Malta
Enterprise Act
(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.
Please copy the following URL into your browser to find further
details and guidelines on Investment Aid
http://support.maltaenterprise.com/index_files/Inv_Aid.htm
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.
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