Malta

Overview

Malta was the first EU member state to regulate remote gaming. Since 2004, the country has received more than 450 remote gaming applications and has a labour force of more than 2,000 employees who are directly employed in the remote gaming industry.

Launched in March 2005, the Malta Remote Gaming Council brings together all the country’s remote gaming licensees, giving them the opportunity to meet new challenges in a collective effort.

The Lotteries and Gaming Authority, a single regulatory body responsible for the governance of all gaming activities in Malta, also launched an online forum aiming to create a discussion between stakeholders, ISP providers, legal and financial representatives in the Malta remote gaming industry.

With 7,000 years of history, Malta’s historic appeal and geographical position are enhanced by a strong yet flexible legislative framework for business, which has promoted the country to win both prestigious investment and international recognition. Malta enjoys an open market economy, good economic track record, stable currency, low inflation and a high standard of living at a relatively low cost.

An independent republic and a member of the British Commonwealth, the country has transformed itself since the mid 1980s into a freight transhipment hub and a first-class financial centre with reciprocal insurance and investment legislature regulations. It also boasts an independent Financial Services Authority based on the British system.

The Maltese islands have a hi-tech manufacturing sector and at present are working on an advanced system of e-government aimed at creating the first e-government state supported by one of the world's first fully digital telecommunications network.

Licences

In the application stage the MGA assesses whether an applicant:
- is fit and proper to conduct gaming business,
- is correctly prepared for a business strategy perspective,

- has the operational and statutory requirements to meet the legal obligations expected by Maltese law,
- has correctly implemented what has been applied for, in a technical environment, before going live.

Application fee for new license:
€2330

System audit:
€1770

License fee:
€8550

Application fee for renewal of licence:
€1,500

Approval fee for transfer or assignment of licence:
€1,500

Approval of share transfer:
€1,500

Approval of simple contractual commercial agreements:
€70

Services

- Effective tax systems - Malta offers incentive for firms to relocate their business including investment and employment tax credits, R&D tax credits, soft loan financing and bank guarantees.

- Sound yet flexible legislative framework - Malta's legislative framework is in line with the main EU directives.

- Excellent economic track record with sustained growth, economic and political stability.

- Skilled, qualified and multilingual professionals with comparatively low ancillary labour costs and an excellent work ethic - social capital is one of the prime resources in Malta with over 60 per cent of students following a tertiary level of education or vocational courses.

- Good flight connections.

- High standard of living with diverse entertainment and sport facilities and relatively low cost of living.

- Major transhipment hub in the region - Malta freeport is one of the most efficient and successful freeport operations in the Mediterranean.

- Paramount anti-money-laundering standards have nurtured the financial services sector.

- Business environment - a product driven economy, established international banking and insurance services.

Tax

Gaming Tax:
Different competitive rates of gaming tax apply depending on the class of gaming licence issued.

Class 1:
€4660 per month during the first six months; €7000 per month for the remaining licence period.

Class 1 operating on a class 4:
€1200 per month.

Class 2:
0.5 per cent on the gross amount of bets accepted in remote betting operations.

Class 3:
Five per cent of the real income (revenue from rake loss bonus, commissions and payment processing fees).

Class 4:
No tax for the first six months; €2330 per month for the subsequent six months; €4660 per month for the remaining licence period.

In all cases, the total maximum tax payable per annum by one licensee in respect of one licence shall not exceed €466,000.
The above gaming taxes must be paid to the MGA as from the go live date, on a monthly basis.

Corporate Tax
Resident companies are taxed at the normal corporate rate of 35 per cent.

Corporation tax of 35 per cent is among one of the highest of any jurisdiction but they offer aggressive rebates for non-resident shareholders that can drop this rate to just five per cent. Long terms of five years will be attractive to some whilst at the same time discouraging to others. They are required by the MGA to have an internal AML policy despite the fact that not all iGaming licensees are currently considered subject persons under AML legislation, although this will change with the Fourth Anti-Money Laundering Directive.

Relief for economic double taxation upon the distribution of taxed profits by companies is ensured by the application of the full imputation system whereby company tax is fully credited to shareholders on distribution of profits and the Malta tax payment and refund system whereby, depending upon the business activity from which the profit has been generated (which accordingly determines the tax account allocation of the underlying profits), recipients of dividend income may become entitled to refunds of company tax paid.

Contact

Malta Gaming Authority

Tel: +356 2546 9000

Fax: +356 2144 6950

Email: [email protected]

Website: www.mga.org.mt

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