Can I Claim Computer Software as a Business Expense in Malta?
Yes. Computer software qualifies for a wear and tear allowance, straight-line over 4 years.
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What Malta Tax and Customs Administration (MTCA) says
Computer software receives a wear and tear allowance over 4 years, straight-line, under S.L. 123.01. The expense must pass the wholly and exclusively test in article 14 of the Income Tax Act. Confirm asset-specific treatment with MTCA or a licensed practitioner.
When you can claim
- Purchased software licences
- Accounting and business software bought outright
- Bespoke software developed for the business
- Allowance spread over 4 years
When you cannot claim
- Software for private use
- Software with no invoice
- Software bought for another business
- Costs already claimed elsewhere
Good to know
Pro tip: Decide whether a subscription is a running cost or a capital purchase, and apply the treatment consistently.
Related expenses
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