The Malta Commissioner for Tax and Customs has issued a notice regarding the rules of tax deductions for expenditure of a capital nature incurred on Intellectual Property (IP) or IP Rights.
At the option of the taxpayer, any such expenditure may be deducted in full in the year the expenditure has been incurred, or in the year in which the IP or IP Rights are first used or employed in producing income. The rules did already provide for a deduction, but only over a minimum of 3 years. For expenditures already deducted in accordance with the prior rules, any balance may be deducted immediately.
The accelerated deductions can be claimed for financial periods starting on or after 1 January 2023. Any deductible expenditure can only be claimed against income produced by the use or employment of the IP or IP Rights.
Should you require any further information in this respect please do not hesitate to get in touch with our experts.
 Thomas Jacobsen |  Szabolcs Toth |
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