A number of legal notices relating to new and existing Malta Enterprise schemes and other support measures have recently been published. A short summary of salient updates below:
New Schemes
- Skills Development Regulations, 2019
- Business Advisory Services Regulations, 2018
- Tax Credits supporting the Refurbishment of Hotels and Restaurants
- Investing in Crafts Regulations, 2018
Skills Development Regulations, 2019
L.N. 15 of 2019
MALTA ENTERPRISE ACT (CAP. 463)
This scheme is intended to support training and knowledge transfer initiatives that assist employees to acquire new skills, knowhow and knowledge. It promotes the provision of training when such training is not legally mandatory for the operation of a business.
This measure is available to duly registered undertakings, including self-employed persons, that carry out in Malta at least one of a number of varied qualifying activities specifically set out in the applicable Guidelines.
At application stage, the undertaking is required to employ at least 5 full-time employees and the training in which support is required must lead to the acquisition of knowledge that is relevant to the undertaking’s activity.
The scheme has a budget of €10 million and in principle the aid shall be granted in the form of tax credits, which may be carried forward to subsequent years of assessment for a period of up to 10 years. However, for certain activities, the Corporation may consider awarding the aid in the form of a cash grant. Aid granted to any one undertaking shall not exceed €1 million.
The aid intensity shall be established according to the size of the undertaking and shall not exceed the following percentages of the eligible costs:
- Small: 70%
- Medium: 60%
- Large: 50%
This scheme came into force on 1 September 2018 and applies until 31 December 2020. Application forms, which are expected to be made available in the coming weeks, are required to reach Malta Enterprise Corporation by 30 November 2020.
Business Advisory Services Regulations, 2018
L.N. 314 of 2018
MALTA ENTERPRISE ACT (CAP. 463)
The Business Advisory Services Scheme is designed to provide eligible undertakings operating in Malta aid in the form of a tax credit or cash grant to cover the cost of business advisory services acquired from third parties in relation to specific areas determined through Guidelines issued by Malta Enterprise.
The maximum value of the tax credit or cash grant amounts to €2,500 and applications for assistance under these regulations should be submitted to Malta Enterprise Corporation by not later than 31 December 2020. The Guidelines for this scheme are expected to be issued in the coming weeks.
Tax Credits supporting the Refurbishment of Hotels and Restaurants
L.N. 120 of 2018 – Incentive Guidelines v.1
MALTA ENTERPRISE ACT (CAP. 463)
Malta Enterprise Corporation has recently issued the official incentive guidelines relating to the Tax Credits supporting the Refurbishment of Hotels and Restaurants scheme. In brief, this scheme provides a tax credit of 20% of eligible investment costs to establishments duly licensed by the Malta Tourism Authority that implement a holistic refurbishment project, and the main activity of which is:
- the provision of tourist accommodation in hotels, guesthouses and hostels; or
- the provision of food services from a permanent structure whereby the prepared food may be consumed on the premises.
Eligible costs include the replacement costs of finishes, furniture, fittings and equipment, redecoration costs and design costs. Certain cappings and criteria apply. With the exception of design costs, all eligible costs should be incurred after the project is first approved by Malta Enterprise Corporation.
The maximum amount of tax credits that may be approved by Malta Enterprise Corporation is €200,000 for hotels, guesthouses and hostels, and €50,000 for restaurants.
All applications under this scheme should reach Malta Enterprise Corporation by 28 November 2019, and approved projects should be completed within 24 months from date of approval.
Investing in Crafts Regulations, 2018
L.N. 381 of 2018
MALTA ENTERPRISE ACT (CAP. 463)
Malta Enterprise Corporation launched a scheme in support of artisans transferring their artistic skills to other persons interested in learning the relevant craft. This scheme also supports artisan start-ups.
The scheme is available to
- duly registered undertakings, including self-employed persons, carrying out an economic activity based on the production of crafts; and
- self-employed persons that have previously carried out an economic activity based on the production of crafts.
Assistance for support to artisans in the process of skills transfer may be provided in the form of cash grants:
- up to €10,000 to be disbursed at a maximum rate of €20 per hour covering the time dedicated to skills transfer;
- up to a further €2,000 to support the purchase of materials required to implement the skill transfer.
If Malta Enterprise Corporation considers that a skill transfer was successful, it may grant an artisan an additional bonus of up to €1,000.
Furthermore, this Scheme also provides for additional financial support of a maximum of €10,000 to artisan start-ups who had acquired a skill through the support provided under these regulations.
The first call for applications is open until 15 March 2019, and further calls are scheduled for 17 May 2019 and 19 July 2019 depending on the application of funds in the previous calls. Each closing date will be followed by an evaluation stage and the projects must be approved by Malta Enterprise Corporation prior to their commencement.
Updates to existing schemes
L.N. 201 of 2018
MALTA ENTERPRISE ACT (CAP. 463)
Enterprise Support Incentives (Amendment) Regulations, 2018
By virtue of this legal notice, eligibility for the Rent Subsidy Scheme that is administered by Malta Enterprise Corporation has been extended to small undertakings (as defined) that carry out the following activities:
Other notable support measures
L.N. 209 of 2018
MALTA ENTERPRISE ACT (CAP. 123)
Tax Credit (Construction Waste Recycling) Rules, 2018
This legal notice, which applies for years of assessment 2018, 2019 and 2020, provides a tax credit to duly authorised persons that accept, in their quarries, construction and demolition materials from third parties at a fee not exceeding €5.50 per tonne. The tax credit amounts to 25% of the gross fees received for the provision of the said services, capped at the tax on the chargeable income derived from the provision of those services for the relevant year.
Important Reminders
Investment Aid Tax Credits 2014 - 2020 scheme - new projects
Applications under the above-captioned scheme for initial investment projects which started after 1 January 2018 should be submitted within one year from the start of works date of the project.
Investment Aid Tax Credits 2014 - 2020 scheme - pre-approved projects with a start of works date earlier than 31 December 2017
Enterprises that obtained a pre-approval from Malta Enterprise Corporation in respect of an investment project(s) commencing before 31 December 2017 (and satisfying other relevant criteria) are required to submit the Claim Form for qualifying expenditure incurred during 2018 by end of March 2019.
Get Ready Scheme
Undertakings eligible to apply under this scheme should submit their requests for support by 28th February 2019.
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