Regulations, 2024

L.N. 187 of 2024

MALTA FILM COMMISSION ACT

(CAP. 478)

Screen Malta Reality and Game Shows Financial Incentives

Regulations, 2024

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

of the Malta Film Commission Act, the Minister responsible for the

film industry, after consultation with the Minister responsible for

finance, has made the following regulations:-

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

scope.

Reality and Game Shows Financial Incentives Regulations, 2024.

(2) The scope of these regulations is to provide for financial

incentives for qualifying productions, specifically reality programmes

and game shows.

(1)

In these regulations, unless the context otherwise Interpretation.

requires

"Act" means the Malta Film Commission Act;

"certificate of provisional approval" means the certificate

issued in terms of regulation 5 following receipt of relevant

application and supporting documentation and following the due

assessment in accordance with the relevant Guidelines;

"Commission" means the

Malta

Film

Commission

established by article 3 of the Act;

"Commissioner" means the Film Commissioner appointed

in accordance with article 5(1) of the Act;

"completion" means the termination of filming activity,

animation, VFX or Virtual Production together with post-

production 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 (2) or more

co-producers;

"eligible expenditure" means the items of expenditure

incurred by the qualifying company in relation to the qualifying

production that are eligible as established by the Commissioner

in accordance with the Guidelines;

"final approval" means the approval granted in accordance

with regulation 7;

"financial incentive" means the financial benefit provided

for in regulation 3;

"General

Block

Exemption

Regulation"

means

Commission Regulation (EU) 2021/1237 of 23 July 2021

amending Regulation (EU) No 651/2014 declaring certain

categories of aid compatible with the internal market in

accordance with Articles 107 and 108 of the Treaty;

"Guidelines" means the guidelines that may be issued by

the Commissioner from time to time;

"qualifying company" means the ultimate beneficiary and

the entity responsible for all activities involved in making a

qualifying production and having access to the full budget and

full financial information for the total production worldwide,

which shall be made available to the Commissioner upon his

request. Where the qualifying production is a co-production, the

co-producers shall appoint one (1) of the co-producers amongst

them to act as the qualifying company in respect of the

qualifying production for the purposes 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) there shall be only one (1) qualifying company

with respect to a given qualifying production;

(b) in the case of a co-production, 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

(c) any co-producers shall be jointly and severally

liable for their obligations in accordance with the Act and

these regulations

Provided further that when the qualifying company

is

(i) a foreign qualifying company, it shall be either

a special purpose corporate vehicle or a company which

carries on, or intends to carry on in Malta, a trade or

business which is considered as a qualifying production, or

a

(ii) a local qualifying company, it shall be either a

special purpose vehicle or a company that is duly registered

as an audiovisual production company and intends to

produce a qualifying production as its main purpose and

activity;

"qualifying production" means an audiovisual production

that meets the conditions established in article 25 of the Act, the

Schedule to the Act and the Guidelines, which the Commissioner

may publish from time to time;

"State Aid Monitoring Board" means the State Aid

Monitoring Board constituted in accordance with article 57 of Cap. 325.

the Business Promotion Act;

"undertaking" means an entity carrying out an economy

activity;

"VFX" means visual effects.

(2) Without prejudice to the provisions of sub-regulation (1),

terms and expressions used in these regulations which are not defined

herein, shall unless the context otherwise requires, have the same

meaning assigned to them in the Act.

(1) A rebate of up to forty percent (40%) of eligible Financial

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

the purpose of the Income Tax Act, to qualifying companies upon Cap. 123.

completion of a qualifying production, in accordance with these

regulations and the Guidelines

Provided that identifiable eligible costs claimed under any

other publicly funded scheme in Malta, shall not be claimed under this

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 General Block

Exemption Regulation.

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

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

these regulations and the Guidelines.

(3) The maximum aid incentive outlined in sub-regulation (1)

shall also apply for co-productions.

(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 specified in sub-regulation (1) shall be

submitted together with such documentation and information as may

be required by the Commissioner and shall include any documents and

information listed in the Guidelines.

(3) The application shall be submitted at least thirty (30)

working days before the planned commencement of the qualifying

production in Malta

Provided that if the application is submitted less than thirty

(30) working days before the commencement of the qualifying

production in Malta, it may only be accepted at the discretion of the

Commissioner.

(1) Following the receipt of the application in accordance

with regulation 4, the Commissioner shall complete an assessment of

this application within thirty (30) working days after which a

certificate of provisional approval shall be issued

Provided that where the Commissioner requests additional

information in respect of the application, the thirty (30) working days

shall resume after the relevant information has been received.

(2) In case of any changes to the application presented for

provisional approval, the Commissioner shall be informed prior to the

final approval.

(1) Where, after the submission of the application for

provisional approval the budget of the Malta spend and estimated

eligible expenditure as indicated in the provisional certificate,

increases by over ten percent (10%) of the original estimations prior to

completion and final submission, the Commissioner shall be informed

in writing immediately of such changes.

(2) If it becomes apparent that the threshold has been

exceeded, the Commissioner reserves the right to award the final

incentive as outlined in the provisional certificate.

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

made which are found to be justifiable, said allowances shall be made

solely at the discretion of the Commissioner.

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

respect of which a certificate of provisional approval was issued in

accordance with regulation 5, the qualifying company shall submit its

final submission detailing expenses of the qualifying production where

a benefit is being sought as outlined in the Guidelines. A full audit of

expenses shall be carried out by an auditor.

(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-regulation (1) and (2), the Commissioner shall

issue a final certificate.

(1) The qualifying company shall ensure compliance Obligations of

with the conditions and requirements set out in the certificate of the

company.

provisional approval and, or the final certificate and in the Guidelines.

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

to meet any of the conditions and requirements as referred to in sub-

regulation (1), the Commissioner may withdraw his provisional or

final approval for the grant of the financial incentive. If the qualifying

company 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 the Commissioner the amount of the financial incentive

received upon the Commissioner's request.

When the financial incentive has been provided in Examination of

accordance with these regulations to an undertaking, the records.

Commissioner may

(a) from time to time make or cause to be made such

examination of books, accounts, documents, premises and all

other things of such undertaking, its local branch or agency, as

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

provisions of these regulations, of the Guidelines and the

provisional approval on which a certificate was issued 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 (10)

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

by undertakings in accordance with these regulations in order that the

Commission may

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

regulations have been complied with; and

(b) provide the State Aid Monitoring Board and the

European Commission with such information as they may

require.

Undertakings that are subject to an outstanding recovery

order following a previous Commission decision declaring an aid

illegal and incompatible with the internal market are excluded from

benefiting from assistance under this incentive.

These regulations shall apply to audiovisual productions in

respect of which the aid is granted by 31 st December 2026.

€0.54