During Budget 2016, Government announced a new measure to encourage further partnerships between Malta’s business community and the cultural sector.

During Budget 2016, Government announced a new measure to encourage further partnerships between Malta’s business community and the cultural sector.

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.

Who can apply as a donor?
This incentive is intended for Limited Liability Companies and those Partnerships that are registered to be treated as a company.

Who can be the beneficiary of an eligible donation?
Non-profit Cultural Organisations, Public Cultural Organisations, Arts Council Malta.

What is a non-profit cultural organisation?
A non-profit cultural organisation is a registered Voluntary Organisation [VO] or Non-Governmental Organisation [NGO] that uses its surplus revenues to further achieve its purpose or mission, rather than distributing its surplus income to the organisation's shareholders (or equivalents) as profit or dividends.

For the purpose of this tax deduction, beneficiaries listed as a non-profit cultural organisation must also be registered with the Commissioner for Voluntary Organisations. They must be active and operating in the cultural sector with activities in any of the categories listed in the Arts Council Malta Act.

What qualifies as a donation to Arts Council Malta?
Donations to the Arts Council Malta shall include monetary donations given directly:

  • to Arts Council Malta to act as an intermediary on behalf of a beneficiary
  • in support of the activities organised by the Council for the purpose of achieving its objectives as outlined in the strategy document Create 2020
  • to Public Cultural Organisations: Teatru Manoel, Mediterranean Conference Centre, Malta Philharmonic Orchestra, Fondazzjoni Ċentru għall-Kreattività, Pjazza Teatru Rjal, Fondazzjoni Valletta 2018 and ŻfinMalta.

 

Downloadable documents:

Incentive guidelines

Application Form

Sample Donation Agreement

CVO Approved Cultural Organisations Q1 2017

Subsidiary Legislation 123.102

L.N. 147 of 2016 - Amendment to Subsidiary Legislation 123.102