Gaming Taxation

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The gaming taxation rates differ in accordance to the type of licence that the licencee has obtained. 

A Class 1 licensee, shall pay a sum equivalent to €4,660 for the first six months and subsequently €7,000 per month for the entire duration of the licence period: Provided that a Class 1 Licensee operating on a hosting platform in possession of a Class 4 Remote Gaming licence, shall pay one thousand and two hundred euro €1,200 per month for the entire duration of the licence.

A Class 2 licensee, including a Class 2 licensee operating on a hosting platform in possession of a Class 4 remote gaming licence, shall pay a sum equivalent to 0.5% of the gross amount of bets accepted in remote betting operations.

A Class 3 licensee, including a Class 3 licensee operating on a hosting platform in possession of a Class 4 remote gaming licence, shall pay a sum equivalent to 5% of real income:
Provided that the Authority shall have the power to issue directives as it may deem necessary in respect of the computation of real income:
Provided further that the licensee shall not be entitled to any relief, reduction, credit or set-off of any kind in respect of such tax.

A Class 4 licensee, hosting and managing other remote gaming operators, shall pay -
(i) no tax for the first six months;
(ii) €2,330 per month for the subsequent six months; and
(iii) €4,660 per month thereafter for the entire duration of the licence:

Provided that the Class 4 licensee shall also pay a monthly tax of €1,165, for every operator which is not in possession of the relevant Class 1, Class 2 or Class 3 licence in terms of the Remote Gaming  Regulations, being hosted and managed by the Class 4 licensee on its platform.

In all of the above mentioned cases, the tax due from each licensee shall be paid monthly by not later than the 20th day of the following month.

The maximum tax payable by one licensee in respect of any one remote gaming licence is capped at a maximum of €466,000

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HIGHLY QUALIFIED PERSONS RULES

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Legal Notice 192 of 2017 of the Income Tax Act (Chapter 123 of the Laws of Malta) has recently amended the Highly Qualified Person Rules (Subsidiary Legislation 123.126 of the Laws of Malta). The said rules were first introduced in 2011 when Malta established specific tax rules which mostly aimed at attracting top expertise and skills in the financial services,  remote gaming, and aviation departments, allowing operators in these specific sectors to entice and recruit the highest qualified, experienced and senior professionals available internationally.

The objective of Highly Qualified Persons Rules, 2011 is the creation of a scheme to attract highly qualified persons to occupy “eligible office” with companies licensed and/or recognized by the relevant Competent Authority (Malta Financial Services Authority, Lotteries and Gaming Authority). “Eligible office” comprises employment in one of the following positions:
 

• Actuarial Professional,

• Chief Executive Officer;

• Chief Financial Officer;

• Chief Commercial Officer

• Chief Insurance Technical Officer;

• Chief Investment Officer;

• Chief Operations Officer;

• Chief Risk Officer (including Fraud and Investigations Officer);

• Chief Technology Officer;

• Chief Underwriting Officer;

• Head of Investor Relations;

• Head of Marketing (including Head of Distribution Channels);

• Head of Research and Development; (including Search Engine Optimisation and Systems Architecture)

• Portfolio Manager;

• Senior Analyst (including Structuring Professional);

• Senior Trader/Trader.

• Odds Compiler Specialist

Individual income from a qualifying contract of employment in an “eligible office” with a company licensed and/or recognised by the Competent Authority is subject to tax at a flat rate of 15% provided that the income amounts to at least €75,000 (seventy five thousand euro) adjusted annually in line with the Retail Price Index. 

The 15% flat rate is imposed up to a maximum income of €5,000,000 (five million euro), the excess is exempt from tax.

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The aforementioned tax rate of 15% is granted to EU, EEA and Swiss nationals for a period of five (5) years. The latter period shall start to run from the year when the individual is first liable to tax in Malta. The eligible individuals (EU, EEA and Swiss nationals) who apply for the said tax benefit shall be allowed a one-time extension for a further five years, once the application and required documents are submitted.

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Apart from EU, EEA and Swiss nationals – the qualifying period of assessment for Third Country Nationals (“TCNs”) on the other hand, is only that of four (4) years, i.e. 1,460 days, and this again starts to run from the year when the individual is first liable to pay tax in Malta.

Following the amendments by, Legal Notice 192 of 2017, TCNs are given the option to benefit from a one-time extension, allowing them a further four (4) years in respect of the qualifying period. Thus, a TCN may stay in Malta for more than 1,460 days in respect of such extension and would not be required to leave after the first four (4) year period.

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Therefore, through Legal Notice 192 of 2017 TCNs are placed on a level playing field with EU, EEA and Swiss nationals as they are now both able to apply for an extension to continue benefitting from the above-mentioned  tax rules.

For more information contact us, and we will be happy to assist you.