The US Treasury department announced that the Malta - US income tax treaty will come into force and would apply as from 1st January 2011. The provisions of the tax treaty include reduced source withholding tax on dividend and interest and royalty payments.

The Maltese government has published regulations for the application of the income tax exemption available for royalties derived from patents on inventions. Under this exemption, royalties and similar income are exempt from tax in Malta as from 1st January 2010. The exemption applies regardless of where the underlying research and development was carried out. Royalties and income derived from non-patented intangibles will continue to be taxed at the rate of 5%.