Malta increases Financial Incentives "up to" 27%
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21 April 2014
The Maltese government, which inherited from the previous administration a two-year slowdown in foreign film shooting, has just increased financial incentives to "up to" 27%. This is in addition to a one million Euro co-production fund.
Hereunder are the highlights of the cash rebate:
- A wide range of production types are eligible;
- Those productions based on a Maltese cultural element can achieve the maximum rate of 27%. For all other productions the limit is 25%;
- A European cultural test needs to be passed to determine the exact %. The accumulation of points is set in a fairly generous way;
- There are some caps on select expenditure such as Wardrobe Rentals and Helicopter Hire cannot exceed 15% and 6% respectively of eligible expenditure;
- Above-The-Line personnel (mainly Director, Producer, Actors, Stunts) and their respective travel costs + All Heads of Departments in Below-The-Line are altogether capped at 200,000 Euros as eligible expenditure. Therefore with a qualifying certificate of 25%, the maximum rebatable on these budget items is 50,000 Euros;
- There are clauses where the government has rights to interview the cast for five minutes and also to receive the production's backstage video and stills for promotional purposes. Government also requests a local crew member and two trainees in the Above-The-Line. We are given to understand that this is a "best endeavour" matter and the government will be considerate and flexible to the sensitivities of the productions.
- All travel costs are eligible including per diems up to 70 Euros per crew member per day. Flights must be travel from an EU member state;
- There is no distinction between crew hired from an EU member state and Malta. Both are eligible as long as they are residents of the EU for tax paying purposes. This is especially important when considering full crews in Malta are limited;
- Purchase of materials are excluded. For example, leasing a set from a contractor or commissioning the construction of a ship is eligible. But buying wood directly by the production would be an ineligible cost;
- Fuel is excluded;
- Post-Production costs for post activities incurred in Malta are now eligible. The rebate is capped at 150,000 Euros;
- The rebate is a CASH rebate not a tax credit. There are no hidden costs except for an audit fee that ranges from 1,500 to 3,500 Euros depending on the total production budget;
- The rebate is subject to State Aid approval. The accumulative State Aid received by the production from the EU, including Malta's cash rebate, cannot exceed 50% of the budget of the production, or 60% in the case of co-productions.
For more information, contact us here.
The Maltese government, which inherited from the previous administration a two-year slowdown in foreign film shooting, has just increased financial incentives to "up to" 27%. This is in addition to a one million Euro co-production fund.
Hereunder are the highlights of the cash rebate:
- A wide range of production types are eligible;
- Those productions based on a Maltese cultural element can achieve the maximum rate of 27%. For all other productions the limit is 25%;
- A European cultural test needs to be passed to determine the exact %. The accumulation of points is set in a fairly generous way;
- There are some caps on select expenditure such as Wardrobe Rentals and Helicopter Hire cannot exceed 15% and 6% respectively of eligible expenditure;
- Above-The-Line personnel (mainly Director, Producer, Actors, Stunts) and their respective travel costs + All Heads of Departments in Below-The-Line are altogether capped at 200,000 Euros as eligible expenditure. Therefore with a qualifying certificate of 25%, the maximum rebatable on these budget items is 50,000 Euros;
- There are clauses where the government has rights to interview the cast for five minutes and also to receive the production's backstage video and stills for promotional purposes. Government also requests a local crew member and two trainees in the Above-The-Line. We are given to understand that this is a "best endeavour" matter and the government will be considerate and flexible to the sensitivities of the productions.
- All travel costs are eligible including per diems up to 70 Euros per crew member per day. Flights must be travel from an EU member state;
- There is no distinction between crew hired from an EU member state and Malta. Both are eligible as long as they are residents of the EU for tax paying purposes. This is especially important when considering full crews in Malta are limited;
- Purchase of materials are excluded. For example, leasing a set from a contractor or commissioning the construction of a ship is eligible. But buying wood directly by the production would be an ineligible cost;
- Fuel is excluded;
- Post-Production costs for post activities incurred in Malta are now eligible. The rebate is capped at 150,000 Euros;
- The rebate is a CASH rebate not a tax credit. There are no hidden costs except for an audit fee that ranges from 1,500 to 3,500 Euros depending on the total production budget;
- The rebate is subject to State Aid approval. The accumulative State Aid received by the production from the EU, including Malta's cash rebate, cannot exceed 50% of the budget of the production, or 60% in the case of co-productions.
For more information, contact us here.