Dimension Regulations, 2019

L.N. 69 of 2019

MALTA ENTERPRISE ACT

(CAP. 463)

Support for the Development of Video Games with a Cultural

Dimension Regulations, 2019

IN EXERCISE of the powers conferred by article 5 of the Malta

Enterprise Act, the Minister responsible for the Economy, Investment

and Small Businesses, in consultation with the Malta Enterprise

Corporation and with the concurrence of the Minister for Finance has

made the following regulations:-

(1) The title of these regulations is Support for the

Development of Video Games with a Cultural Dimension Regulations,

2019. (2) These regulations shall be deemed to have came into force

on 1st December 2018.

In these regulations, unless the context otherwise requires

"the Act" means the Malta Enterprise Act;

"the Corporation" means Malta Enterprise established

under the Act;

"cultural test" means a points-based test created to assess

the cultural content of a video game;

"the Guidelines" means such guidelines as may be

published by the Corporation from time to time in terms of the

Act;

"single undertaking" shall have the meaning attributed to it

by the Guidelines;

"undertaking" shall have the meaning established under the

Act;

"video game" means a game played on an electronic device

in which the player or players control/s action on video display;

Any undertaking registered as a limited liability company

engaging in the development of video games as an economic activity

for the purpose of generating profit which is liable to income tax in

Malta, and meeting any additional criteria which may be established

by the Corporation in the Guidelines may be supported through this

incentive.

A video game is deemed to be eligible if

Eligible Video

Games.

(a)

it meets the criteria established in the Guidelines; and

(b) in the administration of the Cultural test, the video

game achieves a score equal or higher to the minimum score

established in the guidelines for the video game to be supported,

which in any case shall not be less than fifty per cent (50%) of

the total attainable score.

(1) The maximum support per single undertaking may Financial

not exceed two hundred thousand euro (€200,000) over a period of Support.

three (3) running years.

(2) The support granted by the Corporation shall be calculated

as a percentage, not exceeding thirty per cent (30%) of the qualifying

costs incurred for the development of the video game as established in

the Guidelines.

(3) The Corporation may award assistance under these

regulations in the form of a tax credit or cash grant.

(4) A cash grant awarded shall not exceed twenty per cent

(20%) of the total assistance awarded in terms of any single approval

under these regulations.

(5) The tax credit referred to in these regulations shall be due

as a deduction from tax payable by an undertaking on its chargeable

income derived from the profits generated from the supported video

game for that year of assessment established in accordance with the

terms and conditions set out in the Guidelines, and, where the tax

credit, for that year of assessment, exceeds the income tax payable on

chargeable income derived from the profits generated from the

supported video game by such an undertaking for that year, the excess

in the tax credit shall be allowed to be carried forward to the

subsequent year of assessment and deemed to be a tax credit for that

year.

Provided that any tax credit not utilised by the third

consecutive year of assessment from the year of assessment when the

tax credit is first due shall not be carried forward to any subsequent

year and shall hence be forfeited.

Provided further that the tax credit shall not give rise to a

right to a refund of tax.

Assistance provided under these regulations shall be in

conformity with the de minimis Regulation as defined in Commission

Regulation (EU) No 1407/2013 of 18 December 2013 on the

application of Articles 107 and 108 of the Treaty on the Functioning of

the European Union to de minimis aid.

(1) Applications for assistance under these regulations

shall reach the Corporation by not later than 1st October 2020.

(2) The Corporation shall not award any aid under these

regulations after 31st December 2020.

€0.27