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Rules Related To Qualifying Contracts Of Employment


Individuals in receipt of employment income from an 'eligible office' will be subject to a flat rate of tax of 15% instead of the progressive rates of tax which usually apply on employment income arising in Malta.

Taxand Malta reviews the Highly Qualified Persons Rules, 2011. These rules came into force with effect from 1 January 2011 and apply to income which is brought to charge in year of assessment 2012 (basis year 2011) and subsequent years.

The following is looked at in more detail:

  • Conditions surrounding the contract
  • Exclusions
  • Applicability
  • Administrative Issues
  • Application Process


Taxand's Take

The 'Highly Qualified Persons Rules' are intended to attract a number of expatriates with expertise in the financial services sector and relocate to Malta. The tax savings resulting from the rules are substantial and should therefore increase attractiveness the of the country as a working location and accelerate the pace of highly skilled persons moving to the Island. Individuals who have recently moved to Malta should also consider whether or not they may qualify and benefit from these rules.

Your Taxand contact for further queries is:
Walter Cutajar
T. +356 2730 0045

Taxand's Take Author