An Overview of the Rules, Tax Implications, and Reporting Obligations
As part of its ongoing effort to professionalise the local sports industry, the Maltese government has introduced a new, simplified tax regime for individuals earning income from sports-related activities. Legal Notice 147 of 2024, which came into effect in June 2024, outlines a dedicated tax framework designed to support and formalise the sector without creating unnecessary burdens for those involved.
Key Highlights of the New Tax Scheme
Under this new framework, a final flat tax rate of 7.5% is applied to gross income earned from qualifying sports activities. This favourable rate applies to qualifying individuals who are either full-time or part-time engaged in sports-related services, provided they are recognised by SportMalta and meet the relevant conditions. The reduced rate of income tax for the new Qualifying Individuals shall be applicable as from Year of Assessment 2025 (basis year 2024).
The tax chargeable shall be final and no set-off or refund shall be granted to any person in respect of the tax so charged.
Who Can Benefit?
The scheme is open to a broad range of sports professionals, including:
- a registered player or athlete;
- a licensed coach;
- a licensed match official;
- a match analyst;
- a team manager or sporting director;
- a sport administrator;
- a team doctor;
- a team physiotherapist
How can NCMB assist?
If you’re involved in sports-related activities and believe you may qualify for this tax treatment, we would be happy to assist. We can guide you through the eligibility criteria, registration requirements, and reporting obligations to ensure you fully benefit from this attractive tax regime. Feel free to reach out to us for more information or support in applying this new scheme to your involvement.
