The Qualifying employment in innovation and creativity

Special Tax rates

An individual who has been granted this special tax status will be subject to tax at a flat rate of 15% on income derived from a qualifying contract of employment.

Conditions to satisfy

• The individual is not domiciled in Malta;
• The individual receives income, being emoluments payable under a qualifying contract of employment, and received in respect of work or duties carried out in Malta;
• He is protected as an employee under Maltese Law, has adequate and specific competence, and is in possession of a qualification or experience relevant to the eligible office;
• The individual fully discloses for tax purposes and declares emoluments received in respect of income from a qualifying contract of employment;
• He proves that he performs activities of an eligible office;
• The individual does not control more than 25% of the shares of the undertaking in which he is employed;
• He is in receipt of stable and regular resources which are sufficient to maintain himself and his dependents without recourse to the social assistance system in Malta;
• The individual resides in accommodation regarded as normal for a comparable family in Malta, and which meets the health and safety standards in force in Malta; and
• Is in possession of a valid travel document as well as medical insurance which covers himself and his dependents.

Minimum Tax requirement

Beneficiaries who qualify and receive employment income of a minimum of €52,000 may benefit from such special tax and thus minimum tax payable is €7,800 annually. An application form has to be submitted to Malta Enterprise.

Tax implications

Income received from a qualifying contract of employment be taxed at a flat rate of 15%. No further tax would be charged on income from a qualifying contract of employment in excess of €5,000,000. The said 15% tax rate shall apply for a consecutive period of not more than 3 years.

Annual compliance

• Filing an annual income tax return

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