Legal Notice 147 of 2024 published on 28 June 2024 extends the application of the 7.5% tax rate on income derived by persons engaged in sports activities. These rules were published pursuant to articles 56(26) and 96 of the Income Tax Act and will come into force from the year of assessment 2025.
An individual deriving income from a sports activity as recognised and practiced wholly or mainly in Malta can opt to have such income taxed at the rate of 7.5%.
Services provided during the course of a sports activity or that are directly related to a sports activity can be supplied by an individual on either a full-time or part-time basis in their capacity as:
- registered player or athlete being a member of a sports club or team registered with SportMalta and affiliated with a national regulatory body registered with and recognised by SportMalta;
- licensed coach registered as such with a club or team registered with SportsMalta;
- match official licensed as such in a sport by a national regulatory body that is registered with and recognised by SportsMalta;
- match analyst, team manager or sporting director and sport administrator accredited as such in a sport by a national regulatory body registered with and recognised by SportsMalta;
- team doctor and team physiotherapist engaged by a sports club or team registered with SportsMalta and affiliated with a national regulatory body registered with and recognised by SportsMalta to provide medical or physiotherapist services.
The tax chargeable in terms of these rules would be final with no scope for claiming a set-off or refund.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.