Expansion of the Tax Exemption on Royalty Income
In the last few years Malta has
become an attractive jurisdiction for individuals and also
multi-national organisations to set up their Holding Company. The
full imputation system and the participation exemption regime are
amongst some of the fiscal incentives applicable to such
companies.
The new rules relating to the
expanded exemption of royalty income was introduced retrospectively
last year and has since further enhanced the jurisdiction's
attractiveness. The amendment broadened the exemption to include
royalties derived from qualifying copyrights and trademarks. Prior
to such amendment, the exemption was only applicable to income from
patents in respect of inventions; this exemption has now been
broadened to include income from copyrights and trademarks. Such
income which is exempt in terms of the above provisions, will also
be exempt in the hands of the shareholders upon receipt of a
dividend
