Papilio’s specialist intellectual property Malta Tax Advisor’s are geared to meet the demands of our clients by offering focused and strategic expertise in a pragmatic and holistic way. We advise a diverse international client base on a wide range of intellectual property matters and specialise in setting up tax efficient royalty structures to maximise our client’s future earnings.
Malta is now positioned as a financial services centre of note within the European Union and it has a number of tax effective provisions specifically related to royalties and similar income. As a result there is an increasing amount of inward investment into Malta involving intellectual property rights making it the ideal jurisdiction to set up a royalty holding company or royalty structure in Malta.
A royalty structure in Malta can be set up as a standalone operation holding the intellectual property rights or the royalty holding company in Malta can be set up within a larger group structure.
Malta Taxation Of Royalties Derived From Qualifying Patents
The Malta tax exemption applies where any person (whether individual or corporate) derives royalties or similar income (including sums paid for the grant of a licence to exercise rights under the patent), chargeable to tax, from qualifying patents (whether as active or passive income)
A “qualifying patent” means a patent registered in Malta or elsewhere, and includes patents where the research, planning, processing, experimenting, testing, devising, designing, developing and similar activity leading to the invention was carried out outside Malta.
Malta Taxation Of Royalties Derived From Copyrights And Trademarks
The Malta tax exemption applies where any person (whether individual or corporate) derives royalties, advances or similar income, chargeable to tax, from copyrights and trademarks (whether as active or passive income).
Malta Taxation Of Royalties – No Withholding Taxes
Malta, is a member of the EU and as such Maltese companies may benefit from protection against non-Maltese withholding tax payable on royalties qualifying under EU Interest and Royalties Directive. Malta does not charge any withholding taxes on royalty payments or dividend payments made by Maltese companies.
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Royalty Tax Exemption derived from patents in Malta
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