The Commissioner for Tax and Customs announced that the scheme for a reduced tax rate of 7.5% for creative practitioners was launched.
In line with legal amendment Cap.123 Article 56 26(A) of Income Tax Act one can benefit from a reduced tax rate of 7.5%. This fiscal incentive is being implemented so as to mitigate economic uncertainties for artistic activities, which are more likely to take place within atypical working conditions.
Therefore, Arts Council Malta is currently receiving applications to be recommended for the reduced tax rate of 7.5%.
The reduced tax rate of 7.5% is applicable to artistic activities conducted on a self-employed basis for an artistic purpose* by the following:
- Actors
- Choreographers
- Artistic Directors
- Curators
- Dancers
- Literary Writers
- Musicians
- Painters
- Sculptors
The 7.5% tax rate is applied only on the first €30,000 turnover. When this option is applied, the rest of the income is to be added to the main income, and taxed at the progressive rates.
The eligible activities are based on the NACE rev. 2 Class 90 for the following:
90.01 – Performing Arts
90.02 – Support activities to performing arts
90.03 – Artistic Creation
*Artistic purpose refers to income earned from:
- Theatrical, Stage, Motion Picture and TV Productions
- Exhibitions
- Paintings, Sculptures, Literary and Musical Works
- Intellectual Property, Royalties
The deadline to apply for Basis Year 2022 is Tuesday 7th November 2023 at 12:00pm.
For assistance regarding this application, you may contact us on [email protected]