A new scheme encouraging further partnership between Malta’s business community and the cultural sector was launched on the 29th of March.
Through this measure, companies giving donations to non-profit cultural organisations, public cultural organisations or to Arts Council Malta as an intermediary on behalf of a beneficiary, may claim the amount donated at 150% against the income for the year of assessment when the donation was made. The maximum tax deduction is capped at €50,000.
This incentive is effective as of 1st January 2016 and applies to limited liability companies and those partnerships that are registered to be treated as a company.
This new scheme is one of the 70 actions of Strategy2020 for the cultural and creative sectors in Malta. It aims to provide an incentive for the private sector to invest in the arts.
The new tax deduction scheme will operate through donations, where companies giving donations for arts and culture provide the donation freely and without requesting any services from the beneficiary. This also means that donors are not charged VAT on the donation.
The applicant will be allowed to submit one application per year for all monetary donations given in the previous calendar year. All applications will be vetted by the Arts Council for eligibility as well as providing mediation and communication between the donor and the beneficiary.
