Regulations, 2015

L.N. 47 of 2015

MALTA FILM COMMISSION ACT

(CAP. 478)

Financial Incentives for the Audiovisual Industry

Regulations, 2015

IN exercise of the powers conferred by articles 26(1) and 33 of

the Malta Film Commission Act, the Minister for Tourism has made

the following regulations:-

(1) The title of these regulations is the Financial Citation and

commencement.

Incentives for the Audiovisual Industry Regulations, 2015.

(2) These regulations shall be deemed to come into force on

the 1st January 2014.

(Regulation 3)

Cultural Test

‘Criteria for the determination of the cultural test of an

audiovisual production’

PRODUCTION NAME

PRODUCTION COMPANY

COUNTRY OF APPLICANT

COMPANY

TOTAL BUDGET

TYPE OF PRODUCTION

COMPLETE PROVISIONAL

APPLICATION SUBMITTED ON

SIGNED

DATE

A minimum of

(i)

40 points in aggregate; and

(ii)

20 points under Section A below; and

(iii)

10 points in each of the Sections B and C below,

is required for an audiovisual production to meet the requirements set

out in regulation 3(1)(a) of these regulations.

SECTION A: Cultural Content

Max

Total

Points

obtained

1. Productions

featuring

a

Maltese,

European or Mediterranean story (factual

or fictional)

2. Productions

featuring

a

Maltese,

European or Mediterranean setting

(factual or fictional)

3. Storyline or underlying material is based

on literary material

4. Storyline or underlying material is a part

of or derived from Maltese, European or

Mediterranean culture and / or heritage

5. Productions

featuring

Maltese

or

European characters

6. Storyline or underlying material deals

with contemporary or historical Maltese,

European or Mediterranean issues of

political, religious and/or social relevance

7. Storyline or underlying material contains

reference to a contemporary or historical

personality (eg: Alexander the Great) or to

a fictional character in cultural history

(eg: Zeus)

8. Storyline or underlying material contains

reference to a universally significant and

relevant event - fictional or factual

9. Use of Malta’s diverse architectural,

archaeological and natural heritage to

reflect the European and Mediterranean

cultural context

10. Productions featuring at least one

European language

11. Use of Maltese language in the dialogue

of the production in a manner which

contributes to the development of the

storyline

12. Use of Malta’s cultural subjects and

landmarks that allow for them to feature

in the setting of the production

13. Productions

with

compelling

dramaturgical script requirements that

cannot

logistically,

creatively

or

technically be satisfied in any other EU

Member State

Total obtained for Section A (Cultural

Content)

Malta Film Commission assessment of specific scaled criteria

Productions featuring a Maltese, European or Mediterranean

story (factual or fictional) as referred to in item 1 above

Major

Critical

Minor

Entire story

element/s

element/s

element/s

Productions featuring a Maltese, European or Mediterranean

setting (factual or fictional) as referred to in item 2 above

Wholly set

Over half is set

Half set

Partially set

Storyline or underlying material is a part of or derived from

Maltese, European or Mediterranean culture and / or heritage, as

referred to in item 4 above

Partially

Fully derived

Relevant to

Related to

derived

Storyline or underlying material deals with contemporary or

historical Maltese, European or Mediterranean issues of political,

religious and/or social relevance, as referred to in item 6 above

Focal issue

Central issue

Present issue

Use of Malta’s diverse architectural, archaeological and natural

heritage to reflect the European and Mediterranean cultural context,

as referred to in item 9 above

Featured in major

Featured in minor

Featured once

capacity

capacity

Productions featuring at least one European language, as

referred to in item 10 above

Over 50% of

Under 50% of

Minimal dialogue

dialogue

dialogue

SECTION B: Creative Contribution

(i) Productions with guaranteed, proven or

Points

Total

intended theatrical or television distribution in

obtained

at least three EU Member States

(Tick appropriate box)

3 - 4 EU Member States

5 - 7 EU Member States

8 - 10 EU Member States

11 - 13 EU Member States

14 - 16 EU Member States

17 - 19 EU Member States

20 - 22 EU Member States

24 or more EU Member States

SUB-TOTAL

(ii) Creative and technical contributors (crew) Points

Total

from Malta or the EEA (nationality) in the

obtained

following areas at HOD or assistant level where

applicable

- Director

- Scripwriter

- Producer / co-producer

- Composer

- Director of photography

- Editor

- Costume designer

- Production designer

- Make-up artist

- Art director

- Set decorator

- Line producer / Unit production manager

SUB-TOTAL

Total obtained

for

Section

B (Creative

Contribution)

SECTION C: Use of Malta’s Cultural Resources

Max

Total

Points

obtained

(i) Productions with preparation and pre-

production in Malta

(ii) Productions with location or studio

shooting in Malta

(iii) Productions with post-production in Malta

Total obtained for Section C (Use of Malta’s

Cultural Resource

MFC assessment of specific scaled criteria

Productions with preparation and pre-production in Malta, as

referred to in item (i) above

3 weeks +

2 weeks +

1 week +

5 days +

4 days +

3 days

Productions with location or studio shooting in Malta, as

referred to in item (ii) above

50% +

40% +

30% +

20% +

10% +

5% +

NOTE: % = of script pages OR shooting days

Productions with post-production in Malta, as referred to in item

(iii) above

50% +

25% +

15% +

5% +

POINTS OBTAINED

Section A

out of max 40

[Minimum must be 20]

Section B

out of max 32

[Minimum must be 10]

Section C

out of max 28

[Minimum must be 10]

TOTAL

According to the guidelines, the total of points allow the

following percentage of cash rebate to be granted %

POINTS OBTAINED IN

PERCENTAGE OF

CULTURAL TEST

REBATE

40 – 45

20%

46 – 50

21%

51 – 55

22%

56 – 60

23%

61 – 65

24%

66 +

25%

+2% (see below criteria)

The Commissioner has the discretion to award an additional 2%

based on the Maltese cultural element.

OTHER NOTES

(1)

In these regulations, unless the context otherwise Interpretation.

requires

"the Act" means the Malta Film Commission Act;

"certificate of provisional approval" means the certificate issued

in terms of regulation 7, in the form set out in the First Schedule.

Each certificate may also contain certain specific additional

conditions particular to the individual applying production;

"the Commission" means the Malta Film Commission;

"the Commissioner" means the Film Commissioner;

"completion" means the termination of filming activity in Malta

of an audiovisual production and "completed" shall be construed

accordingly;

"co-production" means a qualifying production which is the

subject of a co-production agreement between two or more co-

producers;

"cultural product" means an audiovisual production in respect of

which the Commissioner has established that the content of the

audiovisual production is cultural according to the criteria set out in

the Second Schedule and, or the Third Schedule (applicable to

difficult audiovisual works);

"eligible expenditure" means the items of expenditure incurred

by the qualifying company in relation to the qualifying production

that are eligible for the purposes of calculation of the amount to be

granted as a financial incentive in accordance with regulation 5;

"EU Member State" means a member state of the European

Union as defined in the European Union Act;

"final approval" means the approval granted in terms of

regulation 8;

"the financial incentive" means the financial benefit provided

for in regulation 5;

"Guidelines" means the guidelines that may be issued by the

Commission from time to time;

"difficult audiovisual works" means an audiovisual production

in respect of which the Commissioner has established that the content

of the audiovisual production is a difficult audiovisual work

according to the criteria set out in the Third Schedule (Cultural Test);

"the Minister" means the Minister responsible for the film

industry;

"principal photography" means the filming of major or

significant components of an audiovisual production which involves

lead actors;

"qualifying company" means a qualifying company as defined

in article 25 of the Act and which meets the conditions established by

regulation 4 and having a minimum spend as set out in the

Guidelines;

"qualifying production" means a qualifying production as

defined in article 25 of the Act and which meets the conditions

established by regulation 3;

"State Aid Monitoring Board" means the State Aid Monitoring

Board constituted under article 57 of the Business Promotion Act;

"undertaking" means an entity carrying out an economy activity.

(2) Words and expressions which are also used in the Act

shall, in these regulations, have the same meanings as in the Act.

(Regulation 3)

Cultural Test - Difficult Audiovisual Works

‘Criteria for the determination of the cultural test of an

audiovisual production that is considered an ‘difficult audiovisual

work’

PRODUCTION NAME

PRODUCTION COMPANY

COUNTRY OF APPLICANT

COMPANY

TOTAL BUDGET

TYPE OF PRODUCTION

COMPLETE PROVISIONAL

APPLICATION SUBMITTED ON

SIGNED

DATE

A minimum of

(i)

50 points in aggregate; and

(ii)

20 points under Section A below; and

(iii)

10 points in Section B

(iv)

10 points in Section C

(v)

10 points in Section D

is required for an audiovisual production to meet the requirements set

out in regulation 3(1)(a) of these regulations.

SECTION A - Cultural Content

Max

Total

Points

obtained

1. Productions

featuring

a

Maltese,

European or Mediterranean story (factual

or fictional)

2. Productions

featuring

a

Maltese,

European or Mediterranean setting

(factual or fictional)

3. Storyline or underlying material is based

on literary material

4. Storyline or underlying material is a part

of or derived from Maltese, European or

Mediterranean culture and / or heritage

5. Productions

featuring

Maltese

or

European characters

6. Storyline or underlying material deals

with contemporary or historical Maltese,

European or Mediterranean issues of

political, religious and/or social relevance

7. Storyline or underlying material contains

reference to a contemporary or historical

personality (eg: Alexander the Great) or to

a fictional character in cultural history

(eg: Zeus)

8. Storyline or underlying material contains

reference to a universally significant and

relevant event - fictional or factual

9. Use of Malta’s diverse architectural,

archaeological and natural heritage to

reflect the European and Mediterranean

cultural context

10. Productions featuring at least one

European language

11. Use of Maltese language in the dialogue

of the production in a manner which

contributes to the development of the

storyline

12. Use of Malta’s cultural subjects and

landmarks that allow for them to feature

in the setting of the production

13. Productions

with

compelling

dramaturgical script requirements that

cannot

logistically,

creatively

or

technically be satisfied in any other EU

Member State

Total obtained for Section A (Cultural

Content)

MFC assessment of specific scaled criteria

Productions featuring a Maltese, European or Mediterranean

story (factual or fictional) as referred to in item 1 above

Major

Critical

Minor

Entire story

element/s

element/s

element/s

Productions featuring a Maltese, European or Mediterranean

setting (factual or fictional) as referred to in item 2 above

Wholly set

Over half is set

Half set

Partially set

Storyline or underlying material is a part of or derived from

Maltese, European or Mediterranean culture and / or heritage, as

referred to in item 4 above

Partially

Fully derived

Relevant to

Related to

derived

Storyline or underlying material deals with contemporary or

historical Maltese, European or Mediterranean issues of political,

religious and/or social relevance, as referred to in item 6 above

Focal issue

Central issue

Present issue

Use of Malta’s diverse architectural, archaeological and natural

heritage to reflect the European and Mediterranean cultural context,

as referred to in item 9 above

Featured in major

Featured in minor

Featured once

capacity

capacity

Productions featuring at least one European language, as

referred to in item 10 above

Over 50% of

Under 50% of

Minimal dialogue

dialogue

dialogue

SECTION B: Creative Contribution

(i) Productions with proven or intended

Points

Total

theatrical or television distribution in at least

obtained

three EU Member States

(Tick appropriate box)

17 + EU Member States

14 - 16 EU Member States

11 - 13 EU Member States

8 - 10 EU Member States

5 - 7 EU Member States

3 - 4 EU Member States

1 - 3 EU Member States

Limited territory, population or language area

SUB-TOTAL

(ii) Creative and technical contributors (crew) Points

Total

from Malta or the EEA (nationality) in the

obtained

following areas at HOD or assistant level where

applicable

- Director

- Scripwriter

- Producer / co-producer

- Composer

- Director of photography

- Editor

- Costume designer

- Production designer

- Make-up artist

- Art director

- Set decorator

- Line producer / Unit production manager

SUB-TOTAL

Total obtained

for

Section

B (Creative

Contribution)

SECTION C: Use of Malta’s Cultural Resources

Max

Total

Points

obtained

(i) Productions with preparation and pre-

production in Malta

(ii) Productions with location or studio

shooting in Malta

(iii) Productions with post-production in Malta

Total obtained for Section C (Use of Malta’s

Cultural Resource

MFC assessment of specific scaled criteria

Productions with location or studio shooting in Malta, as

referred to in item (ii) above

50% +

40% +

30% +

20% +

10% +

5% +

NOTE: % = of script pages OR shooting days

Productions with post-production in Malta, as referred to in item

(iii) above

50% +

25% +

15% +

5% +

SECTION D: Difficult Audiovisual Work

Max

Total

points

obtained

(i) Works whose sole original version is in the

Maltese language with a limited distribution

territory, population or language area

(ii) Involves a first-time Maltese director

(iii) Involves a first-time Maltese producer

(iv) Is considered a low budget production

(v) Commercially difficult work (i.e. little if

any prospect of commercial success because of

its experimental nature or because it represents

a very high level of creative risk)

Total obtained for Section D (Difficult

Audiovisual Work)

MFC assessment of specific scaled criteria

Is considered a low budget production, as referred to in item (iv)

above

Under

Under

Under

Under

€200,000

€500,000

€1 million

€2 million

POINTS OBTAINED

Section A

out of max 40

[Minimum must be 20]

Section B

out of max 26

[Minimum must be 10]

Section C

out of max 14

[Minimum must be 10]

Section D

out of max 20

[Minimum must be 10]

TOTAL

According to the guidelines, the total of points allow the

following percentage of cash rebate to be granted %

Points obtained in Cultural Test

Rebate Percentage

50 – 59

20%

60 – 69

24%

70 – 79

26%

80 – 85

28%

85 +

30%

+2% (see below criteria)

The Commissioner has the discretion to award an additional 2%

based on the Maltese cultural element.

OTHER NOTES

B

€2.16

(1) An audiovisual production shall be considered a

"qualifying production" for the purpose of these regulations if the

audiovisual work

(a)

is a cultural product produced wholly or partially in

Malta on a commercial basis with a view to profit; and

(b) is produced wholly or principally for exhibition to

the public in cinemas or through broadcasting; and

(c)

makes a valid contribution to the expression of

creativity and culture through the development of production

capability skills in the media of film and television; and

(d)

is based on a format approved by the Commissioner.

(2) The criteria set out in sub-regulation (1) shall be applied

without prejudice to the conditions established in article 25 of the Act

and the Schedule to the Act, and in accordance with the Second

Schedule (Cultural Test) to these regulations and the Guidelines.

(3) The criteria set out in sub-regulation (1) shall be applied

without prejudice to the conditions established in article 25 of the Act

and the Schedule to the Act, and in accordance with the Third

Schedule (Cultural Test - Difficult Audiovisual Works) to these

regulations and the Guidelines applicable to "Difficult Audiovisual

Works".

(Regolament 3)

Test Kulturali - Produzzjonijiet awdjoviżivi diffiċli

Kriterji għad-determinazzjoni tat-test kulturali ta’ produzzjoni

awdjoviżiva li huja meqjusa bħala "xogħol awdjoviżiv diffiċli".

ISEM TAL-PRODUZZJONI

KUMPANNIJA TAL-PRODUZZJONI

PAJJIŻ TAL-KUMPANNIJA LI QED

TAPPLIKA

IL-BUDGET TOTALI

TIP TA’ PRODUZZJONI

L-APPLIKAZZJONI PROVIŻORJA

KOMPLUTA ĠIET PREŻENTATA FI

IFFIRMATA

DATA

Minimu ta’

(i)

50 punt akkumulati; u

(ii)

20 punt taħt is-Sezzjoni A hawn aktar ’l isfel; u

(iii)

10 punti f’Sezzjoni B

(iv)

10 punti f’Sezzjoni Ċ

(v)

10 punti f’Sezzjoni D

huwa meħtieġ għal produzzjoni awdjoviżiva sabiex tissodisfa r-

rekwiżiti fir-regolament 3(1)(a) ta’ dawn ir-regolamenti.

SEZZJONI A: Kontenut kulturali

Punteġġ

Total

massimu

miksub

1. Produzzjonijiet fejn l-istorja jkollha xorta

Maltija, Ewropea jew Mediterranea (fatt

jew finzjoni)

2. Produzzjonijiet fejn l-isfond huwa Malti,

Ewropew jew Mediterranju (fatt jew

finzjoni)

3. L-istorja jew materjal importanti jkun

ibbażat fuq materjal letterarju

4. L-istorja jew materjal importanti jkun

parti jew derivat mill-kultura u/jew wirt

storiku Malti, Ewropew jew Mediterranju

5. Produzzjonijiet fejn il-karattri huma

Maltin jew Ewropej

6. L-istorja jew materjal importanti jkunu

jinvolvu kwistjonijiet kontemporanji jew

storiċi Maltin, Ewropej jew Mediterranji

ta’ rilevanza politika, reliġjuża u/jew

soċjali

7. L-istorja jew materjal importanti jkunu

jinvolvu referenza għal personalità

kontemporanja jew storika (eż: Alexander

the Great) jew għal xi karattru fint fl-

istorja kulturali (eż: Zeus)

8. L-istorja jew materjal importanti jkun fih

referenza għal avveniment rilevanti u

sinifikanti universalment - finzjoni jew

fattwali

9. L-użu tal-arkitettura, arkeoloġija u wirt

naturali varji ta’ Malta biex jirriflettu l-

kuntest kulturali Ewropew u Mediterranju

10. Produzzjonijiet fejn għallinqas lingwa

waħda tkun Ewropea

11. L-użu tal-lingwa Maltija fid-djalogu tal-

produzzjoni b’mod li jikkontribwixxi

għall-iżvilupp tal-istorja

12. L-użu ta’ suġġetti kulturali u fattizzi

Maltin li permezz tagħhom dawn ikunu

jistgħu jidhru fis-setting tal-produzzjoni

13. Produzzjonijiet b’rekwiżiti għal kitba tax-

xeneġġatura drammatika qawwija li ma

jistgħux loġistikament, kreattivament jew

teknikament jiġu sodisfatti f’pajjiż ieħor

membru tal-Unjoni Ewropea

Total miksub għal Sezzjoni A (Kontenut

Kulturali)

Valutazzjoni ta’ kriterji speċifiċi, fi skala, tal-Kummissjoni

Ċinematografika ta’ Malta

Produzzjonijiet fejn l-istorja jkollha xorta Maltija, Ewropea jew

Mediterranea (fatt jew finzjoni) kif imfisser fil-partita 1 ta’ hawn fuq

L-istorja

Element/i

Element/i

Element/i

kollha

prinċipali

kritiku/ċi

minuri

Produzzjonijiet fejn l-isfond huwa Malti, Ewropew jew

Mediterranju (fatt jew finzjoni) kif imfisser fil-partita 2 ta’ hawn fuq

Aktar minn

L-isfond kollu

Nofs l-isfond

Sfond parzjali

nofs l-isfond

L-istorja jew materjal importanti jkun parti jew derivat mill-

kultura u/jew wirt storiku Malti, Ewropew jew Mediterranju, kif

imfisser fil-partita 4 ta’ hawn fuq

Derivat

Derivat kollu

Rilevanti għal

Relatat ma’

parzjalment

L-istorja jew materjal importanti jkunu jinvolvu kwistjonijiet

kontemporanji jew storiċi Maltin, Ewropej jew Mediterranji ta’

rilevanza politika, reliġjuża u/jew soċjali, kif imfisser fil-partita 6 ta’

hawn fuq

Kwistjoni fokali

Kwistjoni ċentrali

Kwistjoni presenti

L-użu tal-arkitettura, arkeoloġija u wirt naturali varji ta’ Malta

biex jirriflettu l- kuntest kulturali Ewropew u Mediterranju, kif

imfisser fil-partita 9 ta’ hawn fuq

Intwerew fil-maġġor

Intwerew ftit

Intwerew darba

parti

Produzzjonijiet fejn għallinqas lingwa waħda tkun Ewropea, kif

imfisser fil-partita 10 ta’ hawn fuq

Aktar minn 50% tad-

Inqas minn 50%

Djalogu minimu

djalogu

tad-djalogu

SEZZJONI B: Kontibut Kreattiv

(i) Produzzjonijiet b’distribuzzjoni teatrali Punteġġ

Total

jew televiżiva garantita, pruvata jew intiża Massimu Miksub

għallinqas fi tliet pajjiżi membri tal-Unjoni

Ewropea

(Immarka l-kaxxa xierqa)

17 + Stati Membri tal-Unjoni Ewropea

14 - 16 Stati Membri tal-Unjoni Ewropea

11 - 13 Stati Membri tal-Unjoni Ewropea

8 - 10 Stati Membri tal-Unjoni Ewropea

5 - 7 Stati Membri tal-Unjoni Ewropea

3 - 4 Stati Membri tal-Unjoni Ewropea

1 - 3 Stati Membri tal-Unjoni Ewropea

Territorju limitat, popolazzjoni jew lingwa taż-

żona

SUB-TOTAL

(ii) Kontributuri kreattivi u tekniċi (crew) minn Punteġġ

Total

Malta jew iż-ŻEE (ċittadinanza) fl-oqsma li Massimu Miksub

ġejjin fuq il-livell ta’ Kap ta’ Dipartiment jew ta’

assistenti fejn applikabbli

- Direttur

- Awturi tax-xeneġġati

- Produttur / koproduttur

- Kompożitur

- Direttur tal-fotografija

- Editur

- Diżinjatur tal-kostumi

- Diżinjatur tal-Produzzjoni

- Artist tal-irtokk

- Direttur tal-arti

- Dekoratur tas-set

- Line producer / Unit production manager

SUB-TOTAL

Total miksub għal Sezzjoni B (Kontribuzzjoni

Kreattiva)

SEZZJONI Ċ: Użu tar-Riżorsi Kulturali ta’ Malta

Punteġġ

Total

Massimu Miksub

(i) Produzzjonijiet

bi

preparazzjoni

u

produzzjoni li ssir minn qabel f’Malta

(ii) Produzzjonijiet b’lokazzjoni jew studio

shooting f’Malta

(iii) Produzzjonijiet bi produzzjoni li ssir wara

f’Malta

Total miksub għal Sezzjoni Ċ (L-Użu tar-

Riżorsi Kulturali ta’ Malta)

Valutazzjoni ta’ kriterji speċifiċi, fi skala, tal-Kummissjoni

Ċinematografika ta’ Malta

Produzzjonijiet b’lokazzjoni jew studio shooting f’Malta, kif

imfisser fil-partita (ii) ta’ hawn fuq

50% +

40% +

30% +

20% +

10% +

5% +

NOTA: % = ta’ paġni tax-xeneġġat JEW granet ta’ iffilmjar

Produzzjonijiet bi produzzjoni li ssir wara f’Malta, kif imfisser

fil-partita (iii) ta’ hawn fuq

50% +

25% +

15% +

5% +

SEZZJONI D: Produzzjoni awdjoviżiva diffiċli

Punteġġ

Total

Massimu Miksub

(i) Xogħlijiet li l-verżjoni oriġinali unika

tagħhom hija bil-lingwa Maltija b’territorju

limitat ta’ distribuzzjoni, il-popolazzjoni jew

lingwa taż-żona

(ii) Tinvolvi għall-ewwel darba direttur Malti

(iii) Tinvolvi għall-ewwel darba produttur

Malti

(iv) Hija kkunsidrata bħala produzzjoni low-

budget

(v) Produzzjoni kummerċjalment diffiċli (i.e

bi ftit jew xejn prospett ta' suċċess kummerċjali

minħabba n-natura sperimentali tagħha jew

għaliex jirrappreżenta livell għoli ħafna ta'

riskju kreattiv)

Total miksub għal Sezzjoni D (Produzzjoni

awdjoviżiva diffiċli)

Valutazzjoni ta’ kriterji speċifiċi, fi skala, tal-Kummissjoni

Ċinematografika ta’ Malta

Hija kkunsidrata bħala produzzjoni low-budget, kif imfisser fil-

partita (iv) ta’ hawn fuq

Taħt

Taħt

Taħt

Taħt

€200,000

€500,000

€1 miljun

€2 miljuni

PUNTI MIKSUBA

Sezzjoni A

minn massimu ta’ 40

[b’minimu ta’ 20]

Sezzjoni B

minn massimu ta’ 26

[b’minimu ta’ 10]

Sezzjoni Ċ

minn massimu ta’ 14

[b’minimu ta’ 10]

Sezzjoni D

minn massimu ta’ 20

[b’minimu ta’ 10]

TOTAL

Skont il-Linji gwida, il-perċentwali ta’ rifużjoni ta’ flus tingħata

skont it-total tal-punteġġ miksub kif ġej

Punti miksuba fl-eżami kulturali

Perċentwali ta’ rifużjoni

50 – 59

20%

60 – 69

24%

70 – 79

26%

80 – 85

28%

85 +

30%

+2% (ara l-kriterji t’isfel)

Il-Kummissarju għandu d-diskrezzjoni li jagħti perċentwali

addizzjonali ta’ 2% abbażi tal-element kulturali Malti.

NOTI OĦRA

(1) The qualifying company shall be the entity Qualifying

responsible for all activities involved in making a qualifying company.

production and having access to full financial information for the

total production worldwide, which can be made available to the

Commissioner upon the latter’s request

Provided that there shall be only one qualifying company

with respect to a given qualifying production.

(2) Where the qualifying production is a co-production, the

co-producers shall appoint one of the co-producers amongst them to

act as the qualifying company in respect of the qualifying production

for the purpose of these regulations and the appointed co-producer

shall be deemed to be the entity responsible for all activities involved

in making the qualifying production

Provided that

(a)

the financial incentive granted shall be apportioned

between the co-producers as agreed between them, or in the

absence of any agreement to that effect, in proportion to their

share in the overall budget of the qualifying production; and

(b)

the co-producers shall be jointly and severally liable

for their obligations under the Act and these regulations.

(1) A rebate of up to twenty-seven percent of eligible

expenditure may be given as a cash grant, which shall be exempt for

the purpose of the Income Tax Act, to qualifying companies, upon

completion of a qualifying production, in accordance with these

regulations and the Guidelines

Provided that the said eligible expenditure shall not

constitute an eligible expense for State aid under any other law

Provided further that the total State aid from which a

qualifying production may benefit under this regulation or any other

source shall not exceed the ceiling provided for in the Guidelines.

(2) The eligible expenditure qualifying for the financial

incentive shall be established by the Commissioner in accordance

with the Guidelines, provided that the eligible expenditure shall not

exceed eighty percent of the overall budget of the qualifying

production.

(3) The level of the financial incentive shall be determined by

the Commission in accordance with article 26 of the Act, the

provisions of these regulations and the Guidelines.

(4) The aggregate amount of financial incentives that may be

granted under these regulations in a given financial year in terms of

the Constitution shall not exceed the amount specifically appropriated

in Government’s financial estimates for that particular financial year.

(5) Notwithstanding the provisions of sub-regulation (1),

rebates for difficult audiovisual works may amount to a cash grant of

up to thirty-two percent of eligible expenditure, and shall be

exempted from the provisions of the provisos to the said sub-

regulation (1).

(1) The application for the financial incentive shall be

submitted to the Commissioner by the qualifying company or its local

branch or agent in accordance with the Guidelines.

(2) The application mentioned in sub-regulation (1) shall be

submitted together with such documentation and information as may

be required by the Commissioner, and shall include the documents

and information listed in the Guidelines.

(3) Subject to the provisions of regulation 10, the application

must be submitted at least thirty working days before commencement

of the principal photography in Malta or in any other EU Member

State.

(1) Following the receipt of the application made in Certificate of

accordance with regulation 6, the Commissioner shall make a provisional

approval.

recommendation in writing to the Commission regarding the level of

the financial incentive to be granted to the qualifying company,

stating that the production is a cultural production and meets the

requirements of a qualifying production, and shall forward to the

Commission any documentation or information furnished by the

applicant as the Commissioner may require

Provided that where the Commissioner finds that the

application is not made by or on behalf of an entity that is a qualifying

company and, or in respect of a qualifying production, it shall inform

the applicant that the application has been rejected and the

Commissioner shall not make such recommendation.

(2) Following the Commission’s determination of the level of

the financial incentive to be granted to the qualifying company, which

shall not exceed the amount recommended in terms of sub-regulation

(1), the Commissioner shall issue a certificate of provisional

approval, in the form set out in the First Schedule, to the qualifying

company which shall state the percentage of expenditure rebated to

the production concerned and the conditions that must be met in order

to obtain the final approval under regulation 8

Provided that in case of any changes to the application

presented for provisional approval and due to such changes the

budget differs by 10% or more from the original estimations, an

application shall be re-submitted to the Commissioner for final

approval.

(3) The Commissioner shall complete an assessment of this

application within twenty working days excluding any period during

which the Commissioner is awaiting additional information necessary

for the completion of the application.

(4) On final approval, the qualifying company shall be

requested to sign an agreement detailing the terms and conditions as

specified in the certificate which is to be signed by the qualifying

company and the Commissioner prior to the commencement of the

principal photography in Malta.

(1) Upon completion of the qualifying production in Final approval.

respect of which a certificate of provisional approval was issued in

accordance with regulation 7, and on which an agreement was signed

and no later than six months after completion thereof, the qualifying

company or its local branch or agent shall present its account records,

invoices, receipts and final production expenditure in Malta which

will be sent for audit.

(2) The submission mentioned in sub-regulation (1) shall be

submitted together with such documentation and information as may

be required by the Commissioner, and shall include the documents

and information listed in the Guidelines.

(3) Following receipt of the final submission made in

accordance with sub-regulations (1) and (2), the Commissioner shall

make a recommendation in writing to the Commission regarding the

amount of the financial incentive to be granted to the qualifying

company and shall forward to the Commission any documentation or

information furnished by the applicant as the Commission may

require.

(4) The Commission shall inform the Commissioner in writing

of its decision on the amount of the financial incentive to be granted

to the qualifying company

Provided that the amount of the financial incentive

determined by the Commission shall not exceed the amount

recommended by the Commissioner in terms of sub-regulation (3).

(5) The Commissioner shall make the necessary arrangements

for the implementation of the Commission’s decision on the amount

of the financial incentive to be granted to the qualifying company.

(1) If the final overall budget and overall qualifying

expenditure exceed the estimated overall budget and estimated

qualifying expenditure (as provided on the final application and on

which the rebate was calculated) as indicated in the provisional

certificate and final agreement, the final incentive will be granted on

not more than ten percent on the overall qualifying expenditure.

(2) If no application has been re-submitted and the

Commissioner finds that the final overall budget and overall

qualifying expenditure exceed the estimated overall budget and

estimated eligible qualifying expenditure (as provided on the final

application and on which the rebate was calculated) as indicated in

the provisional certificate and final agreement, the final incentive will

be granted on not more than ten percent on the overall qualifying

expenditure.

(3) For the purpose of this regulation, if further allowances are

made, financial incentives will be granted at the discretion of the

Commissioner.

These regulations shall apply to audiovisual productions in Time of

respect of which an application for provisional approval is made in initiation

production.

accordance with regulation 6 before 31 December 2018.

The qualifying company or its local branch or agent shall Reporting

provide the Commissioner with any information and documentation requirements.

either on the initiative of the qualifying company or its local branch

or that of the agent himself or upon the request of the Commissioner

for the exercise of his functions and those of the Commission for the

purpose of these regulations

Provided that the Commissioner may specify the on-going

reporting requirements of the qualifying company or its local branch

or that of its agent in the Guidelines.

Any information furnished by the qualifying company or Confidentiality.

its local branch or agent shall at all times be treated as confidential

and shall be used solely by either the Commission or the

Commissioner, or both, for the purpose of carrying out their

respective functions for the purpose of these regulations

Provided that the information furnished by the qualifying

company or by its local branch or agent may be disclosed if and to the

extent required by or pursuant to any enactment, including but not

limited to fiscal legislation, or with the permission in writing of the

legal or natural person providing such information.

(1) The qualifying company, including its local branch Obligations of

or agent, if any, shall ensure compliance with the conditions and the

company.

requirements set out in the certificate of provisional approval and, or

the signed agreement and in the Guidelines.

(2) If the qualifying company or its local branch or agent, if

any, fails to meet any of the conditions and requirements as referred

to in sub-regulation (1), the Commissioner may withdraw its

provisional or final approval for the grant of the financial incentive. If

the qualifying company or its local branch or agent has already

received the financial incentive and the Commissioner establishes

that the conditions and requirements as referred to in sub-regulation

(1) have not been complied with, it shall refund to the Commissioner

the amount of the financial incentive received upon the

Commissioner’s request.

Where the financial incentive has been provided in terms Examination of

records.

of these regulations to an undertaking, the Commissioner may -

(a)

from time to time make or cause to be made such

examination of books, accounts, documents, premises and all

other things and matters of that undertaking, its local branch or

agency, as the case may be, as may be necessary to ensure that

the provisions of these regulations and of the Guidelines, and

the conditions and requirements set out in the certificate of

provisional approval, and on which an agreement was signed,

are complied with; and

(b) request such financial statements from the

undertaking, its local branch or agency, as the case may be and

as may be required.

The Commissioner shall keep, for a minimum of ten years,

a database of all the financial incentives provided to, or claimed by,

undertakings in terms of these regulations in order to enable the

Commission to -

(a) verify whether the provisions of the Act and of these

regulations have been complied with; and

(b) provide the State Aid Monitoring Board with such

information as it may require.

The Financial Incentives for the Audiovisual Industry

Regulations, 2008, are hereby revoked, without prejudice to anything

done or omitted to be done thereunder.

2008. FIRST SCHEDULE

(Regulation 7)

Certificate of Provisional Approval

Under Part V of the Malta Film Commission Act (Cap. 478) and

in accordance with the Financial Incentives for the Audiovisual

Industry Regulations, and the Guidelines established by the

Commissioner; and

In respect of the application received by the Commissioner on

the [date] by [name of qualifying company];

The Commissioner hereby certifies that in relation to [name of

the production applying for the cash rebate], the said audiovisual

production is regarded as a qualifying production for the purposes of

the said Part V of the Malta Film Commission Act, and shall be

granted a cash rebate equivalent to [percentage to be rebated to the

production] of the total qualifying expenditure, currently estimated at

[total amount of qualifying expenditure], subject to the following

conditions

1. This certificate is issued strictly on the basis of the

information supplied by the qualifying company in the course of the

application process.

2. Any change of substance in the information originally

supplied to the Commissioner that may arise as the project progresses

must be notified in writing to the Commissioner in advance of the

proposed change being effected, or as soon as the change comes to

notice.

3. Failure to notify the Commissioner accordingly will be

regarded as a breach of the conditions of this certificate.

4. (1) On completion of the qualifying production in

Malta, the qualifying company is to submit the following documents

to the Commissioner

(a)

an immediate written notification that the filming

activity in Malta of the audiovisual production for which a

benefit is being sought is completed;

(b) full details of the qualifying company and of any

beneficiary of the cash rebate;

(c)

accounts detailing the amounts spent on each

individual element of the project for which a benefit is being

sought, including expenditure on the direct employment of

Maltese and EU/EEA nationals and on eligible goods and

services;

(d) full final cast and crew list (distinguishing between

the local cast and crew) submitted with the following

information

(i)

Nationality/residency

(ii)

ID/Passport number

(iii) Contract duration

(iv) Role in the production

(e)

final list of locations used (with address).

(2) The accounts must include the following

(a) a ‘top sheet’ production expenditure summaries

covering all expenditure in Malta and the entire production

expenditure on the film;

(b) a detailed analysis of relevant labour costs

(including gross full-time and part-time wages, withheld tax,

Social Security contributions, and monies paid to employees

employed directly on a contract of service);

(c)

all accounts are to be presented net of Value Added

Tax and all account entries are to be certified by proper receipts

that enable the recipient of the payment to be identified;

(d) copies of receipts from the pertinent fiscal

authorities and companies showing that the amounts were

already paid to such authorities and companies;

(e)

the qualifying company is to provide to the

satisfaction of the Commissioner details of the eligible

expenditure, including invoices and receipts of the pertinent

qualifying production.

5. Following the submission of a final accounts records,

invoices, receipts and final production expenditure in Malta, the

qualifying company is to grant access to representatives of the

Commissioner to audit the accounts pertaining to the audiovisual

production which a benefit is being sought.

6. Should there be deemed to be a significant difference

where the final overall budget exceeds the estimated overall budget as

indicated in the application by more than ten percent (and on which

the rebate was calculated as per provisional certificate and final

agreement) a new application will need to be re-submitted. Should

further allowances be made, this will be made at the discretion of the

Commissioner.

7. On receipt of the audit report and upon final review by the

Commissioner, the cash rebate shall be forwarded to the qualifying

production no later than five months from the date of receipt of the

presented production expenditure in Malta.

8. The cost of the review audit together with administrative

fees will be borne by the applicant. It shall be considered an eligible

expense and will be deducted from the final rebate. The cost of the

review audits will depend on the overall ‘Malta Spend’, as follows

Malta Spend

Audit/Administrative Fee

Under €500,000

€ 2,000

Up to €1 million

€ 3,000

Between €1 and €10 million

€ 4,000

Over €10 million

€ 6,000

9. In case additional information in respect of an audit is

required, processing of the audit will not be progressed until the

relevant information has been received.

Obligations

10 The qualifying company shall ensure that the filming

activity and all other activities related to the film are conducted in

accordance with the Laws of Malta. The Courts of the Republic of

Malta shall have jurisdiction on any dispute.

11. The qualifying company is to ensure that the recruitment

of personnel in Malta, including recruitment of extra talent and the

engagement of services in Malta, is conducted fairly and without

discrimination of any form. Resource lists of experienced crew

members, extra talent and service providers are available from the

Malta Film Commission.

12. Prior to the commencement of filming in Malta, the

qualifying company will commit to engage local personnel with the

production and provide the names, to the Commissioner, for

(a)

a minimum of 1 Maltese crew member above the

line

(b)

a minimum of 2 Maltese trainees above the line

(c)

a minimum of 3 Maltese trainees below the line.

13. During production the Commissioner reserves the right to

conduct a 5-minute interview with the main actors / actresses, the

director and producers as testimonials which will be used for

publicity after release of film. These will be used to promote the

Maltese film industry.

14. The qualifying company is to include the credits in the

language of the film production ‘Produced with the support of the

financial incentives provided by the Government of Malta’ and

‘Filmed on location in Malta’ as the case may be; these credits are to

be located in a prominent position in the closing credits, immediately

after the cast and crew credits. The logo of the Malta Film

Commission must also be featured.

15. Prior to the payment of the cash rebate and following

completion of the qualifying production, the qualifying company is to

provide the Commissioner with an electronic press kit (EPK), which

includes photos, footage of behind-the-scenes, clips from the actual

shoot, and the trailer to be used for international marketing and

promotional purposes showcasing Malta. These will be used to

promote the Maltese film industry.

16. Prior to the payment of the cash rebate and following

completion of the qualifying production, the qualifying company is to

provide the Commissioner, a number of props, costumes, storyboards

etc to be kept as a record of the production to promote Malta as a film

location. The Film Commission will also be given right of first refusal

to acquire any sets, props, costumes, and any other material related to

the film.

Prior to the payment of the cash rebate and following

completion of the qualifying production, the qualifying company is to

provide the Commissioner with video clips of the principal

filmmakers, namely the director and the producers, describing their

filming experience in Malta. The Malta Film Commission and other

Government entities are given full rights to use these clips for

publicity purposes after the release of the film.

Following completion of the qualifying production, the

qualifying company is to provide the Commissioner with two copies

of the film in HD format and two copies in DVD format.