Taxation of Royalties on Qualifying Literary Works

A flat tax rate of 15% has been introduced with effect from 1st January 2021and applies to royalties derived by individuals in their capacity as authors of qualifying literary work by virtue of their title to the copyright on that work conferred by the Copyright Act. The 15% tax is optional and is calculated on the gross royalty […]

Written By Elaine Camilleri

On December 22, 2021
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A flat tax rate of 15% has been introduced with effect from 1st January 2021and applies to royalties derived by individuals in their capacity as authors of qualifying literary work by virtue of their title to the copyright on that work conferred by the Copyright Act.

The 15% tax is optional and is calculated on the gross royalty income whereas no deductions areallowed. The tax is final, wherein no set-off or refund will be possible and the recipient must report such income and settle the respective tax by 30th April of the following year.

For the application of this rule, ‘qualifying literary work’ is defined as a publication which bears an ISBN and which is a novel, story, poetical work, text book, treatise, history, biography, encyclopaedia or dictionary that is eligible for copyright in terms of the Copyright Act.

How can we help?  

For further information, please contact one of the firm’s tax partners, Stephen Balzan on [email protected] or Elaine Camilleri [email protected]. ACT can help you understand the changes to the tax rules and how these can impact your business.  

Apart from its offices in St. Julian’s Malta, ACT operates from a second office in Gozo, which is situated in the capital city of Victoria.  For an appointment in our Gozo office, please call on +356 21378672 or send us an email on [email protected].