Artistic Royalties - Income Tax Exemption Now In Force

The Income Tax exemption announced in November 2011 by Malta's Minister of Finance, the Economy and Investment during his budget speech has been introduced and has come in force in respect of royalties received from certain copyrightable intellectual property on books, film scripts, music and art.

The Budget Measures Implementation Act of 14 May 2012 amended the Income Tax Act to reflect this exemption. Article 12(1)(v) of the said Act exempts royalties, advances and similar income derived from copyright. This will apply whether the royalties were received in the course of a trade, business, profession or vocation or otherwise.

Intellectual Property Companies in Malta

Your Intellectual Property may well be your company's greatest asset. The introduction of this exemption is an interesting development for Intellectual Property companies that are tax resident in or relocating to Malta - as well as for individuals who receive royalties for their work.