The general tax framework is the Income Tax Act (Cap. 123, 1948), the Income Tax Management Act (Cap. 372) and the Value Added Tax Act (Cap. 406, 1998). Personal income tax is progressive; corporate tax is set at 35% with a full-imputation system that allows shareholder refunds. VAT is charged at a standard rate of 18%, with reduced rates of 7% (accommodation), 5% (books, e-books, certain printed matter, admission to museums and cultural events) and a zero rate for selected supplies including exports.
Several culture-specific instruments operate within this framework. The reduced 7.5% income-tax rate for creative practitioners, introduced by Legal Notice for base year 2022, applies to income from artistic activity (theatre, dance, music, literature, visual arts and other defined categories) and represents a substantial reduction from the standard minimum rate of 15%. The 150% tax deduction on corporate donations to voluntary cultural organisations and Public Cultural Organisations, in force since 2016, generated approximately €3.2 million in donations between 2016 and 2021. The VAT reclaim on a one-time purchase of a musical instrument provides a fiscal facility for individual musicians. The Tax Deduction on Fees paid for Cultural and Creative Courses recognises private investment in arts training.
The audiovisual sector is supported by the film cash rebate scheme, administered until 2024 by the Malta Film Commission and offering up to 40% on qualifying Malta spend. Since 2025 the Screen Support Scheme (€2 million in 2025) administered by Arts Council Malta supports local production through a separate instrument. The Get Qualified Scheme and Higher Educational Qualifications Scheme provide tax credits for individuals pursuing creative and other qualifications.
Heritage-property tax measures include the VAT and stamp-duty schemes for the restoration of properties in Urban Conservation Areas, properties scheduled under the Cultural Heritage Act, or built before 1925; the first-time-buyer scheme (made permanent in Budget 2026) and accelerated depreciation on qualifying digital investments are general measures with cultural-sector application.
The Duty on Documents and Transfers Act (Cap. 364) and the VAT Act together govern transactions in artworks and cultural property. Voluntary organisations registered with the Commissioner for Voluntary Organisations under the Voluntary Organisations Act benefit from income-tax exemption on activity in furtherance of their statutory purposes.
Author royalties have been the subject of an NBC reform proposal seeking income-tax exemption on royalty payments and a 200% tax refund for publishers on royalties paid to authors; the proposal was issued for public consultation in 2020 but has not been enacted as of May 2026. The income tax rate paid by authors on royalties has been reduced from 15% to 7.5%. MEIA and the Malta Producers Association have continued to advocate for further fiscal measures to address late-payment cycles and to recognise project-based working patterns.
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