The Commissioner for Tax and
Customs hereby notifies that, with effect from the period covered by the year
of assessment 2024, any expenditure of a capital nature incurred on
Intellectual Property or Intellectual Property Rights may, at the option of the
person that has incurred such expenditure, be deducted in full in terms of
article 14(1)(m) of the Income Tax Act (Cap. 123 Laws of Malta) in the year
that the said expenditure has been incurred or in the year in which the Intellectual
Property or Intellectual Property Rights are first used or employed in
producing the income.
With respect to expenditure of
a capital nature on Intellectual Property and Intellectual Property Rights that
was incurred before the period covered by the year of assessment 2024, any deductions
that were yet unclaimed as at the year of assessment 2023, may be claimed in full
in the year of assessment 2024. Thus, if, for example, Intellectual Property
was acquired in the year of assessment 2023 and a 33.33% deduction of the
expense was claimed in that year of assessment, the person can claim the
remaining 66.67% in the year of assessment 2024.
The accelerated deductions
being notified above may only be claimed against income produced through the
use or employment of the Intellectual Property or Intellectual Property Rights.
Joseph Caruana
Commissioner for Tax and Customs