The benefit consists of a tax exemption on employment income which may be claimed by way of a tax credit. It applies to individuals who complete the relevant course of studies in 2018 or later. Where the individual pursues the relevant course of studies on a part-time basis, the tax credit is reduced by 50%. A reduction in the tax credit applies also where the course of studies was commenced before 2017. In the case of a Masters, the tax credit is available against the tax on income earned during the year that follows that in which the course is completed. In the case of a PhD it is available for two successive years. An individual who obtains a Masters and claims the tax credit for one year, and later obtains a PhD, may claim the tax credit for a further year. Otherwise, the tax credit may be claimed only once.
The incentive is not available to individuals who benfit from any other tax or other incentive related to the same qualification. An individual who is employed in a professional capacity cannot claim the tax credit if the degree was obtained as a prerequisite for the exercise of his profession.
An individual who claims the tax credit must remain in employment in Malta for at least four years, or, where the credit has been availed of for two year, for five years after the year in which the course is completed. If this condition is breached, the tax credit must be refunded, but an exception is allowed when the employment is terminated on account of sickness or injury.
Fill the application form and submit it online.
Documents Required:
The following documents are required;
- Acceptance Letter
- Qualification
- Qualification Transcript
- FS3
- MQRIC (not required for University of Malta, MCAST, Institute of Tourism Studies).
