On the 17th May, the Maltese parliament approved tax amendments
which had been outlined during the Budget for 2013. The new rules
have been applied retrospectively and relate to the tax periods
commencing on or after 1 January 2012 and relate to the
following:
Branch profits
Malta's participation exemption regime has been broadened to
include profits and gains derived by a Maltese company that are
attributable to:
- a permanent establishment situated outside Malta, or
- the transfer of such a PE
These amendments were done to ensure compliance with EU law.
Trademark Royalties
Malta provides for a full exemption for profits from royalties
derived from registered patents and copyrights. The amendments
extend the exemption to royalties derived from qualifying
trademarks. Detailed rules prescribing the terms and conditions
necessary for the application of the exemption to copyrights and
trademark royalties are expected to be published shortly.
