{"id":547,"date":"2023-10-24T11:12:13","date_gmt":"2023-10-24T11:12:13","guid":{"rendered":"https:\/\/companyincorporationmalta.com\/?p=547"},"modified":"2023-10-24T11:12:15","modified_gmt":"2023-10-24T11:12:15","slug":"tax-exemptions-of-royalties","status":"publish","type":"post","link":"https:\/\/companyincorporationmalta.com\/tax-exemptions-of-royalties\/","title":{"rendered":"Tax Exemptions on Royalties"},"content":{"rendered":"\n<p><strong>Maltese legislation on royalties<\/strong>\u00a0offers various\u00a0<strong>tax exemptions for individuals or companies<\/strong>\u00a0working in the field of research and development, for patents or copyright material.\u00a0<a href=\"https:\/\/www.companyincorporationmalta.com\/about-us\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Our agents in company formation<\/strong><\/a>\u00a0can present to you the\u00a0<strong>legal status on royalties<\/strong>\u00a0when you will\u00a0<a href=\"https:\/\/www.companyincorporationmalta.com\/types-of-companies-malta\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>set up your business in Malta<\/strong><\/a>.\u00a0<\/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\/tax-exemptions-of-royalties\/#maltese-income-tax-act-%e2%80%93-royalties-exemptions\" title=\"Maltese Income Tax Act \u2013 Royalties Exemptions&nbsp;\">Maltese Income Tax Act \u2013 Royalties Exemptions&nbsp;<\/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\/tax-exemptions-of-royalties\/#withholding-tax-on-royalties\" title=\"Withholding Tax on Royalties\">Withholding Tax on Royalties<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/companyincorporationmalta.com\/tax-exemptions-of-royalties\/#tax-exemption-on-copyright-royalties\" title=\"Tax Exemption on Copyright Royalties&nbsp;\">Tax Exemption on Copyright Royalties&nbsp;<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"maltese-income-tax-act-%e2%80%93-royalties-exemptions\"><\/span><strong>Maltese Income Tax Act \u2013 Royalties Exemptions&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you are seeking for&nbsp;<a href=\"https:\/\/www.companyincorporationmalta.com\/register-company-malta\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>company registration in Malta<\/strong><\/a>&nbsp;<strong>in the field of research and development<\/strong>, you should know that the Maltese government has recently introduced new laws to sustain, protect and encourage researchers to register their intellectual property.&nbsp;<\/p>\n\n\n\n<p>Under the&nbsp;<strong>Income Tax Law<\/strong>,&nbsp;<strong>royalties represent taxable income&nbsp;<\/strong>for Maltese residents, as well for non-Maltese residents (real persons or companies) as long as the royalties are received in Malta; starting with January 2010, the law added a new provision, stating that any royalties coming from trade or business are exempted of the income tax, regardless if the registration of the patent was done in Malta or in any other country.&nbsp;<\/p>\n\n\n\n<p>A patent registered in a different place than Malta can be tax exempted if it falls in the following categories:<\/p>\n\n\n\n<p>\u2022 fundamental research;<\/p>\n\n\n\n<p>\u2022 industrial research;<\/p>\n\n\n\n<p>\u2022 experimental development.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"withholding-tax-on-royalties\"><\/span><strong>Withholding Tax on Royalties<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Malta imposes a rate of maximum 10%&nbsp;<strong>withholding tax on royalties<\/strong>, but royalties can also be tax-free, as a part of the&nbsp;<a href=\"https:\/\/www.companyincorporationmalta.com\/double-tax-treaties-malta\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>double taxation treaties signed by Malta<\/strong><\/a>&nbsp;with several states (associated companies that belong to the European Union\u2019s space are exempted from the payment of the withholding tax); if you want to&nbsp;<a href=\"https:\/\/www.companyincorporationmalta.com\/company-act-in-malta\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>set up a company in Malta&nbsp;<\/strong><\/a>and you need advice on this subject,&nbsp;<strong>our agents in company formation<\/strong>&nbsp;can offer you relevant information.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"tax-exemption-on-copyright-royalties\"><\/span><strong>Tax Exemption on Copyright Royalties&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>An entrepreneur interested in&nbsp;<strong>company registration in Malta<\/strong>&nbsp;should also know that, from May 2012,&nbsp;<strong>Maltese Law<\/strong>&nbsp;has extended the tax exemptions on royalties to copyright material, under the&nbsp;<strong>Article 12 of&nbsp;<a href=\"https:\/\/www.companyincorporationmalta.com\/taxes-in-malta\" target=\"_blank\" rel=\"noreferrer noopener\">Income Tax Act<\/a><\/strong>.&nbsp;<\/p>\n\n\n\n<p>&nbsp;The copyright contains a larger area of intellectual property, such as:&nbsp;<\/p>\n\n\n\n<p>\u2022 artistic works;&nbsp;<\/p>\n\n\n\n<p>\u2022 audiovisual works;&nbsp;<\/p>\n\n\n\n<p>\u2022 literary works;<\/p>\n\n\n\n<p>\u2022 musical works.&nbsp;<\/p>\n\n\n\n<p>The Copyright Act specifies that intellectual property refers also to art \u2013 sculptures, architecture, lithographs, maps, scientific works, photography, buildings and craftsmanship.&nbsp;<\/p>\n\n\n\n<p>If you plan on&nbsp;<strong>opening a company in Malta<\/strong>&nbsp;in the field or research and development and you need further advice, please&nbsp;<strong><a href=\"https:\/\/www.companyincorporationmalta.com\/contact-us\" target=\"_blank\" rel=\"noreferrer noopener\">contact our consultants in company formation<\/a><\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Maltese legislation on royalties\u00a0offers various\u00a0tax exemptions for individuals or companies\u00a0working in the field of research and development, for patents or copyright material.\u00a0Our agents in company formation\u00a0can present to you the\u00a0legal status on royalties\u00a0when you will\u00a0set up your business in Malta.\u00a0 Maltese Income Tax Act \u2013 Royalties Exemptions&nbsp; If you are seeking for&nbsp;company registration in Malta&nbsp;in [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":369,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[274,278,9,277,276],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Tax Exemptions of Royalties<\/title>\n<meta name=\"description\" content=\"Our company formation agents in Malta can provide you with information on tax exemptions on royalties, applicable under the Income Tax Act.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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