S.L. 123.117 Art. 3Applicability. Cap. 372. Cap. 372. Documents to be submitted to the Commissioner.

The provisions of article 12(1)(v) of the Income Tax Act, hereinafter referred to as "the Act", shall apply where any person derives royalties or similar income from qualifying patents on or after the 1st day of January 2010, chargeable to tax under article 4(1)(a) or (e) of the Act, and where the said person makes a claim in accordance with the provisions of rule 4 and makes a declaration of his total income from all sources in the return made pursuant to article 10 of the Income Tax Management Act: Provided that an individual shall not be entitled to have any amount of income arising to him from a qualifying patent exempt from tax as aforesaid, unless the said individual carried out, either solely or together with another person or persons, research, planning, processing, experimenting, testing, devising, designing, developing or other similar activity leading to the invention which is the subject of the qualifying patent:

Provided further that if a company shows such income derived from a qualifying patent as part of its chargeable income in a return made pursuant to article 10 of the Income Tax

Management Act, such company shall not be entitled to apply the of every qualifying patent relative to income in respect of which the exemption referred to above is claimed a copy of a determination issued by the Corporation describing the particular invention, and confirming that it has received to its satisfaction all information and documentation requested thereby relative to the particular patent and the invention to which it refers and that after making such ascertainment as it considered necessary, it is satisfied that the particular invention to which the patent refers is in existence and is not in breach of any public policy objectives of Malta.

(2) Evidence of the determination referred to in sub-rule (1) shall be submitted to the Commissioner together with the tax return, in such manner as the Commissioner may require, for every year of assessment in respect of which the exemption is claimed.