The Commissioner for Tax and Customs has announced that L.N. 229 of 2024, which amends the Income Tax (Deductions) Rules (S.L. 123.07) concerning deductions for capital expenditure on intellectual property and rights, was published on 13 September 2024. These amendments will be effective for the year of assessment 2024.

Additionally, a guidance note on Article 14(1)(m) of the Income Tax Act is now available. This note aims to clarify the application of the second proviso to Article 14(1)(m) as well as the new Rule 6 of the Income Tax (Deductions) Rules.

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Income Tax deductions rules – expenditure on intellectual property

The Income Tax (Deductions) (Amendment) Rules have been revised by L.N. 229 of 2024. These revisions include new provisions for deductions related to capital expenditure on intellectual property and intellectual property rights, in line with the second proviso to Article 14(1)(m) of the Income Tax Act. This change aims to clarify the eligibility for such deductions, effective from the year of assessment 2024.

Malta – Netherlands (re. Curacao) Tax Treaty

According to L.N. 205 of 2024, the double tax treaty between the Republic of Malta and the Kingdom of the Netherlands, specifically concerning Curaçao, is deemed to have come into force on 1 September 2024. This treaty was originally published as a Schedule to Legal Notice 1 of 2016.