Malta Gaming Tax & Tax Planning

New Gaming Licence Fees Regulations In Malta

A Malta remote gaming company has a number of tax obligations that need to be fulfilled.  Like any other Maltese company, a remote gaming company shall have to pay corporate tax on its net profits.  Being a remote gaming company, additional tax obligations arise in relation to the specific remote gaming activities.

Remote Malta Gaming Tax

Malta iGaming Companies are subject to the payment of remote Malta gaming tax based their activities. The Legal Notice entitled ‘Gaming Tax Regulations’ of 2018 stipulates all the instances in which gaming tax is due, the levy applicable to gaming devices, as well as the methods of payment.

If the gaming service being offered is a distance communication or remote gaming, the determination of tax will not be based on the physical presence of the service provider, but rather, will focus on whether the player is established and his permanent address or residence in Malta. Therefore, Maltese remote gaming companies will only pay the applicable gaming tax of 5% on gaming revenue generate from Malta-based players. 

Malta Gaming Tax: Fees for Gaming Operations

The Malta Gaming Authority has issued specific licence fees which apply to (Business-to-Customer) and (Business-to-Business) operations in Malta. The former account for a Gaming Service Licence whilst the latter is in relation to the Critical Gaming Supply Licence.

A fixed annual licence fee of €25,000 per annum is applied in the case of B2C operations. This annual licence fee is somewhat reduced with regards to those operators offering controlled skill games under a B2C Type 4 license to €10,000.

With regards to B2B operators, the annual license fee varies depending on the annual revenue of the operator. For B2B operators providing the supply and management of material elements of the game (such as platform providers for instance), the annual fee ranges from €25,000 to €35,000. In the case of those operators who only supply and manage gaming software, the annual fee ranges from €3,000 to €5,000 depending on the revenue.  

Malta Gaming Tax: Compliance contributions

Apart from the annual licence fee, the Malta Gaming Authority imposes a compliance contribution fee which is paid based on the licence which the operator holds. In the case of a gaming service licence, i.e. B2C, the amount contributed depends on the type of gaming service provided. The rate which is imposed will decrease according to the amount which is acquired each year. The MGA also stipulates a minimum and maximum amount of contribution which is to be paid according to the type in question.

Gaming Development in Malta

Malta was one of the first countries to embrace and regulate iGaming activities, whilst at the same time incorporating an environment in which further innovation can take place. In fact, on the 5th October 2018, the Authority launched an initiative which will provide a sandbox environment for gaming operators to test the possible relationship between iGaming and DLTs and cryptocurrencies.

The system currently in place also prioritises security, transparency and stability to ensure that operators can put their mind at ease that their companies are regulated within a secure environment.

Our Gaming Services

The gaming experts within Chetcuti Cauchi use their wealth of experience to provide solutions and advice to clients wishing to set-up gaming operations in Malta or set-up backup operations within any EU jurisdiction. Understanding the complexity of the industry, the team will work hand-in-hand with other experts within the firm, who will offer advice relating to Gaming, Corporate and Tax, to ensure any issues which may arise will be duly dealt with. 

The firm’s hands-on experience within the Gaming industry has allowed it to offer high-quality services which cover all aspects of iGaming. Our experts have also used this knowledge to provide their two-cents worth on what the future of such technologies can bring about. In fact, numerous thought-provoking articles have been published, outlining what the future can hold when such developments are embraced, rather than restricted. 

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