Media & Entertainment

The Maltese Islands are rich in history and have an ideal climate and picturesque scenery, thus qualifying as an excellent film production base. Malta offers various filming locations, including the world famous water tank facilities. A multi-disciplinary workforce and professionals fluent in various European languages who are in a position to provide a professional and efficient service, complement this.

Audio-visual productions shot in Malta, including feature films and television productions, mini-series, animation and documentaries may qualify for a number of fiscal and financial incentives.

Fiscal Incentives take the form of tax credits, which are awarded to companies producing or servicing a film or other qualifying work by way of a deduction from the tax chargeable on gains or profits directly derived as a result.

Tax credits are calculated as a percentage of qualifying expenditure incurred. In turn, the value of qualifying expenditure is calculated, at the company’s option, either as the value of:

• qualifying tangible and intangible assets acquired in relation to an initial investment project; or
• wage costs for jobs directly created by the initial investment project.

Unutilized tax credits are carried forward to future tax periods. The tax credit is generally capped at:

• 50% of qualifying expenditure in case of a ‘small’ undertaking;
• 40% of qualifying expenditure in case of a ‘medium-sized’ undertaking;
• 30% of qualifying expenditure in case of a ‘large’ undertaking.

Financial incentives are available in the form of a cash grant/rebate equivalent to up to 22% of qualifying expenditure incurred by a qualifying production company in Malta once filming is complete. Qualifying expenditure includes labour costs, accommodation, transport, leasing of offices, computer equipment, props, property, animals, equipment, vehicles, boats and locations. Other qualifying expenditure includes courtesy payments, telecommunications, laundry and cleaning services and professional services.

Finally, income earned in Malta by a non-resident entertainer who performs as such in Malta for a period of less than 15 days in a given year would be chargeable to tax in Malta at the flat rate of 10%.