Guidelines On The Tax Treatment Of Highly Skilled Individuals Rules

SCOPE

These guidelines are issued in terms of Article 96(2) of the Income Tax Act (Chapter 123 of the Laws of Malta) and are to be read in conjunction with Legal Notice 20 of 2026 - Tax Treatment of Highly Skilled Individuals Rules, hereinafter referred to as “the Rules”.

A. RULE 3(1)

The minimum income requirement of €65,000 is to be adjusted by an increase of €10,000 every five years and is applicable to the income from a qualifying contract of employment. Consequently, in the sixth year in which the rules come into force, that is from basis year 2031, the income from the relevant qualifying contract of employment would need to be of at least €75,000. Similarly, the income would need to be of at least €85,000 in the eleventh year, that is from basis year 2036.

In the case of income derived from a qualifying contract of employment in respect of eligible offices that were listed under the Qualifying Employment in Aviation (Personal Tax) Rules (S.L. 123.168) and which are also listed under these Rules, where the minimum income requirement was €45,000, this amount shall apply in the first year in which the new rules come into force. In the second year, the minimum income requirement shall increase by €10,000 to €55,000, and in the third year it shall be aligned with the standard minimum income of €65,000. Thereafter, the minimum income requirement shall increase by €10,000 in the sixth year, as provided for under these rules, such that from basis year 2031 the applicable minimum income shall be €75,000, with a further increase of €10,000 in the eleventh year, that is from basis year 2036.

It is further clarified that the minimum income requirement is to be adjusted pro-rata where an applicant is issued with a determination in respect of a qualifying contract of employment which commenced during a part of the relevant calendar year, or where a beneficiary ceases to hold such qualifying contract of employment during a particular year.

B. RULE 5(1) AND RULE 7(2)

An application shall contain the details shown in the Annex to this Guideline. The application form can be obtained from, and submitted to, the relevant Competent Authority.

C. RULE 5(5)

The Competent Authority shall inform the Commissioner of its determination or refusal. Once such determination is endorsed by the Commissioner, the applicant shall be informed of the decision by the Competent Authority.

D. RULE 6(1)

A formal determination shall be signed by the Chief Executive Officer of the Competent Authority, or someone appointed on his behalf.

E. RULE 6(2)

The option available under article 56(21) of the Income Tax Act, shall be exercised on a yearly basis for each year of assessment.

F. RULE 7(2)

An application for a renewal shall be made during the year before the end of the relevant five year qualifying period, whether that is the first 5 year period or the second 5 year period. Such application shall be not later than the end of 9th month of the same year.

G. RULE 9

These provisions apply independently of, and do not affect, any other provisions of the Income Tax Act and any rules or regulations issued under such Act.

H. RULE 12

Any applications submitted under the Highly Qualified Persons Rules (S.L. 123.126) during calendar year 2025, in respect of which no determination has been issued by 31 December 2025, shall be treated as applications under the Tax Treatment of Highly Skilled Individuals Rules, provided that all required information and documentation under these rules has been duly submitted and the application is complete.

Applications submitted under the Qualifying Employment in Innovation and Creativity (Personal Tax) Rules, Qualifying Employment in Aviation (Personal Tax) Rules; Qualifying Employment in Maritime Activities and the Servicing of Offshore Oil and Gas Industry Activities (Personal Tax) Rules and Senior Employees of Family Offices, Back Offices and Treasury Management Operations Tax Rules during calendar year 2025 shall be processed and determined in accordance with the applicable rules.

When a determination is issued under Rule 12, the beneficiary still has to exercise the option available under article 56(21) of the Income Tax Act, for each year of assessment.

I. THE SCOPE OF MALTA ENTERPRISE AS A COMPETENT AUTHORITY

For the purpose of the Rules, Malta Enterprise is a Competent Authority for entities involved in manufacturing, software development, industrial services analogous to manufacturing, health, biotechnology, pharmaceuticals, life sciences and other innovative economic activities, provided that such entities are not regulated by another Competent Authority referred to in the Rules.

J(i). SCHEDULE I

The following employments and offices shall be considered to have the following functions and responsibilities:

Eligible offices regulated, licensed or recognised by all the Competent Authorities referred to in the LN

Chief Executive Officer (CEO), being the highest-ranking executive in a company or organisation, responsible for overseeing the overall operations, strategy, and decision-making processes. The CEO would typically work with the board of directors to set goals, manage resources, and ensure the organisation's success and growth. A CEO would be the face of the company and would make key decisions that shape its direction, while overseeing senior leadership teams in various departments. The CEO holds ultimate accountability for the company's performance, culture, and long-term goals.

Chief/Head Risk Officer (including Fraud and Investigations Officer), (CRO) is a senior executive responsible for identifying, assessing, managing, and mitigating risks within an organisation. The CRO's primary role is to protect the company from potential threats (including fraud) that could harm its operations, reputation, financial stability, or compliance with regulations. This includes managing risks related to fraud, financial markets, cybersecurity, legal issues, operational inefficiencies, and other factors. The CRO works closely with other leaders, such as the CEO and CFO, to develop strategies to minimise risk exposure and ensure the organisation operates within acceptable risk levels. They also help create risk management policies and ensure the organisation is prepared for both foreseeable and unexpected challenges.

Chief Financial Officer, (CFO) is a senior executive responsible for managing the financial actions of an organisation. The CFO oversees financial planning, budgeting, reporting, and risk management, ensuring the company’s financial health and stability. They play a key role in developing strategies to maximise profitability, manage cash flow, and make data-driven financial decisions. Additionally, the CFO works closely with the CEO and other executives to guide business decisions, align financial goals with the company’s overall objectives, and ensure compliance with financial regulations. They often manage financial teams, such as accounting and audit departments, and report financial performance to stakeholders, including the board of directors and investors.

Chief Operations Officer (COO) is a senior executive responsible for overseeing the day-to-day operations of an organisation. The COO ensures that the company's internal processes, systems, and workflows run efficiently and effectively to meet business goals. They often manage departments like production, supply chain, logistics, customer service, and human resources. The COO works closely with the CEO to implement company strategies, improve operational performance, and drive growth. They are typically responsible for optimising resources, improving productivity, and ensuring that the company meets its operational and financial objectives. In many organisations, the COO is considered the second-in-command, with a focus on internal operations while the CEO focuses on the broader strategic direction.

Chief Technology Officer/Chief Digital Officer, (CTO/CDO) is a senior executive responsible for overseeing the technological particularly digital direction of a firm. The CTO/CDO ensures that the company’s technology strategy aligns with its business goals and objectives. This role involves managing the development and implementation of technology systems, infrastructure, and innovations that drive business growth, improve efficiency, and enhance competitive advantage. The CTO/CDO typically leads the tech teams, such as engineering and IT, and evaluates emerging technologies to determine their potential impact on the company. They work closely with other executives to integrate technology solutions across all departments, ensuring the company stays up to-date with industry trends and maintains a secure, scalable technology environment. The CTO/CDO also plays a key role in shaping the company’s long-term tech vision and digital transformation efforts. The key responsibilities of a Chief Technical Officer/Chief Digital Officer include: 

• Digital Strategy Development: Leading the creation of a comprehensive digital strategy that aligns with the company's overall business goals. This involves identifying opportunities for digital innovation, optimising current digital platforms, and integrating new technologies to improve the business.
• Digital Transformation: Overseeing the organisation’s digital transformation efforts by spearheading initiatives that modernise operations, improve internal processes, and enhance customer interactions through digital channels like websites, mobile apps, or online platforms.
• Technology and Innovation: Identifying emerging technologies (such as AI, data analytics, cloud computing, and automation) that could drive business growth, improve efficiency, and help meet customer needs.
• Data Management and Analytics: Ensuring the organisation effectively collects, analyses, and uses data to make informed business decisions. This often includes overseeing the use of customer data, business analytics, and performance metrics.
• Collaboration and Leadership: Working closely with other C-level executives, such as the Chief Information Officer (CIO), Chief Marketing Officer (CMO), and Chief Operating Officer (COO), to ensure digital initiatives align with broader organisational strategies. They may also lead cross-functional teams to implement digital projects.

Chief Information Officer (CIO) is responsible for strategic oversight of the organisation’s information systems and data management. The CIO ensures that technology investments align with business objectives, focusing on governance, compliance, cybersecurity, and the effective use of information to drive decision-making. This role emphasizes IT strategy, enterprise architecture, and data governance, ensuring systems support operational efficiency and regulatory requirements.

Chief Customer Experience Officer (CXO) in the service sector is a senior executive responsible for overseeing and optimizing the overall customer experience across all touchpoints, from initial interactions to post-service follow-up. The CXO ensures that the service organisation delivers a seamless, high-quality experience to customers at every stage of their journey, aiming to enhance satisfaction, loyalty, and long-term relationships. The Chief Customer Experience Officer plays a critical role in ensuring that the service organisation is focused on delivering value to customers at every interaction, ultimately driving customer satisfaction, brand loyalty, and business growth. Key responsibilities of a Chief Customer Experience Officer in the service sector include:

• Customer Experience Strategy: Developing and executing a comprehensive strategy to improve the customer experience across all service channels (in-person, online, mobile, etc.), ensuring consistency in service delivery and alignment with the company's brand values.
• Customer Journey Mapping: Analysing and mapping the customer journey to identify key touchpoints, pain points, and opportunities for improvement. This involves creating and refining processes to enhance every stage of the customer's interaction with the organisation.
• Cross-Department Collaboration: Working closely with various departments—such as marketing, sales, operations, and IT—to ensure that customer experience initiatives are integrated into all aspects of the business and that each department contributes to creating a positive experience for the customer.
• Customer Feedback and Insights: Implementing systems to gather customer feedback through surveys, reviews, and direct interactions. Analysing this data to identify trends, measure customer satisfaction, and make informed decisions to improve service quality.
• Service Quality and Improvement: Continuously monitoring and assessing service performance to ensure high standards are maintained. The CXO leads efforts to address service issues, streamline operations, and innovate to meet evolving customer needs.
• Customer Loyalty and Retention: Designing initiatives and loyalty programs aimed at increasing customer retention, repeat business, and long-term satisfaction. This includes managing customer support teams and ensuring a quick, effective resolution to any concerns.
• Leadership and Culture: Leading by example and fostering a customer-centric culture within the organisation. The CXO ensures that all employees are aligned with the organisation's commitment to delivering exceptional customer service.

Chief Commercial Officer, (CCO) is a senior executive responsible for overseeing and driving the commercial strategy of an organisation. The CCO focuses on areas such as sales, marketing, customer relationships, and business development to maximise revenue growth and market share. Their role involves developing and executing strategies to improve the company's market presence, brand value, and customer engagement. The CCO works closely with other leadership teams, including the CEO and CFO, to align commercial objectives with the overall business strategy. They ensure that the company's products or services meet market demand, attract customers, and maintain strong relationships with clients, partners, and other stakeholders. The CCO typically manages teams in sales, marketing, product management, and customer service to optimise commercial performance and drive business success.

A Chief/Head Compliance and AML (Anti-Money Laundering) Officer is a professional responsible for ensuring that an organisation adheres to legal, regulatory, and internal policies, specifically focusing on anti-money laundering (AML) regulations. This role is critical in preventing and detecting money laundering, fraud, and other financial crimes, while also ensuring that the company remains in full compliance with relevant laws, industry standards, and best practices. The Chief/Head Compliance and AML Officer plays a crucial role in ensuring that the organisation remains compliant with all regulatory requirements related to money laundering and financial crimes, while also protecting the organisation from reputational and legal risks associated with non-compliance. Key responsibilities of a Chief/Head Compliance and AML Officer include:

• AML Program Development and Implementation: Designing, implementing, and maintaining a comprehensive AML program that complies with local and international laws. This includes establishing policies, procedures, and controls to detect and prevent money laundering activities.
• Customer Due Diligence (CDD) and KYC: Overseeing the Know Your Customer (KYC) process to ensure proper identification and verification of clients, including conducting risk assessments and enhanced due diligence (EDD) on high-risk clients or transactions.
• Monitoring and Reporting: Regularly monitoring transactions and accounts to identify suspicious activities that may indicate money laundering, terrorist financing, or other illicit activities. This includes generating Suspicious Activity Reports (SARs) when necessary and submitting them to the appropriate authorities.
• Regulatory Compliance: Keeping up to date with changes in AML regulations and ensuring that the organisation complies with all applicable laws and industry standards. This includes staying informed about local and international regulatory frameworks, such as the Financial Action Task Force (FATF) recommendations.
• Training and Awareness: Providing ongoing training to employees and stakeholders on AML policies, procedures, and regulatory changes to ensure that they are aware of potential risks and know how to identify and report suspicious activities.
• Internal Audits and Risk Assessments: Conducting regular risk assessments and internal audits to assess the effectiveness of the AML program and internal controls. Identifying any gaps or weaknesses and implementing corrective actions as necessary.
• Reporting to Authorities: Communicating with regulatory bodies, law enforcement agencies, and other authorities regarding AML-related issues, suspicious transactions, or compliance concerns.
• Investigations and Escalation: Investigating suspicious transactions or activities, escalating concerns to senior management or external authorities as appropriate, and cooperating with legal teams or regulators when needed.

Head of Marketing (including Head of Distribution Channels), is a senior executive responsible for overseeing the development and execution of an organisation’s marketing strategies and the management of its distribution channels. This role ensures that the company’s products or services are effectively marketed to target audiences, and that they reach customers through the most appropriate channels. The Head of Marketing (including Head of Distribution Channels) plays a crucial role in driving the company's growth by ensuring that both marketing strategies and distribution networks are effectively aligned with the company’s business goals, creating a strong connection with customers, and maximizing market reach. Key responsibilities include:

Marketing Strategy and Execution:

• Leading the creation and implementation of comprehensive marketing strategies, focusing on brand positioning, customer acquisition, and retention.
• Managing the marketing team to execute campaigns, promotions, and initiatives that increase visibility, drive sales, and enhance the brand's market presence.

Head of Distribution Channels:

• Overseeing and optimizing the various channels through which the company’s products or services are sold or delivered to customers, such as retail, online, partnerships, or direct sales.
• Identifying and establishing new distribution partnerships or platforms that align with the company's strategic goals, while ensuring the efficiency and effectiveness of existing channels.

Cross-Channel Integration:

• Ensuring consistency in messaging and branding across all marketing efforts and distribution channels.
• Working with other departments (sales, product, customer service) to integrate marketing and distribution efforts seamlessly, driving revenue and customer satisfaction.

Market Research and Data Analysis:

• Analysing market trends, customer behaviour, and competitors to guide marketing and distribution decisions.
• Utilising data-driven insights to refine strategies, improve campaign performance, and optimise the use of distribution channels.

Budget and Performance Management:

• Managing the marketing and distribution budgets, ensuring that resources are allocated efficiently to achieve business objectives.
• Tracking key performance metrics and return on investment for marketing campaigns and channel performance, making adjustments to strategies as necessary.

J(ii). SCHEDULE II

Eligible offices regulated, licensed or recognised by the Malta Financial Services Authority

Portfolio Manager, (PM) is a senior executive responsible for overseeing and managing an organisation's investment portfolio. This includes developing investment strategies, selecting assets, and making decisions that align with the company’s financial goals and risk tolerance. The PM typically manages a team of portfolio managers and analysts to optimise returns while minimising risk across the portfolio. The role of the PM involves closely monitoring market trends, economic conditions, and individual asset performance, while also ensuring compliance with relevant regulations. The PM collaborates with other executives, such as the CFO and CEO, to align the portfolio with the organisation's overall financial strategy. In essence, the PM's responsibility is to make high-level decisions regarding asset allocation, investment choices, and portfolio adjustments to meet long-term financial objectives.

Chief Investment Officer, (CIO) is a senior executive responsible for managing an organisation's investment strategy and portfolio. The CIO oversees the allocation of capital, evaluates investment opportunities, and ensures that the organisation’s assets are invested in a way that aligns with its financial goals, risk tolerance, and long-term objectives. The CIO typically manages a team of portfolio managers, analysts, and other investment professionals. Their role includes making high-level decisions regarding asset allocation, managing investment risk, and optimising returns for the organisation, whether it be in private equity, real estate, stocks, bonds, or other financial instruments. The CIO also works closely with the CEO, CFO, and other leadership to integrate investment strategies into the company’s overall business strategy.

Senior Trader, in financial institutions is a professional responsible for buying and selling financial instruments, such as stocks, bonds, commodities, or derivatives, on behalf of the institution or its clients. They make real-time decisions based on market trends, economic data, and other factors to optimise profits or minimise risks. A Senior Trader typically holds a more experienced position, often with more responsibility, such as managing a trading desk, overseeing junior traders, and making higher-level strategic decisions about trading strategies and risk management. They may also be involved in creating trading algorithms or conducting more complex transactions. Senior Traders in financial institutions work in a fast-paced environment where they monitor market conditions, execute trades, and respond to changes in financial markets. Their goal is to generate profit for the institution while managing the risks associated with trading activities.

Senior Structuring Professional, in the context of finance and investment works on designing and creating complex financial products or transactions, often tailored to meet the needs of clients or the institution. These products could include structured finance instruments like derivatives, asset backed securities, or bespoke investment solutions. Structuring professionals are skilled in identifying financial risks and opportunities, then using their expertise to create customised solutions, typically involving legal, regulatory, and financial considerations. Senior Structural Professionals are expected to have strong technical skills, deep industry knowledge, and the ability to present findings or proposals to executives or clients clearly. Their focus is on the design and implementation of customised financial instruments, often working closely with other departments like legal, compliance, and trading teams.

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