Qualifying Employment in Aviation

New legislation has rejuvenated Malta’s aviation industry and has been steadily building up aviation services including:

• Maintenance, repair and overhaul (MRO) for both fixed-wing and rotary aircraft
• Flight training including flight simulation
• Component manufacture
• R&D and innovation on unmanned aerial vehicles
• Back-office support and call centre operations
• ICT & Financial Services for the aviation industry

As outlined in various Government policy documents, Malta aims to develop into a fully-fledged aviation centre that supports the entire spectrum of aviation-related services.

The objective of the Qualifying Employment in Aviation (Personal Tax) Rules (SL 123.168) is to give a long-term vision to the sector to sufficiently equip the necessary operations with the skills required and control the limitations encountered due to limited availability of human resources.

If you’re looking for tax residence in Malta, you may also like our popular article that goes though each programme individually for both EU and Non-EU nationals.

Firstly, before you can meet any of the set requirements of this tax residence programme, you must have one of the below positions within the aviation industry:

•Chief Executive Officer
•Chief Operations Officer
•Chief Financial Officer
•Chief Risk Officer
•Chief Financial Officer
•Chief Technology Officer
•Chief Commercial Officer
•Chief Investment Officer
•Chief Insurance Officer
•Accountable Manager
•Deputy Accountable Manager
•General Manager
•Flight Operations Manager
•Nominated Person Flight Operations Training Manager
•Nominated Person Training
•Ground Operations
•Nominated Person Ground Operations
•Continuing Airworthiness Manager
•Nominated Person Continuing Airworthiness Compliance Manager
•Quality Systems Manager
•Safety Manager
•Flight Dispatch Manager
•Instructor Manager
•Head of Marketing
•Head of Public Relations
•Actuary
•Underwriting Manager
•Risk Management Officer
•Key account manager
•Product coordinator
•Material coordinator
•Engineering reporter
•Aeronautical engineer
•Head of Maintenance Operations
•Aviation Systems Developer
•Key Aviation Specialist

Conditions for Eligibility to Qualifying Employment in Aviation

Firstly, these rules only apply to individuals not currently domiciled in Malta. Therefore, if you already have a residence in Malta, you are not eligible for this residence programme.

Secondly, your income earned is subject to tax at a flat rate of 15% provided that the income amounts to at least €45,000 per annum. The 15% tax rate applies for a consecutive period of five years for EU/EEA and Swiss nationals and four years for third-country citizens (Non-EU/EEA/Swiss nationals).

If you have met the two main points above, you must fit the below conditions to be eligible for the Qualifying Employment in Aviation and the 15% tax rate. You must:

1. Derive income subject to tax under a qualifying contract of employment, and received in respect of work or duties carried out in Malta
2. Be protected as an employee under Maltese law to work for under the specific competence provided to the satisfaction of the Chairman of Transport Malta
3. Have professional qualifications or experience related to the eligible office
4. Fully disclose and declare all income derived from a qualifying contract of employment and all income received from your employer as chargeable to tax in Malta for tax purposes.
5. Proves to the satisfaction of the Transport Malta that you can perform all activities of the eligible office
6. Receive stable and regular resources which are sufficient to maintain yourself and the members of his family without needing support from the social assistance system in Malta
7. Have suitable accommodation in Malta and which meets the general health and safety standards in force in Malta;
8. Own a valid travel document;
9. Possess adequate health insurance for yourself and any members of your family
10. Not be domiciled in Malta.

Importantly, income shall not be paid if it has been funded by an employer who has received benefits under business incentive laws.

Application to the Tax Residence Programme

If you need assistance navigating and applying for the Qualifying Employment in Aviation, contact our accredited team today to arrange a consultation by emailing us on enquiries@papilioservices.com or call us directly on +356 2258 2000, and we will respond to you within 24 hours.

Papilio Services can help as we are accredited agents through Identity Malta. We will assist you with the Commissioner of Inland Revenue and obtaining signed declarations from the Malta Trasport Authority. Moreover, we will help you in filing your income tax return form correctly.