Tax exemptions for patent royalties income

Income from royalties on eligible patents will be tax-exempt under an initiative launched by Malta Enterprise. The initiative aims to encourage firms to invest further in research and knowledge creation and encourage the exploitation of intellectual property.

Details were unveiled by Malta Enterprise executive chairman Alan Camilleri at a seminar on industrial research and innovation funding.

The event outlined information on existing funding mechanisms and other support for companies conducting research, development or innovative projects.

The range of funding options available to local firms include support provided through the Eurostars Joint Programme, a pan-European initiative through which companies from over 30 participating states are brought together to work on collaborative projects that comprise market-driven research and development. Malta is a recent member.

Eurostars call coordinator Peter Chisnall explained how Maltese companies could benefit from the availability of funding and the collaborative aspect of the projects which lead to technology transfer and resource sharing.

Project evaluation was generally completed within 14 weeks – one of the shortest timeframes for European projects.

Dr Chisnall said participants in Eurostars projects generally stated the projects led to increased turnover and employment.

Malta Enterprise executive chairman Alan Camilleri stressed the importance of research, development and innovation for businesses and industries to ensure their competitiveness and long-term sustainability, whether this leads to a new product or service, or even to the development of a new process that enables the company to become more efficient.

Other speakers at the seminar, which was attended by over 80 stakeholders in the industry, included representatives from the Chamber of Commerce, Enterprise and Industry, the Malta Council for Science and Technology, the Competitiveness and Innovation Programme, the University of Malta and the Industrial Property Registrations Directorate.

The Sunday Times 23rd January 2011