Amendment to the Income Tax Rules to Sports Activities

On 28 June 2024, the Minister of Finance published the Sports Activities (Income Tax) Rules, 2024 by virtue of Legal Notice 147 of 2024, (the ‘Rules’).

Through this Legal Notice, and following commitments previously announced during the Malta Budget 2024, the Rules extend the application of the reduced flat rate of income tax of 7.5%, which has previously only applied to players, licensed coaches and athletes to employment income derived by licensed match officials, match analysts, team managers/sporting directors, sport administrators, team doctors and team physiotherapists (hereinafter ‘Qualifying Individuals’).

The Rules are intended to be limited in application to Qualifying Individuals who provide prescribed services in the course of a sports activity, or services that are directly related to a sports activity. The sports activity must be recognised by SportMalta and practised wholly or mainly in Malta.

The reduced rate of income tax for the new Qualifying Individuals shall be applicable as from Year of Assessment 2025 (Basis Year 2024).

We remain available to assist clients in managing their tax and social security compliance requirements, including with ensuring compliance with the Rules.