Income Tax Act (Cap. 123), article 31F

31F. (1) Notwithstanding any other provision of the Income Tax Acts, the provisions of this article shall apply to royalti es derived on or after 1 January 2021 by an individual in his capacity as author of a qualifying literary work by virtue of his title to the copyri ght on that work conferred by the Copyright Act . (2) The tax on the royalties to which this article applies shal l be chargeable, at the option of the individual who derives those royalties: (a) when the royalties were derived before the 1st January 2023, at the rate of fifteen cents (€0.15) on every euro of the gross amount of the royalties; and (b) when the royalties were derived on or after 1st January 2023, at the rate of seven point five percent (7.5%) of the gross amount o f the royalties, and such tax shall be final and no set-off or refund shall be g ranted to any person in respect of the tax so charged. (3) The option referred to in su b-article (2) shall be exercise d by means of the submission of a notice to the Commissioner and the payment of the tax calculated in accordance with that sub-artic le by not later than the 30th of April of the relative year of assessment , or such other date as may be prescribed, on such form and in such manne r as the Commissioner may approve. (4) An individual who, in any year, derives royalties to which this article applies may only ex ercise the option referred to i n sub- article (2) in respect of the full amount of those royalties an d an option that refers only to a part of t hose royalties shall be invalid. (5) When an individual exercises the option referred to in sub- article (2), the royalties to whi ch the option refers shall be deemed to constitute separate chargeable income and shall not form part o f the total income of that individual and the said individual shall n ot be required to declare such royalties in any return made pursuant to the Income Tax Acts except as provided in this article. (6) In this article: S.L. 605.12. (a) the terms "author" and "ISBN" have the meanings assigned to them in the National Book Council (Establishment) Order ; and Cap. 415. (b) "qualifying literary work" means a publication which bears an ISBN and which is a novel, story, poetical work, text book, treatise, history, biography, encyclopaedia or dictionary that is eligible for INCOME TAX [CAP. 123. 139 copyright in terms of the Copyright Act . Taxation of certain investment income by deduction. Added by: XVII. 1994.16. Amended by: II. 2003.14.