Creativity (Personal Tax) (Amendment) Rules, 2019

L.N. 282 of 2019

INCOME TAX ACT

(CAP. 123)

Qualifying Employment in Innovation and

Creativity (Personal Tax) (Amendment) Rules, 2019

IN EXERCISE of the powers conferred by articles 14(2), 56(21)

and 96 of the Income Tax Act, the Minister for Finance, has made the

following rules:-

(1) The title of these rules is the Qualifying Employment Citation and

in Innovation and Creativity (Personal Tax) (Amendment) Rules 2019, commencement.

and these rules shall be read and construed as one with the Qualifying

Employment in Innovation and Creativity (Personal Tax) Rules, S.L. 123.141.

hereinafter referred to as the ''principal rules''.

(2) These rules shall be deemed to have come into force on 1 st

January 2019.

(1)

Rule 2 of the principal rules shall be amended as Amends rule 2

of the principal

rules.

(a) the definition ''Commissioner'' shall be substituted by

the following

'' ''Commissioner'' means the Commissioner for

Revenue;'' ;

(b) the definition ''eligible office'' shall be substituted by

the following

'' ''eligible office" means an employment in a role

directly engaged in carrying out or management of

research, development, design, analytical or innovation

activities as may be further specified in the Guidelines

published by the Corporation;'';

(c) the definition ''qualification'' shall be deleted and

immediately after the definition ''relevant experience'' there shall

be added the following new definition

'' ''relevant qualification'' means any diploma,

certificate, degree or other formal educational

achievement in a subject area relevant to an eligible

office, attained through an educational establishment

attesting the successful completion of a post-

secondary education programme at graduate level as

recognized by the Malta Qualifications Recognition

Information Centre as established by article 6 of the

Mutual Recognition of Qualifications Act;''; and

(d) the definition ''these rules'' shall be substituted by the

following

'' ''these rules'' includes the provisions of these rules

and of article 56 (21) of the Act;".

The words ''forty-five thousand euro (€45,000)'' in sub-rule

(1) of rule 3 shall be substituted by the words ''fifty-two thousand euro

(€52,000)''.

(1)

Rule 4 of the principal rules shall be amended as

(a) paragraph (a) thereof, shall be substituted by the

following

''(a) he is an individual who derives income subject

to tax under article 4(1)(b) of the Act, being emoluments

payable under a qualifying contract of employment, and

received in respect of work or duties carried out in Malta in

fulfilling the role required by the eligible office, 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) paragraph (c) thereof, shall be substituted by the

following

''(c) he proves to the satisfaction of the Corporation

that he is in possession of a relevant qualification or

relevant experience;'';

(c) paragraphs (d), (e) and (f) thereof, shall be

renumbered as paragraphs (e), (f) and (g) respectively; and

(d)

immediately after paragraph (c) thereof, there shall be

added the following new paragraph

''(d) he is not an individual who has benefited under

article 6 of the Act;''.

(1)

Rule 5 of the principal rules shall be amended as Amends rule 5

of the principal

rules.

(a)

the first proviso to sub-rule (1) thereof, shall be

deleted;

(b) in the second proviso to sub-rule (1) thereof, the word

''further'' shall be deleted;

(c) in sub-rule (2) thereof, the words ''year of assessment

2013:'' shall be substituted by the words ''year of assessment

2013.''; and

(d)

the proviso to sub-rule (2) thereof, shall be deleted.

Rule 6 of the principal rules shall be amended as follows

Amends rule 6

of the principal

rules.

(a) sub-rule (1) thereof, including its proviso, shall be

substituted by the following

''(1) The option available under article 56(21) of the

Act shall apply for

(a) a consecutive period of up to four (4)

years commencing from the year immediately

preceding the year of assessment in which the

individual is first liable to tax under the provisions of

the Act;

(b) by application, to any additional periods

of up to five (5) consecutive years.'';

(b) sub-rule (2) thereof, shall be renumbered as sub-rule

(3) and the words ''under this law'' therein shall be substituted by

the words ''under these rules'';

(c) immediately after sub-rule (1) thereof, as substituted,

there shall be added the following new sub-rule

''(2) Subject to the continued adherence to these

rules the rights acquired shall continue to apply if the

individual enters into a new contract of employment which

is also considered to be an eligible office and there is no

more than thirty (30) days between the termination of one

contract of employment and the commencement of the

other contract of employment.''; and

(d) immediately after sub-rule (3) thereof, as

renumbered, there shall be added the following new sub-rule

''(4) Rights acquired under these rules shall be

withdrawn if a beneficiary directly or indirectly acquires

immovable property situated in Malta or any real rights

thereon.''.

Rule 7 of the principal rules, shall be deleted.

Rule 11 of the principal rules, shall be substituted by the

following

''11. (1) An application for a formal determination

relating to eligibility under these rules shall be made on such

form or in such manner as the Corporation may require and shall

contain the information and documents therein requested.

(2) The Corporation shall issue a formal determination

that an individual has proven to its satisfaction, compliance with

these rules and shall in such formal determination specify also

the number of years in which the option available under article

56(21) of the Act can be availed of in accordance to these rules.

(3) The Corporation shall forward a copy of any

determination issued to the Commissioner.

(4) After consultation with the Corporation, the Minister

responsible for Justice shall determine whether a beneficiary’s

permanent stay in Malta is not in the public interest.''.

Rule 12 of the principal rules, shall be deleted.

Rule 14 of the principal rules shall be substituted by the

following

''14. No determination shall be issued by the Corporation

after the 31 st December 2025 and no further benefit may be

availed after year of assessment 2030.''.

€0.36