Financial Incentives in Malta
A very useful FAQ document, created by the PCP, clarifying the cash incentives in a very comprehensive manner is available upon request.
(For the official website of the Malta Film Commission, click here)
Cash Incentive
The following is a summary of the incentives offered by Malta.Financial Incentives. In short, the incentives are in the form of a cash grant given to eligible productions on the qualifying expenditure incurred in Malta. Up to 22% of the eligible expenditure can be obtained as a cash rebate by a qualifying production company once filming is complete. For films which do not portray Malta as Malta, the highest rebate is 20%.
Feature film and television productions, mini-series, animation and documentaries are all eligible for the incentives, provided that they are at least partially produced in Malta.
Procedure
A qualifying production is required to present an application to the Malta Film Commission, including a detailed projection of the Malta budget for the production and completion of the Cultural Test as included in the application form. Upon assessment based on specific guidelines and performance in the Cultural Test, the Commission would grant a provisional approval no later than 3 weeks after receipt of the application.
The final approval would be granted upon review of a final application, including audited accounts and a detailed analysis of the production expenditure in Malta, after shooting is completed. The cash rebate is forwarded to a qualifying production no later than 5 months from the date of receipt of the final application.
Qualifying Expenditure
Expenditure incurred during production in Malta on EU services is eligible for a cash rebate, including the following items:
EU below-the-line labour, capped above-the-line labour, accommodation, transportation equipment and hire, location fees, catering services, per diems, leasing of offices, computer equipment, props, property, animals, select equipment, vehicles, and boats. Other qualifying expenditure includes wardrobe rentals, courtesy payments, telecommunications, craft service, laundry and cleaning services and professional services.Contact us for more comprehensive details of the incentive.
Fiscal Incentives Malta Enterprise Act
(Ref Legal Notice 68 0f 2008) Investment Aid offers various incentives of a fiscal nature to companies that produce and distribute audiovisual productions from Malta or invest in equipment and infrastructure specific in support to the audiovisual industry.
A ‘qualifying company’ can be a Maltese or foreign company or partnership, which carries on in Malta a trade or business solely in the production of feature films, television programmes, commercials and documentaries, or in the provision of facilities for their production as approved by the Malta Film Commission and Malta Enterprise.
Investment aid for facilities for filming and audiovisual productions includes:
1. The acquisition of equipment and immovable property related to the production of audiovisual productions as may be approved by Malta Enterprise.
2. The provision of film studio and film sets, editing facilities and filming equipment required in the production of feature films, television films, advertisements and documentaries, as may be approved by the corporation.
Companies engaged in the above mentioned activities are required to have their project pre-approved by the Malta Film Commission to ensure that the applicant satisfies the minimum standard in the sector.
Qualifying companies are eligible to the following incentives:
Investment Tax Credits
• Up to 50% of tax credit on qualifying expenditure.
OR
• Up to 50% of tax credit of the wage cost for the first 24 months of the newly created job in relation to the supported investment project (jobs must be kept for 5 years).
The above percentages vary according to the size of the enterprise (i.e. 50% Small / 40% Medium and 30% Small) as defined in the Commission Recommendation 2003/361/EC regarding the SME definition.
Note that for purposes of tax credits, support is only granted to companies engaged solely in the production of audiovisuals or the provision of related facilities. Companies engaged in the marketing and sales of audiovisual products or in general marketing are not covered.
Companies may opt to retain the imputation tax system whereby tax paid by companies in Malta is of 35%, on distribution of dividends, provided as a credit against the shareholders’ tax liability. These refunds will generally be equal to 6/7ths of the tax paid. This incentive is governed by the Income Tax Act.
For the official website of the Malta Film Commission, click here
A very useful FAQ document, created by the PCP, clarifying the cash incentives in a very comprehensive manner is available upon request.
(For the official website of the Malta Film Commission, click here)
Cash Incentive
The following is a summary of the incentives offered by Malta.Financial Incentives. In short, the incentives are in the form of a cash grant given to eligible productions on the qualifying expenditure incurred in Malta. Up to 22% of the eligible expenditure can be obtained as a cash rebate by a qualifying production company once filming is complete. For films which do not portray Malta as Malta, the highest rebate is 20%.
Feature film and television productions, mini-series, animation and documentaries are all eligible for the incentives, provided that they are at least partially produced in Malta.
Procedure
A qualifying production is required to present an application to the Malta Film Commission, including a detailed projection of the Malta budget for the production and completion of the Cultural Test as included in the application form. Upon assessment based on specific guidelines and performance in the Cultural Test, the Commission would grant a provisional approval no later than 3 weeks after receipt of the application.
The final approval would be granted upon review of a final application, including audited accounts and a detailed analysis of the production expenditure in Malta, after shooting is completed. The cash rebate is forwarded to a qualifying production no later than 5 months from the date of receipt of the final application.
Qualifying Expenditure
Expenditure incurred during production in Malta on EU services is eligible for a cash rebate, including the following items:
EU below-the-line labour, capped above-the-line labour, accommodation, transportation equipment and hire, location fees, catering services, per diems, leasing of offices, computer equipment, props, property, animals, select equipment, vehicles, and boats. Other qualifying expenditure includes wardrobe rentals, courtesy payments, telecommunications, craft service, laundry and cleaning services and professional services.Contact us for more comprehensive details of the incentive.
Fiscal Incentives Malta Enterprise Act
(Ref Legal Notice 68 0f 2008) Investment Aid offers various incentives of a fiscal nature to companies that produce and distribute audiovisual productions from Malta or invest in equipment and infrastructure specific in support to the audiovisual industry.
A ‘qualifying company’ can be a Maltese or foreign company or partnership, which carries on in Malta a trade or business solely in the production of feature films, television programmes, commercials and documentaries, or in the provision of facilities for their production as approved by the Malta Film Commission and Malta Enterprise.
Investment aid for facilities for filming and audiovisual productions includes:
1. The acquisition of equipment and immovable property related to the production of audiovisual productions as may be approved by Malta Enterprise.
2. The provision of film studio and film sets, editing facilities and filming equipment required in the production of feature films, television films, advertisements and documentaries, as may be approved by the corporation.
Companies engaged in the above mentioned activities are required to have their project pre-approved by the Malta Film Commission to ensure that the applicant satisfies the minimum standard in the sector.
Qualifying companies are eligible to the following incentives:
Investment Tax Credits
• Up to 50% of tax credit on qualifying expenditure.
OR
• Up to 50% of tax credit of the wage cost for the first 24 months of the newly created job in relation to the supported investment project (jobs must be kept for 5 years).
The above percentages vary according to the size of the enterprise (i.e. 50% Small / 40% Medium and 30% Small) as defined in the Commission Recommendation 2003/361/EC regarding the SME definition.
Note that for purposes of tax credits, support is only granted to companies engaged solely in the production of audiovisuals or the provision of related facilities. Companies engaged in the marketing and sales of audiovisual products or in general marketing are not covered.
Companies may opt to retain the imputation tax system whereby tax paid by companies in Malta is of 35%, on distribution of dividends, provided as a credit against the shareholders’ tax liability. These refunds will generally be equal to 6/7ths of the tax paid. This incentive is governed by the Income Tax Act.
For the official website of the Malta Film Commission, click here
