • Master
  • Chief Mate
  • Second Officer
  • Chief Engineer
  • Second Engineer
  • Chef

ELIGIBLE EMPLOYMENT AND OFFICES – ACTIVITIES SERVICING THE OFFSHORE OIL AND GAS AND ANCILLARY SERVICES

  • Chief Executive Officer
  • Chief Operating Officer
  • Head of Training Academy (which Academy must be certified by an international accreditation institution).

For more information on these rules on whether you can benefit from such rules kindly contact

Franco Falzon C.P.A. LL.M
(Managing Partner)

E: franco@ffinternational.com.mt

T: +356 2010 7771 (office)

M: +356 9989 5679 (mobile)


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