Qualifying Employment in Maritime Activities and the Servicing of Offshore Oil and Gas Industry Activities (Personal Tax) Rules, 2018

The Qualifying Employment in Maritime Activities and the Servicing of Offshore Oil and Gas Industry Activities (Personal Tax) Rules, 2018 is a programme that allows senior employees engaged within the maritime and oil and gas industry to benefit from a flat rate of 15% tax on employment income derived in respect of work or duties carried out in Malta.

Main Applicable Conditions

  1. be employed to fill a senior position (or to perform equivalent activities) and be in possession of professional qualifications or acceptable professional experience;
  2. be entitled to remuneration of at least €65,000 for basis year 2018 (exclusive of the annual value of any fringe benefits) in terms of a contract of employment;
  3. reside in accommodation regarded as normal for a comparable family in Malta;
  4. not be domiciled in Malta;
  5. be in possession of a valid travel document;
  6. be in possession of adequate health insurance;
  7. not benefit under any alternative incentives available in Malta;
  8. has signed a Qualifying Contract of Employment.

Qualifying Contract of Employment

  1. derives employment income subject to income tax in Malta;
  2. has an employment contract subject to the laws of Malta and proves to the satisfaction of the Authority for Transport in Malta that the contract is drawn up for exercising genuine and effective work in Malta;
  3. proves to the satisfaction of the Authority for Transport in Malta that he is in possession of professional qualifications and has professional experience;
  4. fully discloses for tax purposes and declares emoluments received in respect of income from a qualifying contract of employment and all income received from a person related to his employer paying out income from a qualifying contract as chargeable to tax in Malta;
  5. proves to the satisfaction of the Authority for Transport in Malta that he performs activities of an Eligible Employment and Office.

Eligible office is an employment included in the list below and which is held with any of the following:

  • any undertaking  holding  a  Document  of Compliance  (DOC)  issued  in  terms  of  the  International Safety Management (ISM) Code or a Seafarer Recruitment and  Placement  Services  Licence  issued  in  terms  of  the Maritime Labour Convention, 2006;  or
  • any undertaking  engaging  the  particular individual  for  work  on  board  any  ship,  excluding  ships operating on regular services as well as ships whose use or operation requires certification in terms of the Commercial Vessels  Regulations  and  which  are  berthed  or  anchored within the territorial waters of Malta or any port in Malta for at least a period of one month over a calendar year; or
  • any undertaking which carries on mainly a trader business consisting in the Servicing of the offshore oil and gas  and  ancillary  services  industry.

Eligible Employment and Offices, includes the following positions:

  • Maritime Activities
  • Chief Executive Officer
  • Chief Operations Officer
  • Managing Director
  • Chief Financial Officer
  • General Manager
  • Crewing Manager
  • Technical Manager
  • Technical Ship Superintendent
  • Designated Person Ashore
  • Master
  • Chief Mate
  • Second Officer
  • Chief Engineer
  • Second Engineer
  • Chef

Servicing of the Offshore Oil and Gas and Ancillary Services Industry Activities

  • Chief Executive Officer
  • Chief Operating Officer
  • Head of Training Academy (which Academy must be certified byan international accreditation institution).

This option is available for EEA and Swiss nationals, for a consecutive period of five years commencing from the first year of assessment in which that person is first liable to tax under these rules and with respect to third-country nationals, for a consecutive period of four years. Provided that one shall be eligible,  upon application,  for  a  one-time  extension  of  five  years  or  four  years respectively.

Application Process

Applications are submitted to the Authority for Transport in Malta. GVZH is fully licenced to submit applications in terms of the programme.

For further information about how GVZH Advocates can help you with your tax law requirements, enquiry kindly contact us on tax@gvzh.com.mt.

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