Register your Invention in Malta
In an effort to continue strengthening its attraction as an IP jurisdiction, Malta has recently introduced an exemption on royalties and income derived from certain types of patents. Any income or royalties derived by a Maltese company from a qualifying patent in respect of an innovation are exempted from tax in Malta.
The rules governing this exemption are yet very flexible and would still allow the exemption to be claimed even if the patent has been registered outside Malta. Similarly, research, planning, processing, experimenting, testing, designing or development to the invention does not have to be carried out in Malta. The law however requires the invention to be approved by the Malta Enterprise.
In respect of patents which do not qualify for this exemption, the taxation of royalties and income from such patent continue to benefit from the tax refund system. Various types of refunds may be claimed depending on the nature of the income.
Moreover, Maltese taw law allows a full deduction on the expenditure incurred on patents and patent rights, provided that such expenditure is spread over the life of such patent.
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