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Repatriation of persons established in a field of excellence rules Article 56 (25) of the ITA, Legal Notice 111 of 2013

Applicable date

Applicable with effect from Year of Assessment 2013

Beneficial Tax Rate

An individual who is established in a field of excellence and returns as an ordinary resident in

Malta may opt to have his income received from employment exercised in Malta related to a

qualifying employment charged to tax at the rate of 15%.

Emolument income generated from the qualifying employment should be of a minimum of Euro

75,000 (excluding fringe benefits).

Such income should constitute the first part of the individual's total chargeable income. Any

other chargeable income should be taxable at the rate or rates that would have been applicable

to the remaining income if the above scheme was not exercised.

The 15% tax rate shall apply without the possibility to claim any relief, deduction, reduction,

credit or set off of any kind.

Eligible Persons

Such an incentive will only apply provided that the individual who is established in a field of

excellence has been ordinarily resident in Malta for at least 20 years but has not been ordinarily

resident in Malta for the 10 consecutive years prior to his return.

Field of Excellence

This means an area of professional competence where the individual excels in manufacturing

and research and development sectors as defined in the Guidelines issued by Malta Enterprise.

Beneficiaries

Certain conditions should be satisfied for an individual to benefit from this scheme:

(a) The individual should derive employment income in respect of a qualifying contract with

respect to work or duties carried out in Malta, or in respect of any period spent outside

Malta in connection with such work or duties, or on leave during the carrying out of

such work or duties;

(b) The individual should prove to the satisfaction of Malta Enterprise that he is in

possession of the adequate educational and or professional qualifications relevant to

the profession or sector of field of excellence;

(c) The individual is protected as an employee under Maltese law for the purpose of

exercising genuine and effective work for or under the direction of someone else and

has the requisite adequate and specific competence as approved by Malta Enterprise;

(d) The individual should fully disclose and declare emoluments received in respect of

income from the qualifying contract of employment or any income received from

a person related to his employer paying income related to a qualifying contract

chargeable to tax in Malta

Duration

The duration of the scheme should apply for a consecutive period of 5 years commencing from

the first year that the person is first liable to tax in Malta after returning to reside in Malta.

Procedure Adopted

The beneficiary should forward his/her application to Malta Enterprise for a formal declaration

of approval to be provided.

Tax Compliance

Beneficiaries will be subject to reporting obligations including the preparation of a tax return

and the adequate declaration (signed by the beneficiary and endorsed by Malta Enterprise) to

be attached to the income tax return.