Remote Gaming in Malta
For almost two decades, Remote Gaming in Malta has continued to play a significant role in the country’s economy. During the last year, this industry consolidated its standing as the third largest contributor to the Maltese economy and directly employed over 6,800 employees.
Despite the economic challenges, Malta has continued to show its commitment to the iGaming sector. During the first half of 2019, the gaming sector in Malta continued to thrive and was the second largest contributor to the Maltese economy by increasing its operations by €75 Million.
Apart from being the first EU Member State to establish a stable and comprehensive regulatory framework on remote gaming, Malta has continued to show its commitment throughout the years by continuously issuing new guidelines and regulations to strengthen the market through the Malta Gaming Authority.
iGaming Tax in Malta
All gaming services are required to pay Gaming tax of 5% of their Gross Gaming Revenue generated where gaming services are offered to any player whom is physically present in Malta at the time when the gaming service is provided. Where the gaming service is offered solely by means of distance communications, determination of taxability is whether the player is established, has his or her permanent address and/or usually resides in Malta.
Where the gaming service is provided by a corporate group holding a licence in terms of Gaming Authorisation Regulations, the entire corporate group shall be subject to the tax.
Operators of B2C businesses are also required to adhere to a fixed licence fee as well as a compliance contribution based on game type and annual revenue, whilst B2B operators are exempt from iGaming tax and only required to pay a fixed licence fee, which is dependent on the revenue generated.
Prior to the issuance of the MGA gaming licence, a person or an entity can apply to be considered as a start-up in the eyes of the MGA should it fall under the criteria outlined by the authority. Approved Start-ups will benefit from a moratorium period of 12 months in which they are exempt from paying compliance contribution.
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