By means of Legal Notice 378 of 2017, the above-mentioned rules (which were originally issued by means of Legal Notice 177 of 2016 as amended by Legal Notice 1 of 2017) were once again amended.
The rules allow for the possibility for beneficiaries deriving income from a qualifying contract of employment to be subject to tax at a reduced rate of 15%, subject to the satisfaction of certain conditions. These rules are applicable to individuals who are not domiciled in Malta and who are receiving employment income arising from an eligible office within the Aviation Industry. An eligible office includes senior and managerial roles within the company operating in the aviation industry. The list of eligible employment and offices is found in the Schedule to the Rules.
The reduced income tax rate of 15% applies as from basis year 2016, limited to 10 consecutive years in the case of EEA and Swiss nationals and to 8 consecutive years in the case of third country nationals.
The said Legal Notice now provides that any income received by such individuals from a qualifying contract of employment which is in excess of Eur5,000,000 will not be subject to any Maltese income tax.