Reliable – Extensive – Tax Specialist – Royalty Routing
Why use Royalty Routing?
The 0% tax exemption in respect of patents and artistic royalties makes Malta a jurisdiction of choice for entertainers, artists, musicians, sports persons and companies who operate internationally. With many companies creating or deriving substantial benefits from the use of intellectual property, whether, by way of trademark, industrial design or patents, the creation, protection, maintenance and use of royalty routing and IP is critical to many businesses’ success.
Add to this an efficient tax planning and routing of income flowing from IP can substantially increase the bottom line of any company.
Malta’s IP royalty tax exemption regime applies to:
- Royalties flowing from exempted IP are 0% income tax rated, no matter where the IP was created
- Distribution of dividends from exempt profits of company are also 0% rated
- Subsequent dividends distributed to higher tier shareholders are also 0% rated
- 0% withholding tax on dividends suffer if the income is distributed to another Malta company or any company within the EU due to the Interest & Royalties Directive and the Parent & Subsidiary Directive
- Royalty payments to go to outside of the EU? Malta’s extensive double taxation treaty network– currently over 60 worldwide – ensures no more than 10% taxation, which can be further reduced by the flat rate foreign tax credit (‘FRFTC’) to 6.25%
International Operations – Transfer Pricing
Malta does not have transfer pricing or thin capitalisation rules.
With our background arising from multi – national operations, Acumum can advise your business in respect of OECD’s transfer pricing policies – as part of our overall review of your IP restructuring and favourable IP royalties routing – as it relates to your associated companies in other jurisdictions.
Acumum Accounting’s Services – Independent, Cost Effective, Transparent
Acumum Accounting’s team of accountants and auditors can provide you with timely and accurate up-to-date management accounts. Acumum can also assist in the management of local bank accounts and provide accounting support staff to manage your day-to-day operations. Our tailor-made accounting packages can be discussed with you at the outset of your operations giving you peace of mind on your operating costs.
Accounting services are provided by Acumum Accounting Limited, a licensed accountancy firm with the Malta Institute of Accounting and the Ministry of Finance, Malta.
What makes us unique, is the breadth of our real-life professional and business services. Acumum is a realistic alternative to the more traditional advisory services.
Contact us on +356 2778 1700 or contact us on Skype ID: acumum to discuss your operations further.