A reminder to authors: Income tax due on royalties

The National Book Council (NBC) would like to inform all authors that all payments related to tax on author’s royalties are to be made by not later than 30 April 2022.

The reduction of tax to 15% on author’s income from royalties was an initiative spearheaded by the NBC and its stakeholders in 2020, which resulted in it being presented as a proposed measure by the Government for the 2021 Budget. Subsequently, the Income Tax Act was amended with Article 31F in April of the same year to provide for a reduction to 15% tax on income derived from royalties.

All authors wishing to benefit from this reduction in tax should send the TA25 form (attached here) to the Commissioner for Revenue in Floriana, by end of April.

This form is applicable only to those who wish to benefit from a reduction in tax on royalties received, and is not obligatory. Authors can still lump in the sum of royalties with their other income in their tax on returns form, but they will be taxed with the usual rate.

The NBC is committed to continue discussing with the Government to push for a total exemption on tax from royalties.