MALTA IP HOLDING TAX FACTSHEET
A Malta company is an excellent vehicle used to:
- hold intellectual property portfolios ;
- recieve royalty payments from the licencing out of such intellectual property to third parties or related companies.
PATENTS HELD BY A MALTA IP HOLDING COMPANY
Nil Malta income tax for royalties received as a result of licencing of qualifying patents
Legal Certainty : an exemption entitlement certificate is provided
Patent need not be registered in the EU
Research need not be made in the EU
Licensing of patented knowledge to linked companies is allowable
COPYRIGHT HELD BY A MALTA IP HOLDING COMPANY Malta income tax exemption on royalties, advances or similar income derived from qualifying copyright works.
TRADEMARKS HELD BY A MALTA IP HOLDING COMPANY
As there is no specific exemption for trademark royalties, income would be taxed at a flat rate of 35%. However, following a distribution of dividends, shareholders would be entitled to apply for refunds of the tax paid by the distributing company. Refunds may be as high as 6/7 giving an effective Malta tax of 5%.
Other benefits of a Malta IP holding company Malta is an EU State & in the Eurozone
Access to 58 double tax treaties
Application of Directive 2003/49/EC: the Member State of paying company must typically provide for a tax exemption in respect of royalty payments made to an associated company in another Member State on an arms length basis (provided the requirements of the directive are fulfilled)
Malta capital gains exemption on disposal of shares by non-residents