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Joseph Gauci

This scheme compliments the other tax incentive recently introduced in the digital gaming sector, please click here.  

On a personal level, individuals working in innovation and creativity are now entitled to a highly beneficial tax treatment on their income.

In fact, income derived from qualifying employment (of an eligible office nature) in a role directly involved in the development of innovative and creative digital products could be subject to a flat tax rate of only 15%.  The applicability of this requires the satisfaction of the following conditions:

  • Employment income shall be derived from a qualifying contract bearing a minimum income of Euro 45,000 p.a. (excluding the value of any fringe benefits);
  • Employment income shall be derived from an eligible office;
  • The employee shall be an individual who:
    • is protected as an employee under Maltese law;
    • proves to the satisfaction of the respective authority that he is in possession of a qualification or relevant experience to the eligible office;
    • proves to the satisfaction of the respective authority that he performs activities of an eligible office;
    • is in receipt of stable and regular resources which are sufficient to maintain himself and the members of his family without recourse to the social assistance system in Malta;
    • resides in accommodation regarded as normal for a comparable family in Malta and which meets the general health and safety standards in force in Malta;
    • is in possession of a valid travel document;
    • is in possession of sickness insurance in respect of all risks normally covered for Maltese nationals for himself and the members of his family; and
    • is not domiciled in Malta.

 

If the income to be derived from such qualifying contract would exceed Euro 5,000,000 no tax will be levied on the amount of income in excess of Euro 5,000,000 derived from such contract.

For any queries about the aforementioned issue or other matters, kindly contact Mr Joseph Gauci (Managing Partner) at: jgauci@ksimalta.com or Mr Benjamin Griscti (Senior Advisor) at:  bgriscti@ksimalta.com