L.N. 229 of 2024, published on September 13th, 2024, has revised the Malta Income Tax (Deductions) Rules (S.L. 123.07) concerning deductions for capital expenditure on intellectual property and rights. The provisions of these rules shall apply with effect from the year of assessment 2024.
Deductions for Intellectual Property Expenditure
Rule 6 outlines how deductions for capital expenditure on intellectual property or intellectual property rights should be computed, including provisions for carrying forward deductions if there is insufficient qualifying income.
Carry Forward of Deductions
If deductions cannot be fully utilised in a given year due to insufficient qualifying income, they can be carried forward to subsequent years.
Avoidance of Double Deductions
The rules clarify that deductions cannot be carried forward or claimed in circumstances where they would not have been allowable as a loss under Article 14(1)(g) of the Income Tax Act.
For more details, please refer to L.N. 229 of 2024.
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