Highly Qualified Persons Rules Extended to Aviation Sector


The Highly Qualified Persons Rules (HQP Rules) by virtue of Legal Notice 306 of 2012 have been extended to employees in the aviation sector.

The domestic Highly Qualified Persons Rules (the ‘Rules) relate to the tax benefits available thereunder to individuals employed to fill senior positions with companies licensed by the MFSA (Malta Financial Services Authority) and the LGA (Lotteries and Gaming Authority). With this amendment, the tax benefits will also be available to individuals (High Income Earners) holding an Air Operators’ Certificate issued by Transport Malta within the positions listed hereunder.

Eligible positions within the aviation sector

The Eligible employment and offices shall now cover employment with undertakings holding an Air Operators’ Certificate issued by Transport Malta in positions such as Aviation Accountable Managers, Aviation Continuing Airworthiness Inspectors, Aviation Flight Operations Inspectors and Aviation Training Managers. This amendment shall be deemed to have entered into force in January 2011.

Tax on Malta source employment income

In terms of the above-mentioned Highly Qualified Persons Rules, a senior employee (who satisfies the conditions in the Rules) would be entitled to opt to pay tax on Malta source employment income at the flat rate of 15%.