Tax Incentives for Aviation Employees

BDO Malta assists Aviation Executives to avail of the legal notice providing for a 15% flat tax rate for qualifying employment in the aviation industry.

Tax Incentives for Aviation Employees

The Qualifying Employment in Aviation (Personal Tax) Rules (2016) have come into effect by virtu of Legal Notice 177 of 2016. The Rules state that individuals not domiciled in Malta in receipt of income arising from qualifying contracts of employment in Malta may opt to pay tax at a reduced flat rate of 15% on such income.


This flat rate applies to income earned after 1 January 2016 and to employees of companies licensed to operate in the aviation industry by Transport Malta.


The individual concerned must satisfy a number of conditions in order to benefit from this scheme, namely that:

  • The employment activity must constitute an eligible office;
  • The income must be derived by means of a qualifying contract of employment; and
  • The qualifying contract of employment of the eligible office is in respect of the employment of a qualifying beneficiary.


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