Film productions in Malta will benefit from cash rebates of up 22% of eligible expenditure, which will be exempt from income tax. The new financial incentives were published earlier this week.
The Malta Film Commission is responsible for approving eligible expenditure that can qualify for the financial incentive, provided the eligible expenditure does not exceed 80% of the overall budget of the production and that one of the co-producers for the production is based in Malta.
Qualifying productions are defined as being a “cultural product” produced wholly or partially in Malta on a commercial basis with a view to profit. They will have to be intended for screening in cinemas or TV broadcasting, and will have to be deemed “valid contributions to the expression of creativity and culture”.
However, the minister responsible for the film industry, in agreement with the minister for culture, may publish a call for applications aimed at “difficult and low-budget productions”, namely productions with a total budget not exceeding €100,000, which would have little prospect of commercial success due to their experimental nature or high level of creative risk.
The regulations will apply to audiovisual productions made before 31 December 2009.
The criteria for the determination of “cultural content” in films will be based on a set of points based on cultural content, creative contribution, and use of Malta’s creative resources.
Difficult productions will be granted maximum number of points if they carry an agreement of screening in as many EU member states as possible.
Productions which feature a Maltese, European or Mediterranean story, settings, characters, heritage, language or landmarks will be awarded points for cultural content. Points will also be awarded for creative and technical contributors from Malta and European nations. They will also be awarded points if the productions are actually pre-produced, located and post-produced in Malta, eligible for a maximum of 28 points out of an aggregate 40 points required.