Malta has become a Digital Gaming hub, attracting companies seeking to relocate their business or set up their operations in Malta. Apart from being a well-regulated jurisdiction strategically located in the EU, Malta offers attractive corporate and personal tax incentives and a good ICT infrastructure. Malta also offers the lowest effective tax rate in the EU through the operation of its general tax system which is applicable to any company operating in Malta, including Digital Gaming companies.
As a jurisdiction that gives access to protection of intellectual property in the European and international markets, Malta’s Digital Gaming companies may protect their artistic creations or distinguish the goods and services from those of other traders through straight-forward or hybrid solutions.
Digital Gaming companies may also benefit from various incentive packages aimed to assist this industry both at set up stage and during operations. Malta Enterprise (the national development agency responsible for promoting and facilitating international investment in the Maltese Islands) has introduced various incentives to add to Malta’s appeal as a Gaming hub, by including the qualifying employment in innovation and creativity incentive, whereby a 15% flat rate tax may be availed by individuals employed in an eligible office. There is also the business startup development and continuity scheme comprising of a tax credit up to €200,000 aimed to facilitate relocation or development of businesses. There is also the business startup grant which gives access to a repayable grant.
Tuned to the exponential growth potential of the Remote Gaming industry, Malta presents itself as a jurisdiction apt to address the dimension of the Digital Games market. The fast-pace of the Malta Digital Games industry and the government’s initiatives for the industry, are translating into varied opportunities for new start-ups to take-off while permitting existing operators to explore new niches obtaining an edge on competitors.
To date, some 43 digital game developing companies were registered in Malta ranging from AAA game developers to Indie game developers. Nine game developers develop mainly AAA Games with the highest development budgets and levels of promotion. Thirty two developers create Indie games through individuals or small teams generally without video game publisher financial support. Another two companies develop Tabletop games which is a general term used to refer to board games, card games, dice games, miniatures war-games, tile-based games and other games that are normally played on a table or other flat surface.
- The labour force in Malta is considered to be multi-lingual and when compared to the average salaries in the EU; salaries in Malta are considered to be cheaper.
- The legislative framework is in line with the main EU directives which makes it sufficiently flexible and easy to relate to different legal systems especially those within the EU.
- Multi-fibre links are located in Malta, connected to various international carriers at Gigabit capacities such as Cable and Wireless, Telecom Italia and Interoute.
- Malta is ranked 25th in technological readiness from 144 countries around the world according to the latest Global Information Technology Report index 2015.
Malta Fiscal Incentives for digital gaming
Malta Corporate Tax
Malta operates a full imputation tax system which completely eliminates the economic double taxation of company profits. While the corporate tax rate stands at 35%, upon a distribution of dividends, the shareholders are entitled to a refund of the tax charged in Malta(generally 6/7ths).
Double Taxation Treaties
Malta has over 60 double taxation agreements, of which Maltese companies can avail themselves of.
Taxation of highly qualified individuals
Under this scheme a person occupying an eligible office can take advantage of a tax rate of 15% of his income generated from the digital company.
The digital gaming industry in Malta enjoys a variety of fiscal incentives that address the needs of the Digital Gaming Industry throughout all stages of the gaming development process.
How we can assist you
We provide various services in this dynamic sector
- corporate structure planning and the development or expansion of any company in the sector;
- application for and attainment of fiscal and financial benefits available to the industry;
- we also assist and advise applicants in putting in place the commercial arrangements with third party service providers that may be required for their operations in Malta;
- we provide advice in both direct and indirect tax;
- we also assist our clients in dealing with issues relating to the employment of expatriate personnel, including direct tax and work permit applications;
- registration of trademarks both at national level and at the European Union level;
- we provide all necessary company compliance work to Maltese companies ranging from accounting, VAT returns preparation and submission to the audit of financial statements, submission of income tax returns as well as applications for tax refund.