What is Qualifying IP?
Posted: Wed Feb 19, 2025 8:48 am
In terms of the Maltese Rules, qualifying IP includes:
a) Patents that have been issued or are in the process of being applied for.
b) Assets in respect of which protection rights are granted in terms of national or international legislation. This includes rights relating to plant and genetic material, plant or crop protection products and orphan drug designations; or utility models; or software protected by copyright under national or international legislation.
c) In the case of a small entity (defined in the Rules), other intellectual property iceland mobile database assets that are ‘non-obvious’, useful, novel and have features similar to those of patents, and as are certified as such by Malta Enterprise.
Marketing-related intellectual property assets such as; brands, trademarks and trade names do not constitute qualifying IP.
What are the Conditions to Claim a Deduction?
The definition relates to, activities that must be carried out by the beneficiary:
‘The research, planning, processing, experimenting, testing, devising, designing, development or similar activities leading to the creation, development, improvement or protection of the qualifying IP.’
Further criteria relating to the ‘beneficiary’, include:
functions performed by employees of other enterprises, provided that such employees are acting under the specific directions of the beneficiary in a manner equivalent to its employees;
functions carried out through a permanent establishment situated in a jurisdiction other than the jurisdiction of residence of the beneficiary, where such permanent establishment derives income which is subject to tax in the jurisdiction of residence.
a) Patents that have been issued or are in the process of being applied for.
b) Assets in respect of which protection rights are granted in terms of national or international legislation. This includes rights relating to plant and genetic material, plant or crop protection products and orphan drug designations; or utility models; or software protected by copyright under national or international legislation.
c) In the case of a small entity (defined in the Rules), other intellectual property iceland mobile database assets that are ‘non-obvious’, useful, novel and have features similar to those of patents, and as are certified as such by Malta Enterprise.
Marketing-related intellectual property assets such as; brands, trademarks and trade names do not constitute qualifying IP.
What are the Conditions to Claim a Deduction?
The definition relates to, activities that must be carried out by the beneficiary:
‘The research, planning, processing, experimenting, testing, devising, designing, development or similar activities leading to the creation, development, improvement or protection of the qualifying IP.’
Further criteria relating to the ‘beneficiary’, include:
functions performed by employees of other enterprises, provided that such employees are acting under the specific directions of the beneficiary in a manner equivalent to its employees;
functions carried out through a permanent establishment situated in a jurisdiction other than the jurisdiction of residence of the beneficiary, where such permanent establishment derives income which is subject to tax in the jurisdiction of residence.