Financial Incentives for Audiovisual Productions Shot in Malta

The Malta Government in its budget for 2005 announced the introduction of a number of fiscal and financial incentives for audiovisual productions shot in Malta as from the current year.

The incentives are expected to take the form of a cash grant given to qualifying productions on the portion of eligible expenditure spent in Malta.
The relevant regulations for these incentives are currently being finalised.

Feature films and television productions, mini-series, animation and documentaries are all eligible for the incentives, provided they are at least partially produced in Malta.

A qualifying production would be required to lodge a provisional application with the Malta Film Commission, including a detailed projection of the Malta budget for the production. Upon assessment, the Commission would grant a provisional approval. The final approval would be granted upon review of a final application, including audited accounts and a detailed analysis of the Maltese production expenditure, and this not later than 12 months after shooting is completed.

The rebate to be given as a cash grant on completion of an audiovisual production is anticipated to be calculated on the following expenses incurred in Malta:

Labour, hotel bed nights, transportation, hire of equipment, location fees, catering services, per diems, leasing of offices, computer equipment, props (sourced locally), property (owned locally), animals, equipment, vehicles, boats and locations. Other qualifying expenditure includes courtesy payments, telecommunications, laundry and cleaning services and professional services.

Presentation of expenditure should be net of Value Added Tax which is charged at 18%. Value Added Tax is fully refundable on the vast majority of the goods and services involved.