Update to the Highly Qualified Persons Rules

The Highly Qualified Persons Rules, 2011 enacted by virtue of Legal Notice 106 of 2011, provide for the application of a beneficial 15% tax rate in respect of certain qualifying employment posts. By virtue of Legal Notice 306 of 2012, the application of the Highly Qualified Persons Rules has now been extended to include positions within the aviation sector.

The reduced rate of 15% will now apply to income from specified employments with companies holding an air operators’ certificate issued in terms of article 4 of the Civil Aviation (Air Operators’ Certificates) Act. Specified senior positions such as that of Aviation Accountable Manager, Aviation Continuing Airworthiness Inspector, Aviation Flight Operations Inspector and Aviation Training Manager are from now on to be considered as eligible offices.  These are in addition to the posts which are already included within the application of the rules such as Chief Executive Officer, Chief Financial Officer, Chief Operations Officer, Chief Commercial Officer, with the 15% tax rate now also being extended to the holders of such offices with qualifying aviation undertakings.

These amendments come into force with retrospective application as from 1st January, 2012.