{"id":497,"date":"2023-10-20T08:10:55","date_gmt":"2023-10-20T08:10:55","guid":{"rendered":"https:\/\/companyincorporationmalta.com\/?p=497"},"modified":"2023-10-20T08:10:57","modified_gmt":"2023-10-20T08:10:57","slug":"taxation-of-digital-games-in-malta","status":"publish","type":"post","link":"https:\/\/companyincorporationmalta.com\/taxation-of-digital-games-in-malta\/","title":{"rendered":"Taxation of Digital Games in Malta"},"content":{"rendered":"\n<p>The\u00a0<a href=\"https:\/\/www.companyincorporationmalta.com\/gaming-in-malta\"><strong>legislation on online gambling<\/strong><\/a>\u00a0was passed by the Maltese Government in 2000 followed by the implementation of the\u00a0<strong>Remote Gaming Regulations under the Lotteries and Other Games Act<\/strong>\u00a0in 2001. When becoming an EU member state in 2004,\u00a0<strong>Malta also became the first EU country to regulate internet gambling<\/strong>. In order to make\u00a0<strong>Malta an attractive destination for online gaming operators<\/strong>, the\u00a0<strong>income tax\u00a0<\/strong>was also amended with several provisions for international companies. The\u00a0<strong>corporate tax rate in Malta is 35%<\/strong>\u00a0applied to the chargeable income, but certain types of companies benefit from reduced tax rates. Due to the full imputation system, shareholders have the right to claim refunds when dividends are paid by trading companies.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #002e5b;color:#002e5b\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #002e5b;color:#002e5b\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/companyincorporationmalta.com\/taxation-of-digital-games-in-malta\/#taxes-on-gaming-in-malta\" title=\"Taxes on gaming in Malta\">Taxes on gaming in Malta<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/companyincorporationmalta.com\/taxation-of-digital-games-in-malta\/#tax-capping-for-online-game-operators-in-malta\" title=\"Tax capping for online game operators in Malta\">Tax capping for online game operators in Malta<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"taxes-on-gaming-in-malta\"><\/span><strong>Taxes on gaming in Malta<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The&nbsp;<a href=\"https:\/\/www.companyincorporationmalta.com\/taxes-in-malta\"><strong>taxes applied to Maltese companies<\/strong><\/a><strong>&nbsp;in the online gaming industry<\/strong>&nbsp;are strictly related to the license class and type of games the company provides. The Lotteries and Gaming Authority in Malta provides&nbsp;<a href=\"https:\/\/www.companyincorporationmalta.com\/maltese-internet-sports-betting-licenses\"><strong>four classes of licenses<\/strong><\/a>.&nbsp;<strong>Companies offering casino-type games are taxed with 4,600 euros a month for the first six months and then 6,900 euros per month<\/strong>&nbsp;for the remaining licensing period. Depending on the&nbsp;<strong>type of license a&nbsp;<\/strong><a href=\"https:\/\/www.companyincorporationmalta.com\/online-gambling-malta\"><strong>Maltese casino<\/strong><\/a>&nbsp;<strong>is issued,<\/strong>&nbsp;the taxes apply as it follows:<\/p>\n\n\n\n<ul>\n<li>&#8211; operators with a class 1 license will pay 7,000 euros per month,<\/li>\n\n\n\n<li>&#8211; operators with classes 1 to 4, operating on a hosting platform, are levied 1,200 euros per month,<\/li>\n\n\n\n<li>&#8211; the&nbsp;<strong>gaming tax<\/strong>&nbsp;for operators with class 2 license are levied 0.5% on the gross amount of bets accepted,<\/li>\n\n\n\n<li>&#8211; the&nbsp;<strong>Maltese gaming tax<\/strong>&nbsp;for class 3 license operators is 5% on the net income,<\/li>\n\n\n\n<li>&#8211; there is&nbsp;<strong>no gaming tax applied to class 4 license operators<\/strong>.<\/li>\n<\/ul>\n\n\n\n<p><strong>Host platforms for gaming operators benefit from tax exemptions<\/strong>&nbsp;for the first six months and a reduced rate of 2,330 euros for the following six months.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"tax-capping-for-online-game-operators-in-malta\"><\/span><strong>Tax capping for online game operators in Malta<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>The maximum gaming tax a&nbsp;<\/strong><a href=\"https:\/\/www.companyincorporationmalta.com\/types-of-companies-malta\"><strong>Maltese company<\/strong><\/a><strong>&nbsp;in the gaming industry must pay on an annual basis is 466,000 euros<\/strong>, no matter the license class. However, for casinos with a class 1 license operating from host platforms with class 4 licenses, the tax cap is limited to the sum of tax payable by all casinos when the host platform reaches the 466,000 euros.<\/p>\n\n\n\n<p>For complete details about the&nbsp;<strong>taxation system and incentives for gambling operators,<\/strong>&nbsp;you can&nbsp;<a href=\"https:\/\/www.companyincorporationmalta.com\/contact-us\"><strong>contact<\/strong><\/a>&nbsp;our&nbsp;<strong>specialists in company incorporation in Malta<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The\u00a0legislation on online gambling\u00a0was passed by the Maltese Government in 2000 followed by the implementation of the\u00a0Remote Gaming Regulations under the Lotteries and Other Games Act\u00a0in 2001. When becoming an EU member state in 2004,\u00a0Malta also became the first EU country to regulate internet gambling. In order to make\u00a0Malta an attractive destination for online gaming [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":364,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[166,168,170,167,169],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Taxation of Digital Games in Malta<\/title>\n<meta name=\"description\" content=\"Find here details about the taxation of games in Malta. 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