Malta has become a prime jurisdiction for online gaming, and the Malta Gaming Authority (MGA) is the Competent Authority which oversees the licensing and regulation of gaming in Malta, including remote gaming.
The Maltese tax legislation applicable to trading companies is also extended to gaming companies, which means that the gaming company pays the headline tax of 35% on its profits, with the shareholders being eligible to claim 6/7ths of the tax paid by the company following a dividend distribution. This leaves gaming companies paying an effective income tax at 5%. Apart from the income tax payable on the taxable profits, gaming companies licensed in Malta by the MGA ought to pay a gaming tax which is payable according to the type of activity being carried out, and also according to the size of the companies activities. There exist ceilings on the amount of gaming tax payable depending on the type of licenses held.
• Malta has carved a highly reputable and stable i-gaming sector
• Capped gaming taxes on high levels of gaming turnover
• Effective income tax rate of 5% on profits earned by gaming companies in Malta.