Taxation of Different Types of Intellectual Property in Malta

With a preferential tax system for intellectual property, Malta attracts numerous investors who want to benefit from the advantages in this field. There are numerous tax exemptions for incomes generated from all types of activities considered creations. Registering a company in Malta is also beneficial from many points of view, but the main requirements can be explained by our company incorporation agents in Malta.

 

 

The incomes resulted from royalties related to audio-visual, or artistic creations are free from taxation. Compositions and literary works are not subject to taxation in Malta. Moreover, the profits gained from patents registered on the Maltese territory are also exempt from taxation. Even if the inventions have not been developed in Malta but used in this country, no taxes will be levied.

 

 

When registering a company in Malta, one should also consider the trademark. We mention that the incomes resulted from trademarks accepted and registered in Malta are not subject to any tax. This is also a reason why many investors decide to set up their businesses in a favorable environment like Malta.

 

As a short conclusion, you should consider that the tax exemption in Malta applies if the royalties are resulted from professional and commercial business, in accordance with the legislation in the country. Only copywrites and trademarks registered in Malta will benefit from the favorable taxation system.

 

 

If the property rights are transferred in Malta, please consider that a capital gain tax in this matter is imposed. The exemption intervenes only if the transfer is made between two enterprises which are part of the same group with subsidiaries in Malta, and if both companies are owned in an amount of 50% by the same stockholder.

 

If you would like to know more details about the taxation system for companies or the incorporation process of a business in Malta, please do not hesitate to contact our local company formation representatives in Malta.