Malta introduces Tax Exemption on Royalties from Patents

Royalties received in relation to patents for inventions are exempt from tax in Malta.  In order for the exemption to apply, a determination must be issued by Malta Enterprise following an application made in terms of its guidelines by the person owning the patent. The determination will be issued where Malta Enterprise is satisfied that the invention complies with the Exemption on Royalties Derived from Patents Rules, 2010 and after it has obtained all the information and documentation necessary for this purpose. By means of the determination, Malta Enterprise will confirm that it has received to its satisfaction all information and documentation requested in relation to the particular patent and invention and confirm that that the particular invention to which the patent refers is in existence and it has ascertained that is not in breach of any public policy objectives of Malta.  The scheme administering this incentive is currently open and applications may be submitted to Malta Enterprise for determinations as outlined above.