G/SCM/N/343/EU/Add.19  
 
13 August  2019 
(19-5258) Page: 1/86 
Committee on Subsidies and Countervailing Measures  Original: English  
 
 SUBSIDIES  
NEW AND FULL NOTIFIC ATION PURSUANT TO AR TICLE XVI:1 OF THE  
GATT 1994 AND ARTICL E 25 OF THE AGREEMEN T ON 
SUBSIDIES AND COUNTE RVAILING MEASURES  
EUROPEAN UNION 
Addendum  
The following addendum to the notification of the notification  of the European Union relates to 
subsidy programmes of Malta . 
 
_______________  
 G/SCM/N/343/EU/Add.19  
 
- 2 - 
 
  TABLE OF CONTENTS  
INTRODUCTION  ................................ ................................ ................................ ...............  4 
1   INVESTMENT AID S CHEME  ................................ ................................ ..........................  4 
2   INVESTMENT AID T AX CREDITS 2014 - 2020 ................................ ..............................  6 
3   BUSINESS START ( B. START)  ................................ ................................ ....................  11 
4   CERTIFY (TAX CRE DITS) 2017 -2018  ................................ ................................ .........  16 
5   CERTIFY (TAX CRE DITS) 2018 – 2020  ................................ ................................ ....... 18 
6   SOFT LOANS  ................................ ................................ ................................ ..............  20 
7   INTEREST RATE SU BSIDIES SCHEME  ................................ ................................ .........  21 
8   LOAN GUARANTEES  ................................ ................................ ................................ ... 23 
9   TRADE PROMOTION SCHEME  ................................ ................................ .....................  24 
10   BUSINESS DEVELO PMENT AND CONTINUITY  SCHEME  ................................ .............  26 
11   BUSINESS ADVISO RY SERVICES SCHEME  ................................ ................................  28 
12   GOZO TRANSPORT GRANTS SCHEME  ................................ ................................ ....... 30 
13   MICRO INVEST  ................................ ................................ ................................ ........  33 
14   RENT SUBSIDY SC HEME  ................................ ................................ ..........................  37 
15   RESEARCH AND DE VELOPMENT 2014 - 2020 ................................ ...........................  39 
16   R & D FEASIBILI TY STUDIES 2014 - 2020 ................................ ...............................  42 
17   START -UP FINANC E 2017 - 2020  ................................ ................................ .............  44 
18   BUSINESS ASSOCI ATIONS GRANT SCHEME  ................................ .............................  46 
19   ENERGY AUDIT VO UCHER SCHEME  ................................ ................................ ..........  48 
20   AID FOR RESEARC H AND DEVELOPMENT PR OJECTS (TAX CREDITS)  .......................  50 
21   TAX CREDITS FOR  R&D AND INNOVATION  ................................ ..............................  53 
22   KNOWLEDGE TRANS FER SCHEME  ................................ ................................ ............  55 
23   COOPERATE FOR G ROWTH  ................................ ................................ ......................  58 
24   LEAP2ENTERPRISE  SCHEME  ................................ ................................ ....................  60 
25   SUPPORT FOR THE DEVEL OPMENT OF BUSINESS U NITS  
AT THE ARTISAN VILLA GE, TA' -QALI ................................ ................................ ..............  62 
26   FAMILY BUSINESS  SUPPORT SERVICES  ................................ ................................ .. 64 
27   FAMILY BUSINESS  TRANSFER OF OWNERSH IP ................................ .......................  67 
28   DAIRY SCHEME  ................................ ................................ ................................ ........  69 
29   DROUGHT SCH EME ................................ ................................ ................................ .. 69 
30   TRAINEESHIP SCH EME ................................ ................................ ............................  70 
31   WORK EXPOSURE S CHEME  ................................ ................................ ......................  72 
32   WORK PLACEMENT SCHEME  ................................ ................................ ....................  73 
33   YOUTH GUARANTEE  2.0 SCHEME ESF.01.0 02 ................................ ...........................  74 
34   TRAINING PAYS SCHEME  ................................ ................................ ........................  77 
35   INVESTING IN SK ILLS SCHEME  ................................ ................................ ...............  78 
36   ACCESS TO EMPLO YMENT (A2E) SCHEME  ................................ ................................  80 
37   PROMOTING ECONO MIC COHESION IN GOZO  (AGRICULTURAL SECTO R) ................  82 G/SCM/N/343/EU/Add.19  
 
- 3 - 
 
  38   FRUITS AND VEGE TABLES GRADING AND P ACKAGING FACILITY  ............................  83 
39   TRANSPORT OF FO DDER  ................................ ................................ ..........................  83 
40   PROMOTING ECONO MIC COHESION IN GOZO  (FISHERIES SECTOR)  .......................  84 
41   PROMOTING ECONO MIC COHESION IN GOZO  (INDUSTRIAL SECTOR)  ....................  85 
  G/SCM/N/343/EU/Add.19  
 
- 4 - 
 
  INTRODUCTION  
This report covers state aid programmes and schemes that were in operation between 2017 and 
2018.  The amounts stated in this report are in the Euro currency ( EUR). 
1  INVESTMENT  AID SCHEME  
1. Title of the subsidy  
Investment Aid Scheme.  
2. Period covered by the notification  
The period covered by this notification starts from the 1st January 2017 until the 
31st December  2018.  
3. Policy objective and / or purpose of the subsidy  
The Investment Aid Scheme seeks to assist the development of Malta by promoting the expansion 
and diversification of economic activities of enterprises located in Malta as well as to encourage firms 
to set up new establishments.  
The main benefits d erived from this assistance include:  
- Increased investment;  
- Increased job opportunities;  
- Increase in the GDP . 
4. Background and authority for the subsidy  
The Investment Aid Scheme is administered by Malta Enterprise Corporation.  
Malta Enterprise Corporation  may issue and publish the official  incentive guidelines  covering this aid 
scheme in terms of Article 8 (3)(a) of the Malta Enterprise Act, Chapter 463 of the Laws of Malta.  
The Corporation may design support measures in terms of the Malta Enterprise Act:  
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1  
The Investment Aid Regulations as Subsidiary Legislation 463.02 to the Malta Enterprise Act, 
mentioned in the previous paragraph, forms the national legal basis of this aid scheme.  
http://justiceservices.gov.mt/DownloadDocument .aspx?app=lom&itemid=11607&l=1  
The terms and conditions covering this aid scheme are in line with Article 13 – Regional investment 
and employment aid of Section 1 - Regional Aid of Commission Regulation (EC) No 800/2008 of 
6 August  2008 declaring certain c ategories of aid compatible with the common market in application 
of Articles 87 and 88 of the Treaty (General block exemption Regulation). The State Aid number of 
the Investment Aid Scheme is SA 34221 (2012/X).  
In terms of the Malta Enterprise Act mention ed above, the parameters of aid and details of the 
support measure are found in the  incentive guidelines . These  incentive guidelines  are a set of rules 
issued by the Corporation from time to time containing details on the definition, application, 
administr ation, grant and revocation of the schemes. The  incentive guidelines  for Investment Aid 
Scheme may be accessed by using the following link:  
https://www.maltaenterprise.com/sites/default/files/Investment%20Aid%20Tax%20Credits%20In
centive%20Guidelines%20%28valid%20up%20to%20June%202014%29.pdf  G/SCM/N/343/EU/Add.19  
 
- 5 - 
 
  5. Form of subsidy  
The scheme allows aid to be awarded as a cash grant or a tax credit.  When aid is awarded as a tax 
credit, the aid will be granted automatically subject to certain objective criteria being fulfilled.  If the 
form of aid was not in the form of a tax credit, then the aid must be pre -approved in writing before 
work on the project is initiated.  The aid reported in the relevant period refers only to tax credit in 
respect of project that met the parameters of the scheme due to the nature of tax credits are 
materialising following the investme nt. 
The assistance provided by this support measure is calculated either in reference to material and 
immaterial investment costs resulting from an initial investment project or in reference to wage 
costs for the initial two (2) years of jobs directly crea ted by the investment project.  
6. To whom and how the subsidy is provided  
Eligible enterprises for the assistance provided by this aid scheme may be Micro, SMEs or Large 
Enterprises.  
Aid Intensities  
The total amount of investment aid that may be awarded in  terms of these regulations for a given 
investment project shall be:  
- In the case of a company which qualifies as a "Small " enterprise, never exceed 50% of 
the eligible investment;  
- In the case of a company which qualifies as a "Medium " enterprise, never exc eed 40% 
of the eligible investment;  
- In the case of a company which qualifies as a "Large " enterprise, never exceed 30% of 
the eligible investment . 
Qualifying Activities  
The activities that qualify for Investment Aid are as follows:  
a. (i.) the production, manufacture, improvement, assembly, preservation, processing of 
any goods, materials, commodities, equipment, plant and machinery;  
(ii.) the rendering of any industrial services analogous to the activities mentioned in (i.) 
above;  
 (iii.) the repair, overhaul or maintenance of pleasure crafts, yachts not having more 
than thirty  berths, aircraft, engines or equipment incorporated or used in such vessels 
or aircraft;  
b. Information and Communications Technology (I.C.T. ) development activities, software 
development, Information Technology (I.T.) enabled services including call centres and 
Information Technology (I.T.) solutions, but excludin g telecommunications service 
providers;  
c. research and development, and innovative start -ups; 
d. eco-innovations, waste treatment and environmental solutions;  
e. biotechnology, comprising the production or development of intellectual property or 
goods or the rendering of services resulting from, or related to, the study, research, 
discovery, application, modification or development of living organisms or materials 
derived from them;  
f. the provision of facilities directly required in the development or pro duction of feature 
films, television programmes or commercials;  G/SCM/N/343/EU/Add.19  
 
- 6 - 
 
  g. the provision of science and technology private tertiary education;  
h. the provision of private health -care services through the setting up of new projects 
carrying out an investment of not  less than €2.5 million in medical equipment, excluding 
land or buildings;  
i. the provision of logistics services that include part -transformation that adds value by 
undertakings employing not less than 250 full -time employees or their equivalent;  
j. activities set out in Article 11 of the Malta Freeports Act and carried on mainly in a 
Freeport as defined by the Act by an undertaking licensed under the Act.  
7.  Amount of subsidy  
2017 – €50,369,848.00 . 
2018 – €26,126,626.00 . 
The values found in this report r elate to fiscal  incentive s claimed by undertakings as follows:  
2017: the values are for year of assessment 2017 (financial year 2016 ). 
2018: the values are for year of assessment 2018 (financial year 2017 ). 
The Corporation is not yet in a position to repor t the values of the aid applicable to fiscal  incentive s 
for financial year 2018.  This information will be reported in the next WTO report since the audited 
financial statements for financial year 2018 are still not available.  
8. Duration of subsidy  
This incentive  measure was implemented on the 1st January 2008 and terminated on the 
30th June 2014.  
9. Trade effects of the subsidy  
There are no effects on international trade.  
2   INVESTMENT AID TAX CREDITS 2014 - 2020  
1. Title of the subsidy  
Investment Aid Tax Credits 2014 – 2020.  
2. Period covered by the notification  
The period covered by this notification starts from the 1st January 2017 until the 
31st December  2018.  
3. Policy objective and / or purpose of the subsidy  
Investment Aid Tax Cred its 2014  – 2020 is intended to facilitate initial investments by encouraging 
the setting up of new establishments and the expansion and development of existing businesses.  
4. Background and authority for the subsidy  
The Investment Aid Tax Credits 2014 – 2020 is administered by Malta Enterprise Corporation.  
Malta Enterprise Corporation may issue and publish the official  incentive guidelines  covering this aid 
scheme in terms of Article 8 (3)(a) of the Malta Enterprise Act, Chapter 463 of the Laws of Malta.  G/SCM/N/343/EU/Add.19  
 
- 7 - 
 
  The Corporation may design support measures in terms of the Malta Enterprise Act:  
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1  
The Investment Aid (July 2014 ) Regulations as Subsidiary Legislation 463.10 to the Malta Enterprise 
Act, mentioned in the previous paragraph, forms the national legal basis of this aid scheme.  
http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=12252&l=1  
The terms and conditions covering this aid scheme shall be in line with Commission Regul ation 
(EU) No 651/2014 of 17th June 2014 declaring certain categories of aid compatible with the internal 
market in application of Articles 107 and 108 of the Treaty, (OJ L 187/1, 26.6.2014 ). 
http://eur -lex.europa.eu/legal -content/EN/TXT/PDF/?uri=CELEX:32014R0651&from=EN  
In terms of the Malta Enterprise Act mentioned above, the parameters of aid and details of the 
support measure are found in the  incentive guidel ines. These  incentive guidelines  are a set of rules 
issued by the Corporation from time to time containing details on the definition, application, 
administration, grant and revocation of the schemes. The  incentive guidelines  for Investment Aid 
Tax Credits 2014 – 2020 may be accessed by using the following link:  
https://www.maltaenterprise.com/sites/default/files/Guidelines%20version%203.2_1.pdf  
5. Form of su bsidy  
In principle this is a fiscal measure, yet at the discretion of the Corporation, cash grants may be 
exceptionally awarded in respect to initial investment projects that provide a significant contribution 
to the development of the Maltese economy.  
Qualifying Expenditure  
Eligible expenditure shall be considered to be tangible and intangible assets that are incurred as a 
result of an eligible initial investment project.  
The value of qualifying expenditure is calculated either as the value of qualifying a ssets acquired in 
relation to an initial investment project or the value of wage costs for jobs directly created by the 
initial investment project.  In any case, all figures used shall be taken before any deduction of tax or 
other charge (unless such taxes or charges are otherwise recoverable ). 
Qualifying Tangible Assets  
For the purpose of this support measure, "Qualifying Tangible Assets " means assets consisting of 
land, building and plant, machinery and equipment.  The assets required shall be new for SMEs and 
for the acquisition of an establishment.  In any case, the asset needs to be first time used in Malta.  
With the exception of plant o r equipment which has become outdated due to rapid technological 
change, the tangible assets must be kept by the undertaking for at least five (5) years or 
three  (3) years in the case of SMEs, after completion of the investment.  
Qualifying Intangible Asset s 
For the purpose of this  incentive , "Qualifying Intangible Assets " means assets that do not have a 
physical or financial embodiment such as patent rights, licences, know -how or other intellectual 
property.  Costs for the procurement of Qualifying Intangibl e Assets shall be considered only if the 
assets are:  
a. used exclusively in the undertaking receiving the aid;  
b. regarded as amortizable assets;  
c. purchased under market conditions from third parties unrelated to the buyer;  G/SCM/N/343/EU/Add.19  
 
- 8 - 
 
  d. included in the assets of the undertaking receiving the aid and must remain associated 
with the project for which the aid is granted for at least five years or three years in the 
case of SMEs.  
Qualifying assets when acquiring the assets of an establishment  
In the case of acquisition of  the assets belonging to an establishment that has closed or would have 
closed had it not been purchased, the following rules shall be applicable:  
a. Only the costs of assets purchased from third parties unrelated to the buyer shall be taken 
into consideratio n. The transaction shall take place under market conditions;  
b. If aid has already been granted for the acquisition of assets prior to their purchase, the 
costs of those assets shall be deducted from the eligible costs related to the acquisition of 
an establi shment;  
c. Where a member of the family of the original owner, or an employee, takes over a small 
enterprise, the condition that the assets be bought from third parties unrelated to the 
buyer shall be waived ; 
d. The acquisition of shares does not constitute init ial investment and hence does not 
constitute a qualifying expenditure.  
Calculating the value of investment on the basis of jobs created  
For calculating the value of qualifying investment on the basis of job creation, the qualifying wage 
costs covering new employment created within three (3) years of the completion of the investment 
project shall be considered.  The value of aid shall be calculated as the estimate of wage costs arising 
from job creation as a result of an initial investment, calculated over a period of two (2) years and 
actual disbursement of support will be in relation to actual costs incurred.  
6. To whom and how the subsidy is provided  
Eligible undertakings are small and medium -sized enterprises in terms of Annex I of Commission 
Regulation (EU) No 651/2014, as well as large undertakings.  
To be eligible for aid through this  incentive , an undertaking must operate from Malta and be 
incorporated in the European Union as a partnership en nom collectif , en commandite  or a limited 
liability company, co -operative, family business or similar set -up. 
 Eligible Projects  
Initial Investment Projects shall be considered for support if:  
❖ The investment is related to the development of a Qualifying Economic Activity.  
❖ The underly ing Qualifying Economic Activity shall be retained in Malta for the minimum 
period of at least five (5) years or three (3) years in the case where the beneficiary is 
an SME, after completion of the investment.  
❖ The beneficiary provides a financial contribut ion of at least 25% of the eligible costs, 
either through its own resources or by external financing, in a form, which is free of 
any public support.  
❖ The applicant confirms that it has not carried out a relocation to the establishment in 
which the initial investment for which aid is requested is to take place, in the two  (2) 
years before aid application and commits that it will not carry out a relocation up to a 
period of two years after completion of the investment for which aid is requested.  
Eligible Init ial Investment Projects for SMEs  
Investment Aid Tax Credits shall be awarded to SMEs in respect to "initial investment " meaning:  
❖ An investment in tangible and intangible assets resulting in : G/SCM/N/343/EU/Add.19  
 
- 9 - 
 
  • The setting -up of a new establishment ; 
• The extension of the capacity of an existing establishment ; 
• A fundamental change in the overall production process of an existing 
establishment ; 
• A diversification of the output of an establishment into products not previously 
produced in the establishment; or  
❖ The acquisition o f assets belonging to an establishment that has closed or would have 
closed had it not been purchased and is bought by an investor unrelated to the seller 
(nevertheless the sole acquisition of the shares of an undertaking is excluded ). 
Eligible Initial Inv estment Projects for Large Enterprises  
Investment Aid Tax Credits shall be awarded to large enterprises in respect to "initial investments 
in favour of a new economic activity or activities " as long as the activity is not the same or a similar 
activity to the activity previously performed in the establishment (i.e. an activity falling under the 
same class (four-digit numerical code ) of the NACE Rev. 2 statistical classification of economic 
activities as laid down in Regulation (EC) No 1893/2006 of the Europ ean Parliament and of the 
Council of 20 December 2006 establishing the statistical classification of economic activities NACE 
Revision 2 and amending Council Regulation (EEC) No 3037/90 as well as certain EC Regulations on 
specific statistical domains ). 
An "initial investment in favour of a new economic activity or activities " means:  
a. an investment in tangible and intangible assets related to the setting up of a new 
establishment, or to the diversification of the activity of an establishment, under the 
condition that the new activity is not the same or a similar activity to the activity previously 
performed in the establishment;  or 
b. the acquisition of the assets belonging to an establishment that has closed or would have 
closed had it not been purchased, and is bought by an investor unrelated to the seller, 
under the condition that the new activity to be performed using the acquired assets is not 
the same or a similar activity to the activity performed in the establishment prior to the 
acquisition. Neverth eless, the sole acquisition of the shares of an undertaking is excluded . 
Applicable Aid Intensity1 
A) Applicable Aid intensities for project where the "start of works " is on or after 
01/07/2014 and before 31/12/2017  
The total amount of investment aid that may be awarded in terms of these regulations for a given 
investment project shall not exceed:  
a. 35% of the qualifying expenditure for an undertaking which qualifies as a "Small " 
undertaking;  
b. 25% of the qualifying expenditure for an undertaking which qualifie s as a "Medium -sized" 
undertaking;  
c. 15% of the qualifying expenditure for an undertaking which qualifies as a "Large " 
undertaking;  
d. 15% of the eligible expenditure in the case of hotels.  
                                                
1 For the purposes of calculating aid intensity and eligible costs, all figures used shall be taken before 
any deduction of tax or other charge.  G/SCM/N/343/EU/Add.19  
 
- 10 - 
 
  B) Applicable Aid intensities for projects where the "start of works " is on or after 
01/01/2018 and before 31/12/2020  
The total amount of investment aid that may be awarded in terms of these regulations for a given 
investment project shall not exceed:  
a. 30% of the qualifying expenditure for an undertaking which qualifies as a "Small " 
undertaking;  
b. 20% of the qualifying expenditure for an undertaking which qualifies as a "Medium -sized" 
undertaking;  
c. 10% of the qualifying expenditure for an undertaking which qualifies as a "Large " 
undertaking;  
d. Hotels are eligible to, 10% of the eligible expenditure in the case large undertakings, and 
15% in the case of small and medium undertakings.  
C) Large Investment Projects  
For "large investment projects " that is undergoing an initial investment as previously described and 
with eligible costs exceeding EUR 50 million, the applicable maximum permissible aid shall be 
adjusted according to the following formula:  
maximum aid amount = R × (5 + 0.50 × B + 0 × C ) 
where: R is the maximum aid intensity applicable in the area concerned established in an approved 
regional map and which is in force on the date of granting the aid, excluding the increased aid 
intensity for SMEs; B is the part of eligible costs between €50 million and €100 million; C is the part 
of eligible costs above €100 million.  
Any initial investment started by the same beneficiary (at group level ) within a period of 
three  (3) years from the date of start of works on another aided investment shall be  considered to 
be part of a single investment project.  
7.  Amount of subsid y 
2017 – Cash Grants:  €7,085,308.00  Tax Credits:  €6,425,418.00 . 
2018 – Cash Grants:  €1,225,000.00  Tax Credits:  €7,262,717.00 . 
The values found in this report relate to fiscal  incen tives claimed by undertakings as follows:  
2017: the values are for year of assessment 2017 (financial year 2016 ). 
2018: the values are for year of assessment 2018 (financial year 2017 ). 
The Corporation is not yet in a position to report the values of the a id applicable to fiscal  incentive s 
for financial year 2018.  This information will be reported in the next WTO Report since the audited 
financial statements for financial year 2018 are still not available.  
8. Duration of subsidy  
The Investment Aid Tax Credits (2014 – 2020) was affective as from the 1st July 2014 and will 
remain in force until the 31st December 2020.  G/SCM/N/343/EU/Add.19  
 
- 11 - 
 
  Amendment in Relation to Rules Concerning "Large Investment Projects ":  
(w.e.f. 04/2018 ) 
For "Large Investment Proje cts" meaning initial investment projects with value of eligible costs 
exceeding EUR 50 million, the applicable maximum permissible aid shall be adjusted according to 
the following formula:  
Maximum aid amount = R x (A + 0.50 x B + 0 x C ). 
Where:  
R is the ma ximum aid intensity applicable in the area concerned established in an approved regional 
map and which is in force on the date of granting the aid, excluding the increased aid intensity for 
SMEs;  
A is the ini tial €50 million of eligible costs;  
B is the part of eligible costs between €50 million and €100 million; and  
C is the part of eligible costs above €100 million.  
Any initial investment started by the same undertaking (at group level ) within a period of 
three  (3) years from the date of "start of works " or other aided investment in the same level  3 region 
of the Nomenclature of Territorial Units for Statistics shall be considered to be part of a single 
investment project.  Where such single investment project is a la rge investment project, the total aid 
amount for the single investment project shall not exceed the adjusted aid amount for large 
investment projects.  
9. Trade effects of the subsidy  
There are no effects on international trade.  
3  BUSINESS START (B. START ) 
1. Title of the Subsidy  
Business START  (also known as B.  Start). 
2. Period covered by the notification  
The period covered by this notification starts from the 1st January 2017 until the 
31st December  2018.  
3. Policy objectives  
The Corporation, through Busine ss START, is offering assistance to small start -up undertakings.  The 
support measure is intended to support small start -up undertakings that have a viable business 
concept and are in their early stages of their development.  Ensuring that viable small start-up 
undertakings have access to suitable assistance is essential for a sustainable economy.  In this 
regard, the Corporation is dedicated to creating the conditions for a strong sustainable growth by 
ensuring that small start -up undertakings in the reg ion of Malta are assisted so that they may be 
competitive, dynamic and able to internationalise and participate in efficient markets.  
The benefits expected to be derived from this scheme are related to facilitating access to finance for 
small start -up unde rtakings that are in the process of establishing and/or consolidating a business 
operation that has been deemed as economically feasible and innovative.  Various studies have 
shown that financial access promotes growth for undertakings through the provision  of credit to both 
new and existing businesses. Such financing is beneficial to both the beneficiaries and in return to 
the economy in general by accelerating economic growth, intensifying competition, as well as 
boosting employment.  G/SCM/N/343/EU/Add.19  
 
- 12 - 
 
  For the purpose of thi s incentive , a "Small Start -up Undertaking " shall be defined as an unlisted 
small undertaking that has been established for less than five (5) years which has not yet distributed 
profits and has not been formed through a merger.  
For undertakings that are n ot subject to registration, the five (5) years eligibility period will be 
considered to start from the moment when the undertaking becomes liable to tax on income from 
its economic activity.  
The main factors determining whether an undertaking is a small un dertaking are:  
1) number of employees which must be less than fifty (50) full-time equivalent (FTE) 
employees; and  
2) a turnover or balance sheet total which does not exceed €10 million.  
Establishment Date (Start -up Date ) 
The establishment date of an undertaking  shall be determined as follows:  
In the case of limited liability companies, the establishment date shall be deemed to be the date of 
registration with the Malta Financial Services Authority (MFSA ) as long as the undertaking was not 
operative under a diffe rent form before registering with the MFSA.  The audited accounts of the 
company shall be used to determine whether the company actually distributed profits.  
In the case of self –employed, the establishment date shall be determined as the date the person 
registered as a self -employed with Jobsplus.  
i. In the case of registered partnerships, the establishment date shall be determined as the 
date an agreement is signed between the parties within the respective part nerships as 
duly registered with the Registry of Companies.  
ii. In the case of unregistered partnerships , the earlier date in which any involved individual 
was registered as a self -employed or any involved entity was duly set up as per applicable 
regulations.  Unregistered partnership agreements have to be notarized.  
iii. In the case of cooperatives, the establishment date shall be determined as the date of 
registration of the cooperative with the Co -operatives Board for evaluation.  
For eligible undertakings that are not subject to registration, the five (5) years eligibility period will 
be considered to start from the moment when the undertaking becomes liable to tax on income from 
its economic activity.  
4. Background and authority f or the subsidy  
Business START  is administered by Malta Enterprise Corporation.  
The official  incentive guidelines  covering this aid scheme are issued and published in terms of 
Article  8 (3)(a) of the Malta Enterprise Act, Chapter 463 of the Laws of Malta.  
The Corporation may design support measures in terms of the Malta Enterprise Act:  
http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1  
Regulat ion 12 of the Assistance to Small and Medium -Sized Undertakings Regulations as subsidiary 
legislation 463.03 to the Malta Enterprise Act, Chapter 463 of the Laws of Malta forms the national 
legal basis of this Aid Scheme.  
http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=11608&l=1  G/SCM/N/343/EU/Add.19  
 
- 13 - 
 
  The terms and conditions covering this aid scheme are in line Commission Regulation (EU) No 
651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in 
application of Articles 107 and 108 of the Treaty (General Block  Exemption Regulation ). 
http://eur -lex.europa.eu/legal -content/EN/TXT/PDF/?uri=CELEX:32014R0651&from=EN  
In terms of the Malta Enterprise Act mentioned above, th e parameters of aid and details of the 
support measure are found in the  incentive guidelines . These  incentive guidelines  are a set of rules 
issued by the Corporation from time to time containing details on the definition, application, 
administration, grant  and revocation of the schemes. The  incentive guidelines  for Business START 
(B. Start ) may be accessed by using the following link:  
https://www.maltaenterprise.com/sites/default/files/Business%20Start%20%28B%20Start%29%
20Version%206%20FINAL_0.pdf  
5. Form of subsidy  
Beneficiaries will be supported through a cash grant of up to €25,000 and must be an economic 
undertaking establish ed within the European Union and with an operating base in Malta.  An applicant 
is deemed to have an operating base in Malta if it owns, leases or has been given the right of use 
by a third -party , adequate premises from where to conduct an eligible economic  activity in the region 
of Malta and employs at least one person that is based in Malta and is liable to pay income tax in 
Malta.  
Beneficiaries must carry out a commercial activity where principle business shall be classified under 
one (1) of these sectors:  
❖ Manufacturing;  
❖ Electricity, gas, steam and air conditioning supply;  
❖ Water supply, sewerage, waste management and remediation activities;  
❖ Transport and storage;  
❖ Information and communication;  
❖ Professional, scientific and technical activities;  
❖ Admin istrative and support service activities;  
❖ Human health and social work activities;  
❖ Arts, entertainment and recreation;  
❖ Other service activities.  
Innovation:  
In order to be eligible, the applicant must be:  
a. proposing products and/or services that have potential to be marketed and distributed 
internationally; and  
b. producing products and/or services which are new or substantially improved compared to 
the state of the art in the local industry.  
Knowledge:  
The activities of the start -up undertaking must be l inked to the knowledge of the key promoter/s.  It 
is expected that the key persons engaged in the start -up have the academic background and/or 
hands on experience in the relevant sector.  
Other Provisions:  
Small start -up undertakings will not be eligible for  this incentive  if the applicant is controlled by:  
a. owners of existing businesses or other undertakings that are operative or have interests 
that exceed 25% in other undertakings in the same or related sector.  G/SCM/N/343/EU/Add.19  
 
- 14 - 
 
  b. owners of an undertaking operative in the same or related sector that had closed down in 
the twelve (12) months preceding their establishment date.  
Eligible start -up undertakings may be awarded a maximum grant of up to €25,000 over a period of 
twelve (12) months.  
An initial instalment of up to €10,000 shall be paid once the project is approved.   The initial payment 
shall only be paid on ce the applicant registers a minimum of one (1) employee.  Subsequent 
instalments shall be paid quarterly after the Corporation reviews and endorses that the progress 
achieved is in line with the business plan as approved or as adjusted to adapt to market requirement.  
The grant at the end of each quarter shall be calculated by multiplying €1,500 to the number of full-
time employees which have been engaged with the beneficiary at least one (1) month prior to the 
end of the quarter in review.  The total payment in any quarter shall not exceed €10,000.  
6. To whom and how the subsidy is provided  
In order to be eligible for assist ance in terms of B. Start,  small start-up undertakings must fill the 
following criteria:  
The applicant must be:  
a. an undertaking operating from Malta and be incorporated in the European Union  as a 
partnership en nom collectif, en commandite  or a limited liab ility company; or  
b. registered as self -employed with JobsPlus; or  
c. registered Partnership with the Malta Financial Services Authority.  In case of unregistered 
partnerships, the agreement has to be notarized; or  
d. registered as a Co -operative under the Co-operatives Societies Act, Chapter 442 of the 
Laws of Malta.  
7. Amount of subsidy  
2017 – €500,000.00 . 
2018 – €375,000.00 . 
8. Duration of subsidy  
This Support Measure was launched on the 1st June 2015 and will run till  31st December 2020.  
Amendments to The Definition of a Start -Up Undertaking (w.e.f. 01/2018 ) 
For the purpose of this support measure, a "Small Start -up Undertaking " shall be defined as an 
unlisted small undertaking that has been established for less than five (5) years and which fulfils all 
the following conditions:  
a. It has not taken over the activity of another enterprise;  
b. It has not yet distributed profits;  
c. It has not been formed through a merger.  Enterpr ises formed through a merger between 
undertakings that are individually eligible for aid shall also be considered as eligible 
undertakings up to five (5) years from the date of registration of the oldest enterprise 
participating in the merger.  
The main fac tors determining whether an undertaking is a Small Undertaking are:  
❖ number of employees which must be less than fifty (50) full-time equivalent (FTE) 
employees; and  G/SCM/N/343/EU/Add.19  
 
- 15 - 
 
  ❖ a turnover or balance sheet total which does not exceed €10 million.  
For undertakings that are subject to registration (such as a limited liability companies ) the 
establishment date shall be deemed to be the date of registration with the relevant authority.  In 
respect to undertakings that are not subject to registration, the five (5) years eligi bility period will 
be considered to start from the moment when the undertaking becomes liable to tax on income from 
its economic activity.  
In line with the above the following shall be applicable:  
a. In the case of limited liability companies, the establishme nt date shall be determined as 
the date of registration in the European Union as a partnership en nom collectif, 
en commandite  or a limited liability company or a similar set -up. 
b. In the case of self –employed, the establishment date shall be determined as the date the 
person registered as a self -employed with Jobsplus.  
c. In the case of registered partnerships, the establishment date shall be determined as the 
date an agreement is signed between the parties within the respective part nerships as 
duly registered in the European Union.  
d. In the case of unregistered partnerships , the earlier date in which any involved individual 
was registered as a self -employed or any involved entity was duly set up as per applicable 
regulations. Unregiste red partnership agreements have to be notarized.  
e. In the case of cooperatives, the establishment date shall be determined as the date of 
registration of the cooperative with the Co -operatives Board for evaluation.  
f. In instance where an undertaking is partner ed or linked to other undertakings the earlier 
date in which any of the related undertakings was established shall be considered as the 
establishment date. 
Additional Eligible Business Activities (w.e.f. 01/2018 ) 
❖ Mining and quarrying  
❖ Wholesale and retail t rade; repair of motor vehicles and motorcycles  
❖ Accommodation and food service activities  
❖ Financial and insurance activities  
❖ Real estate activities  
❖ Education  
Updated Rules on Subsequent Instalments (w.e.f. 01/2018 ) 
Subsequent instalments shall be paid quarterly after the Corporation reviews and endorses that the 
progress achieved is in line with the business plan as approved or as adjusted to adapt to market 
requirements.  The grant at the end of each quarter shall be calculated by multiplying €1,500 to the 
number of full-time employees who have been engaged with the beneficiary at least one (1) full 
month prior to the end of the quarter in review.  
If the beneficiary is female who is actively involved in the business development and controls at 
least 50% of the undertaking, the grant at the end of each quarter shall be calculated by multiplying 
€2,000 to the number of full-time employees  who have been engaged with the beneficiary at least 
one (1) month prior to the end of the quarter in review.  
The Corporation may approve that a Beneficiary is disbursed up to €1,000 per quarter if at the 
quarter review the beneficiary does not employ any full -time employees.  This concession shall be 
subject to the terms specified in the Corporation 's approval on the support.  
The total payment in any quarter shall not exceed €10,000.  G/SCM/N/343/EU/Add.19  
 
- 16 - 
 
  This assistance may only be provided to beneficiaries as long as:  
a. the beneficiary is classified as a start -up undertaking at the start of the quarter being 
reviewed.  
b. the beneficiary is  carrying out or is in the process of setting up the eligible activity as 
approved by the Corporation.  
9. Trade effects of the subsidy  
There were no effects on international trade.  
4  CERTIFY (TAX CREDITS ) 2017 -2018  
1. Title of the subsidy  
Certify (Tax Credit s). 
2. Period covered by the notification  
The period covered by this notification starts from the 1st January 2017 until the 
31st December  2018.  
3. Policy objective  
Certify (Tax Credits ) is a fiscal measure to encourage eligible undertakings to continuousl y improve 
the quality of their products, services and processes through the attainment of industry recognised 
certifications and quality marks.  This incentive  is intended to boost awareness of the added value 
that may be achieved through certification when  competing in international markets.  
4. Background and authority for the subsidy  
Certify (Tax Credits ) is administered by Malta Enterprise Corporation.  
The official  incentive guidelines  covering this aid scheme are issued and published in terms of 
Article  8 (3)(a) of the Malta Enterprise Act, Chapter 463 of the Laws of Malta.  
The Corporation may design support measures in terms of the Malta Enterprise Act:  
http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1  
The Enterprise Support  incentive s Regulation as subsidiary legislation 463.04 to the Malta  Enterprise 
Act, Chapter 463 of the Laws of Malta forms the national legal basis of this Aid Scheme.  
http://www.justiceservices.gov.mt/DownloadDocument.aspx?ap p=lom&itemid=11609&l=1  
The terms and conditions covering this aid scheme are in line with the Commission Regulation 
(EU) No. 1407/2013 of 18 December 2013 on the application of Articles 107 and 108 of the Treaty 
on the Functioning of the European Union to de minimis  aid (the de minimis  Regulation ). 
The total amount of de minimis  aid granted to a single undertaking shall not exceed the amount of 
€200,000 over any period of three consecutive fiscal years.  
This aggregate maximum threshold applies in principle to all economic sectors with the exception of 
the road transport, agriculture and fisheries sectors for which different thresholds and criteria apply. 
The term "undertaking " includes also all companies in a group (which fall under the direct or indirect 
ownership or control of the same ultimate parent company ) and relevant partner and linked 
enterprises as defined in Annex I of Commission Regulation (EU No. 651/2014 of 17th June 2014 ). 
This period covers the fiscal year concerned as well as the previous two fiscal years. "Fiscal year" 
means  the fiscal year as used for tax purposes by the undertaking concerned.  G/SCM/N/343/EU/Add.19  
 
- 17 - 
 
  This maximum threshold would include all State aid granted under this aid sche me and any other 
State aid measure granted under the de minimis  rule including that received from any entity other 
than Malta Enterprise.  Any de minimis  aid received in excess of the established threshold will have 
to be recovered, with interest, from the undertaking receiving the aid.  
http://ec.europa.eu/competition/state_aid/legislation/de_minimis_regulation_en.pdf  
In terms of the Malta Enterprise Act mentio ned earlier, the parameters of aid and details of the aid 
scheme are found in the  incentive guidelines . These  incentive guidelines  are a set of rules issued by 
the Corporation from time to time containing details on the definition, application, administrat ion, 
grant and revocation of aid schemes. The  incentive guidelines  for the aid scheme Certify (Tax 
Credits ) are accessible on the following link:  
https://www.maltaenterprise.com/sites/default/files/Certify%20Incentive%20Guidelines%20Versio
n%202.0%20%2831.05.2017%29_0.pdf  
5. Form of subsidy  
This incentive  will award tax credits to single undertakings that achieve quali fying certifications 
awarded by a Certifying Body.  
Qualifying Expenditure  
Eligible costs must be rendered and paid for on a date which is after the launch of this  incentive  and 
prior to the submission of the application form to the Corporation.  
(A) Consultancy Costs:  
Consultancy services leading to qualifying certifications shall be considered eligible.  The capping 
established by the Corporation is final.  
(B) Certification C osts: 
Costs incurred from a certifying body as may be required by the undertaking to achieve the 
certification.  These costs include first time audits, due diligence or verification service.  
6. To whom and how the subsidy is provided  
This incentive  is open to all undertakings which, at the point of application, satisfy the criteria 
established within the official guidelines.  
The certifications must be required to:  
a. improve the processes, products or services of the undertaking; or  
b. achieve growth in internatio nal markets.  
The Corporation may establish a tax credit capping based on the size of the single undertaking for 
any qualifying certification.  Such capping may be established through market studies or through a 
review or previous application received for th e same certification.  
Applicable Aid Intensity  
The maximum aid intensity shall be capped as follows:  
Eligible Costs  % 
Consultancy  50 
Certification  75 G/SCM/N/343/EU/Add.19  
 
- 18 - 
 
  7.  Amount of subsidy  
2017 – €113,662.00 . 
2018 – €NIL. 
8. Duration of subsidy  
This aid scheme was terminated on  the 31st December 2017.  
9. Trade effects of the subsidy  
There are no effects on international trade.  
5  CERTIFY (TAX CREDITS ) 2018 – 2020  
1. Title of Aid Scheme  
Certify (Tax Credits ) 2018 – 2020. 
2. Period covered by the notification  
The period covered by this notification starts from the 1st January 2017 until the 
31st December  2018.  
3. Policy Objective  
The main objective of this support measure is to increase the awareness of industry standards among 
the business community and to help disseminate the importance of such standards in supporting 
undertakings tackle the challenges of modern business.  
The assistance will encourage undertakings to continuously improve the quality of their products, 
services and processes through the attainmen t of industry recognised certifications and quality 
marks.  
4. Background and authority for the subsidy  
Certify (Tax Credits ) 2018 – 2020 is administered by Malta Enterprise Corporation.  
The official  incentive guidelines  covering this aid scheme are issued and published in terms of 
Article  8 (3)(a) of the Malta Enterprise Act, Chapter 463 of the Laws of Malta.  
The Corporation may design support measures in terms of the Malta Enterprise Act:  
http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1  
The Enterprise Support  incentive s Regulation as subsidiary legislation 463.04 to the Malta Enterprise 
Act, Chapter 463 of the Laws of Malta forms the nation al legal basis of this Aid Scheme.  
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=11609&l=1  
The terms and conditions covering this aid scheme are in line with the Commission Regulation 
(EU) No. 1407/2013 of 18 December 2013 on the application of Articles 107 and 108 of the Treaty 
on the Functioning of the European Union to de minimis  aid (the de minimis  Regulation ). 
The total amount of de minimis  aid granted to a single undertaking shall not exceed the amount of 
€200,000 over any period of three consecutive fiscal years.  
This aggregate maximum threshold applies in principle to all economic sectors with the exception o f 
the road transport, agriculture and fisheries sectors for which different thresholds and criteria apply. 
The term "undertaking " includes also all companies in a group (which fall under the direct or indirect G/SCM/N/343/EU/Add.19  
 
- 19 - 
 
  ownership or control of the same ultimate pare nt company ) and relevant partner and linked 
enterprises as defined in Annex I of Commission Regulation (EU No. 651/2014 of 17th June 2014 ). 
This period covers the fiscal year concerned as well as the previous two fiscal years. "Fiscal year" 
means  the fisca l year as used for tax purposes by the undertaking concerned.  
This maximum threshold would include all State aid granted under this aid scheme and any other 
State aid measure granted under the de minimis  rule including that received from any entity other 
than Malta Enterprise.  Any de minimis  aid received in excess of the established threshold will have 
to be recovered, with interest, from the undertaking receiving the aid.  
http://ec.europa.eu/competition/state_aid/legislation/de_minimis_regulation_en.pdf  
In terms of the Malta Enterprise Act mentioned earlier, the parameters of aid and details of the aid 
scheme are found in the  incentive guidelines . These  incent ive guidelines  are a set of rules issued by 
the Corporation from time to time containing details on the definition, application, administration, 
grant and revocation of aid schemes. The  incentive guidelines  for the aid scheme 
Certify  (Tax Credits ) 2018 – 2020  are accessible on the following link:  
https://www.maltaenterprise.com/sites/default/files/Certify%20IG%20version%201.pdf  
5. Form of subsidy  
The assistance provided is in the form of a tax credit of up to €25,000 per certification.  
Qualifying Expenditure  
Eligible costs must be rendered and paid  for on a date which is after the launch of this  incentive  and 
prior to the submission of the application form to the Corporation.  
(A) Consultancy Costs:  
Consultancy services provided by third parties leading to qualifying certifications shall be considere d 
eligible.  The capping established by the Corporation is final.  
(B) Certification Costs:  
Costs incurred from a Certifying Body  as may be required by the undertaking to achieve the 
Certification.  These costs include first time audits, due diligence, verification service, and laboratory 
costs.  
6. To whom and how the subsidy is provided  
This incentive  is open to all undertakings which, at point of application, satisfy the criteria established 
within the  incentive guidelines . 
Applicable Aid In tensity  
The maximum aid intensity shall be capped as follows:  
Eligible Costs  % 
Consultancy  50 
Certification  75 
The total aid that may be awarded to any single undertaking through this measure is capped at 
€25,000 per certification.  
Consultancy costs are capped at €2,500 per certification.  G/SCM/N/343/EU/Add.19  
 
- 20 - 
 
  7. Amount of subsidy  
2017 – €NIL. 
2018 – €6,150.00 . 
8. Duration of subsidy  
This incentive  will be available between 16th April 2018 and 30th November 2020.  
9. Trade effects of the subsidy  
There are no effects on international trade.  
6  SOFT LOANS  
1. Title of the subsidy  
Soft Loans . 
2. Period covered by the notification  
The period covered by this notification starts from the 1st January 2017 until the 
31st December  2018.  
3. Policy objective  
This support measure provides assistance through loans at low interest rates for part financing 
investments in qualifying expenditure.  
This assistance aims at promoting competitiveness through:  
- the acquisition of tangible and intangible capital assets for more effective and efficient 
production and supply of services;  
- innovation;  
- energy and water conservation.  
The assistance also enco urages investment in:  
- Research and development;  
- Plant and machinery first used in Malta.  
4. Background and authority for the subsidy  
This incentive  is administered by Malta Enterprise Corporation.  
The legal basis of this assistance is Regulation 8 of t he Business Promotion Regulations as subsidiary 
legislation 325.06 to the Business Promotion Act, Chapter 325 of the Laws of Malta:  
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=9791&l=1  
The Regulation for Soft Loans  may be accessed using the following link:  
https://www.maltaenterprise.com/support/soft -loans 
5. Form of subsidy  
Qualifying companies may be assisted by low interest rate loans covering up to 75% of the qualifying 
expenditure undertaken by th em. G/SCM/N/343/EU/Add.19  
 
- 21 - 
 
  Qualifying expenditure refers to expenditure of a capital nature which is incurred in acquiring, 
developing or constructing tangible fixed assets consisting of:  
a. land, industrial buildings or structures (including warehouses and offices but excluding 
showrooms ) within an industrial building or structure.  
b. plant and machinery, including computer hardware, office furniture and fittings or 
commercial vehicles as may be certified by the Corporation as essential for the 
implementation of a qualifyi ng investment project.  
c. the acquisition or development of technology or know -how whether this is patented or not.  
The loan must be secured by a general hypothec over the property of the company receiving the 
loan in addition to any other security which the Corporation may require.  
The Corporation may further accept a bank guarantee or other similar security in respect of its loan 
instead of or in addition to a general hypothec.  
The repayment of the loan and payment of interest thereon shall be made within a period of time 
and at instalments to be agreed upon with the Corporation.  Such period shall in no case exceed ten 
years from the date on which the first loan amount was received by the company.  
6. To whom and how the subsidy is provided  
Qualifying companie s may be assisted by low interest rate loans covering up to 75% of the qualifying 
expenditure undertaken by them.  
7.  Amount of subsidy  
2017 – €883,900.  
2018 – €135,905.  
8. Duration of subsidy  
There is no fixed duration for this aid scheme.  
9. Trade effect s of the subsidy  
There are no effects on international trade.  
7  INTEREST RATE SUBSID IES SCHEME  
1. Title of the subsidy  
Interest Rate Subsidies Scheme  
2. Period covered by the notification  
The period covered by this notification starts from the 1st January 2017 until the 
31st December  2018.  
3. Policy objective  
A qualifying company may benefit from this support measure through subsidised rates of interest 
payable by the company on loans which the said company may take out in order to acquire addition al 
assets to be employed in the undertaking 's trade or business to the extent that the expenditure on 
such assets constitutes qualifying expenditure.  G/SCM/N/343/EU/Add.19  
 
- 22 - 
 
  Qualifying expenditure refers to expenditure of a capital nature which is incurred in acquiring, 
developin g or constructing tangible fixed assets consisting of:  
a. land, industrial buildings or structures (including warehouses and offices but excluding 
showrooms ) within an industrial building or structure ; 
b. plant and machinery, including computer hardware, office furniture and fittings or 
commercial vehicles as may be certified by the Corporation as essential for the 
implementation of a qualifying investment project ; 
c. the acquisition or development of technology or know -how whether this is patented or not . 
The subsidy provided shall be in respect of loans taken to finance qualifying expenditure for which 
a soft loan has not been granted.  
Qualifying loans under this  incentive  shall be loans provided by banks and other licenced financial 
institutions.  
4. Background and authority for the subsidy  
This incentive  is administered by Malta Enterprise Corporation.  
The legal basis of this assistance is Regulation 9 of the Business Promotion Regulations as subsidiary 
legislation 325.06 to the Business Promotion Act, Chapter 325 of the Laws of Malta:  
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=9791&l=1  
The Regulations for Interest Rates Subsidies Scheme may be accessed using the  following 
link: 
https://www.maltaenterprise.com/support/interest -rate-subsidies  
5. Form of subsidy  
Aid provided by this support measure is a subsidy on the interest rate payable on loans.  
6. To whom and how the subsidy is provided  
This incentive  intends to support new inve stment projects undertaken by enterprises engaged in 
manufacturing.  
This incentive  consists of a loan interest rate subsidy of 1%, 2%, or 3%.   This interest rate subsidy 
may be granted on interest payable to a bank during the first five years of the durati on of the loan 
taken to finance investment in plant and equipment.  
7. Amount of subsidy  
2017 – €14,985.  
2018 – €121,338.  
8. Duration of subsidy  
There is no fixed duration for this aid scheme.  
9. Trade effects of the subsidy  
There are no effects on internat ional trade.  G/SCM/N/343/EU/Add.19  
 
- 23 - 
 
  8  LOAN GUARANTEES  
1. Title of the subsidy  
Loan Guarantees.  
2. Period covered by the notification  
The period covered by this notification starts from the 1st January 2017 until the 
31st December  2018.  
3. Policy objective  
Loan Guarantees facilitate access to finance to assist enterprises in the acquisition of capital assets 
that will lead to a more effective and efficient production and supply of service/s.  
This support measure encourages capital investments by providing guarantees to secu re up to 75% 
of the loans taken by qualifying companies to finance the acquisition of assets.  
The benefits expected to be derived from this scheme are to encourage investment in:  
• Research and development  
• Innovation  
• Plant and machinery first used in Malta  
4. Background and authority for the subsidy  
This incentive  is administered by Malta Enterprise Corporation.  
The legal basis of this assistance is Regulation 10 of the Business Promotion Regulations as 
subsidiary legislation 325.06 to the Business Promotion Act, Chapter 325 of the Laws of Malta.  
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=9791&l=1  
The Regulations for the Loan Guarantees  may be accessed by using the following link:  
https://www.maltaenterprise.com/support/loan -guarantees  
5. Form of subsidy  
Assistance provided by this support measure is in the form of a loan guarantee.  
6. To whom and how the subsidy is provided  
A qualifying company may benefit from this support measure through subsidised rates of interest 
payable by the company on loans which the said company may take out in order to acquire additional 
assets to be employed in the undertaking 's trade or business to the extent that the expenditure on 
such assets constitutes qualifying expenditure.  
Qualifying expenditure refers to expenditure of a capital nature which is incurred in acquiring, 
developing or constructing tangible fixed assets consisting of:  
a. land, industrial buildings or structures (including warehouses and offices but excluding 
showrooms ) within an industrial building or structure.  
b. plant and machinery, including computer hardware, office furni ture and fittings or 
commercial vehicles as may be certified by the Corporation as essential for the 
implementation of a qualifying investment project.  
c. the acquisition or development of technology or know -how whether this is patented or not.  G/SCM/N/343/EU/Add.19  
 
- 24 - 
 
  The loan guara ntee shall not exceed 75% of the qualifying expenditure in respect of which the loan 
is provided.  
Malta Enterprise shall keep sufficient funds on investment in order to cover the maximum amount 
of capital and interest that the Corporation may be required t o pay as guarantor at any point in time.  
This is applicable for every loan guarantee provided by the Corporation.  
While acting as guarantor, the Corporation shall retain its rights to be subrogated in the rights of 
the lender once it effects a payment under the guarantee.  
The Corporation shall only provide guarantees to banks and other licensed financial institutions.  
7. Amount of subsidy  
2017 – €3,334,346.  
2018 – €135,600.  
8. Duration of subsidy  
There is no fixed duration for this aid scheme.  
9. Trade effects of the subsidy  
There are no effects on international trade.  
9  TRADE PROMOTION SCHE ME 
1. Title of the subsidy  
Trade Promotion Scheme.  
2. Period covered by the notification  
The period covered by this notification starts from the 1st January 2017 until the 
31st December  2018.  
3. Policy objective  
International markets present various opportunities to forward -looking businesses.  Undertakings 
willing to build capacity to compete in different markets tend to be more innovative in their pr oduct/ 
service offerings and processes.  This incentive  aims to support undertakingts that are willing to 
establish new markets, or to introduce a new service or product in an existing international market.  
4. Background and authority for the subsidy  
This incentive  is administered by Malta Enterprise Corporation.  
The official  incentive guidelines  covering this aid scheme are issued and published in terms of 
Article  8 (3)(a) of the Malta Enterprise Act, Chapter 463 of the Laws of Malta.  
The Corporation may de sign support measures in terms of the Malta Enterprise Act:  
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1  
The Enterprise Support  Incentive s Regulations SL 463.04 (Malta Enterprise Act, Chapter 463 of the 
Laws of Malta ) provides the legal basis of this  incentive . 
The Corporation may design support measures in terms of the Malta Enterprise Act:  
http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=11609&l=1  G/SCM/N/343/EU/Add.19  
 
- 25 - 
 
  These  incentive guidelines  are in line with the Commission Regulation (EU) No. 1407/2013 of 
18th December  2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of 
the European Union to de minimis aid . 
The terms and conditions covering this aid  scheme are in line with the Commission Regulation 
(EU) No. 1407/2013 of 18th December 2013 o n the application of Articles 107 and 108 of the Treaty 
on the Functioning of the European Union to de minimis aid (the de minimis Regulation ). 
The total amount of de minimis aid granted to a single undertaking shall not exceed the amount of 
€200,000 over any period of three consecutive fiscal years.  
This aggregate maximum threshold applies in principle to all economic sectors with the exception of 
the road transport, agriculture and fisheries sectors for which different thresholds and criteria apply. 
The term "undertaking " includes also all companies in a group (which fall under the direct or indirect 
ownership or control of the same ultimate parent company ) and relevant partner and linked 
enterprises as defined in Annex I of Commission Regulation (EC No 800/2008 ). This period covers 
the fiscal year co ncerned as well as the previous two fiscal years. "Fiscal year" means  the fiscal year 
as used for tax purposes by the undertaking concerned.  
http://ec.europa .eu/competition/state_aid/legislation/de_minimis_regulation_en.pdf  
In terms of the Malta Enterprise Act mentioned earlier, the parameters of aid and details of the aid 
scheme are found in the  incentive guidelines . These  incentive guidelines  are a set of ru les issued by 
the Corporation from time to time containing details on the definition, application, administration, 
grant and revocation of aid schemes. The  incentive guidelines  for the Trade Promotion Scheme  
are accessible on the following link:  
https://www.maltaenterprise.com/sites/default/files/Incentive%20Guidelines%20Version%202%2
0%2831.05.2017%29.pdf  
5. Form of subsidy  
The assistance provided under the Trade Promotion  Scheme is in the form of a cash grant.  
6. To whom and how the subsidy is provided  
This incentive  is open to undertakings whose purpose is to intensify their internationalization 
activities.  The different action s that can be supported are defined into separate Schedules which 
may be available to specific business activities.  
The Applicant must be:  
a. An undertaking operating from Malta and be incorporated in the European Union  as a 
partnership en nom collectif , en commandite  or a limited liability company; or  
b. registered as self -employed with JobsPlus; or  
c. registered as a Co -operative under the Co -operatives Societies Act, Chapter 442 of the 
Laws of Malta.  
Maximum Aid And Applicable Aid Intensity  
The Corporation may reimburse up to a maximum of 50% of the eligible costs.  Per diem costs shall 
be reimbursed at up to 50% of the official government rate.  
The Corporation, in collaboration with Trade Malta, may establish lower aid intensities by economic 
activities and specifically exclude certain activities from assistance through this measure.  Such 
capping shall be based on the NACE activity of the undertaking and shall be published on the Malta 
Enterprise website.  G/SCM/N/343/EU/Add.19  
 
- 26 - 
 
  7. Amount of subsidy   
2017– €981,712.08 . 
2018 – €NIL. 
8. Duration of subsidy  
This support measure was available between the 1st November 2016 and 2nd April 2018.  
9. Trade effects of the subsidy  
There are no effects on international trade.  
10  BUSINESS DEVELOPMENT  AND CONTINUITY SCHE ME 
1. Title of the subsidy  
Business Development and Continuity Scheme.  
2. Period covered by the notification  
The period covered by this notification starts from the 1st January 2017 until the 
31st December  2018.  
3. Policy objective  
The Business Development and Continuity Scheme is intended to facilitate value adding projects 
that are expected to contribute to the regional development of Malta and to support existing 
undertakings sustain operations during restructuring.  The scheme may support various activities 
such as the initial development phase of undertakings establishing an operational base in Malta, 
expansion projects, consolidation of activities and the reorganisation of activities.  Supported 
initiatives should lead to the development of new business or to  ensuring the continuity of current 
operations.  
4. Background and authority for the subsidy  
This incentive  is administered by Malta Enterprise Corporation.  
Malta Enterprise is enabled to issue and publish official  incentive guidelines  in terms of 
Article  8 (3)(a) of the Malta Enterprise Act, Chapter 463 of the Laws of Malta.  
The Corporation may design support measures in terms of the Malta Enterprise Act:  
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1  
The Enterprise Support  Incentive s Regulations SL 463.04 (Malta Enterprise Act, Cha pter 463 of the 
Laws of Malta ) provides the legal basis of this incentive . 
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=11609&l=1  
These incentive guidelines  are in line with the Commission Regulation (EU) No. 1407/2013 of 
18t December  2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of 
the European Union to de minimis aid . 
The terms and conditions covering this aid scheme  are in line with the Commission Regulation 
(EU) No. 1407/2013 of 18th December 2013 on the application of Articles 107 and 108 of the Treaty 
on the Functioning of the European Union to de minimis aid (the de minimis Regulation ). 
The total amount of de minimis aid granted to a single undertaking shall not exceed the amount of 
€200,000 over any period of three consecutive fiscal years.  G/SCM/N/343/EU/Add.19  
 
- 27 - 
 
  This aggregate maximum threshold applies in principle to all economic sectors with the e xception of 
the road transport, agriculture and fisheries sectors for which different thresholds and criteria apply. 
The term "undertaking " includes also all companies in a group (which fall under the direct or indirect 
ownership or control of the same ult imate parent company ) and relevant partner and linked 
enterprises as defined in Annex I of Commission Regulation (EC No 800/2008 ). This period covers 
the fiscal year concerned as well as the previous two fiscal years.  "Fiscal year " means the fiscal year 
as used for tax purposes by the undertaking concerned.  
http://ec.europa.eu/competition/state_aid/legislation/de_minimis_regulation_en.pdf  
In terms of the Malta Enterprise Act mentioned earlier, the parameters of aid and details of the aid 
scheme are found in the Incentive guidelines . These Incentive guidelines  are a set of rules issued 
by the Corporation from time to time containing details on the definition, application, administration, 
grant and revocation of aid schemes. The Incentive guidelines  for the aid scheme Business 
Development and Continuity Scheme  are accessible on the following link : 
https://www.maltaenterprise.com/sites/default/files/Incentive%20Guidelines%20Version%203%2
0%2801.04.2017%29.pdf  
5. Form of subsidy  
Assistance of up to €200,000 shall be award ed through this support measure, either in the form of 
a tax credit or a cash grant.  
6. To whom and how the subsidy is provided  
The Corporation shall consider all proposals but shall give priority to:  
a. Manufacturing operations;  
b. Providers of Industrial Servi ces; 
c. Creative Enterprises;  
d. Developers of Digital Media; and  
e. Activities linked to Life Sciences.  
The value disbursed in any fiscal year shall not exceed the wage costs incurred by the single 
undertaking in that fiscal year .2 
The Corporation may grant aid un der this incentive as a:  
i. assistance equivalent or less than an increase in paid -up share capital invested in the 
beneficiary which takes place after the assistance has been approved by the Corporation.  
and/or  
ii. reimbursement of the below eligible expenses and as indicated in Section 4.5 of the 
Scheme Incentive guidelines : 
a. Relocation costs of key personnel ; 
b. Temporary secondment of personnel ; 
c. Relocation costs of assets; 
                                                
2 This Regulation will not apply to undertakings that have been registered in Malta for less than five [5] 
years  G/SCM/N/343/EU/Add.19  
 
- 28 - 
 
  d. Operating expenditure covering the twelve (12) months ; 
e. Services directly related to the business operations ; 
f. Wage costs. 
Applicants benefitting from temporary secondment may not claim for relocation of costs 
of the same personnel.  
Once a project is approv ed, the Corporation will issue a Letter of Approval or an Incentive Entitlement 
Certificate in line with Part VI of the Malta Enterprise Act, Chapter 463 of the Laws of Malta.  
7.  Amount of subsidy  
2017 – €3,091,465.  
2018 – €3,312,908.  
8. Duration of subsi dy 
The implementation date of this aid scheme was 1 st May 2016 and will run till 31 st December 2020.  
9. Trade effects of the subsidy  
There are no effects on international trade.  
11  BUSINESS ADVISORY SE RVICES SCHEME  
1. Title of the subsidy  
Business Advisory Services Scheme (Assistance for the engagement of Advisors ). 
2. Period covered by the notification  
The period covered by this notification starts from the 1st January 2017 until the 
31st December  2018.  
3. Policy objective  
The scheme aims to provide tailored business advice to undertakings through advisors selected by 
Malta Enterprise.  Each advisory service will address various aspects, key to the completive 
development and growth of the undertaking.  
The advice provided should fa cilitate business owners and management in maintaining competitivity 
and developing new market and business growth opportunities.  The knowledge gained should help 
decision makers in the supported undertaking in evaluating projects and embark on business 
development projects.  
4. Background and authority for the subsidy  
This incentive is administered by Malta Enterprise Corporation.  
Malta Enterprise is enabled to issue and publish official Incentive guidelines  in terms of 
Article  8 (3)(a) of the Malta Enterpr ise Act, Chapter 463 of the Laws of Malta.  
The Corporation may design support measures in terms of the Malta Enterprise Act:  
http://www.justiceservices.gov.mt/D ownloadDocument.aspx?app=lom&itemid=8929&l=1  
The Enterprise Support Incentives Regulations SL 463.04 (Malta Enterprise Act, Chapter 463 of the 
Laws of Malta ) provides the legal basis of this incentive . G/SCM/N/343/EU/Add.19  
 
- 29 - 
 
  http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=11609&l=1  
These incentive guidelines are in line with the Commission Regulation (EU) No. 1 407/2013 of 
18th December  2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of 
the European Union to de minimis aid .  
The terms and conditions covering this aid scheme  are in line with the Commission Regulation 
(EU) No. 1407/ 2013 of 18th December 2013 on the application of Articles 107 and 108 of the Treaty 
on the Functioning of the European Union to de minimis aid (the de minimis Regulation ). 
The total amount of de minimis aid granted to a single undertaking shall not exceed the amount of 
€200,000 over any period of three consecutive fiscal years.  
This aggregate maximum threshold applies in principle to all economic sectors with the exception of 
the road transport, agricultu re and fisheries sectors for which different thresholds and criteria apply. 
The term "undertaking " includes also all companies in a group (which fall under the direct or indirect 
ownership or control of the same ultimate parent company ) and relevant partne r and linked 
enterprises as defined in Annex I of Commission Regulation (EC No 800/2008 ). This period covers 
the fiscal year concerned as well as the previous two fiscal years. "Fiscal year"  means the fiscal year 
as used for tax purposes by the undertaking  concerned.  
http://ec.europa.eu/competition/state_aid/legislation/de_minimis_regulation_en.pdf  
In terms of the Malta Enterprise Act mentioned earlier, the pa rameters of aid and details of the aid 
scheme are found in the Incentive guidelines . These Incentive guidelines  are a set of rules issued 
by the Corporation from time to time containing details on the definition, application, administration, 
grant and revo cation of aid schemes.  The Incentive guidelines  for the aid scheme Business 
Advisory Services Scheme (Assistance for the engagement of advisors ) are accessible on 
the following link : 
https://www.maltaenterprise.com/sites/default/files/Business%20Advisory%20Incentive%20Guide
lines%20%28April%202014%29.pd f 
5. Form of subsidy  
Assistance under this aid scheme is in the form of a cash grant.  
6. To whom and how the subsidy is provided  
Aid under this support measure is available to small and medium -sized enterprises (SMEs ) as well 
as large undertakings.  
Busines s advisory services are provided with the aim to support undertakings identify strengths and 
overcome weaknesses in specific areas.  A range of business advisory services are available and 
every effort is made to match the right advisor to the specific need s of the applicant.  
Business advisory services are available for:  
a. Business start-up support;  
b. Business planning and modelling;  
c. International competitiveness and export readiness;  
d. Market development;  
e. Human resources management ; 
f. Intellectual property management and registration ; G/SCM/N/343/EU/Add.19  
 
- 30 - 
 
  g. Product and service sevelopment;  
h. Quality – certification and improvement;  
i. Information management;  
j. Engineering and logistics;  
k. Business processes reengineering;  
l. Supply chain management . 
Eligible costs and the applicable aid intens ity 
Typically, advisory services will be provided in two stages.  Stage one involves a preliminary 
investigation of particular areas which the undertaking wishes to address.  This stage will be financed 
by Malta Enterprise and is normally completed in less t han ten hours.  The value of this stage is 
estimated by Malta Enterprise at the start of the service and is granted as de minimis  aid. During 
stage two advisors will provide more focused consultancy, support and handholding and will be 
charged at by Malta E nterprise at an hourly rate of €40. Yet the costs levied will be discounted 
according to the size of the enterprise as follow s: 
• Large Enterprises   30% 
• Medium Sized Enterprise  40% 
• Small and Micro Enterprise  50% 
An undertaking may receive business advisory services  on multiple projects yet the total direct value 
financed by Malta Enterprise under this scheme is limited to €2,500 per annum . In the case an 
undertaking reaches this limit, additional advisory services  will be charged at 100% of cost.  
7. Amount of subsidy  
2017 – €28,790 . 
2018 – €NIL. 
8. Duration of subsidy  
This aid scheme was effective as from the 1st January 2014 and has terminated on the 31st December 
2017.  
9. Trade effects of the subsidy  
There are no  effects on international trade.  
12  GOZO TRANSPORT GRANT S SCHEME  
1. Title of the subsidy  
Gozo Transport Grants Scheme.  
2. Period covered by the notification  
The period covered by this notification starts from the 1st January 2017 until the 
31st December  2018.  
3. Policy objective  
The aim of this support measure Gozo Transport Grants Scheme  is to support manufacturing 
undertakings operating from Gozo  by reducing the additional inter -island transport cost incurred for 
transporting materials, goods and finished products between Malta and Gozo.  G/SCM/N/343/EU/Add.19  
 
- 31 - 
 
  This assistance serves to reduce the cost -disadvantages for manufacturers based in Gozo, rendering 
these busine sses in a better position to compete effectively within the single market.  
The benefits expected to be derived from this incentive are in relation to providing assistance to 
counter the effect of the additional operating expenses, which manufacturing compa nies operating 
from Gozo have to incur as a direct result of the double insularity of the sister island. The incentive 
assists SMEs to be more competitive.  Competitive and dynamic SMEs tend to make a sizeable 
contribution to the national economy. Such SMEs  drive the GDP and the productivity growth.  
4. Background and authority for the subsidy  
This Incentive is administered by Malta Enterprise Corporation.  
Malta Enterprise is enabled to issue and publish official Incentive guidelines  in terms of 
Article  8 (3)(a) of the Malta Enterprise Act, Chapter 463 of the Laws of Malta.  
The Corporation may design support measures in terms of the Malta Enterprise Act:  
http://www. justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1   
The Enterprise Support Incentives Regulations SL 463.04  (Malta Enterprise Act, Chapter 463 of the 
Laws of Malta ) provides the legal basis of this incentive . 
http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=11609&l=1   
These incentive guidelines  are in line with the Commission Regulation (EU) No. 1407/2013 of 
18th December  2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of 
the European Union to de minimis aid .  
The terms and conditions covering this aid scheme are in line with the Commission Regulation 
(EU) No. 1407/2013 of 18th December 2013 on t he application of Articles 107 and 108 of the Treaty 
on the Functioning of the European Union to de minimis aid (the de minimis Regulation ).  
The total amount of de minimis aid granted to a single undertaking shall not exceed the amount of 
€200,000 over an y period of three consecutive fiscal years.  
This aggregate maximum threshold applies in principle to all economic sectors with the exception of 
the road transport, agriculture and fisheries sectors for which different thresholds and criteria apply.  
The ter m "undertaking " includes also all companies in a group (which fall under the direct or indirect 
ownership or control of the same ultimate parent company ) and relevant partner and linked 
enterprises as defined in Annex I of Commission Regulation (EC No 800/ 2008). This period covers 
the fiscal year concerned as well as the previous two fiscal years. "Fiscal year" means  the fiscal year 
as used for tax purposes by the undertaking concerned.  
http://ec.europa.eu/competition/state_aid/legislation/de_minimis_regulation_en.pdf  
In terms of the Malta Enterprise Act mentioned earlier, the parameters of ai d and details of the aid 
scheme are found in the Incentive guidelines . These Incentive guidelines  are a set of rules issued 
by the Corporation from time to time containing details on the definition, application, administration, 
grant and revocation of aid schemes. The Incentive guidelines  for the aid scheme Gozo Transport 
Grants Scheme  are accessible on the following link:  
https:// www.maltaenterprise.com/sites/default/files/Gozo%20Transport%20Incentive%20Guidelin
es%20version%203.pdf  
5. Form of subsidy  
The aid shall be granted in the form of a cash grant.  G/SCM/N/343/EU/Add.19  
 
- 32 - 
 
  Qualifying Costs  
a. Transport Expenses incurred using owned or leased commercial v ehicles  
b. The Corporation will calculate the grant on the basis of the number of trips which shall be 
established by taking into account the number of ferry tickets submitted.  The grant per 
trip shall be based on the vehicle utilised which shall be determine d from the ticket 
presented as per details in the table below.  
Ticket Presented  Grant Per Trip (€)  
Car and Driver Gozo Resident  Subsidised Fare 3 50 
Gozo Subsidised Commercial Vehicle Category 2  60 
Gozo Subsidised Commercial Vehicle Category 3  70 
Gozo Subsidised Commercial Vehicle Category 4  90 
Gozo Subsidised Commercial Vehicle Category 5  100 
Gozo Subsidised Commercial Vehicle Category 6  110 
Gozo Subsidised Commercial Vehicle Category 7  120 
c. The Corporation shall establish a capping of one (1) trip per day for each commercial 
vehicle owned by or leased to the beneficiary.  
d. Subcontracted Haulage Expenses . 
e. Subcontracted haulage expenses (including fe rry costs ) are eligible for a refund of 100% 
of the invoiced value excluding VAT.  
f. Invoices shall be deemed as eligible by the Corporation if the service provided is related 
to haulage and must be accompanied by a bill of lading or a clear description of th e items 
transported.   
g. Courier Services . 
h. Subcontracted Courier services are eligible for a refund of 70% of the invoiced value 
excluding VAT.  
i. Courier services shall be deemed as eligible if the invoice provided clearly indicates the 
points of collection and drop off and as long as one of these locations is in Malta and the 
other in Gozo.  
6. To whom and how the subsidy is provided  
Gozo based unde rtakings engaged in manufacturing (NACE rev. 2.0 Section C ) and in possession of 
an entitlement certificate confirming that the Corporation is satisfied that all or a significant part of 
the manufacturing activity is being carried out in Gozo.  
To be eligib le for aid through this incentive, undertakings must be:  
a. an undertaking operating from Malta and be incorporated in the European Union as a 
partnership en nom collectif, en commandite  or a limited liability company;  
or 
b. any body of persons constituted, inco rporated or registered outside Malta, and of a nature 
similar to the above;  
or 
c. be duly registered as a Cooperative under the Cooperatives Societies Act, Chapter 442 of 
the Laws of Malta.  
                                                
3 The Corporation may request further information to confirm that the driver is an employee of the 
undertaking.  G/SCM/N/343/EU/Add.19  
 
- 33 - 
 
  Single undertakings engaged in manufacturing activities and which ope rate from Gozo may apply 
for assistance under the Gozo Transport Grants Scheme .  The expenses claimed must be related 
to the transportation of machinery, plant, materials, goods and products, required for the 
undertaking 's manufacturing activities in Gozo.  
Applicable Aid Intensities  
The Corporation will calculate the grant on the basis of the number of trips which shall be established 
by taking into account the number of ferry tickets submitted.  The grant per trip shall be  based on 
the vehicle utilised which shall be determined from the ticket presented and as stipulated in Section  4 
of the incentive guidelines . 
Subcontracted haulage expenses (including ferry costs ) are eligible for a refund of 100% of the 
invoiced value ex cluding VAT.  
Subcontracted Courier services are eligible for a refund of 70% of the invoiced value excluding VAT.  
Amendments to The Incentive Guidelines (w.e.f. 02/2018 ) 
a. As from 2018, the applicant will be required to provide a VAT receipt for all non Gozo  
subsidized ferry tickets presented.  
b. As from 2019, the applicant will be required to provide a VAT receipt for all ferry tickets 
presented.  
7. Amount of subsidy  
2017 – €347,284.59 . 
2018 – €390,559.89 . 
8. Duration of subsidy  
The Gozo  Transport Grants Scheme  was implemented on the 1st January 2016 and will run till 
31st December 2020.  Applications for costs incurred in 2020 may be received by the Corporation by 
not later than 3rd April 2021.  
9. Trade effects of the subsidy  
There are no  effects on international trade.  
13  MICRO INVEST  
1. Title of the subsidy  
Micro Invest: Tax Credit Incentive for Enterprises and Self -Employed (also known as Micro Invest ). 
2. Period covered by the notification  
The period covered by this notification starts fr om the 1st January 2017 until the 
31st December  2018.  
3. Policy objective  
The aim of the aid scheme Micro Invest: Tax Credit Incentive for Enterprises and Self Employed  is 
to encourage capital investment by undertakings and the self -employed that undertake  an economic 
activity. The assistance will help such undertakings upgrade their services through further capital 
investment and refurbish their business facilities. The acquisition of adequate equipment and the 
necessary refurbishment will enhance the econ omic activity undertaken.  
Assistance approved under this aid scheme will create growth in local micro and small undertakings.  G/SCM/N/343/EU/Add.19  
 
- 34 - 
 
  The assistance also facilitates the development of economic activities of such undertakings as well 
as those of sole traders thus making them innovative and more competitive whilst facilitating job 
retention.  
4. Background and authority for the subsidy  
This incentive is administered by Malta Enterprise Corporation.  
Malta Enterprise is enabled to issue and publish official Incentive g uidelines  in terms of 
Article  8 (3)(a) of the Malta Enterprise Act, Chapter 463 of the Laws of Malta.  
The Corporation may design support measures in terms of the Malta Enterprise Act:  
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1  
The Tax Credits for Micro Enterprises and Self -Employed Regulations as Subsidiary Legislation 
463.09 to the Malta Enterprise Act, forms the national legal basis of this aid scheme.  
http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=12194&l=1  
These incentive guidelines  are in line with t he Commission Regulation (EU) No. 1407/2013 of 
18th December  2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of 
the European Union to de minimis aid . 
The terms and conditions covering this aid scheme are in line with the Commission Regulation 
(EU) No. 1407/2013 of 18th December 2013 on the application of Articles 107 and 108 of the Treaty 
on the Functioning of the European Union to de minimis aid (the de minimis Regulation ). 
The total amount of de minimis aid granted to a single undertaking shall not exceed the amount of 
€200,000 over any period of three consecutive fiscal years.  
This aggregate maximum threshold applies in principle to all economic sectors with the exception of 
the road transport, agricultu re and fisheries sectors for which different thresholds and criteria apply.  
The term "undertaking " includes also all companies in a group (which fall under the direct or indirect 
ownership or control of the same ultimate parent company ) and relevant partne r and linked 
enterprises as defined in Annex I of Commission Regulation (EC No 800/2008 ). This period covers 
the fiscal year concerned as well as the previous two fiscal years. "Fiscal year" means  the fiscal year 
as used for tax purposes by the undertaking  concerned.  
http://ec.europa.eu/competition/state_aid/legislation/de_minimis_regulation_en.pdf  
In terms of the Malta Enterprise Act mentioned earlier, the pa rameters of aid and details of the aid 
scheme are found in the Incentive guidelines . These Incentive guidelines  are a set of rules issued 
by the Corporation from time to time containing details on the definition, application, administration, 
grant and revo cation of aid schemes. The incentive guidelines  for the aid scheme Micro Invest  are 
accessible on the following link:  
https://www. maltaenterprise.com/sites/default/files/Micro%20Invest%20Incentive%20Guidelines
%20version%207.pdf  
5. Form of subsidy  
Aid awarded under this support measure is in the form of a tax relief (tax credit ). 
Eligible costs for the aid scheme Micro Invest: Tax Credit Incentive for Enterprises and Self Employed  
must be incurred and paid for between 1st January 2014 and 31st December 2020 and submitted 
within the following stipulated deadlines.  G/SCM/N/343/EU/Add.19  
 
- 35 - 
 
  Claims 
for 
costs 
incurred 
in Primary 
Deadline(self 
employed 
submitting tax 
return in June):  Primary 
Deadline(Companies 
submitting tax 
return in 
September):  Late Submissions  Eligible Ap plication 
will receive an  
Incentive Entitlement 
Certificate 
commencing from 
year of assessment  
2014 30th March 2015    2015 
  30th November 2015  2016 
2015 30th March 2016    2016 
  30th November 2016  2017 
2016 30th March 2017  31st May 2017   2017 
  15th December 2017  2018 
2017 28th March 2018  30th May 2018   2018 
  12th December 2018  2019 
2018 27th March 2019  29th May 2019   2019 
  11th December 2019  2020 
2019 25th March 2020  27th May 2020   2020 
  16th December 2020  2021 
2020 24th March 2021 26th May 2021   2021 
   15th December 2021  2022 
Applicants that submit their application by the primary deadlines and whose application is accepted 
by the Corporation will receive an Incentive Entitlement Certificate which shall be valid from that 
Year of Assessment.  
Applicants that submit their application after the primary deadlines but not later than the extended 
deadline and whose application is accepted by the Corporation will receive an Incentive Entitlement 
Certificate valid from the fol lowing Year of Assessment.  
An undertaking that submits a claim by the March deadline may not submit another claim in 
November of the same year unless the claim submitted in March is rejected by the Corporation.  
Qualifying Expenditure  
Wage Costs  
Eligible undertakings may apply for a tax credit on an increase in wage cost that exceed 3%, 
calculated by deducting from wage costs incurred in the relevant fiscal year, the highest annual 
wage cost incurred in the preceding two (2) fiscal years.  
Furbishi ng and refurbishing  
Costs incurred for services rendered for the furbishing, refurbishing and upgrading of business 
premises by third parties, including costs of materials and other items required for furbishing, 
refurbishing and upgrading of the business premises that are endorsed as to have been utilised by 
the third party providing the services in the works carried out.  
When furbishing and refurbishing works are carried out by the applicant or the applicant 's 
employees, the Corporation shall accept the c osts incurred for the purchase of materials if 
photographic evidence of the works is provided.  
The furbishing and refurbishing property intended for short term lets is only considered when the 
property is adequately licensed at the time of application.  
Investment Costs  
Eligible undertakings may apply for investments in:  
a. Acquiring new (or first time used in Malta ) machinery, technology, apparatus and 
instruments.  
b. Systems intended to produce alternative energy.  G/SCM/N/343/EU/Add.19  
 
- 36 - 
 
  c. Tangible and intangible assets required for digitisation of the business operation.  Eligible 
costs may include:  
i. Computer hardware.  
ii. Packaged software solutions.  
iii. Development costs for new software systems, websites and digital applications.  In 
these instances, the applicant must submit the agreement w ith the supplier 
specifying the parameters and functionality of the systems/website/application 
being developed.  Maintenance costs are not eligible.  
iv. Costs incurred in relation to the applicant 's websites developments, updates and 
enhancement.  
Motor Vehicle  Costs  
Over a period of three (3) years, eligible undertakings may claim the cost incurred for the purchase 
of one (1) commercial vehicle which must be new or first time registered in Malta.  
As from 2018 (for costs incurred in 2017 ), an eligible undertakin g may also claim cost for the 
purchase of all new commercial vehicles having the latest European Emission Standard rating 
(currently Euro 6 (2014)) procured to replace similar vehicles shall be considered as eligible.  
6. To whom and how the subsidy is paid  
Assistance awarded under this aid scheme will encourage undertakings to invest in their economic 
activities so that they may innovate, expand, implement compliance directives or develop their 
operations. Such undertakings may include self -employed persons . 
Undertakings will be supported through a tax credit representing a percentage of the eligible 
expenditure and wage costs.  
This incentive is open to all undertakings, which at point of application satisfy all of the following 
criteria:  
For applications re ceived unit 31st December 2017, the applicant must be an undertaking that for a 
consecutive three (3) month period during the year in which the costs were incurred did not employ 
more than thirty (30) persons on full-time (FT) contracts (the data used to v erify this condition is 
provided by Jobsplus ). 
As from 1st January 2018 an applicant must be an undertaking that for a consecutive three (3) month 
period during the year in which the costs were incurred did not employ more than fifty (50) persons 
on full-time (FT) contracts (the data used to verify this condition is provided by Jobsplus ). 
• The applicant must be an undertaking whose turnover did not exceed €10 million in 
the fiscal year preceding the year in which the application is submitted.  
• At the date of application, the applicant (legal person submitting the application ) must 
employ at least one (1) person (on full - or part -time basis ). 
• Unless exempted, applicants should be duly registered with the VAT department.  
• Persons or undertakings en gaged in activities specifically excluded under the 
de minimis  regulations are not eligible for this incentive.  
Applicants who have applied for investment aid measures (such as the Investment Aid Tax Credits 
2014 – 2020) may not apply for this incentive an d for any investment carried out within the same 
year. G/SCM/N/343/EU/Add.19  
 
- 37 - 
 
  Applicable aid intensity  
Under this aid scheme, Malta Enterprise Corporation may approve a tax credit equivalent to 45% of 
the eligible expenditure. An additional bonus of 20% (and that is, a total 65%  tax credit ) applies to 
undertakings operating from Gozo.  
As from 1st January 2018, (for costs incurred in 2017 ), the maximum eligible tax credits per single 
undertaking shall be capped at €50,000 over any period of three (3) consecutive fiscal years, star ting 
from eligible expenses incurred and paid for during the period from 1st January 2017 to 
31st December  2017.  
This capping specified above shall be increased by €20,000 (to a total of €70,000 ) for undertakings:  
• operating from Gozo;  
• registered as Family Business; and  
• having more than 50% of the ownership attributed to female persons.  
In case of partnerships the eligible amount will be split according to ownership.  Hence, in case of a 
partnership, where ownership is split equally between two persons , two Incentive Entitlement 
Certificates, each equivalent to 50% of the approved tax credits will be issued to the persons forming 
the partnership.  
Legal persons forming part of multiple partnerships and that may also be carrying out other activities 
throu gh self -employment may receive support through the different undertakings in which they are 
active but may not benefit from a tax credit which exceeds the relevant maximum capping as 
established above.  
7. Amount of subsidy  
2017 – €15,222,275.91 . 
2018 – €25,540,172.47 . 
8. Duration of subsidy  
This incentive was effective as from 1st January 2014 and shall be available until 31st December 
2020.  
9. Trade effects of the subsidy  
There are no effects on international trade.  
14  RENT SUBSIDY SCHEME  
1. Title of the subs idy 
Rent Subsidy Scheme.  
2. Period covered by the notification  
The period covered by this notification starts from the 1st January 2017 until the 
31st December  2018.  
3. Policy objective  
The main objective of the support measure Rent Subsidy  is to support small undertakings engaged 
in manufacturing activities that require industrial space as a temporary, or permanent, solution to: 
implement growth plans, handle an increase in orders, and/o r carry out process innovations required 
to increase efficiency.  G/SCM/N/343/EU/Add.19  
 
- 38 - 
 
  4. Background and authority for the subsidy  
This incentive is administered by Malta Enterprise Corporation.  
Malta Enterprise is enabled to issue and publish official Incentive guidelines  in terms of 
Article  8 (3)(a) of the Malta Enterprise Act, Chapter 463 of the Laws of Malta.  
The Corporation may design support measures in terms of the Malta Enterprise Act:  
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1  
The Enterprise Support Incentives Regulations SL 463.04  (Malta Enterprise Act, Chapter 463 of the 
Laws of Malta ) provides the legal basis of this incentive . 
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=11609&l=1  
These incentive guidelines  are in line with the Commission Regulation (EU) No. 1 407/2013 of 
18th December  2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of 
the European Union to de minimis aid . 
The terms and conditions covering this aid scheme are in line with the Commission Regulation 
(EU) No. 1407/2 013 of 18th December 2013 on the application of Articles 107 and 108 of the Treaty 
on the Functioning of the European Union to de minimis aid (the de minimis Regulation ). 
The total amount of de minimis aid granted to a single undertaking shall not exceed the amount of 
€200,000 over any period of three consecutive fiscal years.  
This aggregate maximum threshold applies in principle to all economic sectors with the exception of 
the road transport, agricultu re and fisheries sectors for which different thresholds and criteria apply.  
The term "undertaking " includes also all companies in a group (which fall under the direct or indirect 
ownership or control of the same ultimate parent company ) and relevant partne r and linked 
enterprises as defined in Annex I of Commission Regulation (EC No 800/2008 ). This period covers 
the fiscal year concerned as well as the previous two fiscal years. "Fiscal year" means  the fiscal year 
as used for tax purposes by the undertaking  concerned.  
http://ec.europa.eu/competition/state_aid/legislation/de_minimis_regulation_en.pdf  
In terms of the Malta Enterprise Act mentioned earlier, the pa rameters of aid and details of the aid 
scheme are found in the Incentive guidelines . These Incentive guidelines  are a set of rules issued 
by the Corporation from time to time containing details on the definition, application, administration, 
grant and revo cation of aid schemes. The Incentive guidelines  for the Rent Subsidy Scheme  are 
accessible  on the following link : 
https://w ww.maltaenterprise.com/sites/default/files/Rent%20Subsidy%20IG%20Version%202%2
0%2812th%20June%202017%29.pdf  
Enterprise Support Incentives Legal Notice:  
http://justi ceservices.gov.mt/DownloadDocument.aspx?app=lp&itemid=27625&l=1  
5. Form of subsidy  
The aid shall be granted in the form of a cash grant.  
Qualifying Expenditure  
The Corporation may support, through partial reimbursement, costs incurred for rental or leasing of 
premises required for:  G/SCM/N/343/EU/Add.19  
 
- 39 - 
 
  • Manufacturing activities;  
• Storage of works in progress related to manufacturing activities carried out in Malta 
by the applicant;  
• Storage of raw materials required for manufacturing activities carried out in Malta by 
the applicant ; 
• Carrying out one (1) of the NACE activities as indicated in the relative scheme 
guidelines.  
For the rental agreement to be considered for assistance, all the following conditions must be 
adhered to:  
• The property must be rented / leased from a third party in the private sector which is 
not related to the single undertaking; and  
• The rent / lease agreement must have a commencement date which is not more than 
one (1) calendar month prior to the application date.  
6. To whom and how the subsidy is provided  
This incentive is intended to support small undertakings engaged in manufacturing activities that 
require industrial space as a temporary, or permanent, solution to:  
i. implement growth plans;  
ii. handle an increase in orders; and/or  
iii. carry out process in novations required to increase efficiency.  
Maximum Applicable Aid Intensity  
The aid intensity is established at 50% of the cost incurred after excluding any taxes.  
The total aid which may be granted to a single undertaking is capped at €20,000 over a perio d of 
two (2) consecutive years.  This amount is limited up to €10,000 over any period of 12 months and 
up to €50 per square meter per annum . 
7. Amount of subsidy  
2017 – €18,500.  
2018 – €NIL. 
8. Duration of subsidy  
Applications for this support measure will be received between 1st March 2016 and 
31st October  2019.  The scheme will terminate on the 31st December 2019.  
9. Trade effects of the subsidy  
There are no effects on international trade.  
15  RESEARCH AND DEVELOP MENT 2014 - 2020  
1. Title of the subsidy  
Research and Development 2014 – 2020.  
2. Period covered by the notification  
The period covered by this notification starts from the 1st January 2017 until the 
31st December  2018.  G/SCM/N/343/EU/Add.19  
 
- 40 - 
 
  3. Policy objective  
The aim of this incentive is to:  
a. assist undertakings that  carry out Industrial Research or Experimental Development 
required for acquisition of knowledge leading to the development of innovative products 
and solutions.  
b. encourage cooperation between firms by providing additional assistance for collaborative 
Indus trial Research and Experimental Development projects, which may include Eureka 
endorsed projects and accepted under the Eurostars framework of the European 
Commission.  
4. Background and authority for the subsidy  
This incentive is administered by Malta Ente rprise Corporation.  
Malta Enterprise is enabled to issue and publish official Incentive guidelines  in terms of 
Article  8 (3)(a) of the Malta Enterprise Act, Chapter 463 of the Laws of Malta.  
The Corporation may design support measures in terms of the Malta  Enterprise Act:  
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1  
The Research and Development Activities Regulations SL 463.17  (Malta Enterprise Act, Chapter 463 
of the Laws of Malta ) provides the legal basis of this incentive . 
http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=11610&l=1  
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=12675&l=1  
The terms and conditions set out in these guidelines are in line with the Commission Regulation 
(EU) No. 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal 
market in application of Articles 107 and 108 of the Treaty.  
http://eur -lex.europa.eu/legal -content/EN/TXT/PDF/?uri=CELEX:32014R065 1&from=EN  
In terms of the Malta Enterprise Act mentioned earlier, the parameters of aid and details of the aid 
scheme are found in the incentive guidelines . These incentive guidelines  are a set of rules issued by 
the Corporation from time to time containin g details on the definition, application, administration, 
grant and revocation of aid schemes. The  incentive guidelines  for the Research and Development 
2014 - 2020  are accessible  on the following link : 
https://www.maltaenterprise.com/sites/default/files/R%26D%202014%20 -
%202020%20Incentive%20Guidelines%20%28Version %202.1%29_0.pdf  
5. Form of subsidy  
Undertakings established in Malta may benefit from assistance in the form of a cash grant covering 
wage costs capped at €500,000 per annum  per project and tax credits for other eligible costs as 
referred to in the Guideli nes. Cash grants are awarded at the sole discretion of the Corporation.  
Qualifying Expenditure  
The following costs are considered as eligible as long as they are incurred in relation to an approved 
Industrial Research or Experimental Development project af ter the "start of works ". G/SCM/N/343/EU/Add.19  
 
- 41 - 
 
  Personnel costs  
Wages of researchers and technicians, and other supporting staff, to the extent and for the duration 
that they are directly engaged on the approved research project.  
• Eligible wage costs shall be limited to the actual basic salary as defined in the employment 
contract of the employee.  (Any other costs, including bonuses, allowances, national 
insurance and other taxes, insurance payments and per diem  shall not be considered 
eligible ). 
• All employees in respect of w hom wage costs are claimed must be registered with Jobsplus 
and covered by a valid contract of employment in terms of the national legislation on 
employment.  
• Personnel costs are calculated using an hourly rate calculated on the employee 's basic 
wage.  The total hours worked by a full -time employee shall be established as 1760 hours 
per annum . 
• Eligible wage costs of supporting staff shall be capped at 10% of the total personnel costs.  
Instruments and equipment  
Costs of instruments and equipment shall be considered as eligible to the extent and for the period 
used for the project. Where such instruments and equipment are not used for their full life for the 
project, only the depreciation costs corresponding to th e life of the project, as calculated on the 
basis of generally accepted accounting principles are considered as eligible.  
Contractual research, technical knowledge and patents  
Costs of contractual research, technical knowledge and patents bought or license d from outside 
sources at arm 's length conditions, as well as costs of consultancy and equivalent services used 
exclusively for the research activity.  
Costs of consultancy and equivalent services must be rendered by either:  
i. experts in the relevant field of  research that have successfully completed doctoral 
training; or  
ii. research and knowledge -dissemination organisation; or  
iii. technical laboratories or other similar infrastructures.  
Other operating expenses  
Costs of materials, supplies and similar products, incu rred directly as a result of the project.  
6. To whom and how the subsidy is provided  
This incentive is awarded to undertakings carrying out research and development projects and which 
are classified as Industrial Research or Experimental Development as per  terms and conditions set 
within the Incentive guidelines . The objective is to assist enterprises create or improve technology 
that can provide a competitive advantage at the business, industry, or national level.  
Moreover, Malta Enterprise has re -committe d itself to participating in the Eureka Network and 
Eurostars Joint Programme between 2014 and 2020.  As a result, the proposed scheme encourages 
cooperation between firms by providing additional assistance for collaborative Eureka or Eurostars 
projects.  G/SCM/N/343/EU/Add.19  
 
- 42 - 
 
  Maximum Aid Intensities  
The maximum levels of assistance that may be provided under this incentive are found in the table 
below.  
7. Amount of subsidy  
2017 – €143,898 . 
2018 – €162,943 . 
8. Duration of subsidy  
This support measure became effective on the 1st November 2014 and will terminate on the 
31st December  2020. 
9. Trade effects of the subsidy  
There are no effects on international trade.  
16  R & D FEASIBILITY ST UDIES 2014 - 2020  
1. Title of the subsidy  
R & D Feasibility Stu dies 2014 – 2020.  
2. Period covered by the notification  
The period covered by this notification starts from the 1st January 2017 until the 
31st December  2018.  
3. Policy objective  
Since Research & Development (R&D) initiatives are associated with high risk, it is advisable that 
undertakings carry out feasibility studies to determine that the key elements of the proposed 
research project are based on sound principles.  
The objective of this incentive is to support und ertakings intending to undertake industrial research 
and experimental development projects in determining the feasibility of their planned project.  
4. Background and authority for the subsidy  
This Incentive is administered by Malta Enterprise Corporation.  
Malta Enterprise is enabled to issue and publish official Incentive guidelines  in terms of 
Article  8 (3)(a) of the Malta Enterprise Act, Chapter 463 of the Laws of Malta.  
The Corporation may design support measures in terms of the Malta Enterprise Act:  
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1  
The Research and Development Activities Regulations SL 463.17  (Malta Enterprise Act , Chapter 463 
of the Laws of Malta ) provides the legal basis of this incentive . Project Type  Small 
Undertaking  Medium 
Undertaking  Large 
Undertaking  
Industrial Research & Experimental 
Development Projects  45% 35% 25% 
Collaborative Industrial Research & 
Experimental Development Projects  60% 50% 40% G/SCM/N/343/EU/Add.19  
 
- 43 - 
 
  http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=11610&l=1  
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=12675&l=1  
The terms and conditions set out in these guidelines are in line with the Commis sion Regulation 
(EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal 
market in application of Articles 107 and 108 of the Treaty.  
http://eur -lex.europa.eu/legal -content/EN/TXT/PDF/?uri=CELEX:32014R0651&from=EN  
In terms of the Malta Enterprise Act mentioned earlier, the parameters of aid and details of the aid 
scheme are found in the incentive guidelines . These incentive guidelines  are a set of rules issued by 
the Corporation from time to time containing details on the definition, application, administration, 
grant and revocation of aid scheme s. The incentive guidelines  for the R & D Feasibility Studies 
2014 - 2020  are accessible  on the following link : 
https://www.mal taenterprise.com/sites/default/files/R%26D%20Feasibility%20Studies%20Incenti
ve%20Guidelines_0.pdf  
5. Form of subsidy  
Undertakings carrying out an R&D feasibility study may receive up to €50,000 per project. Aid is 
capped at €5,000 per full-time employee en gaged by the applicant at the time of application, 
provided that applicants established in the twenty -four (24) months preceding the date of application 
may still be approved a grant of up to €20,000 irrespective of the number of full-time employees 
engaged.  
Qualifying Expenditure  
Supported projects must be completed within six (6) months from the date the project is approved 
by the Corporation.  All eligible costs should be incurred and paid for within this timeframe.  
The following costs are considered eligible as long as they are incurred in relation to an approved 
Industrial Research and Experimental Development p roject.  
Personnel costs  
❖ Wages of researchers and technicians, and other supporting staff, to the extent and 
for the duration that they are directly engaged on the approved R&D feasibility study.  
❖ Eligible wage costs shall be limited to the actual basic sala ry as defined in the 
employment contract of the employee. (Any other costs, including bonuses, 
allowances, national insurance and other taxes, insurance payments and per diem  are 
ineligible ). 
❖ All employees in respect of whom wage costs are claimed must be registered with 
Jobsplus and covered by a contract of employment.  
❖ Personnel costs are calculated using an hourly rate calculated on the employee 's basic 
wage. The total hours worked by a full -time employee shall be established as 1760 
hours per annum . 
❖ Eligible wage costs of supporting staff shall be capped at 10% of the total personnel 
costs.  
Acquisition of Knowledge  
Costs of contractual research and technical knowledge bought or licensed from outside sources at 
arm's length conditions, as well as costs of consultancy and equivalent services used exclusively for 
feasibility study;  
Costs of consultancy and equivalent services must be rendered by either:  
i. experts in the relevant field of research t hat have successfully completed doctoral training;  G/SCM/N/343/EU/Add.19  
 
- 44 - 
 
  ii. research and knowledge -dissemination organi sation; or  
iii. technical laboratories or other similar infrastructures.  
6. To whom and how the subsidy is provided  
Undertakings employing at least two (2) full-time e mployees  that intend to carry out an industrial 
research or experimental development project may benefit from assistance under this incentive.  
The aim of carrying out such studies is to:  
• establish the feasibility of a planned industrial research and experimental development 
project.  
• The proposed study should lead to research that has clear scope and objectives and is 
of strategic importance to the undertaking.  
• The application requesting assistance should clearly indicate the methodology which 
will be adopted in carrying out the study and should also identify clear milestones and 
deliverables.  
• The extent (based on a preliminary business case ) in which the beneficiary 's growth 
in terms of market positioning, investment and employment should be enhance d, 
should the Industrial Research and Experimental Development project be carried out.  
Supported projects must be completed within six (6) months from the date the project is approved 
by the Corporation.  All eligible costs should be incurred and paid for w ithin this timeframe.  
Aid Intensity  
The maximum levels of assistance provided through this incentive is further capped at:  
Type of Undertaking  % 
Small  70 
Medium  60 
Large  50 
7. Amount of subsidy  
2017 – €34,017.  
2018 – €13,952.  
8. Duration of subsidy  
This support measure became effective on the 1st November 2014 and will terminate on the 31st 
December 2020.  
9. Trade effects of the subsidy  
There are no effects on international trade.  
17  START -UP FINANCE 201 7 - 2020  
1. Title of the subsidy  
Start-Up Finance 2017 - 2020.  
2. Period covered by the notification  
The period covered by this notification starts from the 1st January 2017 until the 
31st December  2018.  G/SCM/N/343/EU/Add.19  
 
- 45 - 
 
  3. Policy objective  
The aim of this measure is to finance innovative undertakings in their early stages of development 
by supporting Small Start -up Undertakings that demonstrate a viable business concept in the 
setting -up and initial growth phases.  
4. Background and authority for the subsidy  
This incentive  is administered by Malta Enterpri se Corporation.  
Malta Enterprise is enabled to issue and publish official  incentive guidelines  in terms of Article 8 
(3)(a) of the Malta Enterprise Act, Chapter 463 of the Laws of Malta.  
The Corporation may design support measures in terms of the Malta Enterprise Act:  
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1  
The Assistance to Small and Medium -Sized Undertakings Regu lations SL 463.03  (Malta Enterprise 
Act, Chapter 463 of the Laws of Malta ) provides the legal basis of this  incentive . 
http://justiceservices.gov.mt/DownloadDocume nt.aspx?app=lom&itemid=11608&l=1  
The terms and conditions set out in these guidelines are in line with the Commission Regulation (EU) 
No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market 
in application of Arti cles 107 and 108 of the Treaty.  
http://eur -lex.europa.eu/legal -content/EN/TXT/PDF/?uri=CELEX:32014R0651&from=EN  
In terms of the Malta Enterprise Act mentioned e arlier, the parameters of aid and details of the aid 
scheme are found in the  incentive guidelines . These  incentive guidelines  are a set of rules issued by 
the Corporation from time to time containing details on the definition, application, administration, 
grant and revocation of aid schemes. The  incentive guidelines  for the Start -Up 
Finance  2017  - 2020  are accessible  on the following link : 
https://www.maltaenterprise.com/sites/default/files/Startup%20Finance%20Incentive%20Guidelin
es%202017%20 -%202020%20%28Version%201%29.pdf  
Start-Up Finance Regulations, 2017 Legal Notice:  
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lp&itemid=28561&l=1  
5. Form of subsidy  
Undertakings may benefit from assistance in the form of a repayable assistance.  
Qualifying Expenditure  
Small start -up undertakings shall be considered as eligible if they are, or shall be engaged in one 
(1) or more of the following acti vities:  
i. Manufacturing including the manufacture of gas;  
ii. Information Technology, Digital Media and Communications;  
iii. Research, Development and Technical Innovation;  
iv. Industrial and Product Design;  
v. Biotechnology, Pharmaceuticals and Life Sciences;  G/SCM/N/343/EU/Add.19  
 
- 46 - 
 
  vi. Audio visual and creative media investment in facilities (sound studio ). 
At its discretion, the Corporation, may request the applicant to verify the activity of the undertaking.  
Innovation  
In order to be eligible, the applicant must be:  
1. proposing products and/or services that have potential to be marketed and distributed 
internationally; and  
2. producing products and/or service which are new or substantially improved compared to 
the state of the art in the local industry.  
6. To whom and how the subsidy is prov ided 
Assistance is available to small start -up undertakings operating from Malta and who are incorporated 
in the European Union as a partnership en nom collectif, en commandite , or a limited liability 
company or a similar set -up. 
Assistance will be provided as a repayable assistance of up to €200,000.  The support shall be linked 
to either:  
• Co-investment linked to private equity; or  
• The procurement of tangible assets; or  
• Crowd funding campaigns . 
7. Amount of subsidy  
2017 – €NIL. 
2018 – €200,000.  
8. Duration of subsidy  
This support measure became effective on the 2nd May 2017 and will run until 31st December 2020.  
9. Trade effects of the subsidy  
There are no effects on international trade.  
18  BUSINESS ASSOCIATION S GRANT SCHEME  
1. Title o f the subsidy  
Business Associations Grant Scheme.  
2. Period covered by the notification  
The period covered by this notification starts from the 1st January 2017 until the 
31st December  2018.  
3. Policy objective  
The aim of this scheme is to assist business associations achieve common objectives that in return 
support growth, innovation and development of their member undertakings.  In order to achieve 
such benefits, eligible associations are being encouraged to employ a coordinator to animate and 
support the association 's activities as well as to affiliate with international associations and attend 
international events relevant to the goals and objectives of the business associations.  G/SCM/N/343/EU/Add.19  
 
- 47 - 
 
  This assistance will also support the business associations and the ir member undertakings to be 
more competitive.  
4. Background and authority for the subsidy  
This incentive  is administered by Malta Enterprise Corporation.  
Malta Enterprise is enabled to issue and publish official  incentive guidelines  in terms of 
Article  8 (3)(a) of the Malta Enterprise Act, Chapter 463 of the Laws of Malta.  
The Corporation may design support measures in terms of the Malta Enterprise Act:  
http://w ww.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1  
The Enterprise Support  Incentive s Regulations SL 463.04  (Malta Enterprise Act, Chapter 463 of the 
Laws of Malta ) provides the legal basis of this  incentive . 
http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=11609&l=1  
These  incentive guidelines  are in line with the Commission Regulation (EU) No. 1407/2013  of 
18th December  2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of 
the European Union to de minimis aid . 
The terms and conditions covering this aid scheme are in line with the Commission Regulation 
(EU) No. 1407/2013 of 1 8th December 2013 on the application of Articles 107 and 108 of the Treaty 
on the Functioning of the European Union to de minimis aid (the de minimis Regulation ).  
The total amount of de minimis aid granted to a single undertaking shall not exceed the amou nt of 
€200,000 over any period of three consecutive fiscal years.  
This aggregate maximum threshold applies in principle to all economic sectors with the exception of 
the road transport, agriculture and fisheries sectors for which different thresholds and c riteria apply.  
The term "undertaking " includes also all companies in a group (which fall under the direct or indirect 
ownership or control of the same ultimate parent company ) and relevant partner and linked 
enterprises as defined in Annex I of Commission Regulation (EC No 800/2008 ). This period covers 
the fiscal year concerned as well as the previous two fiscal years. "Fiscal year" means  the fiscal year 
as used for tax purpose s by the undertaking concerned.  
http://ec.europa.eu/competition/state_aid/legislation/de_minimis_regulation_en.pdf  
In terms of the Malta Enterprise Act menti oned earlier, the parameters of aid and details of the aid 
scheme are found in the  incentive guidelines . These  incentive guidelines  are a set of rules issued by 
the Corporation from time to time containing details on the definition, application, administra tion, 
grant and revocation of aid schemes. The  incentive guidelines  for the aid scheme Business 
Associations Grant Scheme  are accessible on the following link : 
https://www.maltaenterprise.com/sites/default/files/Business%20Associations%20Grant%20IG%2
0Version%202.pdf  
5. Form of subsidy  
Aid under this support measure is awarded in the form of a cash grant.  Each business association 
may re ceive up to €10,000 per annum . 
Qualifying Expenditure  
The assistance provided consists in financing eligible costs relating to:  
1. Wage costs of a coordinator or administrator;  G/SCM/N/343/EU/Add.19  
 
- 48 - 
 
  2. Annual memberships; and  
3. Attendance to international sectoral events held outside Malta.  
6. To whom and how the subsidy is provided  
Eligible business associations that enhance collaboratiohn between undertakings in the following 
industries:  
− Manufacturing  
− Industrial Services  
− Information and Communication Technologies  
− Digital Media  
− Life Sciences  
− Crafts  
Business Associations must represent at least ten (10) single undertakings in the same relevant 
sector, or five (5) single undertakings mainly engaged in a specific activity.  The business association 
must not have more th an 100 registered members.  
Applicable Aid Intensities  
Assistance will be provided on an annual basis in the form of a cash grant and each business 
association may receive up to €10,000 per annum . 
7. Amount of subsidy  
2017 – € 4,900 . 
2018 – €14,578.  
8. Duration of subsidy  
This support measure became effective on the 1st January 2016 and will run till the 
31st December  2020.  
9. Trade effects of the subsidy  
There are no effects on international trade.  
19  ENERGY AUDIT VOUCHER  SCHEME  
1. Title of the subsidy  
Energy Audit Voucher Scheme.  (This support measure falls under the Business Advisory Services ). 
2. Period covered by the notification  
The period covered by this notification starts from the 1st January 2017 until the 
31st December  2018.  
3. Policy objective  
A small undertaking that has high energy consumption may engage an engineer to carry out a high -
level energy review of the activity.  Through the energy review, the business would identify actions 
and investments that may be carried out to reduce energy cons umption.  
4. Background and authority for the subsidy  
This incentive  is administered by Malta Enterprise Corporation.  G/SCM/N/343/EU/Add.19  
 
- 49 - 
 
  Malta Enterprise is enabled to issue and publish official  incentive guidelines  in terms of 
Article  8 (3)(a) of the Malta Enterprise Act, Ch apter 463 of the Laws of Malta.  
The Corporation may design support measures in terms of the Malta Enterprise Act:  
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1  
The Enterprise Support Incentives Regulations SL 463.04  (Malta Enterprise Act, Chapter 463 of the 
Laws of Malta ) provides the legal basis of this  incentive . 
http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=11609&l=1  
These  incentive guidelines  are in line with the Commission Regulation (EU) No. 1407/2013 of 
18th December  2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of 
the European Union to de minimis aid . 
The terms and conditions covering this aid scheme are in line with the Commission Regulation 
(EU) No. 1407/2013 of 18th December 2013 on the application of Articles 107 and 108 of the Treaty 
on the Functioning of the European Union to de minimis aid (the de minimis Regulation ). 
The total amount of de minimis aid granted to a single undertaking shall not exceed the amount o f 
€200,000 over any period of three consecutive fiscal years.  
This aggregate maximum threshold applies in principle to all economic sectors with the exception of 
the road transport, agriculture and fisheries sectors for which different thresholds and crit eria apply.  
The term "undertaking " includes also all companies in a group (which fall under the direct or indirect 
ownership or control of the same ultimate parent company ) and relevant partner and linked 
enterprises as defined in Annex I of Commission Reg ulation (EC No 800/2008 ). This period covers 
the fiscal year concerned as well as the previous two fiscal years. "Fiscal year" means  the fiscal year 
as used for tax purposes by the undertaking concerned.  
http://ec.europa.eu/competition/state_aid/legislation/de_minimis_regulation_en.pdf  
In terms of the Malta Enterprise Act mentioned earlier, the parameters of aid and details of the aid 
scheme are found in the  incentive guidelines . These  incentive guidelines  are a set of rules issued by 
the Corporation from time to time containing details on the definition, application, administration, 
grant and revocation of aid schemes.  The incentive guidelines  for the Energy A udit Voucher 
Scheme  are accessible on the following link : 
https://www.maltaenterprise.com/sites/default/files/Incentive%20Guidelines%20Energy%20Audit
%20%28Version%201%29.docx.pdf  
5. Form of subsidy  
Beneficiaries will receive an Energy Audit Voucher which can be used to pay for a certified energy 
auditor to carry out a review of the business operation of the beneficiary in order to identify actions 
and investments that may be carrie d out to reduce energy consumption.  
A single undertaking may benefit once from this measure and in relation to one site.  The assistance 
will be capped according to the Annual Electricity Consumption.  Assistance to single undertakings 
that have an annual el ectricity consumption of between 10,000 kWhr and 25,000 kWhrs will be 
capped at €250. Assistance to single undertakings that have an annual electricity consumption above 
25,000 kWhrs but less than 75,000 kWhrs will be capped at €380 as indicated below:  
Annual Electricity Consumption  € (inclusive of VAT)  
10 000kWhr and 25 000kWhr  250 
25 001kWhr and 75 000kWhr  380 G/SCM/N/343/EU/Add.19  
 
- 50 - 
 
  6. To whom and how the subsidy is provided  
This incentive  is available to all undertakings with an annual electicity consumption of between 
10,000 kWhrs and 75,000 kWhrs and which are not excluded by State Aid Regulations.  
7. Amount of subsidy  
2017 – €500. 
2018 – €NIL. 
8. Duration of subsidy  
This support measure was available between the 1st September 2016 and 30th June 2017.  
9. Trade effects of the subsidy  
There are no effects on international trade.  
20  AID FOR RESEARCH AND  DEVELOPMENT PROJECT S (TAX CREDITS ) 
1. Title of the subsidy  
Aid for Research and Devel opment Projects (Tax Credits ). 
2. Period covered by the notification  
The period covered by this notification starts from the 1st January 2017 until the 
31st December  2018.  
3. Policy objective  
The main objective of this  incentive  measure is to drive enterprises to be innovative, to contribute 
towards the scientific or technological advances through the resolution of scientific or technological 
uncertainty.  
4. Background and authority for the subsidy  
This incentive  is administered by Malta Enterprise C orporation.  
Malta Enterprise is enabled to issue and publish official  incentive guidelines  in terms of Article 8 
(3)(a) of the Malta Enterprise Act, Chapter 463 of the Laws of Malta.  
The Corporation may design support measures in terms of the Malta Enterpr ise Act:  
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1  
The Research and Development Activities Regulations SL 463.17  (Malta En terprise Act, Chapter 463 
of the Laws of Malta ) provides the legal basis of this  incentive . 
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&ite mid=12675&l=1  
The terms and conditions set out in these guidelines are in line with the Commission Regulation 
(EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal 
market in application of Articles 107 and 108 of the Treaty.  
http://eur -lex.europa.eu/legal -content/EN/TXT/PDF/?uri=CELEX:32014R0651&from=EN  
In terms of the Malta Enterprise Act mentioned earlier, the param eters of aid and details of the aid 
scheme are found in the  incentive guidelines . These  incentive guidelines  are a set of rules issued by 
the Corporation from time to time containing details on the definition, application, administration, G/SCM/N/343/EU/Add.19  
 
- 51 - 
 
  grant and revocat ion of aid schemes. The  incentive guidelines  for the Aid for Research and 
Development Projects (Tax Credits ) are accessible  on the following link : 
https://www.maltaenterprise.com/sites/default/files/Incentive%20Guidelines%20Version%201%2
0%288.6.2017%29.pdf  
5. Form of subsidy  
Undertakings established in Malta may benefit from assistance in the form of a tax credit.  
Qualifying Expendit ure 
The project or projects carried out must relate to the company 's current trade activity or to a trade 
activity that the company intends to start based on the results of the R&D activity.   
Costs related to prototypes that are sold to third parties following the completion of a project are 
not considered eligible.  
Qualifying Employee costs  
Staffing cost of directors and employees actively engaged on an eligible R&D activity can be 
considered as qualifying expenditure.  When a director or employee is not fully engaged actively on 
an eligible R&D activity, then only the proportion on which the person is engaged actively on an 
eligible R&D activity shall be considered as qualifying.  
Employee costs may be considered when a person is directly o r indirectly contributing to the R&D 
activity.  A person 's extent of engagement in the R&D activity is based on the duties performed in 
relation to the activity and not on the job title. It is therefore not possible to establish a list of eligible 
roles, as  in many cases, employees (especially support staff ) are only partly engaged in an R&D 
activity.  
To directly contribute to an R&D Activity, the persons must be engaged in attempting to resolve an 
element of scientific or technological uncertainty. This wou ld include activities:  
• aimed to create or adapt software, materials or equipment needed to resolve the 
scientific or technological uncertainty, provided that the software, material or 
equipment is created or adapted solely for use in R&D; and  
• of planning, design, testing and analysis undertaken to resolve the scientific or 
technological uncertainty.  
To indirectly contribute to an R&D activity the persons must be engaged in:  
• carrying out feasibility studies to support and define the strategic direction of a specific 
R&D activity;  
• research (where this research is not R&D in its own right ) to devise new scientific or 
technological testing, survey, or sampling methods;  
• providing information services, insofar as they are conducted for the purpose of the 
R&D activ ity; 
Supporting activities such as maintenance, training, security, administration, finance and personnel 
activities, insofar as these activities are carried out for the purposes of an R&D activity.  
Staff costs may only be claimed in respect to employees w ho are covered by a contract of 
employment and registered as employees of the company claiming the benefit.  Only the following 
costs shall be considered as eligible:  
• the emoluments paid by the company to its directors or employees priory to any tax 
or soci al security deduction collected by the company from the directors or employees 
on behalf of the Government, insofar that only salaries, wages, and predetermined 
fixed cash benefits shall be considered as eligible; and  
• the compulsory Social Security contrib utions paid by the company.  G/SCM/N/343/EU/Add.19  
 
- 52 - 
 
  It is understandable that some groups entrust one group company to employ all the staff for the 
group, and recharge other group companies for their services. Since the company claiming under 
this measure is recharged for the use  of employees from another group company these costs cannot 
be considered directly as the claimant 's own staffing expenditure.  In such instances, the value of 
eligible costs should be established as a function of the actual staff costs based on the remuner ation 
received by the staff engaged in the R&D Activity.    
Contracted  R&D expenditure  
Costs of contractual research purchased for enterprises as well as costs of consultancy and 
equivalent services used exclusively for the research activity may be claimed as long as the 
transactions are conducted at arm 's length conditions.  
Contracted R&D costs may not exceed 20% of total costs claimed in respect of a specific R&D project.  
Materials and Utilities  
Costs for the procurement of materials used directly, thus co nsumed or transformed in the process 
of carrying out  of an R&D activity, are eligible for these tax credits.   Such materials must 
consequently be no longer so useable in their original form following the R&D activity.  
Eligible materials would include: chem ical products transformed through the R&D process (even if 
the resultant chemical product may be recycled and used for a purpose that is not its original 
purpose ); electronic components which may not be used for other purposes following the use in the 
project; and components required for a prototype.  
Costs for the procurement of water and power.  
Telecommunication costs are not considered as eligible costs unless the transmission of information 
over a telecommunications network is an integral part of a resea rch project.  
In instances where materials and utilities are only partly directly utilised in the R&D activity, an 
appropriate apportionment of the expenditure should be established.  This calculation will depend 
significantly on the particular R&D activity and on other parameters such as the facility and the 
number of employees.  A practical approach should be adopted to establish an adequate 
apportionment which should be backed by reasonable arguments justifying the approach and 
methodology adopted.  
Software  
Software As A Service (SAAS ) costs are considered as eligible expenditure to the extent that the 
software is used directly for the R&D activity.   If the SAAS is partially used in R&D, the cost should 
be apportioned to reflect the cost in respect to the R& D activity.  
Costs for the purchase of software procured specifically for the R&D activity, and which will have no 
use following the completion of the specific R&D project or projects for which it is purchased, are 
eligible.  
Software costs which are considered as amortisable or registered in the fixed asset register of a 
company are not eligible.  
6. To whom and how the subsidy is provided  
This Scheme provides a tax credit to registered companies that carry out an R&D project or projects 
relevant to th e Company 's trade.  
The supported R&D activity must be identified in specific projects that seek to address a scientific or 
technological uncertainty and which can fall within the definitions of industrial research or 
experimental development.  G/SCM/N/343/EU/Add.19  
 
- 53 - 
 
  The commencem ent of an R&D project supported under this  incentive  may not be prior to the 
1st January  2017. An R&D project begins when work to resolve the scientific or technological 
uncertainty starts and ends when that uncertainty is resolved or the work to resolve i t ceases.  
The project or projects carried out must relate to the company 's current trade activity or to a trade 
activity that the company intends to start based on the results of the R&D activity.  
A company claiming the tax credit must own any intellectual  property that might arise from the R&D 
activity claimed.  
Aid Intensity  
Beneficiaries that carry out an eligible R&D activity will receive a tax credit calculated at 
twenty -five percent (25%) of the eligible expenditure.  
The percentage shall be increased b y 10% when the applicant is a medium sized enterprise and by 
20% when the applicant is a small enterprise.  
The total support shall be limited to €15 million for any project covered by the R&D activity.  
7. Amount of subsidy  
2017 – €NIL. 
2018 – €37,749.  
8. Duration of subsidy  
This support measure became effective on the 1st January 2017 and will terminate on the 
31st December  2020.  
9. Trade effects of the subsidy  
There are no effects on international trade.  
21  TAX CREDITS FOR R&D AND INNOVATION  
1. Title of the s ubsidy  
Tax Credits for R&D and Innovation.  
2. Period covered by the notification  
The period covered by this notification starts from the 1st January 2017 until the 
31st December  2018.  
3. Policy objective  
The main objective of the aid scheme is to assist undertakings that employ for a period of at least 
twelve (12) months a person holding or reading for a doctoral degree in science, information 
technology or engineering.  The support may be claimed once, aft er a person holding a doctoral 
degree (MQF Level 8 ) or reading a doctoral degree in science, information technology or engineering 
has been employed for a minimum of twelve (12) months.  Such employment must not have 
commenced prior to 1st January 2016.  
4. Background and authority for the subsidy  
This incentive  is administered by Malta Enterprise Corporation.  
Malta Enterprise is enabled to issue and publish official  incentive guidelines  in terms of 
Article  8 (3)(a) of the Malta Enterprise Act, Chapter 463 of the Laws of Malta.  G/SCM/N/343/EU/Add.19  
 
- 54 - 
 
  The Corporation may design support measures in terms of the Malta Enterprise Act:  
http://www.jus ticeservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1  
The Tax Credits for Research and Development and Innovation Regulations SL 463.15  (Malta 
Enterprise Act, Chapter 463 of the Laws of Malta ) provides the legal basis of this  incentive . 
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=12669&l=1  
These  incentive guidelines  are in line with the Commission Regulation (EU) No. 1 407/2013 of 
18th December  2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of 
the European Union to de minimis aid .  
The terms and conditions covering this aid scheme are in line with the Commission Regulation 
(EU) No. 1407/ 2013 of 18th December 2013 on the application of Articles 107 and 108 of the Treaty 
on the Functioning of the European Union to de minimis aid (the de minimis Regulation ). 
The total amount of de minimis aid granted to a single undertaking shall not exceed the amount of 
€200,000 over any period of three consecutive fiscal years.  
This aggregate maximum threshold applies in principle to all economic sectors with the exception of 
the road transport, agriculture and fisheries sectors for which different threshol ds and criteria apply.  
The term "undertaking " includes also all companies in a group (which fall under the direct or indirect 
ownership or control of the same ultimate parent company ) and relevant partner and linked 
enterprises as defined in Annex I of Commission Regulation (EC No 800/2008 ). This period covers 
the fiscal year concerned as well as the previous two fiscal years. "Fiscal year" means  the fiscal year 
as used for tax purpose s by the undertaking concerned.  
http://ec.europa.eu/competition/state_aid/legislation/de_minimis_regulation_en.pdf  
In terms of the Malta Enterprise Act menti oned earlier, the parameters of aid and details of the aid 
scheme are found in the  incentive guidelines . These  incentive guidelines  are a set of rules issued by 
the Corporation from time to time containing details on the definition, application, administra tion, 
grant and revocation of aid schemes. The  incentive guidelines  for the aid scheme Tax Credits for 
R&D and Innovation  are accessible on the following link : 
https://www.maltaenterprise.com/sites/default/files/Tax%20Credits%20for%20RD%20and%20In
novation%20%28Version%201.0%29_0.pdf  
5. Form of subsidy  
Aid under this support measure is awarded in the form of a tax credit . 
6. To whom and how the subsidy is provided  
In order to be eligible for assistance applicants must fill the following criteria:  
The applicant must be:  
a. An undertaking operating from Malta and be incorporated in the European Union  as a 
partnership en nom collectif, en commandite  or a limited liability company; or  
b. registered as self -employed with JobsPlus; or  
c. registered as a Co -operative under the Co -operatives Societies Act, Chapter 442 of the 
Laws of Malta.  
Applicable Aid Intensit ies 
Beneficiaries shall be awarded a tax credit of €10,000.  G/SCM/N/343/EU/Add.19  
 
- 55 - 
 
  7. Amount of subsidy  
2017 – €NIL. 
2018 – €10,000 . 
8. Duration of subsidy  
This support measure became effective on the 1st October 2016 and will terminate on the 
31st December  2020.  
9. Trade effects of the subsidy  
There are no effects on international trade.  
22  KNOWLEDGE TRANSFER S CHEME  
1. Title of the subsidy  
Knowledge Transfer Scheme.  
2. Period covered by the notification  
The period covered by this notification starts from the 1st January 2017 until the 31st December  2018.  
3. Policy objective  
The main objective of the Knowledge Transfer Scheme  is to support the development of training 
programs and their impleme ntation.  The training should lead to the upskilling and re -skilling of new 
and existing employees.  The training may be delivered by trainers employed by the applicant, 
engaged from a related enterprise or by qualified external providers.  The aim is to supp ort 
knowledge transfer and the acquisition of new competence in line with the knowledge and skill 
requirements of the industry.  
4. Background and authority for the subsidy  
This incentive  is administered by Malta Enterprise Corporation.  
Malta Enterprise is enabled to issue and publish official  incentive guidelines  in terms of 
Article  8 (3)(a) of the Malta Enterprise Act, Chapter 463 of the Laws of Malta.  
The Corporation may design support measures in terms of the Malta Enterprise Act:  
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1  
The Assistance for Knowledge Transfer Regulations S.L. 463.12  (Malta Enterprise Act, Chapter 463 
of the Laws of Malta ) provides the legal basis of this  incentive . 
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=12502&l=1  
The terms and c onditions set out in these guidelines are in line with the Commission Regulation 
(EU) No. 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal 
market in application of Articles 107 and 108 of the Treaty.  
http://eur -lex.europa.eu/legal -content/EN/TXT/PDF/?uri=CELEX:32014R0651&from=EN  
In terms of the Malta Enterprise Act mentioned earlier, the parameters of aid and details of th e aid 
scheme are found in the  incentive guidelines . These  incentive guidelines  are a set of rules issued by 
the Corporation from time to time containing details on the definition, application, administration, 
grant and revocation of aid schemes. The  incent ive guidelines  for the Knowledge Transfer Scheme  
are accessible on the following link : G/SCM/N/343/EU/Add.19  
 
- 56 - 
 
  https://www.maltaenterprise.com/sites/default/files/Knowledge%20Transfer%20Incentive%20Gui
delines.pdf  
Knowledge Transfer Regulations L.N. 17 8 of 2016  
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lp&itemid=27708&l=1  
5. Form of subsidy  
Aid under this  incentive  is in the form of a tax cr edit. The Corporation may yet approve a cash grant 
for the partial reimbursement of wage costs of trainees of undertakings engaged in the 
Manufacturing Sector.  Such cash grants may not exceed the applicable aid intensity and shall be 
capped at €8 per hour for each employee trained.  
Qualifying Expenditure  
a. Training Needs Analysis and development of Training Program  
Consultancy costs for carrying out a training needs analysis and the development of the 
training programme.  (These are required at application stage and may be considered 
eligible for tax credits once the training programme is implemented ). 
This assistance is conditional to:  
i. capping of €100 per employee trained;  
and 
ii. an overall capping of €5,000.  
b. In-house Training  
When the training pro gramme, or part thereof, is delivered by employees of the company, 
the basic wage cost of such employees, covering the hours during which the employees of 
the undertaking deliver the training, shall be considered eligible.  Only the direct contact 
hours dur ing which the trainer is delivering the training may be claimed.  
c. Training delivered from related enterprises  
When the training programme, or part thereof, is delivered by trainers provided from a 
partner undertaking:  
i. The basic wage cost covering the hours during which the trainer is delivering the 
training may be claimed.  Only the direct contact hours during which the trainer is 
delivering the training are eligible. If the trainer 's basic wage costs are not provided, 
then the national minimum wage shall be considered as the eligible cost;  Or 
ii. As an alternative to (i) above when the training is provided by a related undertaking, 
which is not established in Malta, and when the trainer is not resident in Malta, the 
eligible cost may be considered to be the cost of training as invoiced by the related 
undertaking for those hours during which the trainers participate in the training.  
d. Training Delivered by Qualified External Trainers  
Costs of qualified external training service providers engaged to deliver training s hall be 
considered as eligible. These services must be provided by a qualified trainer holding a 
degree relevant to the training, and who has at least five (5) years ' work experience in a 
sector similar to the one for which the training is provided. Only t he direct contact hours 
during which the trainer is delivering the training are eligible.  G/SCM/N/343/EU/Add.19  
 
- 57 - 
 
  e. Trainee Basic Wage Costs  
Basic wage costs of Trainees, for the hours during which the trainees are participating in 
the approved training, may be claimed as eligible costs. The trainees need to be formally 
employed with the beneficiary during the training period.  
6. To whom and how the subsidy is provided  
The training should be designed to address the skills and knowledge requirements of the applicant. 
The nature of the training should be:  
i. relevant to the eligible activity of the applicant; and  
ii. organised specifically for the employees of the applicant.  
Moreover, the undertaking must:  
• be a newly -established undertaking as defined within Section 2 of the  incentive 
guidelines ;  
• have directly employed at least five (5) persons (on full time basis ) for the last two 
(2) fiscal years.  
• An undertaking operating from Malta and be incorporated in the European Union as a 
partnership en nom collectif , en commandite  or a limited liability company.  
• Not be defaulting on VAT, Income Tax, and Social Security . 
• Adhere to applicable State Aid Regulations.  
• The undertakings must be engaged in one (1) of the following Sectors:  
Sector  NACE  
Manufacturing  Section C  
Warehousing and storage  52.10  
Computer programming activities  62.01  
Technical testing and analysis  71.20  
Research and experimental development on biotechnology  72.11  
Other research and experimental development on natural sciences and engineering  72.19  
Specialised design activities  74.10  
Activities of call centres  82.20  
Aid Intensity  
The aid intensity shall be established according to the size of undertaking.  The aid intensity 
applicable shall not exceed the following percentages of the eligible costs:  
Size of Undertaking  % 
Small  70 
Medium  60 
Large  50 
7. Amount of subsidy  
2017 – €85,000.  
2018 – € 1,889.32 . 
8. Duration of subsidy  
This support measure became effective on the 1st March 2016 and was terminated 31st August 2018.  
Changes to The Scheme Termination Date  
Malta Enterprise Corporation had notified the competent authorities that this  incentive  measure was 
to be terminated on 31st August 2018 instead of the 31st December 2020 as previously notified.  G/SCM/N/343/EU/Add.19  
 
- 58 - 
 
  9. Trade effects of the subsidy  
There are no effects on international trade.  
23  COOPERATE FOR GROWTH  
1. Title of the subsidy  
Cooperate for Growth.  
2. Period covered by the notification  
The period covered by this notification starts from the 1st January 2017 until the 
31st December  2018.  
3. Policy objective  
The main objective of this aid scheme is to assist undertakings that are willing to establish new 
markets, or to introduce a new service  or product in an existing market.  
4. Background and authority for the subsidy  
This incentive  is administered by Malta Enterprise Corporation.  
Malta Enterprise is enabled to issue and publish official  incentive guidelines  in terms of 
Article  8 (3)(a) of the Malta Enterprise Act, Chapter 463 of the Laws of Malta.  
The Corporation may design support measures in terms of the Malta Enterprise Act:  
http://www.justicese rvices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1   
The Cooperate for Growth Regulations S.L. 463.21  (Malta Enterprise Act, Chapter 463 of the Laws 
of Malta ) provides the legal basis of this  incentive . 
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=12814&l=1  
These  incentive guidelines  are in line with the Commission Regulation (EU) No. 1407/2013 of 
18th December  2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of 
the European Union to de minimis aid . 
The terms and conditions covering this aid scheme are in line with the Commission Regulation 
(EU) No. 1407/2013 of 18th December 2013 on the appli cation of Articles 107 and 108 of the Treaty 
on the Functioning of the European Union to de minimis aid (the de minimis Regulation ). 
The total amount of de minimis aid granted to a single undertaking shall not exceed the amount of 
€200,000 over any period of three consecutive fiscal years.  
This aggregate maximum threshold applies in principle to all economic sectors with the exception of 
the road transport, agriculture and fisheries sectors for which different thresholds and criteria apply.  
The term "undert aking " includes also all companies in a group (which fall under the direct or indirect 
ownership or control of the same ultimate parent company ) and relevant partner and linked 
enterprises as defined in Annex I of Commission Regulation (EC No 800/2008 ). This period covers 
the fiscal year concerned as well as the previous two fiscal years. "Fiscal year" means  the fiscal year 
as used for tax purpose s by the undertaking concerned.  
http://ec.europa.eu/competition/state_aid/legislation/de_minimis_regulation_en.pdf  
In terms of the Malta Enterprise Act menti oned earlier, the parameters of aid and details of the aid 
scheme are found in the  incentive guidelines . These  incentive guidelines  are a set of rules issued by 
the Corporation from time to time containing details on the definition, application, administra tion, G/SCM/N/343/EU/Add.19  
 
- 59 - 
 
  grant and revocation of aid schemes. The  incentive guidelines  for the aid scheme Cooperate for 
Growth  are accessible on the following link:  
https://www.maltaenterprise.com/sites/default/files/Cooperate%20for%20Growth%20Incentive%
20Guidelines%20version%201_0.pdf  
The Cooperate for Growth Regulations L.N. 100 of 2018 . 
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lp&itemid=28998&l=1  
5. Form of subsidy  
The aid shall be granted in the form of a cash grant.  
Qualifyin g Costs  
An eligible undertaking may be awarded support to participate in planned meetings between two or 
more parties organised for the purpose of technology transfer, knowledge sharing, developing 
business, facilitating research collaborations, venture fu nding and similar business interaction.  
Support shall also be awarded when such meetings are facilitated as part of an activity or initiative 
coordinated by national or international organisations as may be approved by the Corporation prior 
to the activity . 
To receive support the applicant shall be required to demonstrate to the satisfaction of the 
Corporation that the ultimate scope of the action is to develop, increase or enhance economic 
activities through cross -border collaboration.  
The support shall be  limited to a per diem  covering the days of the event as indicated by the event 
organiser.  The aid shall only be awarded if:  
a. the person attending the meeting is an employee or director of the applicant and was 
physically present for the meeting;  
b. the meeting is not held in Malta; and  
c. the person attending is not resident in the country where the meeting was held.  
6. To whom and how the subsidy is provided  
The beneficiary must be an undertaking registered as one (1) of the following:  
a. An undertaking opera ting from Malta and be incorporated in the European Union as a 
partnership en nom collectif , en commandite  or a limited liability company.  
b. Self-employed persons registered with Jobsplus.  
c. Co-operatives registered with the Co -operatives Board.  
Applicable Aid  Intensities  
If the Corporation is satisfied that the above criteria are addressed, the Corporation shall issue an  
incentive  Entitlement Certificate, awarding a per diem covering the days of the action.  If the 
undertaking holds multiple meetings that the C orporation deems to satisfy the above criteria with 
the same or other undertakings over a number of days, the aid awarded in the Incentive Entitlement 
Certificate will be equivalent to the per diem  rate covering each day in which the meetings are held.  
The per diem rates applicable to the measure shall be published periodically on the Corporation 's 
website and shall be pegged to the official per diem rates established by the Maltese Government 
for travel of public officials.  G/SCM/N/343/EU/Add.19  
 
- 60 - 
 
  7. Amount of subsidy  
2017 – €NIL. 
2018 – €4,518.  
8. Duration of subsidy  
The Cooperation for Growth Scheme became effective on the 1st March 2018 and will run till 
31st December  2020.  
9. Trade effects of the subsidy  
There are no effects on international trade.  
24  LEAP2ENTERPRISE SCHE ME 
1. Title of the subsidy  
Leap2Enterprise Scheme.  
2. Period covered by the notification  
The period covered by this notification starts from the 1st January 2017 until the 
31st December  2018.  
3. Policy objective  
Leap2Enterprise is a sup port initiative designed to assist vulnerable individuals in setting up their 
own sustainable, income -generating business activities.  To implement this measure, Malta 
Enterprise, together with LEAP and JobsPlus, will assist beneficiaries to set up their ow n business or 
develop an income -generating activity.  Initiatives that are deemed to be economically viable shall 
be supported through a financial assistance package of up to €25,000 over a period of twenty -four 
(24) months.  
4. Background and authority for the subsidy  
This incentive  is administered by Malta Enterprise Corporation.  
Malta Enterprise is enabled to issue and publish official  incentive guidelines  in terms of 
Article  8 (3)(a) of the Malta Enterprise Act, Chapter 463 of the Laws of Malta.  
The Corpo ration may design support measures in terms of the Malta Enterprise Act:  
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1  
The Aid  for Disadvantaged Persons to Commence their Own Business Regulations, 2018 L.N. 66 of  
2018 (Malta Enterprise Act, Chapter 463 of the Laws of Malta ) provides the legal basis of this  
incentive . 
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lp&itemid=28945&l=1  
The terms and conditions set out in these guidelines are in line with the Commissi on Regulation 
(EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal 
market in application of Articles 107 and 108 of the Treaty.  
http://eur -lex.europa.eu/legal -content/EN/TXT/PDF/?uri=CELEX:32014R0651&from=EN  
In terms of the Malta Enterprise Act mentioned earlier, the parameters of aid and details of the aid 
scheme are found in the  incentive guidelines . These  incentive guidelines  are a set of rules issued by 
the Corporation from time to time containing details on the definition, application, administration, G/SCM/N/343/EU/Add.19  
 
- 61 - 
 
  grant and revocation of aid schemes. The  incentive guidelines  for the Leap2Enterprise Scheme  
are accessible on the following link : 
https://www.maltaenterprise.com/sites/default/files/Leap2enterprise%20Scheme%20Incentive%2
0Guidelines%20%28Version%201%200%29_0.pdf  
5. Form of subsidy  
The aid is granted in the form of a cash grant.  
Qualifying Expenditure  
An approved project may receive a maximum value of aid of €25,000.  
Funding may be provided to cover the following:  
❖ The acquisition or lease of machinery and equipment required for the business;  
❖ Costs incurred in upgrading or finishing the property the business is operating from;  
❖ The purchase of stock required to commence production or operations;  
❖ The purchase of consumables required for the business operation;  
❖ A monthly disbursement capped at €600.00 per month for a period of 
twenty -four (24) months.  This shall be provided to assist the business in addressing daily 
costs.  
All financial support is conditional to co nfirmation that the undertaking:  
a. is still active;  
b. is implementing the project in line with recommendations being provided by relevant 
professionals - JobsPlus, Malta Enterprise and LEAP;  
c. has registered the self -employment / related employment with JobsPlus ; 
d. still operates an active bank account.  
6. To whom and how the subsidy is provided  
To qualify through this measure, the undertaking must be owned and controlled by a person or 
persons:  
• Registered as Special Cases within the JobsPlus Inclusive Employment S ervices Division  
OR 
• Registered with LEAP under the following parameters:  
• Persons leaving correctional facility or a rehabilitation centre.  
• Persons in receipt of any of the following non -contributory benefit:  
i. Unemployment Assistance – based on means testing  and given to persons who are 
head of household and are registering on Part 1 of the JobsPlus register ; 
ii. Social Assistance – based on means testing and given to single unmarried parents 
who have no or limited income and cannot work since they have to look a fter their 
children ; 
iii. Carer 's Allowance ; 
iv. Disability Allowance . 
Aid Intensity  
An approved project may receive a maximum value of aid of €25,000.  G/SCM/N/343/EU/Add.19  
 
- 62 - 
 
  7. Amount of subsidy  
2017 – €NIL. 
2018 – €225,000 . 
8. Duration of subsidy  
This support measure was available between the 1st January 2018 and 31st December 2018.  
9. Trade effects of the subsidy  
There are no effects on international trade.  
25  SUPPORT FOR THE DEVE LOPMENT OF BUSINESS UNITS AT THE ARTISAN  VILLAGE, 
TA'-QALI  
1. Title of the subsidy  
Support for t he Development of Business Units at The Artisan Village, Ta ' Qali. 
2. Period covered by the notification  
The period covered by this notification starts from the 1st January 2017 until the 
31st December  2018.  
3. Policy objective  
The main objective of this support measure is to assist in the development and furbishing of business 
premises to carry out the activity agreed to with Malta Industrial Parks Limited.  
Tenants of Malta Industrial Parks Limited, situated at the artisan village, Ta ' Qali, will be supported 
in the development of the business premises situated at the artisan village.  Tenants will have the 
possibility to request a guarantee of up to one hundred and fifty thousand Euro (€150,000 ) covering 
up to seventy -five percent (75%) of a bank loan or a cash grant of up to seventy -thousand Euro 
(€70,000 ) as part financing of up to fifty per cent (50%) of the project.  
4. Background and authority for the subsidy  
This incentive  is administered by Malta Enterprise Corporation.  
Malta Enterprise is enabled to issue and publish official  incentive guidelines  in terms of 
Article  8 (3)(a) of the Malta Enterprise Act, Chapter 463 of the Laws of Malta.  
The Corporation may design support measures in terms of the Malta Enterprise Act:  
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1   
The Enterprise Support Incentives Regulations S.L. 463.04  (Malta Enterprise Act, Chapter 463 of the 
Laws of Malta ) provides the legal basis of this  incentive . 
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=11609&l=1  
These  incentive  guidelines  are in line with the Commission Regulation (EU) No. 1407/2013 of 
18th December  2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of 
the European Union to de minimis aid . 
The terms and conditions covering this aid scheme are in line with the Commission Regulation 
(EU) No. 1407/2013 of 18th December 2013 on the application of Articles 107 and 108 of the Treaty 
on the Functioning of the European Union to de minimis aid (the de minimis Regulation ). G/SCM/N/343/EU/Add.19  
 
- 63 - 
 
  The total amount of de minimis aid granted to a single undertaking shall not exceed the amount of 
€200,000 over any period of three consecutive fiscal years.  
This aggregate maximum threshold applies in principle to all economic sectors with the exception of 
the road transport , agriculture and fisheries sectors for which different thresholds and criteria apply.  
The term "undertaking " includes also all companies in a group (which fall under the direct or indirect 
ownership or control of the same ultimate parent company ) and rele vant partner and linked 
enterprises as defined in Annex I of Commission Regulation (EC No 800/2008 ). This period covers 
the fiscal year concerned as well as the previous two fiscal years. "Fiscal year" means  the fiscal year 
as used for tax purposes by the undertaking concerned.  
http://ec.europa.eu/competition/state_aid/legislation/de_minimis_regulation_en.pdf  
In terms of the Malta Enterprise Act mentioned earl ier, the parameters of aid and details of the aid 
scheme are found in the  incentive guidelines . These  incentive guidelines  are a set of rules issued by 
the Corporation from time to time containing details on the definition, application, administration, 
grant and revocation of aid schemes. The  incentive guidelines  for the aid scheme Support for the 
Development of Business Units at The Artisan Village, Ta ' Qali are accessible on the following 
link:  
https://www.maltaenterprise.com/sites/default/files/IG%20Support%20for%2 0the%20Developme
nt%20of%20Business%20Units%20at%20Artisan%20Village%20Ta%20Qali%20%28FINAL%29.p
df 
5. Form of subsidy  
The aid shall be granted either in the form of a cash grant or as a guarantee.  
Qualifying Expenditure  
Cash Grants : 
Malta Enterprise may award a Cash Grant of up to Seventy Thousand Euro (€70,000 ) to part finance 
up to fifty percent (50%) of costs incurred in respect to the development of immovable property 
situated at The Artisan Village, Ta ' Qali and any plant, machin ery and equipment located within the 
property.  
Cash grants on movable assets (located within the property ) will only be disbursed following the 
completion of the development of the immovable property.  Cash grants may only be awarded to 
new equipment or sec ond-hand equipment to be used in Malta for the first time.  
The Corporation may agree to disburse up to ten thousand Euro (€10,000 ) covering not more than 
50% of a signed contract for the development of immovable property.  The Corporation will require 
that prior to further disbursements , the beneficiary submits invoices and proof of payment covering 
eligible costs of an equivalent amount.  
Loan Guarantees : 
Malta Enterprises may approve a Loan Guarantee of up to one hundred and fifty thousand 
Euro (€150,000 ) and cover up seventy -five percent (75%) of costs funded through a Bank loan in 
respect to the:  
❖ development and furbishing of immovable property situated at the artisan village, 
Ta'-Qali. 
❖ procurement of plant, machinery and equipment required by the beneficiary to carry 
out the activity agreed to with Malta Industrial Parks Limited.  
The Guarantee shall relate only to new banking facilities (that is, re -financing of existing loans is not 
eligible ), and may not be used to support overdrafts or other revolving  credit facilities.  G/SCM/N/343/EU/Add.19  
 
- 64 - 
 
  The guaranteed loan should have a distinct term with a predetermined fixed repayment schedule 
that would not be expected to exceed ten (10) years unless specifically agreed to by the Corporation, 
the Bank and the Beneficiary.  
For State aid purposes, the value of aid of the guarantee shall be calculated at twenty -seven percent 
(27%) of the guaranteed amount.  
6. To whom and how the subsidy is provided  
This incentive  is applicable only to any undertaking having a temporary emphyteutical agr eement 
with Malta Industrial Parks Limited in respect of property located within the Ta ' Qali artisan village 
up until 1st March 2019.  Following this date, only undertakings that entered in temporary 
emphyteutical agreements with Malta Industrial Parks Lim ited in respect of property located within 
the artisan village in the six (6) months preceding the application date, and as long as they had 
previously no title in connection with the same property, are deemed to be eligible.  
On submitting an application, the undertaking must have at least one (1) person employed on a 
part-time or full-time basis.  At the discretion of the Corporation, a self -employed person duly 
registered with JobsPlus may be considered to satisfy this condition.  
On submitting an application, the undertaking should be in possession of a valid VAT number issued 
by the VAT Department .  
Applicable Aid Intensities  
Malta Enterprise may award a cash grant of up to seventy thousand Euro (€70,000 ), to part finance 
up to fifty percent (50%) of costs incurred in respect to the development of immovable property 
situated at the Artisan Village,  Ta' Qali and any plant, machinery and equipment located within the 
property.  
Malta Enterprises may approve a Loan Guarantee of up to one hundred and fifty thousand Euro 
(€150,000 ) and cover up seventy -five percent (75%) of costs funded through a bank loan . 
For state aid purposes, the value of aid of the guarantee shall be calculated at twenty -seven percent 
(27%) of the guaranteed amount.  
7. Amount of subsidy  
2017 – €NIL. 
2018 – €1,707,430.  
8. Duration of subsidy  
The support for the development of business units at the artisan village, Ta ' Qali, became effective 
on 1st July 2017 and will run till 31st December 2020.  
9. Trade effects of the subsidy  
There are no effects on international trade.  
26  FAMILY BUSINESS SUPP ORT SERVICES  
1. Title of  the subsidy  
Family Business Support Services.  
2. Period covered by the notification  
The period covered by this notification starts from the 1st January 2017 until the 
31st December  2018.  G/SCM/N/343/EU/Add.19  
 
- 65 - 
 
  3. Policy objective  
The Family Business Support Services Scheme is i ntended to support the development of family 
businesses in building internal capacities and supporting them in the transfer of their business 
activity.  The support provides advisory during business transition and access to specific training 
deemed benefici al in facilitating the growth of family businesses.  
4. Background and authority for the subsidy  
This incentive  is administered by Malta Enterprise Corporation.  
Malta Enterprise is enabled to issue and publish official  incentive guidelines  in terms of 
Article 8 (3)(a) of the Malta Enterprise Act, Chapter 463 of the Laws of Malta.  
The Corporation may design support measures in terms of the Malta Enterprise Act:  
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1  
The Family Business Support Services Regulations S.L. 463.14  (Malta Enterprise Act, Chapter 463 
of the Laws of Malta ) provides the legal basis of this  incentive . 
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=12664&l=1  
These  incentive guidelines  are in line with the Commission Regulation (EU) No. 1407/2013 of 
18th December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of 
the European Union to de minimis aid . 
The terms and conditions covering this aid scheme are in line with the Commission Regulation 
(EU) No. 1407/2013 of 18th December 2013 on the application of Articles 107 and 108 of the Treaty 
on the Functioning of the European Union to de minimis aid (the de minimis Regulation ). 
The total amount of de minimis aid granted to a single undertaking shall not exceed the amount of 
€200,000 over any period of three consecutive fiscal years.  
This aggregate maximum threshold applies in principle to all economic sectors with the exception of 
the road transport, agricultu re and fisheries sectors for which different thresholds and criteria apply.  
The term "undertaking " includes also all companies in a group (which fall under the direct or indirect 
ownership or control of the same ultimate parent company ) and relevant partne r and linked 
enterprises as defined in Annex I of Commission Regulation (EC No 800/2008 ). This period covers 
the fiscal year concerned as well as the previous two fiscal years. "Fiscal year" means  the fiscal year 
as used for tax purposes by the undertaking  concerned.  
http://ec.europa.eu/competition/state_aid/legislation/de_minimis_regulation_en.pdf  
In terms of the Malta Enterprise Act mentioned earlier, the pa rameters of aid and details of the aid 
scheme are found in the  incentive guidelines . These  incentive guidelines  are a set of rules issued by 
the Corporation from time to time containing details on the definition, application, administration, 
grant and revo cation of aid schemes. The  incentive guidelines  for the aid scheme Family Business 
Support Services are accessible on the following link:  
https://www.maltaenterprise.com/sites/default/files/Incentive%20Guidelines%20Version%201%2
004.10.2016.pdf  
5. Form of subsidy  
The aid shall be granted in the form of a cash grant.  G/SCM/N/343/EU/Add.19  
 
- 66 - 
 
  Qualifying Expenditure  
Advisory for Business Transfer:  
A family business in the process of transferring the business from the current owner to either a 
person or persons related to the owner or to third parties may request support to cover the cost of 
legal, notarial or accountancy advisory services required in carryin g out the process.  
a. The first €500 shall be fully covered by Malta Enterprise Corporation.  Any additional 
expenditure will be supported at 75% of the incurred cost.  The value of aid that may be 
awarded shall in no instance exceed €2,500 in any single calend ar year.  
b. Support may be provided over a consecutive period which shall not exceed five (5) years.  
c. The support may only cover costs incurred by the family business for providing legal, 
notarial or accountancy services required for assisting in the successio n or business 
transfer.  
d. Advisors must be in possession of a warrant in their respective profession.  
Arbitration : 
Fees covering the services rendered for the first five (5) sittings of an arbitrator appointed by the 
Regulator to assist in the valuation of a ssets and / or shares being transferred and to set a fair value 
of the assets and shares may be supported by Malta Enterprise Corporation if the involved parties 
confirm to the Regulator of Family Businesses their agreement to use the services of a joint s ingle 
arbitrator from the list of recommended arbitrators on the Regulator 's list.  
A total support covering arbitration may not exceed €2,500 per family business.  
Training : 
Attendance by owners of family businesses and their employees to seminars and infor mation 
sessions endorsed by the Regulator as beneficial for the development, growth and better 
administration and management of the family business.  
The total annual support covering training shall not exceed €1,000 per family.  
6. To whom and how the subsi dy is provided  
The incentive  is available to all undertakings registered as a family business.  
Request for support for Advisory and Arbitration related to the transfer of business  
A family business seeking support under this aid scheme should request the r equired support from 
the Regulator for Family Businesses.  If the Regulator agrees to provide the requested support, a 
voucher will be issued to the applicant indicating the value that may be claimed.  The voucher will 
have a validity of 12 months.  
Training  Support  
The Regulator shall identify training seminars or providers that are deemed of value to the 
development of family businesses.  A list of these training seminars or providers will be published on 
the Regulator 's / Corporation 's websites.  
After atten ding a listed training event, a family business may request a refund of costs by submitting 
a claim during the month of January or July of any year.  G/SCM/N/343/EU/Add.19  
 
- 67 - 
 
  Applicable Aid Intensities  
Advisory for Business Transfer : 
The first €500 shall be fully covered by Malta E nterprise Corporation.  Any additional expenditure will 
be supported at seventy -five percent (75%) of the incurred cost.  The value of aid that may be 
awarded shall in no instance exceed €2,500 in any single calendar year.  
Arbitration : 
The total support cove ring arbitration may not exceed €2,500 per family business.  
Training : 
The total annual support covering training shall not exceed €1,000 per family business.  
7. Amount of subsidy  
2017 – €NIL. 
2018 – €50,654.12  
8. Duration of subsidy  
The Family Business Support Services Scheme became effective on 1st January 2017 and will be 
available until 31st December 2020.  
9. Trade effects of the subsidy  
There are no effects on international trade.  
27  FAMILY BUSINESS TRAN SFER OF OWNERSHIP  
1. Title of the subsidy  
Family Business Transfer of Ownership.  
2. Period covered by the notification  
The period covered by this notification starts from the 1st January 2017 until the 
31st December  2018.  
3. Policy objective  
The objective of this Support Measure shall facilitate the transfer of the registered family business 
from the owners who are family members to other family members within the same family.  
4. Background and authority for the subsidy  
This incentive  is administered by Malta Enterprise Corporation.  
Malta Enterprise is enabled to issue and publish official  incentive guidelines  in terms of 
Article  8 (3)(a) of the Malta Enterprise Act, Chapter 463 of the Laws of Malta.  
The Corporation may design support measures in terms of the Malta Enterprise Act:  
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1  
The Family Business Act, Chapter 565 of the Laws of Malta provides the legal basis of this incentive . 
http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=12569&l=1  G/SCM/N/343/EU/Add.19  
 
- 68 - 
 
  These  incentive guidelines  are in line with the Commission Regulation (EU) No. 1407/2013 of 
18th December  2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of 
the European Union to de minimis aid . 
The terms and conditions covering this aid scheme are in line with the Commission Regulation (EU) 
No. 1407/2013 of 18th December 2013 on the application of Articles 107 and 108 of the Treaty on 
the Functioning of the European Union to de minimis aid (the de minimis Regulation ). 
The total amount of de minimis aid granted to a single undertaking shall not exceed the amount of 
€200,000 over any period of three consecutive fiscal years.  
This aggregate maximum threshold applies in principle to all economic secto rs with the exception of 
the road transport, agriculture and fisheries sectors for which different thresholds and criteria apply.  
The term "undertaking " includes also all companies in a group (which fall under the direct or indirect 
ownership or control of  the same ultimate parent company ) and relevant partner and linked 
enterprises as defined in Annex I of Commission Regulation (EC No 800/2008 ). This period covers 
the fiscal year concerned as well as the previous two fiscal years. "Fiscal year" means  the fiscal year 
as used for tax purposes by the undertaking concerned.  
http://ec.europa.eu/competition/state_aid/legislation/de_minimis_regulation_en.pdf  
In terms of the Malta Enterprise Act mentioned earlier, the parameters of aid and details of the aid 
scheme are found in the  incentive guidelines . These  incentive guidelines  are a set of rules issued by 
the Corporation from time to time containing details on the definition, application, administration, 
grant and re vocation of aid schemes. The  incentive guidelines  for the aid scheme Family Business 
Transfer of Ownership are accessible on the following link:  
https://www.maltaenterprise.com/sites/default/files/Family%20Business%20Transfer%20of%20O
wnership%20Incentive%20Guidelines%20%28Version%201%29_0.pdf  
5. Form of subsidy  
Duty shall be charged on the first  five hundred thousand euro (€500,000 ) of the value of the property 
transferred at the rate of three euro and fifty cents (€3.50) per one hundred euro (€100). 
With regards to transfer of shares or interests in partnership, trust or foundation held in a fam ily 
business which carries on a business, no account shall be taken of the first one hundred and fifty 
thousand euro (€150,000 ) or such other greater amount as may be prescribed of the value of shares, 
or interests in partnerships, trust or foundation tran sferred.  
Qualifying Expenditure  
The eligible costs and expenses are in relation to:  
❖ Transfer duty of immovable property that had been used for a period of at least three 
years;  
❖ The assessment of duty chargeable when an individual transfers shares or intere st in a 
partnership, trust or foundation to family members.  
6. To whom and how the subsidy is provided  
The incentive  is available to all undertakings established in Malta and registered as a family business.  
These include listed companies, limited liability companies, registered partnerships and trusts.  
7. Amount of subsidy  
2017 – €NIL. 
2018 – €14,276 . G/SCM/N/343/EU/Add.19  
 
- 69 - 
 
  8. Duration of subsidy  
The Family Business Transfer of Ownership Scheme became effective on 1st January 2017 and will 
be available until 31st December  2020.  
9. Trade effects of the subsidy  
There are no effects on international trade.  
28  DAIRY SCHEME  
1. Title of the subsidy  
Temporary de minimis assistance to Dairy Producers  
2. Period covered by the notification  
2017 - 2018 
3. Policy objectives  
The dairy pro ducers have suffered from a further reduction in their income due to the poor rainy 
season that occurred in the period between 2015 – 2016. This resulted in the increase in the 
production cost for these primary producers.  
4. Background and Authority for the subsidy  
The scheme was implemented by the Ministry for the Environment Sustainable Development and 
Climate Change . 
5. Form of the subsidy  
Aid was granted in the form of cash grant. 
6. To whom and how the subsidy is provided  
Aid in the for m of a cash grant was paid to operational dairy producers . 
7. Amount of the subsidy  
2017 - €200,000 . 
8. Duration of the subsidy  
Two months between the 1st of November 2017 till the 31st of December 2017 . 
9. Trade effects of the subsidy  
There were no effects on international trade.  
29  DROUGHT SCHEME  
Title of the subsidy   
Temporary de minimis assistance to registered land farmers  
1. Period covered by the notification  
2017 – 2018. G/SCM/N/343/EU/Add.19  
 
- 70 - 
 
  2. Policy objectives  
The rainy season of 2015 -2016 were very minimal.  As a result, arable farmers have lost most of 
their produce.  On the other and farmers that have access to irrigation water had their production 
cost increase because of the dry spell.  The scheme is intended to provide financial support for the 
loss incurred.  
3. Background  and Authority for the subsidy  
The scheme was implemented by the Ministry for the Environment Sustainable Development and 
Climate Change . 
4. Form of the subsidy  
Aid was granted in the form of cash grant. 
5. To whom and how the subsidy is provided  
Aid in the form of a cash grant was paid to registered land farmers . 
6. Amount of the subsidy  
2017 - €874,109 . 
2018 - € 4,557.14 . 
7. Duration of the subsidy  
This was a onetime cash grant paid over the period May 2017 to November 2018 . 
8. Trade effects of the subsidy  
There wer e no effects on international trade.  
30  TRAINEESHIP SCHEME  
1. Title of the subsidy programme  
Traineeship Scheme  
2. Period covered by the notification  
Under the ESF2.201 – Enhancing Employability through Training Project, Jobsplus started running 
the first Tra ineeship Schemes in 2014. All traineeships offered under this project were concluded by 
end 2015. In 2016, Jobsplus re -launched the Traineeship Scheme through another ESF Project 
(ESF.01.001 – Training for Employment).  
The Traineeship Scheme forms part of the Training for Employment  project, which is co -financed by 
the European Social Fund  2014-2020.  
3. Policy objective and/or purpose of the subsidy  
The Traineeship Scheme provides jobseekers with initial vocational training (pre -employment 
training) that would help individuals obtain the knowledge, skills and competences required to find 
and retain employment. Traineeships are based on a combination of on -the-job and off -the-job 
training. The programmes offered are labour market driven, wher eby the job preferences of the 
jobseekers are matched with the requests made by employers participating in the scheme.  G/SCM/N/343/EU/Add.19  
 
- 71 - 
 
  4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted)  
For 2015:  
The reimbur sements payable to trainees and employers is co -financed by the European Social Fund s 
(85% through ESF and 15% through National Funds).  
Jobsplus , Malta's Public Employment Service, is responsible for administering the ESF funded project 
"Enhancing Employability through Training ". 
The general framework for traineeships in Malta was set by articles 29 to 45 of the Employment and 
Training Services Ac t (Chapter 343).  
For 2016 onwards:  
The reimbursements payable to trainees is co -financed by the European Social    Funds (80% through 
ESF and 20% through National Funds).  
Jobsplus, Malta's Public Employment Service is responsible for administering the ESF f unded project 
"Training for Employment ". 
The general framework for traineeships in Malta was set by articles 19 to 25 of the recently amended 
Employment and Training Services Act (Chapter 594) which came into force in 2018.  
5. Form of the subsidy (i.e., gr ant, loan, tax concession, etc.)  
Periodic payments.  
6. To whom and how the subsidy is provided  
In 2015:  
During participation in the scheme, trainees had to choose between the training allowance payable 
by Jobsplus and social benefits. The training allowanc e to be paid by Jobsplus was set at €3.33 per 
hour attended (the hourly rate was set at 80% of the national statutory minimum wage applicable 
at the time). Irrespective whether a trainee chose training allowance or benefits, trainees had to 
submit original  attendance sheets that highlighted the time when they started and concluded the 
on-the-job and off -the-job training for each day. The attendance sheets had to be endorsed by the 
employer representative. Once the attendance sheets were verified and computa tion was confirmed 
as correct, a reimbursement request form for trainees opting for the training allowance was 
generated and trainee was paid accordingly. Payments were issued on the 20th day of each month.  
Employers who participated in the scheme were als o entitled for a grant that was  calculated at €1  
per hour attended by the trainee. Employers did not submit additional documentation since their 
reimbursement was based on the trainees' on -the-job attendance sheets.  
From 2016 onwards:  
During participation in the scheme, trainees were no longer requested to choose between the training 
allowance payable by Jobsplus and social benefits, but they were only eligible for the training 
allowance payable by Jobsplus. In 2016, the training allowance was set at €4.20 per hour attended 
(the hourly rate was set on the national statutory minimum wage applicable at the time – allowances 
are pegged to the minimum wage), while in 2017 and 2018 the rate increased to €4.24 and €4.31 
respectively. Trainees were requested to sub mit original attendance sheets that highlighted the time 
when they started and concluded the on -the-job and off -the-job training for each day. The 
attendance sheets had to be endorsed by the employer representative. Once the attendance sheets 
were verified  and computation was confirmed as correct, a reimbursement request form for trainees 
opting for the training allowance was generated and trainee was paid accordingly. Payments were 
issued on the 20th day of each month.  G/SCM/N/343/EU/Add.19  
 
- 72 - 
 
  Under the Training for Employment Pro ject employers are not entitled for any allowances, as all 
costs related to participants ' training and work placement are borne by Jobsplus.  
7. Subsidy per unit, or the total amount  
In the year 2017 there have been no disbursements as the Training for Empl oyment Project funds 
started being disbursed in 2018. In 2018 the amount disbursed was €1,190,915.60.  These amounts 
comprise ESF and National Funds combined . 
8 Duration of the subsidy  
Since 2016 (including the period of 2017 -2018 covered in this report) . 
Typical and maximum duration planned for a participant as per below . 
14 weeks for the Sales Techniques Traineeship,  14 weeks for the Life Skills for the Work Environment 
Traineeship, 16 weeks for the Process Manufacturing Traineeship and  16 weeks for the Of fice 
Procedures Traineeship.  In year 2017 only, Jobsplus ran a Traineeship Scheme on the Maintenance 
and Preservation of Cultural Sites that was conducted over a period of 52 weeks.  
Maximum extended duration which applies under special conditions or for pa rticular groups: N/A as 
Traineeship Agreements cannot be extended.  
9. There are no effects on trade.  
31  WORK EXPOSURE SCHEME  
1. Title of the subsidy programme  
Work Exposure Scheme . 
2. Period covered by the notification  
Under the ESF2.201 – Enhancing Employability through Training Project, Jobsplus started running 
the Work Exposure Scheme in 2015. In 2016, Jobsplus re -launched the Work Exposure Scheme 
under the new ESF.01.001 – Training for Employment Project.  
The Work Ex posure Scheme forms part of the  Training for Employment  project, which is co -financed 
by the European Social Fund  2014-2020.  
3. Policy objective and/or purpose of the subsidy  
The Work Exposure Scheme is intended to facilitate transition into employment by providing 
jobseekers with initial hands -on training that would help individuals obtain the knowledge, skills and 
competences required to find and retain employment. This scheme is designed to mirror 
contemporary labour market demand, whereby the job prefer ences of the jobseekers are matched 
with employers' requests.  
4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted)  
In 2015, the training allowance payable to trainees was co -financed by the Eur opean Social Fund s 
(85% through ESF and 15% through national funds) . 
In 2016, the training allowance payable to trainees was co -financed by the European Social Fund s 
(80% through ESF and 20% through national funds). Jobsplus, Malta's Public Employment Serv ice 
is responsible for administering the ESF funded project. The general framework for this scheme was 
set by the Employment and Training Services Act (Chapter 594).  G/SCM/N/343/EU/Add.19  
 
- 73 - 
 
  5. Form of the subsidy (i.e., grant, loan, tax concession, etc.)  
Periodic payments.  
6. To whom and how the subsidy is provided  
During the participation in the scheme, trainees received a training allowance payable by Jobsplus, 
which in 2015 was set at €4.00 per hour attended; while in 2016 it was set at €4.20 per hour 
attended (the hourly rate was based on the national statutory minimum wage applicable at the 
time). In 2017 and 2018, trainees earned €4.24 and €4.31 respectively for every hour attended 
(Allowance are still pegged to the national minimum wage. The weekly hourly rates are calculate d 
based on the minimum wage per week as quoted on DIER 's website. For 2019, the national minimum 
wage per week of whole -time employees is of €175.84 for persons aged 18 and over. This is then 
divided by 40 hours so as to get the hourly rate. The National A greement on the minimum wage 
was signed by the social partners in 2017 and became effective by means of Legal Notice 
144 of 2017). To claim the reimbursement, trainees had to submit original attendance sheets that 
highlighted the time when they started and  concluded the on -the-job training for each day. The 
attendance sheets had to be endorsed by the employer representative. Once the attendance sheets 
were verified and computation was confirmed correct, a reimbursement request form was generated , 
and traine e was paid accordingly. Payments were issued on the 20th day of each month.  
Those trainees who received social benefits prior to the scheme, continued to receive part of their 
benefits throughout the scheme since the remuneration triggered through the sche me was based on 
part-time employment instead of full -time employment.  
7. Subsidy per unit or the total amount  
The Work Exposure Scheme disbursed €238,670.84 in 2015 and €282,040.50 in 2016. In 2018 the 
disbursements under the Training for Employment Projec t amounted to €635,786.  These amounts 
comprise ESF and National Funds combined.  
8. Duration of the subsidy  
Typical duration planned for a participant: 12 weeks . 
Maximum duration planned or allowed: 12 weeks . 
Maximum extended duration which applies under special conditions or for particular groups: N/A as 
Work Exposure Agreements cannot be extended.  
The duration of the work exposure is to be of 12 weeks and a participant is to report to the place of 
work for an  average of 20 hours/week. The on -the-job training will take place at the employer 's 
premises with whom the trainee is placed.  
9. Statistical data  
There are no effects on trade.  
32  WORK PLACEMENT SCHEM E 
1. Title of the subsidy programme  
Work Placement Scheme . 
2. Period covered by the notification  
The Work Placement Scheme started being offered in 2016 under the ESF.01.001 – Training for 
Employment Project.  G/SCM/N/343/EU/Add.19  
 
- 74 - 
 
  The Work Placement Scheme forms part of the Training for Employment project, which is co -financed 
by the European Social Fund  2014-2020.  
3. Policy objective and/or purpose of the subsidy  
The Work Placement Scheme provides training to participants following a course offered by Jobsplus, 
which includes a practical component. The Work Placement Scheme gives Jobsplus' trainees an 
opportunity to acquire both theoretical and practical training.  
4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted)  
The training allowance payable to trainee s is co -financed by the European Social Fund s (80% 
through ESF and 20% through national funds).  
Jobsplus, Malta's Public Employment Service, is responsible for administering the ESF funded project.  
The general framework for this scheme was set by the Emplo yment and Training Services Act 
(Chapter 594).  
5. Form of the subsidy (i.e., grant, loan, tax concession, etc.)  
Periodic payments.  
6. To whom and how the subsidy is provided  
This scheme is available to persons who were/are unemployed or inactive. Other ent ry requirements 
may be requested depending on the chosen work/study area;  
The on -the-job training takes place at the employer's premises with whom the trainee is placed. The 
hours trainees have to perform are set by Jobsplus, although trainees are allowed a degree of 
attendance flexibility ranging approximately between 20 hours to 40 hours per week.  
Any employers from both the public and private entities, including NGOs are eligible to benefit from 
having participants in this scheme.  
7. Subsidy per unit or the total amount  
In 2018, the sum of €110,755.40 was disbursed. These amounts comprise ESF and national funds 
combined.  
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
Each trainee has a maxi mum of 26 weeks to make up the following placement hours:  
• Care Workers for the Elderly: 100 hours ; 
• Care Workers for Persons with Disability: 71 hours ; 
• Childcare: 500 hours . 
9. Statistical data  
There are no effects on trade.  
33  YOUTH GUARANTEE 2.0 SCHEME ESF.01.002  
1. Title of the subsidy programme  
Youth Guarantee 2.0 ESF.01.002 / Garanzija għa ż-Żgħażagħ 2.0 FSE.01.002.  G/SCM/N/343/EU/Add.19  
 
- 75 - 
 
  2. Period covered by the notification  
The Youth Guarantee 2.0 Scheme started in 2015 till end of December 2019.  
3.  Policy objective an d/or purpose of the subsidy  
The Youth Guarantee scheme (ESF.01.002 - Youth Guarantee 2.0) is an EU -funded project, 
developed for young people aged 15 to 25, and which consists of four education and employment 
related initiatives:  the NEET Activation Scheme  II, SEC Preventive Classes, MCAST 
Preventive Classes, and the ICT Summer Courses.  
The scheme is targeted towards job seeking and inactive youth, including the long term unemployed 
and youth detached from the labour market. This scheme targets the sustaina ble integration into 
the labour market of young people, in particular those not in employment, education or training 
(NEETs), including young people at risk of social exclusion and young people from marginalised 
communities.  
The Youth Guarantee project foc uses on both the current stock of NEETs as well as those at risk of 
becoming NEETs or young unemployed through a mix of interventions tailor -made for the specific 
cohorts. The project provides training and personalised assistance to these youth.  
4. Backgro und and authority for the subsidy (including identification of the legislation under 
which it is granted)  
The Youth Guarantee is an EU initiative and is a commitment by all Member States to ensure that 
all young people under the age of 25 years receive a g ood quality offer of employment, continued 
education, apprenticeship or traineeship within a period of four months of becoming unemployed or 
leaving formal education.  
The source of finance comes from the European Social Fund  2014-2020 programming period. T he 
co-financing rate is that of 80% ESF funds while the remaining 20% via national funds.  
5. Form of the subsidy (i.e., grant, loan, tax concession, etc.)  
NEET Activation Scheme II: provides young people (16 – 25-year-olds) who are not in education, 
employment or training (NEETs) with  personal/professional training, mentoring and constant 
support , thereby facilitating their transition from education to gainf ul employment, while 
consequently improving their employment prospects, quality of life and social integration.  
ICT Summer Courses: Each participant is offered 60 hours of ICT training at one of the available 
centres depending on the locality of each parti cipant. Allowance is received on the condition that the 
participant attends 80% of tuition.  
SEC Preventive Classes: Teachers are recruited by the Youth Guarantee Office to provide the tuition 
during the revision classes. Officers in charge are also engaged  to develop and issue timetables and 
to act as mentors throughout the duration of the summer initiative. Both teachers and coordinators 
are paid a fixed hourly rate. In addition to this, teachers are also paid for every hour of preparation 
work. Participan ts are not given an allowance.  
MCAST Preventive classes: Teachers are recruited by MCAST to provide the tuition during the 
revision classes. One officer in charge is also engaged to develop and issue timetables and to act as 
a mentor throughout the duratio n of the summer initiative. Both teachers and coordinators are paid 
a fixed hourly rate through ESF funds. Participants are not given an allowance.  
Financial transfers are distributed via periodic cash payments, lump -sum payments and 
reimbursements.  
6. To whom and how the subsidy is provided  
NEET Activation Scheme II: In order to participate in the scheme , youths have to be under 25 years 
of age at the month prior the issuing of the call for applications, resident in Malta or Gozo and G/SCM/N/343/EU/Add.19  
 
- 76 - 
 
  unemployed or inactive . This initiative attempts to empower youth and re -integrate them into the 
education system or labour market. This initiative is composed of two phases.  
In the first phase, every applicant receives approximately four weeks (80 hours) of basic training on 
soft skills; such as how to build a CV, how to prepare for an interview, motivational skills, and 
communication skills. This phase takes between 4 -6 weeks based on timetable scheduling. During 
phase 2, a participant is offered one of two options:  
1. A work pla cement (maximum of 240 hours) with an employer based on the applicant 's 
skills and desires. This placement lasts approximately 12 weeks – 80 hours every 4 weeks.  
2. If the applicant desires to further their education level, they can choose a course from an 
accredited institution such as MCAST/ITS  and pursue a course there. In this case, we will 
also cover a maximum of 240 hours.  
Each participant will be paid an allowance of €4.50 per hour, after both the training and the work 
exposure/further education phases based on their attendance rate.  
ICT Summer Courses: The ICT Summer Courses is targeted at individuals who participated in the 
Alternative Learning Programme during the previous scholastic year or who are inactive , or they are 
referred by their school 's psychosocial team. Provided that each participant attends 80% of tuition, 
then he/she is paid at a rate of €4.05 per hour. Hence a participant attending 80% or more would 
be paid the amount of €243 at the end of the course.  
SEC Preventive Classes: The SEC Pre ventive Classes target NEETs who were students previously 
enrolled at State and non -State schools, who do not sit for the May exam session, or who get the 
grades 6 or 7 or "U" in at least one of the core subjects (Maltese, English, Maths, Physics and Biolo gy) 
offered. As from 2017, Biology was introduced as one of the science subjects offered. Teachers are 
recruited by the Youth Guarantee Office to provide the tuition during the revision classes. Officers 
in charge are also engaged to develop and issue time tables and to act as mentors throughout the 
duration of the summer initiative. Both teachers and coordinators are paid a fixed hourly rate of 
€12.00. In addition to this, teachers are also paid €12.00 for every hour of preparation work. 
Payments are issued  once at the end of the initiative. Participants are not given an allowance.  
MCAST Preventive classes: Students who fail one of the exams through Level 1, Level 2 or Level 3 
of the respective course at the Malta College for Arts, Science and Technology (MCAST) are given 
the opportunity to receive remedial classes during the summer period. Teachers are recruited by 
MCAST to provide the tuition during the revision classes. One officer in charge is also engaged to 
develop and issue timetables and  to act as a mentor throughout the duration of the summer 
initiative. Teachers and coordinators are paid at an hourly rate of €24.00 and €12.00 respectively , 
through ESF funds. Payments are issued once at the end of the initiative. Participants are not giv en 
an allowance.  
7. Subsidy per unit or the total amount  
The total disbursed for the Youth Guarantee Scheme for 2016 up to the end of 2018 totalled 
€1,868,891.45. For the year 2017, the total disbursements reached the amount of €885,740.15 
while for 2018 i t amounted to €569,938.60. These amounts comprise ESF and National Funds 
combined.  
8. Duration of the subsidy NEET Activation Scheme II:  
Typical duration planned for a participant: 16 weeks  
Maximum extended duration which applies under special conditions o r for particular groups: 30 
weeks ICT Summer Course participants: 60 hours of training SEC Revision Classes: 5 weeks of 
tuition MCAST Remedial Classes: 6 weeks of tuition . 
9. Statistical data  
There is no effect on trade.  G/SCM/N/343/EU/Add.19  
 
- 77 - 
 
  34  TRAINING PAYS SCHEME  
1. Title of th e subsidy programme  
Training Pays Scheme (TPS) . 
2. Period covered by the notification  
Training Pays Scheme (TPS) started being offered in March 2017 under the ESF.01.001 – Training 
for Employment Project (under the ESF project the scheme is known as the De veloping Skills 
Scheme), which is co -financed by the European Social Fund  2014-2020.  
3. Policy objective and/or purpose of the subsidy  
The TPS aims to assist individuals to develop and/or improve their skills by participating in further 
off-the-job educati on and training.  
The scheme offers assistance in the form of a training grant to aid participants with costs relating to 
training. This grant will be awarded to the individual (trainee) after successful completion of their 
training.  
4. Background and autho rity for the subsidy (including identification of the legislation under 
which it is granted)  
The source of finance comes from the Operational Programme II – European Structural and 
Investment Funds 2014 -2020. The co -financing rate is that of 80% ESF funds while the remaining 
20% via national funds.  
5. Form of the subsidy (i.e., grant, loan, tax concession, etc.)  Grant shall be equivalent to 75% 
of the direct training cost excluding VAT but will not exceed the maximum amount of €1,000. The 
minimum threshold for an application to be accepted will be set at €100. Grant will be reimbursed 
directly to the participant after successful completion of training and upon presentation of an invoice 
and an original receipt of payment together with a copy of an accredited  certificate or transcript.  
Training costs shall mean Tuition fees, Training Material, Registration fees and Examination fees paid 
by the applicant.  
6. To whom and how the subsidy is provided  
The Scheme is open to individuals of working age population 16 t o 64 years as per applicable law.  In 
the case of persons aged between 16 and 24, they must not be participating under the Youth 
Guarantee NEET Activation Scheme II.  
Training  
Prospective participants may apply for any Training Programme as long as the course is:  
• not offered by Jobsplus;  
• offered by a licensed Training Institution (provider must be licensed by NCFHE*);  
• pegged between MQF level 1 to 5.  
*exceptions may apply in accordance to SL. 327.433 – Further & Higher Education (Licensing, 
Accreditation & Quality Assurance) Regulations  
Other General Rules  
• Applications must be received at least 2 weeks prior to the course start date.  
• Minimum cost of training (excluding VAT) is  €100.  G/SCM/N/343/EU/Add.19  
 
- 78 - 
 
  Training courses offered by the company employing the applicant would not be eligible.  Only full 
qualifications and awards can be accepted.  Claims for a module which forms part of a qualification 
or award cannot be accepted.  
7. Subsidy per unit or t he total amount  
For the year 2017 there have been no disbursements as the Training for Employment Project funds 
started being disbursed in 2018, which then amounted to €13,833.50.  
These amounts comprise ESF and national Funds combined.  
8. Duration of the s ubsidy  
Training Pays Scheme started being offered in 2017 until 2020 under the ESF.01.001 – Training for 
Employment Project.  
9. Statistical data  
There were no effects on international trade.  
35  INVESTING IN SKILLS SCHEME  
1. Title of the subsidy programme  
Investing in Skills Scheme.  
2. Period covered by the notification  
The scheme is available until 30th June 2020, this scheme falls under Malta 's Operational Programme 
II of the European Social Fund  - "Investing in human capital to create more opportunities and 
promote the well -being of society " for the 2014 -2020 programming period.  
3. Policy objective and/or purpose of the subsidy  
The scheme was launched to promote the training of persons actively participating in the Maltese 
Labour Market, with the aim to incre ase productivity and enhance adaptability.  
4. Background and authority for the subsidy  
Jobsplus  (Malta's Public Employment Service) acts as the Intermediate Body to the Managing 
Authority.  
The source of finance comes from the Operational Programme II – European Structural and 
Investment Funds 2014 -2020. The co -financing rate is that of 80% ESF funds  while the remaining 
20% via national funds.  
5. Form of the subsidy (i.e., grant, loan, tax concession, etc.)  
The scheme is demand driven, therefore the Employer can apply whenever a training need is 
identified within their entity.  
6. To whom and how the s ubsidy is provided  
Grant awards will be provided on a first - come first -served basis and subject to calendar year total 
ceilings. The total available budget for this scheme is €8million, with an indicative annual calendar 
year ceiling of circa €2 million to whom and how the subsidy is provided . 
A grant is issued should the beneficiary meet the below eligibility criteria at application stage and 
reimbursement stage:  G/SCM/N/343/EU/Add.19  
 
- 79 - 
 
  Eligibility Criteria:  
a. Complete documentation  
b. Project implemented within / for the direct bene fit of the eligible territory . 
c. Incentive Effect:  Aid shall be considered to have an  incentive  effect if the beneficiary has 
submitted a written application for the aid before work on the project or activity starts. 
Therefore, claim and proof of deliverable s should be dated after the submission date of the 
IIS application.  
d. Eligible Training Programme : Aid shall not be granted for training which employers carry 
out to comply with National Mandatory Standards on training (in other words, it must be 
voluntary t raining as opposed to legally enforced training). Furthermore, information 
sessions and team building events are not eligible under Investing in Skills since these are 
not considered as training.  
e. The trainee needs to be formally employed with the beneficia ry during the training 
period . Apprentices or students engaged in vocational training with an apprenticeship or 
vocational training contract are not eligible.  
Furthermore, in the case of employers having an economic activity irrespective of their legal for m: 
f. Aid cannot be granted to any undertaking found to be in difficulty.  Jobsplus will 
conduct checks to ensure that every applicant undertaking is financially sound  
g. Falls within the definition of undertaking . 
Target Groups:  
Eligible applicants cover all employers having an economic activity irrespective of their legal form. 
These include partnerships, companies, family businesses, associations, individual self -employed or 
other body of persons, NGOs and social partners.  
NGOs and social partners not having an economic activity are also eligible to benefit from the 
scheme.  
7. Subsidy per unit or the total amount  
For the year 2017 there have been no disbursements as the Investing in Skills funds started being 
disbursed in 2018. The total amount disburse d in 2018 was of €582,368.44.  
List of beneficiaries as at end 20 18. 
In total, for the years 2017 and 2018 there have been 651 beneficiaries of the scheme.  
Subsidy on Training Costs and Wage Costs:  
Training Type  Rate per Trainee per hour 
for Training Costs  Rate per Trainee per hour 
for Wage Costs**  Capping  
Non Accredited 
Training  €25 €4.90  Up to 25 hours  
Accredited* 
Training  €25 €4.90  All contact hours  
* Training must be accredited  by the NCFHE (National Commission for Further and Higher Education), 
ITS (Institute of Tourism Studies), UOM (University of Malta) and MCAST (Malta College of Arts, 
Science & Technology where  MQF/EQF Levels 1 - 5 will be accepted under Investing in Skills.  
** Refundable if training occurs during the normal  working hours of the trainees. In the case 
of Distance Learning  or e-Learning, wage costs cannot be reimbursed.  G/SCM/N/343/EU/Add.19  
 
- 80 - 
 
  Reimbursement will be calculated on the hours listed on certified attendance sheets, when using the 
Standard Scale of Unit Cost of €25 per trai nee per hour.  
Subsidy on Air Travel Costs:  
Travel costs will be based  on the Erasmus Plus Grant Support for the mobility of staff:  
Applicable Rates According to Distance per Round Trip per Participant  
100 - 499 km   €180 
500 - 1,999 km  €275 
2,000 - 2,999 km  €360 
3,000 - 3,999 km  €530 
4,000 - 7,999 km  €820 
8,000 km or more  €1,500  
Aid Intensity  
The following co -financing rate will be applied  to the total eligible costs:  
Entity Size  Aid Intensity  
Large Entities  50% 
Medium Entities  60% 
Small and Micro Entities  70% 
8. Duration of the subsidy  
The duration of the subsidy is not fixed. Duration can vary from a month or two to more months, 
depending on the course offered. The duration is calculated between the start and end date of 
training.  
9.  Statistical data  
There are no effects on international trade.  
36  ACCESS TO EMPLOYMENT  (A2E) SCHEME  
1. Title of the subsidy programme  
Access to Employment (A2E) Scheme.  
2. Period covered by the notification  
The scheme started in 2015 and will remain active up to 2020.  
3. Policy objective and/or purpose of the subsidy  
Access to Employment (A2E) Scheme provides employment aid to enterprises in Malta and Gozo  to 
promote the recruitment of the more challenged amongst jobseekers and inactive persons.  
This scheme facilitates the integration of job seekers and inactive people in the labour market by:  
Enhancing opportunities to access the labour market and providin g work experience to those furthest 
away from gainful occupation; Bridging the gap between labour market supply and demand; 
Increasing social cohesion.  
4. Background and authority for the subsidy  
Jobsplus (Malta's Public Employment Service) is acting as th e Intermediate Body to the Managing 
Authority. This scheme is in line with the Commission Regulation (EU) No 651/2014 of 17 June 2014 
declaring certain categories of aid compatible with the common market in application of Articles 107 G/SCM/N/343/EU/Add.19  
 
- 81 - 
 
  and 108 of the Treaty  on the Functioning of the European Union (TFEU) (General Block Exemption 
Regulation. The co -financing rate for the A2E scheme is 80% ESF funds and 20% national funds.  
5. Form of the subsidy (i.e., grant, loan, tax concession, etc.)  
The scheme is managed o n a demand driven basis meaning that employers can apply whenever 
they identify a recruitment need within the entity. Grant awards will be provided on a first -come 
first-served basis and subject to calendar year total ceilings. The total available budget f or this 
scheme is €12 million, with an indicative annual calendar year ceiling of circa €2.4 million per annum . 
The scheme is co -financed by the European Social Fund  (80%) and national funds (20%).  
6. To whom and how the subsidy is provided  
Eligibility Cri teria:  
Beneficiaries who are eligible for this scheme are all employers having an economic activity 
irrespective of their legal form. These include partnerships, companies, family businesses, 
associations, individual self -employed or other body of persons,  NGOs and social partners, when 
recruiting new employees. Such definition implies that there must be at least one person in the 
employer 's organisation who is engaging a different person through the A2E Scheme. NGOs and 
social partners not having an econom ic activity are also eligible to benefit from the scheme.  
Jobsplus, as the intermediary body will approve the reimbursement if the beneficiary provides a 
correct claim for reimbursement, employment has actually taken place and employer declares that 
the ex penditure has actually been incurred. All applications for funding will be assessed against the 
eligibility criteria and will proceed for funding subject to availability of funds as well as subject that 
the employment is effected within the eligible period . For the recruitment to be eligible, the 
Undertaking must send a duly completed A2E application form and relevant documentation before 
the end of August 2019. Recruitment must take place no later than September 2019 to be considered 
eligible for the subsi dy. 
Target Groups:  
1. Any person of age 24 and over who has been unemployed/inactive for the previous 6 
months;  
2. Any person of age 24 and over who has been unemployed for the previous 12 months 
during which he/she participated in a traineeship with the applica nt undertaking;  
3. Any person who is living as a single adult who has one or more dependants and is not in 
full-time employment;  
4. Any person of age 24 and over who has not attained an upper secondary educational or 
vocational qualification (ISCED 3) and who do es not have a job;  
5. Any person older than 50 years who does not have a job;  
6. Any person who has been unemployed/inactive for the previous 12 months during which 
he/she has not benefited from a traineeship with the applicant undertaking and who 
belongs to eit her category (3) to (5);  
7. Any person of age 24 and over who has been unemployed/inactive for the previous 24 
months during which he/she has not benefited from a traineeship with the applicant 
undertaking;  
8. Any person who is a registered disabled person under  national law and is not in full -time 
employment.  G/SCM/N/343/EU/Add.19  
 
- 82 - 
 
  7. Subsidy per unit or the total amount  
Target Group Description Standard Scale of Unit Cost based on 40 hours per week standard scale of 
Unit cost based on 20 hours per week . 
• Disadvantaged and Severely Disadvantaged Persons  €85    €42.50  
• Registered Disabled Persons  €125 €62.50  
In 2017, the Access to Employment Scheme disbursed a total of €1,871,021.29, while in 2018 
disbursed the amount of €1,822,019.83.  These amounts comprise ESF and National Funds 
combined.  
8. Duration of the subsidy  
Employers who engage eligible individuals shall receive a subsidy of €85 per week per new recruit 
for 26 weeks, 52 weeks or 104 weeks, depending on the target group. In the case of registered 
disabled per sons, a subsidy of €125 per week for a maximum of 156 weeks is provided.  
9.  Statistical data  
There are no effects on international trade.  
37  PROMOTING ECONOMIC C OHESION IN GOZO (AGR ICULTURAL SECTOR)  
1. Title of the subsidy  
Promoting Economic Cohesion in Gozo  (Agricultural Sector) . 
2. Period covered by the notification  
01/01/2017 to 31/12/2020 . 
3. Policy objective  
To assist Gozo based farmers in their operations; this scheme provides for the re -imbursement of 
ferry tickets incurred by farmers when transporting  their agriculture produce to Malta thus partially 
mitigating the handicap of double insularity faced by agriculture sector.  
4. Background and authority for the subsidy  
The scheme is an administrative measure implemented by the Ministry for Gozo. 
5. Form o f the subsidy  
It entails a refund of eligible costs incurred which is paid to beneficiaries in the form of a cash grant.  
6. To whom and how the subsidy is provided  
Farmers based in Gozo are reimbursed the ferry tickets when crossing over to Malta with thei r 
agricultural produce.  
7. Amount of the subsidy  
€35, 467.70 (2017) . 
€37,770.65 (2018) . 
8. Duration of the subsidy  
01/01/2014 to 31/12/2020 . G/SCM/N/343/EU/Add.19  
 
- 83 - 
 
  9. Trade effects of the subsidy  
N/A 
38  FRUITS AND VEGETABLE S GRADING AND PACKAG ING FACILITY  
1. Title of the subsidy  
Fruits and Vegetables Grading and Packaging Facility  
2. Period covered by the notification  
15/03/2016 to 31/12/2020 . 
3. Policy objective  
The purpose of this scheme is to support the agricultural sector in Gozo by providing assistance for 
the setting -up, implementation and operation of fruit and vegetables grading and packaging 
facilities.  
4. Background and authority for the subsidy  
The sche me is an administrative measure being implemented by the Ministry for Gozo . 
5. Form of the subsidy  
It entails a refund of eligible costs incurred which is paid to beneficiaries in the form of a cash grant.  
6. To whom and how the subsidy is provided  
Eligibl e participants are agricultural cooperatives based in Gozo.  
7. Amount of the subsidy  
€22,000 (2017) . 
None (2018)  
8. Duration of the subsidy  
15/03/2016 to 31/12/2020 . 
9. Trade effects of the subsidy  
International trade was not affected.  
39   TRANSPORT OF FODDER  
1. Title of the subsidy  
Transport of Fodder . 
2. Period covered by the notification  
01/01/2015 to 31/12/2017 . G/SCM/N/343/EU/Add.19  
 
- 84 - 
 
  3. Policy objective  
To partially mitigate the additional costs that livestock breeders based in Gozo incur when 
transporting fodder from Malta to Gozo . 
4. Background and authority for the subsidy  
The scheme is an administrative measure implemented by the Ministry for Gozo.  
5. Form of the subsidy . 
The aid is a refund of eligible costs incurred which is paid to beneficiaries in the form of a cash grant. 
The subsidy covers a percentage of the additional costs incurred in the transportation of fodder 
between Malta and Gozo. Eligib le costs shall not be higher than the official tariff pertaining to the 
established scheduled inter -island sea transport.  
6. To whom and how the subsidy is provided  
It is provided to Gozo based breeders on a pro rata basis depending on the amount of fodder  
transported from Malta to Gozo  
7. Amount of the subsidy  
€43,999.03 (2017) . 
€14,340.00 (2018) paid in 2018 iro claims for 2017 . 
8. Duration of the subsidy  
01/01/2015 to 31/12/2017 . 
9. Trade effects of the subsidy  
N/A. 
40   PROMOTING ECONOMIC COHESION IN GOZO ( FISHERIES SECTOR)  
1. Title of the subsidy  
Promoting Economic Cohesion in Gozo (Fisheries Sector) . 
2. Period covered by the notification  
01/07/2014 to 31/12/2020 . 
3. Policy objective  
The purpose of this scheme is to promote economic cohesion in Gozo through  the provision of 
assistance earmarked to partially mitigate the handicap of double insularity faced by the fisheries 
sector.  
4. Background and authority for the subsidy  
The scheme is an administrative measure implemented by the Ministry for Gozo . 
5. Form of the subsidy  
It entails a refund of eligible costs incurred which is paid to beneficiaries in the form of a cash grant.  G/SCM/N/343/EU/Add.19  
 
- 85 - 
 
  6. To whom and how the subsidy is provided  
Eligible participants are economic operators (including individuals) that carry out an  economic 
activity in the Fisheries Sector. Subsidy is granted based on submission of evidence of expenditure 
incurred.  
7. Amount of the subsidy  
€40.75 (2017) . 
€81.50 (2018) . 
8. Duration of the subsidy  
14/07/2014 to 31/12/2020  
9. Trade effects of the subsidy  
No effects on trade whatsoever . 
41   PROMOTING ECONOMIC COHESION IN GOZO (IN DUSTRIAL SECTOR)  
1. Title of the subsidy  
Promoting Economic Cohesion in Gozo (Industrial Sector) . 
2. Period covered by the notification  
1 January 2014 – 31 December 2020.  
3. Policy objective  
The purpose of this scheme is to promote economic cohesion in Gozo through the provision of 
assistance earmarked to partially mitigate the handicap of double insularity faced by Gozo -based 
manufacturing undertakings.  
4. Background and author ity for the subsidy  
The scheme is an administrative measure implemented under Vote IX Item 7096 of the Ministry for 
Gozo.  
5. Form of the subsidy  
The form of subsidy entails a refund of the additional costs incurred to transport any machinery, 
plant, materi al, goods or products directly connected with the economic activities of the eligible 
beneficiaries between Malta and Gozo. Eligible costs shall not be higher than the relevant official 
tariff pertaining to the established scheduled inter -island sea transp ort plus half of the related on -
land haulage costs.  
6. To whom and how the subsidy is provided  
Eligible beneficiaries are business concerns engaged in manufacturing activities in Gozo. Subsidy is 
provided as a grant based on actual expenditure incurred.  
7. Amount of the subsidy  
2017 - €300,898 . 
2018 - €23,268 (part payment; claims for 2018 have not been calculated and verified as yet) . G/SCM/N/343/EU/Add.19  
 
- 86 - 
 
  8. Duration of the subsidy  
Activities must be undertaken by 2020.  
9. Trade effects of the subsidy  
There were no effects on international trade.  
 
 
__________