MALTA Law and Practice Contributed by: Andrew J. Zammit and Krista Hili, GVZH Advocates
claim by way of special summary proceedings in the Maltese courts, and the issuance of the relevant pre- cautionary warrants against the assets of the licensee to secure the sum due pending the outcome of the judgment. Once a favourable judgment is obtained by the MGA, an executive warrant is issued against the licensee to recover the sum due, together with any relevant interest and eligible legal costs.
its MGA licence and is calculated in accordance with the Gaming Licence Fees Regulation based on the type of gaming service or critical gaming supply offered. A Maltese company holding licences in sever- al jurisdictions would not account for the compliance contribution imposed by the MGA for those activities conducted under its non-Malta licences. Player win- nings are generally exempt from taxation in Malta, provided that the gaming activities are not undertaken with such frequency by the player as to be deemed to constitute a trade, business, profession or vocation. Maltese-resident and -domiciled companies are sub- ject to tax on their worldwide income, minus permit- ted deductions, at the standard corporate tax rate of 35%. However, based on Malta’s full-imputation sys- tem, upon the receipt of a dividend, shareholders of a Maltese company may claim a refund of all, or part, of the tax paid in Malta at the level of the company, depending on the type and source of the income from which such dividend was paid. Specific tax advice should be obtained in each case. VAT VAT is applied at the standard rate of 18% on every taxable supply of goods, services or importation, with lower rates applicable to certain sectors. Two sets of guidelines have been published by the Maltese government in relation to the previous gam- bling VAT exemption. These guidelines became effec- tive on 1 January 2018 and provide a specific list of exemptions applicable to particular gaming activities. Therefore, in contrast to the previous regime (where a blanket exemption was applicable to all gaming activities), VAT will apply under the current frame- work, unless the particular gaming activity is specifi- cally exempt. The VAT exemptions applicable to the respective gaming activities are exemptions without credit.
12. Tax 12.1 Tax Rate by Sector
Any gaming service subject to the requirement of a licence, carried out from Malta or by any person in Malta, is subject to a gaming tax calculated at the rate of 5% on the gross gaming revenue (GGR) gen- erated from said gaming services during the relevant tax period. This tax is levied on the gaming revenue, as defined in the Gaming Tax Regulations 2018, Legal Notice 248 of 2018, generated by operators from end customers located in Malta. There is also a gaming levy imposed on gaming devic- es, calculated based on the aggregate gaming revenue generated during the relevant tax period. The rates of this gaming levy depend on the type of gaming service offered. The gaming levy imposed in relation to gam- ing devices deployed within gaming premises for the provision of Type 1 and/or Type 2 gaming services is 30%, while that imposed on gaming devices deployed for the provision of Type 3 and/or Type 4 gaming ser- vices is 12.5%. The levy on gaming devices deployed within controlled gaming premises for the provision of Type 1–4 gaming services is 15%. Operators are obliged to pay a compliance contribu- tion to the MGA, as well as other applicable licence fees. The compliance contribution is determined by the gaming revenue generated by the licensee under
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