Reduced Tax Rates for Postholders employed by Maltese AOC Holders

Reduced Tax Rates for Postholders employed by Maltese AOC Holders

Recent amendments to the Highly Qualified Persons Rules have widened the application of the rules to employees engaged in the aviation sector. Employees holding an employment or office with any undertaking holding an air operators’ certificate issued by the Civil Aviation Directorate, a division of Transport Malta, may now benefit from a flat tax rate of 15% on their income.

The rules have been granted retrospective effect and are deemed to have come into force on the 1st January 2012. The posts catered for by the rules refer primarily to the Chief Operations Officer and postholders, including Accountable Managers, Continuing Airworthiness Manager, Flight Operations Manager and Training Manager.

These amendments complement the drive towards attracting and enhancing incentives to aviation undertakings in Malta, with no less than six Air Operator’s Certificates having been issued by the Civil Aviation Directorate within the last months to worldwide operators which include Hangar 8 AOC Malta Limited and Hyperion Aviation Limited.

For more information about the application of these rules and aviation incentives contact Dr. Marco Ciliberti via email on marco.ciliberti@aeronauticaworld.com