Updated: Fiscal incentive for companies who donate to the Arts and culture
Government has launched a scheme aimed at facilitating the development of cultural initiatives. Through this scheme, which is valid for one year, companies making donations to artistic and cultural organisations can benefit through a substantial tax reduction.
Companies making donations to art or culture can benefit from a fiscal incentive of tax reduction up to 50,000 euro. Through this scheme companies making donations to cultural organisations registered with the Commissioner for Voluntary Organisations, or to the Arts Council, will be entitled to a tax reduction.
Culture Minister Owen Bonnici said the commercial and financial sectors had often expressed the wish for a way to make donations in order to strengthen the artistic sector. Dr Bonnici explained that companies going for this scheme can not have advertising or promotion during a cultural activity.
“In this sector we are looking at bona fide donations by businessmen or financiers who believe in an artistic product and genuinely wish to provide financial assistance without expecting anything in return. In such instances we are offering an incentive for this financial assistance to be given through financial incentives”, Minister Bonnici explained.
The Malta Arts Council will be the regulator of this scheme, which is open for one year. Council Chairman Albert Marshall said the scheme will get the commercial and artistic sectors closer to each other, as promised in the Council strategy for 2020.
“The Council caps all these activities, including funds for such initiatives which are important for this sector, and their administration will be handled in a professional manner”, the Chairman of the Malta Council for Arts and Culture pointed out.
Finance Minister Edward Scicluna said this scheme was implementing another Budget promise, adding that through it Government was recognising the artistic sector and its development, which had to progress along with the country’s development.