Fiscal Incentives for Audiovisual Production Companies Operating from Malta

The Business Promotion Act, 1988 provides fiscal incentives for companies engaged in certain qualifying activities, including audiovisual production companies. Companies involved in the production of audiovisual productions (feature films, television films, advertising programmes or advertisements and documentaries) may all benefit from a highly favourable fiscal regime.

The applicable rates of tax are as follows:

  • 5% for the first 7 years of assessment;
  • 10% for the next 6 years of assessment;
  • 15% for the following 5 years of assessment.

The fiscal incentives available under the Business Promotion Act, 1988 include investment tax credits which are calculated at the higher of:

  • 50% of the amount invested in qualifying expenditure; or
  • 50% of the first 2 year wage cost of new jobs created, provided such jobs are kept for at least 5 years and  the  employment  is not  in  replacement  of another individual.

For SMEs the percentage for both the above is increased to 65%.  Furthermore, any unutilised investment tax credits may be carried forward to subsequent years of assessment and increased by 7% each year.

For further details refer to the sub-heading Manufacturing Companies.