Malta’s Patent Box Regime

How Does the IP Tax Deduction Work?

Intellectual property can represent a significant part of the value created by innovative businesses, particularly those operating in technology, software, pharmaceuticals, life sciences and other research-driven industries.

Malta’s Patent Box Regime provides a fiscal incentive for businesses deriving income from qualifying intellectual property developed through genuine research and development activities.

The regime is established by the Patent Box Regime (Deduction) Rules, 2019, Subsidiary Legislation 123.194. It covers income arising from patents, certain similar intellectual property rights and qualifying copyrighted software, while particular provisions also apply to intellectual property developed by small entities.