Home News & Events FILM INDUSTRY NEWS: New Block Exemption Regulations on Film Productions in Europe

FILM INDUSTRY NEWS: New Block Exemption Regulations on Film Productions in Europe

Sunday, 28 September 2014 21:19

The film industry within the European scenario in 2011 is deemed to have been the largest in the world with film productions. Indeed, there were 1,336 film features produced in Europe compared to 1,255, 588 and 817 film productions in India, China and US respectively. Aware that the 2013 Cinema Communications allowed Member States to grant state aid to activities connected with the film industry other than film production, such as script-writing, film distribution and promotion [which were not deemed to adversely affect the EU internal market], the EU Commission has recognized the necessity to allow state aid in the promotion of culture under the Treaty on the Functioning of the European Union [TFEU] by supporting film production under a derogation specifically through schemes contemplating Article 107 (3)(d) [TFEU].

As of July 1st, 2014, the Cinema Communications has been supplemented by state aid rules in the revised Block Exemption Regulations [Commission Regulations (EU) No: 651/2014 of June 17, 2014] declaring certain categories of aid compatible with the internal market in applicability of Articles 107 and 108 of the Treaty. OJL 187 of June 26, 2014.

Malta hailed as “the Hollywood of the Mediterranean”, has had a success story in the film industry throughout the years with so many international Oscar awarded actors and actresses taking part in all popular films such as Troy, Gladiator, Munich and War Zone Z. Indeed, the Maltese economy benefited from more than € 105 million as a result of the film industry over the past 5 years with some 65 productions from epic films to television series, to documentaries, making use of Malta's rich and historical scenario which is deemed truly unique, making Malta a natural choice for the film industry.

Attractive tax incentives are deemed to be one of the prime reasons for film producers to choose Malta, the other reasons being numerous historical locations, excellent coast and available expertise including in the construction of the film set as well as the availability of English speaking extras.

Tanti-Dougall & Associates, Advocates can assist with all necessary legal and fiscal arrangements for film productions in Malta.

Further reading: http://ec.europa.eu/competition/publications/cpb/2014/013_en.pdf