The income tax rate paid by authors on royalties has been reduced from 15% to 7.5%. This incentive was announced by Education Minister Clifton Grima, and Chairperson of the National Book Council (NBC)Mark Camilleri.
The NBC’s legislative work regarding the tax rate paid by authors on royalties commenced in 2020 with the publication of a draft law which proposed, amongst other suggestions, fiscal incentives to encourage industry stakeholders to adhere to professional standards, especially with respect to making authors’ royalty payments tax-free, and allowing publishers to claim a 200% tax refund over all royalty payments paid to authors.
