Malta Film Commission
Corporate Services - Film ProductionTel:
+356 2180 9135 | Caraffa Stores, Cottonera Waterfront, Vittoriosa, Malta. BRG 1721Website: www.mfc.com.mt/Email: info@mfc.com.mt Description
Millions a year are spent on obtaining authentic settings for film, Malta has all this to offer with its historical locations, Mediterranean setting and climate.
With the amount of movies made each year there is always the need for different locations and settings. Malta has been a popular film and photographic location for over 50 years, more recently playing host to major productions such as Troy and Gladiator. The islands appeal comes from the many historical sites that prove to be ideal settings for such films.
Our unique cultural heritage, architectural legacy, and natural locations have contributed to a constantly developing film-servicing sector that is of considerable importance to the Maltese economy. Maltas proximity to Europe is also a bonus and contributes to the cost effectiveness of filming here. Malta also offers film-specific water tanks that offer spectacular backdrops with natural horizons with the sea; one of the few water tanks worldwide to do so.
The Malta Film Commission was set up in 2000, and besides working to increase awareness about Maltas potential as a film location within the international industry, it also acts as a one-stop shop for productions wishing to shoot on the island, assisting and facilitating every step in the pre-production and production process.
Over the past few years alone, the Maltese islands have doubled for ancient Rome and Greece, France (including Marseilles), Italy (including Venice and Genoa), Palestine, Israel, Athens, Spain, Turkey and Beirut. Recent productions to have been shot here include the motion pictures, Munich, Troy, A Different Loyalty, The Count of Monte Cristo, TV series Byron, Helen of Troy and Julius Caesar, and commercials for Coca-Cola, Shell and Pirelli Tyres as well as TV series, films and documentaries.
Financial Incentives
The Government of Malta, in its budget for 2005 announced the introduction of a number of fiscal and financial incentives for audiovisual productions shooting in Malta as from this year.
The incentives take the form of a cash grant given to qualifying productions on the portion of eligible expenditure spent in Malta. Up to 20% of this expenditure could be rebated to a qualifying production company.
Feature film and television productions, mini-series, animation and documentaries are all eligible for the incentives, as long as they are at least partially produced in Malta.
A qualifying production would be required to present a provisional application to the Malta Film Commission, including a detailed projection of the Malta budget for the production. Upon assessment, which would be based on specific guidelines, 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, no later than 12 months after shooting is completed.
The rebate to be given as a cash grant on completion of an audiovisual production would be calculated on the following expenses incurred in Malta:
Labour, hotel bed nights, transportation equipment and hire, 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 V.A.T. which is charged at 18% and is fully refundable on all goods and services.
FISCAL INCENTIVES
The BUSINESS PROMOTION ACT provides fiscal incentives for companies engaged in certain target sector activities, including the film industry.
Maltese and foreign registered companies involved in the production of audio visual productions consisting of feature films, television films, advertising programmes or advertisements and documentaries can benefit from a highly favourable tax structure.
Companies engaged directly in audiovisual productions as aforesaid may avail themselves from a reduced rate of tax of 15.25%.
Investment tax credits are also available. Tax payable can be reduced or eliminated by tax credits calculated as the higher of:
- 50% of the amount invested; or
- 50% of the first 2 year wage cost of new jobs created
- For SMEs the percentage for both the above is increased to 65%
- Unutilised investment tax credits may be carried forward to the following year and increased by 7%.
- The interaction of the above incentives would normally result in minimal or no taxes being paid for a number of years.
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