Today, the Arts Council Malta has announced the launch of a new scheme to encourage businesses to donate to cultural and artistic causes. Under the terms of the initiative, companies that donate up to €50,000 in one year to an artistic body or artist will now benefit from a tax deduction of 150% on the amount of the donation given.
As part of the Budget 2016, the aim of the scheme is to increase corporate social responsibility and encourage the partnerships between business and the cultural sector by opening up dialogue between the two sectors. Businesses are able to choose from a range of beneficiaries such as the Malta Philharmonic Orchestra, St James Cavalier as well as a range of NGO and Voluntary Organisations. One of the elements that make this scheme different is that the beneficiaries of the funds may only acknowledge the donors as a patron or supporter of the activity however may in no way provide any advertising for the donors.
Under the new legislation dated as effective from January 1, 2016- any limited liability company or a partnership registered to be treated as a company, may claim the amount donated at 150% against the income for the year of assessment when the donation is made. The tax deduction is capped at €50,000. The Arts Council will be responsible for vetting all applications for eligibility as well as providing mediation and communication between the donor and the beneficiary. It is hoped that the scheme will not only incentivise donations to the arts sector but that it will help reinforce the fact that the Arts are not merely a “hobby” but a professional way of life for a growing number of citizens.
To find out more, please contact Ramona Azzopardi