G/SCM/N/253/EU/Add.18  
 
27 September 2013  
(13-5170)  Page: 1/70  
Committee on Subsidies and Countervailing Measures  Original: English  
 
 SUBSIDIES 
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1 OF 
THE GATT 1994 AND ARTICLE 25 OF THE AGREEMENT ON 
SUBSIDIES AND COUNTERVAILING MEASURES 
EUROPEAN UNION 
Addendum 
The following addendum to the notification of the European Union relates to the subsidy 
programmes of Malta . 
 
_______________ 
 G/SCM/N/253/EU/Add.18 
 
- 2 - 
 
  MALTA  
 
 
TABLE OF CONTENTS 
 
1   INVESTMENT AID SCHEME .......................................................................................... 3  
2   REDUCED RATE OF TAX ON REINVESTED PROFITS .................................................... 13  
3   INVESTMENT  ALLOWANCE ........................................................................................ 14  
4   INDUSTRY IN GOZO .................................................................................................. 15  
5   LOAN INTEREST RATE SUBSIDIES ............................................................................. 16  
6   LOAN GUARANTEES ................................................................................................... 17  
7   STRENGTHENING MARKET ENTR Y AND INTERNATIO NALISATI ON ............................ 17  
8   NETWORK SUPPO RT SCHEME .................................................................................... 19  
9   BUSINESS DEVELOPM ENT GRANT SCHEME ................................................................ 22  
10   BUSINESS ADVISORY SERVICES SCHEME ................................................................ 23  
11   ERDF INTERNATIONAL CO MPETITIVENESS GRANT SCHEME .................................... 24  
12   CREATE TAX CREDITS FO R CREATIVE ENTERPRISES ............................................... 27  
13   ERDF ENERGY GRANT SCHE ME ................................................................................ 30  
14   TAX CREDTS FOR MICRO ENTERP RISES AND THE SE LF EMPL OYED ......................... 32  
15   ERDF INNOVATION ACTIONS GRANT SCHEME (E NVIRONME NT) ............................. 34  
16   EXPLORATORY AW ARD FP7 SC HEME ....................................................................... 36  
17   INNOVATIVE ST ART-UP SC HEME ............................................................................. 38  
18   SMALL START-UP GRANTS SC HEME ......................................................................... 41  
19   ERDF INNOVATION ACTI ONS (INNOV-ACT)  GRANT ................................................ 43  
20   SME DEVELOPMEN T GRANT SC HEME ....................................................................... 45  
21   ERDF E-BUSINESS DEVE LOPMENT GRANT SCHEME ................................................. 46  
22   EUREKA R&D GRAN T ............................................................................................... 49  
23   EUROSTARS R&D GRANT ......................................................................................... 52  
24   INDUSTRIAL RESEACH AND EXPE RIMENTAL DEVELOPMENT SCHEME ..................... 55  
25   ERDF INDUSTRIAL RESEARCH AND EXPERIMENTAL DEVELOPMENT ........................ 57  
26   PREPARATORY TECHNICAL FE ASIBILITY STUDIE S SCHEME .................................... 60  
27   INTEREST RATE SUBSIDY SCHEME FOR THE REFURBISHMENT OF HOTELS, 
ACCOMMODATION FACILITIES  AND RESTAU RANTS ....................................................... 61  
28   TRAINING ASSISTAN CE .......................................................................................... 63  
29   TRAINING AI D FRAMEW ORK ................................................................................... 64  
30   EMPLOYMENT AI D PROGRAMME .............................................................................. 65  
31   AGRICULTURAL NATIONALLY FULL-FINANCED AID ................................................. 66  
32   AGRICULTURAL TE MPORARY STATE AID ................................................................. 68  
 
 G/SCM/N/253/EU/Add.18 
 
- 3 - 
 
  INTRODUCTION 
 This report covers state aid programmes and schemes that were in operation between 2011 and 2012. The amounts stated in this report are in the Euro currency (€). 
 
1  INVESTMENT AID SCHEME 
1. Title of the subsidy 
 
Investment Aid Scheme  (Investment Aid Regulations as subsidiary legislation 463.02 to the Malta Enterprise Act, 
Chapter 463 of the Laws of Malta)
1 
 2. Period covered by the notification 
 The period covered by this notification starts from 1 January 2011 until 31 December 2012.  
3. Policy objective 
 
The terms and conditions of the Investment 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 categories of aid compatible with the common 
market in application of Articles 87 and 88 of the Treaty  (General block exemption Regulation) 
[GBER]2. 
 
Undertakings which carry out solely  one or more of the eligible activities listed below may qualify 
for assistance under this support measure: 
 
1. Manufacturing  
 
a. Undertakings engaged in the production, manufacture, improvement, assembly, 
preservation, processing of any goods, materials, commodities, equipment, plant, 
machinery. 
 
Provided that: 
i. The resultant product(s) should be clearly distinct from the materials and 
components utilised; 
ii. Undertakings engaged in the producti on of motor vehicles require prior 
approval. 
 
b. The rendering of any industrial services analogous to the activities mentioned in 
(a) above. 
 
c. The repair, overhaul or maintenance of: 
i. Pleasure crafts and yachts not having more than thirty berths; 
ii. Aircraft; 
iii. Engines or electromechanical equipment incorporated or used in (i) and (ii) 
above. 
 An undertaking whose activities include the installation, commissioning or assembly of goods on site, is only considered eligible if the goods have been manufactured by the same undertaking. 
 
                                               
1 http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=11607&l=1  
  http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1  
2 http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:214:0003:0047:EN:PDF  G/SCM/N/253/EU/Add.18 
 
- 4 - 
 
  2. Information Technology  
 
i. Undertakings engaged in Information Tec hnology (I.T.) carrying out significant 
developmental activities and providing infrastructure services for I.T. 
developmental activities; 
ii. Undertakings engaged in gaming (NACE rev. 2 Class 92.0) and in the provision of 
telecommunications services (NACE rev. 2 Class 60.0 and 61.0) are ineligible. 
 
3. Call Centre Activities  
 
Undertakings engaged in inbound or outbound call centre services that receive customer orders, 
provide product information, deal with custom er requests for assistance, address customer 
complaints, sell or market goods or services to potential customers, undertake market research or public opinion polling and similar activities for clients. 
 
Eligible undertakings for Call Centre activities ma y only benefit from assistance under this support 
measure or claim any accumulated tax credits if the number of full time equivalent employment 
for the year in review is at least equal to twenty five. 
 The provision of reception services is ineligible for assistance under this scheme.  
4. Research and Develo pment and Innovation  
 Undertakings engaged in the design, development, testing and technical analysis of new products 
and processes that are at the leading edge of the applicable market. 
 
5. Eco-innovations, waste treatment and environmental solutions  
 
Undertakings engaged in:  
a. Waste Treatment 
 
"Waste Treatment" means the operation of physic al, thermal, chemical or biological process, 
including sorting, which changes the characteristics of the waste in order to reduce its volume or 
hazardous nature, facilitate its handling or enhance recovery; 
 
b. Eco-innovation" services and "Environmental Solutions 
 
The operation of "Eco-innovation" services and "Environmental Solutions" that significantly prevent, reduce or reverse the negative impacts of human activities on the environment.  
Eco-innovation  means an innovation resulting in significant and demonstrable progress towards 
the goal of sustainable development, through redu cing impacts on the environment or achieving a 
more efficient and responsible use of resources, including energy. 
 
6. Biotechnology  
 
Undertakings engaged in: 
 
a. The research, development, quality assurance (including clinical trials and validation) 
or production of, products and services requiring the use of bio-technologies for their 
modification, synthesis or exploitation; 
b. The research, development, validation and commercialisation (introducing a new 
product, service or production method to the market) of human tissue programmes 
(stem cells, tissue transplantation and so on); 
c. The production, quality assurance and clinical validation of new medical devices based 
on research in life sciences; 
d. The development and application (including knowledge transfer) of research in life 
sciences within industry. 
 G/SCM/N/253/EU/Add.18 
 
- 5 - 
 
  7. Pharmaceuticals  
 Undertakings holding a Good Manufacturing Practice  certificate issued by the Medicines Authority 
in Malta that engaged in the: 
 
a. Formulation, development and manufacturing of pharmaceuticals licensed for use as 
medications; 
b. Preparation and packaging of pharmaceuticals license for use as medications. 
8. Facilities for Filming and Audiovisual Productions  
 Facilities for filming and audiovisual productions shall include: 
 
a. The production (through script writing, casting, shooting, directing and editing) of 
audiovisual productions consisting of feature films, television films, advertisements and 
documentaries; or 
b. The operation and provision of facilities and equipment (such as film studios audiovisual 
editing facilities and film and filming equipment) required in the production of feature 
films, television films, advertisements and documentaries; or 
c. The operation of a sound studio; or 
d. The development of digital media and digital games. 
 
Undertakings engaged in broadcasting of audiovis ual content to live audiences through any media 
channels or engaged in programming and broadcasting activities (NACE rev. 2 Class 60.0) are ineligible for assistance under this support measure. 
 
9. Provision for Tertiary Education  
 
Undertakings engaged solely in the provision of tuition leading to qualifications classified by the 
Malta Qualifications Council as Level 5 of higher. An undertaking would be considered as eligible for assistance under this support measure if it carries out a new investment project that within a twenty four month period: 
 
a. Constitutes an investment of at least two million Euro in educational and teaching 
resources (I.T. equipment, multimedia equipment, laboratory equipment, software, 
literature); or 
b. Comprises an investment in educational and teaching resources and results in the 
creation of at least twenty five direct new full time jobs. 
 
10. Provision of Private Health Care Services  
Eligible applicants should undertake a new investment project for the provision of private health care in Malta that: 
 
a. Constitutes an investment of at least five million Euro in medical equipment (diagnostic 
equipment [such as ultrasound and MRI machines, PET and CT scanners and X-Ray 
machines], therapeutic equipment [which incl udes infusion pumps, medical lasers and 
LASIK surgical machines], life support equipment [such as medical ventilators, anaesthetic machines, heart-lung machines and dialysis machines] used to maintain a 
patient's bodily function, and medical moni tors [which measure a patient's medical 
condition such as vital organs, ECG, EEG and blood pressure], within a twenty four month period; or 
b. Comprises an investment in medical equipment and results in the creation of at least 
twenty five direct new full time equivalent  jobs within a twenty four month period. G/SCM/N/253/EU/Add.18 
 
- 6 - 
 
   
Undertakings qualifying for assistance under this  scheme for provision of health care services 
through the creation of employment or claim accumulated tax credits if the number of full time equivalent employees for the year in review is at least equal to twenty five. 
 
11. Logistics Operations by Large Undertakings  
 
Large undertakings
3 that create more than fifty new direct full time equivalent jobs and carry out 
in the region of Malta an activity which includes both:  
a. The management of the flow of third party goods; and 
b. The part-transformation that adds value to such goods. 
Mere warehousing, transportation, inventory management, material handling and packaging 
operation are ineligible activities under this support measure. 
 
Undertakings may only benefit for assistance or claim accumulated tax credits if the number of full time equivalent employees for the year in review is at least equal to fifty. 
 
12. Freeport Activities  
 Undertakings licensed under and carrying out the activities set out in Article 10 of the Malta 
Freeports Act, Chapter 334 of the Laws of Malta
4. 
 
13. Hotels, Resort Hotels, Suites/Apartment Hotels or Guest Houses  
 
Undertakings whose economic activity consists mainly in the operation or management of a licensed hotel or group of hotels, that invests in the development or upgrading of a licensed hotel, 
apartment hotel or guest house for the purpose of  providing short term hospitality, shall be 
deemed to be eligible for assistance under this aid scheme provided that the investment aid intensity shall not exceed 15% of the qualifying expenditure incurred.  
14. Shared Regional and Global Management  and Services linked to established 
manufacturing activities  
 
Undertakings established in Malta after the 1
st January 2012 that: 
 
a. Are linked to an existing undertaking that has: 
i. Been considered eligible for the aid for at least the preceding two years; and 
ii. For the past twenty four months had an employment total equivalent to at least 
fifty full time employees; and 
 
b. Create at least thirty direct new full time equivalent jobs during the first twelve months 
from commencement of operations, that result in a net increase in the number of employees within linked companies operating in Malta; and 
c. Provide solely one or more of the follow ing shared services for the purpose of 
consolidation and vertical integration of existing operations: 
i. Marketing, sales and business development; 
ii. Legal services; 
iii. Financial services; 
iv. Back office services; 
v. Corporate services; 
vi. Logistical services. 
 
                                               
3 Large undertakings in terms of Annex I of the GBER. 
4 http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8807&l=1  G/SCM/N/253/EU/Add.18 
 
- 7 - 
 
  The shared services are ineligible activities if they do not consist of solely the mere expansion, 
duplication or replacement of a trade of business formerly carried out in Malta by any person or 
undertaking directly or indirectly connected with the said undertaking.  
Undertakings may only benefit from assistance under this support measure or claim accumulated 
tax credits if the number of full time equivalent em ployees for the year in review is at least equal 
to thirty. 
 
15. Knowledge Intensive Business Services  
 An undertaking established in Malta after the 1
st January 2012 that: 
 
a. Is solely engaged in the provision of one of the following shared knowledge intensive 
services: 
i. Treasury management; 
ii. International market research and public opinion polling; 
iii. Architectural and engineering and technical design services; 
iv. Human resource recruitment, provision and management; 
v. Strategic and organisational planning, decision making, operational control and 
operations management of linked and partnered undertakings; 
vi. Where such services do not consist mainly of the mere expansion, duplication or 
replacement of a trade or business formerly carried out in Malta by any person 
or undertaking directly or indirectly connected with the said undertaking; and 
 
b. Creates at least thirty direct full time equivalent jobs within twelve months from 
commencement of operations within a services centre based in Malta or twenty direct full 
time equivalent jobs within a services centre that is based in Gozo; where such 
employment results in a net increase within linked undertakings operating in Malta; and 
c. Is not related directly or indirectly to Banks and other credit institutions, audit firms, 
fiduciary services, insurance firms and other undertakings engaged in financial services. 
Eligible undertakings may only benefit from assistance under this support measure and claim 
accumulated tax credits, if: 
 
i. The number of direct full time equivalent  employment for the year in review is 
at least equal to thirty when the services centre is based in Malta or twenty 
when the services centre is based in Gozo; and 
 
ii. At least 60% of the employees have at least a qualification of Level 6 of higher 
(Bachelor's Degree or higher) as defined by the Malta Qualifications Council.  
Undertakings carrying out the activities set out under  Nos. 2 till 15 above shall only qualify for tax 
credits under the Investment Aid Scheme  if their project is approved a priori  by the Corporation 
in writing. The Corporation may impose the conditions it may deem fit. Undertakings engaged solely in software development are deemed eligible for assistance under this scheme. 
 
Disqualifying Activities 
 
An undertaking is ineligible qualify for assistance under this support measure if it carries out any of 
the activities listed below and this irrespective of whether the same undertaking is carrying out eligible activities:  
1. Sale by Retail  
 The undertaking sells by retail. An undertaking shall be deemed not to sell by retail if: 
 
a. The sales of goods or services are made to an undertaking and the goods or services are 
either resold or used by such undertaking in carrying of an economic activity; G/SCM/N/253/EU/Add.18 
 
- 8 - 
 
  b. The sales of goods or services are made to  an undertaking that uses those goods or 
services for the purpose of carrying out an economic activity; 
c. The sales of goods or services are made to a person or undertaking through e-commerce 
activities resulting in inline transactions effected by means of a secure payment system; 
d. Such undertaking is a micro sized undertaking that sells solely good manufacture by that 
same undertaking. 
2. Non Value Adding Processes  
 
Non value adding processes are defined as:  
a. Dividing, sorting, packaging, mixing without changing the character of the good, drying, 
labelling, or other similar processes or any combination of such processes to goods 
which are acquired in bulk to prepare those goods for sale or distribution; 
b. Unless such processes are carried out as part of a manufacturing activity as defined 
under No. 1 Manufacturing above; 
c. The assembly of any goods where: 
i. The final assembled good is clearly recognisable from the individual components 
or parts from which it is assembled without regards being taken to any exterior 
casing of the good; and 
ii. The components and parts from which the good is assembled are such that the 
good is nearly complete. 
 
The work and supervision of such assembly work  almost exclusively require the employment of 
unskilled workers such that the assembly operation is of a spurious nature when considered in the 
light of manufacturing activities. 
 
3. Catering  
 
The undertaking's trade or business includes the preparation or production of "food in the course catering" which is directly supplied to the final consumer. Such processes are eligible only if carried out as part of a hotel, resort hotel, suite or apartment hotel or guest house operation as defined in 
No. 13 above. 
 4. Authority of subsidy 
 Malta Enterprise – Malta Enterprise Corporation Act (Chapter 463 of the Laws of Malta).  
5. Form of subsidy 
 
The form of assistance under this support measure is tax relief (tax credits). At the Corporation's discretion the entitlement of aid may be exceptionally converted to other forms of aid in respect to 
initial investment projects that provide a significant contribution to the development of the Maltese 
economy: 
 
1. Grants 
2. Low-interest loans 
3. Interest rebates 
4. Loan Guarantees 
5. Rent rebates. 
 Such conversions must be pre-approved in writing by the Corporation before work on the project 
commences. 
 G/SCM/N/253/EU/Add.18 
 
- 9 - 
 
  6. To whom and how the subsidy is paid 
 
Undertakings falling under any of the following categories carrying out eligible activities may qualify for assistance under this scheme: 
 
1. A partnership constituted under the Companies Act (Chapter 386 of the Laws of 
Malta)5, being a partnership en nom collectif , en nom commandite  or a limited liability 
company; or 
2. A body of persons constituted, incorporated or registered outside Malta, and of a 
nature similar to the aforesaid partnerships and registered as an overseas company in accordance with the Companies Act; or 
3. A co-operative society duly registered as such under the Co-operative Societies Act 
(Chapter 442 of the Laws of Malta)6. 
 
Investment aid shall be awarded to a qualifying undertaking in respect to an initial investment 
project.  
An Initial Investment Project  shall entail the acquisition or development of tangible and 
intangible assets for:  
a. The setting up of a new establishment; 
b. The extension of an existing establishment; 
c. The diversification of the output of an establishment into new, additional products; 
d. A fundamental change in the overall producti on process of an existing establishment; 
e. The acquisition by an independent qualifying co mpany of capital assets directly linked to 
an establishment which has closed or which would have closed had it not been purchased. 
Investment aid is calculated either in reference to tangible  and intangible  investment costs 
resulting from the initial investment project or to the value of wage costs for jobs directly created by the initial investment project. The total amount of investment aid that may be awarded for a given investment project shall not exceed: 
 
 50% of the eligible investment in the case of a small undertaking; 
 40% of the eligible investment in the case of a medium undertaking; 
 30% of the eligible investment in the case of a company which qualifies as a large  
undertaking; 
 
In the case of large investment projects, investment aid shall never exceed 15% of the eligible 
investment for the part in excess of €50 million and 10.2% of the eligible investment for the part exceeding €100 million.  
Such large projects need to be approved in writing before work commences on the project. 
 The value of qualifying expenditure is  calculated as the value of either: 
 
a. Qualifying tangible and intangible assets acquired in relation to an initial investment 
project; or 
b. Wage costs for jobs directly created by the initial investment project. 
Where the aid is calculated on the basis of tangible or intangible investment costs, or of acquisition 
costs, the beneficiary must provide a financial contribution 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. 
                                               
5 http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8853&l=1  
6 http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8908&l=1  G/SCM/N/253/EU/Add.18 
 
- 10 - 
 
   
Qualifying tangible assets  means assets relating to land, buildings as well as plant and 
machinery related to an initial investment programme. Provided that: 
 
a. Investment in land, buildings or structures is preapproved by the Corporation and 
excludes costs related to the construction of showrooms; 
b. The term 'plant and machinery' shall have the meaning attributed to it for the purposes 
of the Income Tax Act, Chapter 123 of the Laws of Malta7 but shall exclude: 
i. Motor vehicles, except for such specialised motor vehicles as may be approved by 
the Corporation; 
ii. Works of art and antiques; 
iii. Any asset that is not directly related to the eligible economic activities of the 
undertaking. 
 
c. Except in the case of SMEs, any 'plant and machinery' acquired should be new and in 
any case, first used in Malta. 
d. With the exception of plant or equipment which has become outdated due to rapid 
technological change, tangible assets must be kept by the undertaking for at least five year or three years in the case of SMEs. In any case the underlying economic activity shall be retained in Malta for the minimum period of at least five years or three in the 
case where the beneficiary is an SME. 
e. Expenditure incurred on the improvement or extension of immovable property held by 
title of emphyteusis or contracted on a lease no t less than five years, shall be deemed as 
assets acquired by the company. 
f. The acquisition of tangible assets under a contract of hire which stipulates that 
ownership of an asset shall or may pass to the lease when a specified amount has been 
paid, shall be deemed as acquired by the company. 
g. The acquisition of tangible assets directly li nked to an establishment that has closed or 
would have closed had it not been purchased may also be regarded as an initial investment if: 
i. Such assets are bought by an independent undertaking; 
ii. Only the costs of buying assets from third parties should be taken into 
consideration; 
iii. All aid awarded in the past is deducted; 
iv. The transaction takes place under market conditions. 
 
h. The sole acquisition of the shares of an undertaking does not qualify as initial 
investment. 
Qualifying intangible assets  means assets entailed by the transfer of knowledge through the 
acquisition of patent rights, licences, know -how or unpatented technical knowledge. 
 
Provided that:  
a. For SMEs, the full expenditure in qualifying intangible assets is considered; 
b. For large undertakings, the value of qualifying expenditure in intangible assets is limited 
to 50% of the total qualifying investment. 
c. Qualifying intangible assets must be: 
                                               
7 http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8658&l=1  G/SCM/N/253/EU/Add.18 
 
- 11 - 
 
  i. Used exclusively in the undertaking receiving the aid; 
ii. Regarded as amortizable assets; 
iii. Purchased from third parties under market conditions without the acquirer being in 
a position to exercise control on the seller or vice versa  (vide Article 3 of Council 
Regulation (EC) No 139/2004, OJ L 29, 29.1.2004, p. 1); 
iv. Included in the assets of the company receiving the aid and remain in the 
establishment receiving the investment aid for at least five years or three years in 
the case of SMEs. 
 Calculating the value of investment in relation to job creation  
The qualifying wage costs covering new employment created within three years of the completion 
of the investment project shall be considered for calculating the value of qualifying investment on 
the basis of job creation. The value of investment is calculated as the qualifying wage costs incurred in the first twenty-four month period of employment of an individual recruited to fulfil a 
new job directly created by an investment project. 
 Job creation  means jobs created as a result of an investment project provided that: 
 
a. A net increase in the number of employees directly employed in a particular 
establishment over the previous twelve mont hs is registered. Therefore any jobs lost 
during that twelve month period shall be deducted from the apparent number of jobs 
created during the same period. 
b. New employees are employed by the undertaking in relation to the investment and not 
as replacements of other employees. 
c. A job is deemed to be directly created by an investment project if the job is directly 
connected with the economic activity to which the investment relates and is created within three years from the completion of the investment. Jobs created shall also include 
additional employment following an increase in the utilisation rate of the capacity 
created by the investment. 
d. For the purposes of determining whether jobs  have been created, individuals who are 
employed by the company on a part-time basi s shall be deemed to be a number of full 
time employees as is produced by di viding the number of hours worked per annum  by 
such part time employees by one thousand, seven hundred and sixty (1760). 
Where the accounting period ending the year of assessment is more or less than twelve 
months, the number of hours worked by part  time employees shall be divided by an 
amount which shall be arrived at by dividi ng the amount of one thousand seven hundred 
and sixty by three hundred and sixty five and then multiplying the result by the number 
of days comprised in that accounting period. 
e. Qualifying wage costs entail wage costs covering the first twenty four months of 
employees recruited within three years from  the completion of the investment to: 
i. Fulfil jobs directly created by an investment project; or 
ii. Address an increase in jobs directly created through additional productive capacity 
generated by the investment project. 
 
f. Each job must be maintained in Malta for a period of three years if the beneficiary is an 
SME or otherwise for five years. 
For the purpose of determining whether a job has been maintained for the required period 
specified above: 
 
i. It shall be deemed that the commencement date of employment of an individual 
employed in replacement of another indivi dual shall be the commencement date of 
employment of the individual whose employment was replaced; 
ii. An individual whose employment is for whatever reason terminated is replaced 
within six months of the termination date of employment of the individual. G/SCM/N/253/EU/Add.18 
 
- 12 - 
 
   
Utilisation of Tax Credits  
No tax credit shall be due to an undertaking for a year of assessment unless it:  
a. Is claimed in the appropriate section of a tax return submitted by electronic means; 
b. Submits the annual return and a copy of the audited accounts to the Corporation within 
a period not exceeding two months after the relative tax return date. 
Any tax credit awarded under this support measure shall not give rise to a right of any tax refund. 
 Any tax credit that is not absorbed in a particular year of assessment may be carried forward and shall be increased at the rate established as the applicable State Aid reference rate for Malta as 
calculated by the European Commission in accordance with Commission Notice on the method for 
setting the reference and discount rates.  
Application  Process  
First time applicants may submit an application for the determination of eligibility under this support measure. Such application forms may be  downloaded from the Corporation's website
8. 
 
The following documents must be submitted together with the application form:  
a. The Memorandum and Articles of Association; 
b. The latest financial statements, where applicable; 
c. The Enterprise Size Declaration form9; 
d. A statement declaring that the undertaking's trade and business consists solely of one or 
more of the eligible activities. 
The Corporation will consider applications from undertakings that meet the eligibility criteria and 
that demonstrate a potential positive contribu tion to the regional development of Malta. 
 
The Corporation will issue an Incentive Entitl ement Certificate if the criteria under the Investment 
Aid Scheme  are met. The Certificate will be issued subject to terms and conditions as may be 
imposed by the Corporation. The benefits in the Incentive Entitlement Certificate will not remain 
valid if: 
 
i. The undertaking does not abide by the terms and conditions; or  
ii. If the undertaking's trade or business do not remain solely in one or more of the activities 
eligible for this incentive. 
 
An undertaking shall only be entitled to benefit fr om the investment tax credits if for every year of 
assessment in respect of which it claims such tax credits, it submits:  
a. Audited financial statements; 
b. Income Tax Return; 
c. A statement by the auditor of the company for the accounting period in question, 
confirming that, to the best of his knowledge and belief, the declaration referred to in 
(iv) below is correct; 
d. A declaration signed by all the directors of the undertaking confirming that throughout 
the relevant accounting period the undertaking's trade or business consisted solely of 
the activities eligible for tax credit under th is aid scheme and that the undertaking is not 
disqualified from benefitting from  assistance under this scheme. 
                                               
8 http://www.maltaenterprise.com/en/support/investment-aid-tax-credits  
9 This form may be accessed  from the following link: 
   http://www.maltaenterprise.com/en/support/investment-aid-tax-credits  G/SCM/N/253/EU/Add.18 
 
- 13 - 
 
  In the case of limited liability companies, the declaration as approved by the Board of 
Directors may be signed by the Company Secretary. In such cases the declaration shall state whether:  
i. All the directors were present at the meeting approving the declaration and 
whether the meeting was properly convened as required by the company's Memorandum and Articles; 
ii. The declaration was unanimously approved by the directors present at the meeting 
and, if approval was not unanimous, the number of votes against and the number of votes for the motion. 
 
e. The official Final Settlement System (FSS) forms. These are required where: 
i. The qualifying expenditure is calculated on the value of jobs created; 
ii. The applicable qualifying activities require a minimum employment level. 
 
The Corporation may specify other requirements in the Incentive Entitlement Certificate and may also request other relevant documents which may be considered necessary to verify the claims 
submitted under the Investment Aid Scheme . 
 In case the undertaking opts to calculate the qualif ying expenditure on the value of jobs created, it 
should request approval prior to the submission of the relative claim for the tax credit by not later 
than three months from the end of the relative financial year for which the assistance is being 
sought. The request should be submitted on the applicable form and should include: 
 
i. The details and value of the investment as a consequence of which the jobs have been 
created; and 
ii. The details of the jobs created. 
 
7. Amount of subsidy 
 2011 – €46,761,761.00 
2012 – €46,375.004.28 
 8. Duration of subsidy 
 This aid scheme will run until 31
 December 2013. 
 
9. Trade effects of the subsidy 
 
There are no effects on international trade.  
2  REDUCED RATE OF TAX ON REINVESTED PROFITS 
1. Title of Subsidy 
 
Reduced Rate of Tax on Reinvested Profits 
 (Article 6 and 24B of the Business Promotion Act, Chapter 325 of the Laws of Malta)
10 
 
2. Period covered by the notification 
 The period covered by this notification starts from 1
 January 2011 until 31 December 2012. 
 
3. Policy objectives 
 
This aid scheme encouraged the re-investment of pr ofits by charging a lower tax rate. Profits set 
aside and used to finance investments in qualifying projects by Malta Enterprise were charged at a lower tax rate than 35%. In the case of manufacturing companies the tax rate would be reduced 
                                               
10 http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8799&l=1  G/SCM/N/253/EU/Add.18 
 
- 14 - 
 
  by 19.25 percentage points while in the case of hotels, the tax rate would be reduced by 
17.5 percentage points.  The assets through which this assistance was applicable were expected to be retained by the 
company for at least five years or less as approved  by the Corporation. In the case of unabsorbed 
investment at the end of the fifth year of th e project, the company could opt to use this 
investment to recover the necessary set-aside profits from the gains of the following two years. 
 
A company benefitting from this incentive had to transfer from its distributable reserves to the Incentives and Benefits Reserve Fund, an amount equivalent to the value of the set-aside profits, net of tax. Such reserve could not be distributed, or converted into share capital, nor could it be 
reduced to take account of losses before the laps e of eight years from the end of the investment 
period, after which the reserve could be distributed in tax free fully paid bonus shares.  
This aid scheme aimed to increase competitiveness through the acquisition of capital assets for 
more effective and efficient production and supply of service.  
4. Authority of subsidy 
 
Malta Enterprise – Malta Enterprise Corporation Act (Chapter 463 of the Laws of Malta).  
5. Form of subsidy 
 
The form of the subsidy of this aid scheme was tax relief. 
 
6. To whom and how the subsidy is paid 
 
Undertakings carrying out activities listed in the Business Promotion Regulations (subsidiary 
legislation 325.06 to the Business Promotion Act, Chapter 325 of the Laws of Malta)11, could 
benefit from reduced rates of tax under this aid scheme.  
7. Amount of subsidy 
 
2011 – €358,746.86 
2012 – €220,977.93 
 8. Duration of subsidy 
 This aid scheme terminated on 31
 December 2008. 
 9. Trade effects of the subsidy 
 There were no effects on international trade.  
3  INVESTMENT ALLOWANCE 
1. Title of subsidy 
 
Investment Allowance 
 (Article 7 of the Business Promotion Act, Chapter 325 of the Laws of Malta)  
2. Period covered by the notification 
 
The period covered by this notification starts from 1 January 2011 until 31 December 2012. 
 
3. Policy objective 
 
The aim of the assistance provided by this aid scheme is to encourage investment of a tangible 
capital nature through a capital allowance based on the investment. 
                                               
11 http://www.mjha.gov.mt/DownloadDoc ument.aspx?app=lom&itemid=9791&l=1  G/SCM/N/253/EU/Add.18 
 
- 15 - 
 
   
4. Authority of subsidy 
 Malta Enterprise – Malta Enterprise Corporation Act (Chapter 463 of the Laws of Malta). 
 
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is tax relief. 
 6. To whom and how the subsidy is paid 
 
Undertakings carrying out a manufacturing activity may benefit from a deductible allowance 
equivalent to a percentage (50% on plant and ma chinery, and 20% on land and buildings) of their 
investment from the taxable profits arising during the year in which the investment is made. 
 
7. Amount of subsidy 
 
2011 – €195,507.72 
2012 – €225,238.62  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. 
 
4  INDUSTRY IN GOZO 
1. Title of the subsidy 
 
Industry in Gozo 
 (Article 23 of the Business Promotion Act, Chapter 325 of the Laws of Malta) 
 
2. Period covered by the notification 
 
The period covered by this notification starts from 1 January 2011 until 31 December 2012. 
 3. Policy objective 
 
The aim of the assistance provided by this aid sch eme is to offset the additional transport costs 
incurred by undertakings based in Gozo due to double insularity.  
4. Authority of subsidy 
 
Malta Enterprise – Malta Enterprise Corporation Act (Chapter 463 of the Laws of Malta). 
 
5. Form of subsidy 
 The form of the subsidy of this aid scheme is a grant. 
 
6. To whom and how the subsidy is paid 
 
Undertakings engaged in the manufacturing or anal ogous services sector operating from Gozo are 
eligible for assistance under this aid scheme. The grant covers the actual, additional and necessary transport costs incurred in transporting plant, ma chinery, equipment, materials and finished goods 
between Malta and Gozo. 
 G/SCM/N/253/EU/Add.18 
 
- 16 - 
 
  7. Amount of subsidy 
 
2011 – €296,235.47 2012 – €362,458.04 
 
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. 
 5  LOAN INTEREST RATE SUBSIDIES 
1. Title of the subsidy 
 
Loan Interest Rate Subsidies 
 
(Regulation 9 of the Business Promotion Regulations as subsidiary legislation 325.06 to the Business Promotion Act, Chapter 325 of the Laws of Malta)  
2. Period covered by the notification 
 
The period covered by this notification starts from 1 January 2011 until 31 December 2012. 
 
3. Policy objective 
 
The aim of this assistance is to increase the competitiveness and innovative capacity of 
undertakings by providing support for the acquisition of tangible and intangible capital assets that lead to a more effective and efficien t production and supply of service. 
 
4. Authority of subsidy 
 
Malta Enterprise – Malta Enterprise Corporation Act (Chapter 463 of the Laws of Malta). 
 
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is an interest rate subsidy. 
 6. To whom and how the subsidy is paid 
 
Undertakings engaged in manufacturing or analog ous services sectors, research and development 
and biotechnology may receive a subsidy on a loan taken up by an undertaking from a licensed financial institution to finance investment in tangible or intangible assets. 
 
7. Amount of subsidy 
 
2011 – €130,959.00 
2012 – Nil assistance  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. 
 G/SCM/N/253/EU/Add.18 
 
- 17 - 
 
  6  LOAN GUARANTEES 
1. Title of the subsidy 
 
Loan Guarantees 
 
(Regulation 10 of the Business Promotion Regulations as subsidiary legislation 325.06 to the Business Promotion Act, Chapter 325 of the Laws of Malta) 
 
2. Period covered by the notification 
 The period covered by this notification starts from 1 January 2011 until 31 December 2012. 
 
3. Policy objective 
 
The aim of the assistance provided by this aid scheme is to encourage capital investments by 
providing guarantees to secure up to 75% of the loans taken up by qualifying undertakings to finance the acquisition of assets. 
 
4. Authority of subsidy 
 Malta Enterprise – Malta Enterprise Corporation Act (Chapter 463 of the Laws of Malta). 
 
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is a loan guarantee. 
 6. To whom and how the subsidy is paid 
 The Corporation may guarantee up to 75% of a loan taken up from a licensed financial institution to finance an investment on tangible or intangible assets of undertakings engaged in the manufacturing or analogous services sectors,  research and development and biotechnology. 
 
7. Amount of subsidy 
 
2011 – €52,400.00 
2012 – Nil assistance  
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. 
 
7  STRENGTHENING MARKET ENTR Y AND INTERNATIONALISATION 
1. Title of the subsidy 
 
Strengthening Market Entry and Internationalisation (Trade Fair and Trade Mission Support also known as Trade Promotion Scheme)  
(Regulation 4 of the Enterprise Support Incentives Regulations as subsidiary legislation 463.04 to 
the Malta Enterprise Act, Chapter 463 of the Laws of Malta)
12 
 
2. Period covered by the notification 
 
The period covered by this notification starts from 1 January 2011 until 31 December 2012. 
 
                                               
12 http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=11609&l=1  G/SCM/N/253/EU/Add.18 
 
- 18 - 
 
  3. Policy objective 
 
Under this support measure, undertakings will be provided with assistance that covers participation costs in trade fairs, or studies or consultancy services needed for the launch of a new 
or existing product in targeted markets. The aim of this support measure is to support 
undertakings in their endeavours to diversify and penetrate new markets, establish business 
contacts, and consolidate the existing market share. 
 
The value of aid awarded will be equivalent to a percentage of the costs incurred by the undertaking. If the aid is provided through a collabo rative event, the percentage will be based on 
the number of participants. 
 
Apart from trade events, fairs and trade missions, assistance under this support measure may also be approved to cover events organised specifical ly by international organisations for the purpose 
of seeking project partners, venture capital or business angel financing in relation to a potential 
business opportunity.  
An undertaking may be supported in: 
 
 Building partnerships and business relations through participation in trade fairs, networking 
meetings, trade missions and other similar events; 
 The implementation for a holistic market deve lopment plan covering a period of at least 
twelve months which should lead to developing or enhancing the undertaking's market competencies and knowledge. 
 
The Corporation provides advisory and training  programmes through which undertakings may be 
assisted in compiling business and market develo pment plans that may be used as supporting 
documentation for this support measure. 
 In order to be eligible for assistance under this support measure, applicants should be registered with the Value Added Tax Department and ex pecting an annual turnover of over €7,000 per 
annum . This requirement is not applicable in the case of entrepreneurs in the process of 
establishing a new business.  
Undertakings engaged in the following sectors are only eligible to receive funding when 
participating in specific contingents coordinated or endorsed by the Corporation. The eligibility of undertakings engaged in these sectors shall be defined in the public information made available by 
the Corporation in respect to indi vidual event, fair or mission: 
 
 Wholesale and retail trade; 
 Medical services; 
 Real estate; 
 Tourism activities, including hotels and restaurants, travel agencies, tour operators and 
related activities; 
 Libraries, archives, museums and other cultural activities; 
 Sports activities, and amusement and recreation activities; 
 Financial and insurance activities; 
 Legal and accounting activities. 
 This support measure will also support market pr eparedness and development actions as identified 
in a holistic market development plan covering a period of at least twelve months. Undertakings 
with an approved market development plan may receive part-financing for: 
 
1. Translation of publicity material and product information; 
2. Design and development of marketing material; 
3. Attending a trade fair or similar event; 4. Pre-determined business meetings; 
5. Hosting potential business partners to visit an undertaking's premises in Malta or to 
participating in an event organised by an undertaking in Malta. 
 G/SCM/N/253/EU/Add.18 
 
- 19 - 
 
  Per diem  Costs: 
Undertakings may also be granted a per diem  for the number of days spanned by the event for 
participation in trade events and fairs.  
The applicable per diem  rates shall be set at 35% of the official rates set by Government for the 
public sector.  
The total aid that may be granted to a single undertaking is limited to €30,000 in any fiscal year. 
 The Corporation may part-finance eligible costs at a rate of 40% in the case of large undertakings and at a rate of 50% in the case of  small or medium-sized undertakings. 
 
The assistance provided to any one undertaking shall not exceed €200,000 over any period of 
three consecutive fiscal years.
13 
 
4. Authority of subsidy 
 
Malta Enterprise – Malta Enterprise Corporation Act (Chapter 463 of the Laws of Malta). 
 5. Form of subsidy 
 
The form of the subsidy of this aid scheme is a grant. 
 6. To whom and how the subsidy is paid 
 Undertakings eligible for assistance under this support measure are small and medium-sized enterprises (SMEs) in terms of Annex I of the General block exemption Regulation as well as large 
undertakings in all sectors. 
 A formal application must be submitted to the Corporation. Requests for assistance are screened for eligibility and feasibility. Eligible applications  will be awarded assistance in the form of reduced 
charges for participation during overseas trade events under specific terms and conditions agreed 
to by the Corporation. Alternatively, undertakings may be supported through a cash grant for participating in specialised events. 
 
After participation in the event, the undertaking must submit all invoices pertaining to stand space and stand construction, shipping costs of exhibits , flight expenses, and other related expenditure. 
The value of aid depends on the event and the market targeted. 
 7. Amount of subsidy 
 
2011 – €319,343.54 
2012 – €725,051.98   
8. Duration of subsidy 
 
This aid scheme will run until 31 December 2013. 
 
9. Trade effects of the subsidy 
 There are no effects on international trade. 
 
8  NETWORK SUPPORT SCHEME 
1. Title of the subsidy 
 
Network Support Scheme 
                                               
13 The terms and conditions of this assistance are in line with Commission Regulation (EC) 
No. 1998/2006 of 15 December 2006 on the application of Articles 87 and 88 of the Treaty to de minimis aid – 
Official Journal L379 of 28.12.2006  (de minimis  Regulation): 
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2006:379:0005:0010:EN:PDF  G/SCM/N/253/EU/Add.18 
 
- 20 - 
 
   
(Regulation 5 of the Enterprise Support Incentives Regulations as subsidiary legislation 463.04 to the Malta Enterprise Act, Chapter 463 of the Laws of Malta)  
2. Period covered by the notification 
 
The period covered by this notification starts from 1 January 2011 until 31 December 2012. 
 
3. Policy objective 
 This incentive aims to promote the development of  networks for facilitating collaboration between 
undertakings with the aim of enhancing competitiv eness. The following two types of networks are 
supported by this incentive:  
1. Business Networks 
2. Development Networks 
 
Business Networks 
A business network is a group of undertakings which have agreed to co-operate in order to achieve 
specific business objectives. The network must consist of at least three undertakings which are not associated. The network members may be micro, sm all, medium-sized or large undertakings. The 
network must be established to address a particular business objective through collaboration. 
 The beneficiaries are individual undertakings forming the network. 
 
Development Networks This type of network consists of undertakings which group together whose activity or activities 
may often be confined to networking, the exchan ge of information, or shared services. The 
network may be constituted of undertakings operat ing in the same sector or that otherwise have 
complimentary business activities.  
Financial support will be provided to the Development Network to facilitate network animation. The 
activities supported will not support the individual activities of the members.  
The assistance is provided to undertakings forming up: 
 
1. Business Networks 
2. Development Networks 
 Business Networks The aid intensity will be limited to 75% of the eligible costs. Since the aid will be received by 
participating undertakings, the value of aid per undertaking may vary according to any 
agreements established among the members.  
Wage or Contract Costs of Network Manager 
Up to 75% of the wage costs of the Network Manager. This support will be limited for a fixed number of years. 
 
Additionally to the above mentioned aid, Busine ss Networks may also benefit from the following 
grants:  
A. Product Development : up to 75% of the costs related to the procurement of tangible 
and intangible assets required for joint product development and value chain integration, including the development of B2B (intra-network) solutions to facilitate just-
in-time processes; 
 
B. Market Development Services : up to 75% of the costs incurred by the network for 
developing the competitiveness of the network, including: 
 
 Participation in trade fairs and trade events including costs related to hiring of 
facilities, setting up and running of the stand; 
 Studies or consultancy services needed for: G/SCM/N/253/EU/Add.18 
 
- 21 - 
 
  i) The launch of a new or existing product on a new market; 
ii) The branding of network and the prod ucts and services provided by the 
network; 
 The development of promotional material including brochures, multilingual 
websites; 
 Certification of products as may be re quired to sell in target markets; 
 Attainment of quality certifications. 
 
The assistance provided to any one undertaking shall not exceed €200,000 over any period of 
three consecutive fiscal years.14 
 
Development Networks 
The assistance provided to each development ne twork shall not exceed €200,000 over any period 
of three consecutive fiscal years15. A Development Network may be awarded up to 100% of the 
costs related to the activities listed below. This includes the costs related to the employment of the 
Network Manager over for a fixed number of years. The activities will be approved annually and should be related to the following activities: 
 
 Dissemination of information; 
 Organisation of network conferences, work shops, seminars and other similar events; 
 Consultancy services; 
 Participation in trade fairs and trade events including the costs related to hiring of facilities, 
setting up and running of the stand. 
 
4. Authority of subsidy 
 
Malta Enterprise – Malta Enterprise Corporation Act (Chapter 463 of the Laws of Malta). 
 
5. Form of subsidy 
 The form of the subsidy of this aid scheme is a grant. 
 
6. To whom and how the subsidy is paid 
 
The network may be constituted of undertakings operating in the same sector or that otherwise 
have complimentary business activities. Assistance is  provided to all sectors of industry especially 
those which demonstrate a growth potential in line with local capacity and resources. 
 
The aid will only be awarded if after submission of the business plan by  the network, and after 
evaluation, the project is deemed commercially viable and beneficial to the Maltese economy. 
 
Requests for assistance will be screened for elig ibility and feasibility. The aid awarded will be a 
cash grant (reimbursement) covering a percentage of the wage costs of a Network Manager and other qualifying costs. 
 
7. Amount of subsidy 
 
2011 – €30,000.00 
2012 – €48,800.00  8. Duration of subsidy 
 This aid scheme will run until 31
 December 2013. 
 
9. Trade effects of the subsidy 
 
There are no effects on international trade. 
 
                                               
14 The terms and conditions of this assistance are in line with the de minimis  Regulation. 
15 The terms and conditions of this assistance are in line with the de minimis  Regulation. G/SCM/N/253/EU/Add.18 
 
- 22 - 
 
  9  BUSINESS DEVELOPMENT GRANT SCHEME 
1. Title of the subsidy 
 
Business Development Grant Scheme 
 
Regulation 6 of the Enterprise Support Incentives  Regulations as subsidiary legislation 463.04 to 
the Malta Enterprise Act, Chapter 463 of the Laws of Malta 
 
2. Period covered by the notification 
 The period covered by this notification starts from 1 January 2011 until 31 December 2012. 
 
3. Policy objective 
 
The aim of this aid scheme is to provide assistance to undertakings that intend to establish a new 
project in Malta by reducing the burdens of setti ng up. The assistance promotes the expansion and 
diversification of economic activities particularly by encouraging firms to setting up new ventures 
and projects in Malta. 
 The assistance covers the following:  
 Professional and consultancy fees; 
 Fees related to the selection process and recruitment of staff; 
 Relocation costs of personnel; 
 Costs related to capacity building; 
 Transport and freight costs; 
 Setting up costs; and 
 Costs related to the handicaps encountered by en terprises setting up an operation in Malta. 
 The assistance provided to any one undertaking shall not exceed €200,000 over any period of 
three consecutive fiscal years.
16 
 
4. Authority of subsidy 
 
Malta Enterprise – Malta Enterprise Corporation Act (Chapter 463 of the Laws of Malta). 
 5. Form of subsidy 
 The form of the subsidy of this aid scheme is a grant. 
 6. To whom and how the subsidy is paid 
 Assistance is provided to small, medium-sized and large undertakings to address the handicaps and to reduce the burdens of setting up new projects that offer a significant contribution to the 
regional development of Malta. Such undertakings must provide sufficient details which describe 
the proposed new project. The details provided shou ld demonstrate that the project will contribute 
to the regional economic growth or to the creation of new jobs. 
 
An evaluation of the strategic, commercial and technical feasibility of the project will be carried out to ensure its viability. The Corporation will establish a schedule detailing the financial support available to the beneficiary. 
 
7. Amount of subsidy 
 
2011 – €110,000.00 
2012 – €710,943.00  
                                               
16 The terms and conditions of this assistance are in line with the de minimis  Regulation. G/SCM/N/253/EU/Add.18 
 
- 23 - 
 
  8. Duration of subsidy 
 
This aid scheme will run until 31 December 2013.  
9. Trade effects of the subsidy 
 
 There are no effects on international trade. 
 
10  BUSINESS ADVISORY SERVICES SCHEME 
1. Title of the subsidy 
 
Business Advisory Services Scheme 
(Assistance for the engagement of advisors)  
 
(Regulation 7 of the Enterprise Support Incentives Regulations as subsidiary legislation 463.04 to 
the Malta Enterprise Act, Chapter 463 of the Laws of Malta)  
2. Period covered by the notification 
 
The period covered by this notification starts from 1 January 2011 until 31 December 2012.  
3. Policy objective 
 
The aim of this support measure is to provide assistance to SMEs as well as large undertakings by 
financing the fee of a business advisor to support the undertaking on a specific project. This 
assistance will help the undertaking build the internal capacity to address future developments in the respective area. The knowledge gained will help decision makers in the supported undertaking 
in evaluating the projects and emba rk on business development projects. 
 The supported advisory services are grouped into the following five distinct categories:  
1. Start-Up 
2. General Business Development 
3. Innovation  
4. International Competitiveness 
5. Energy 
 
An initial phase will be fully financed by Malta Enterprise while part financing will be provided 
during the second phase of the support. The first part of the assistance covers the first fifteen hours of an advisor's intervention on a specific project or task.  
After the first fifteen hours, the undertakin g may benefit from a ma ximum number of fifty 
additional hours. The part financing of the advisors for these additional hours is capped at 65%.  
Gozo companies may be granted an additional 10%, thus increasing the effective aid intensity to 
75%, for any business advisory services rece ived beyond the initial fifteen hours. 
 
(In terms of Article 23 of the Business Promotion Ac t, Chapter 325 of the Laws of Malta, a "Gozo 
company" is a company which has all or part of its activities being carried out in Gozo).  This scheme applies to all sectors. 
 
The assistance provided to any one undertaking shall not exceed €200,000 over any period of 
three consecutive fiscal years.
17 
 
Undertakings controlled or owned by Government are ineligible for assistance under this support measure. 
 
                                               
17 The terms and conditions of this assistance are in line with the de minimis  Regulation. G/SCM/N/253/EU/Add.18 
 
- 24 - 
 
  4. Authority of subsidy 
 
Malta Enterprise – Malta Enterprise Corporation Act (Chapter 463 of the Laws of Malta).  
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is a grant. 
 
6. To whom and how the subsidy is paid 
 Undertakings in all sectors that demonstrate that their project leads to growth and improvement in 
performance are eligible for assistance under this aid scheme. 
 Once an application is approved, Malta Enterprise  Corporation will assign an advisor. A kick-off 
meeting between the advisor and the applicant is fi xed. In this initial meeting, the advisor will 
review the company structure and operations so that the objectives of the assignment are agreed upon. Once the project is approved a Letter of  Approval stipulating the maximum amount of 
assistance is issued. 
 An undertaking may receive business advisory servic es on multiple projects; however, the total aid 
under the Business Advisory Services Scheme  (Assistance for the engagement of advisors) 
may never exceed €10,000 per annum. The applicable value will be based on the number of hours 
of mentoring received by the undertaking. Only the costs related to the advisor input towards the project or task may be claimed. Such costs may not exceed the standard rate established by Malta 
Enterprise which is set at €50.00 per hour inclusive of VAT. 
 Re-imbursement will be based on the number of hours of mentoring received by the undertaking. 
Only the costs related to the advisor input towards the project or task may be claimed. These 
costs may not exceed the standard rate established by Malta Enterprise which is set at €50.00 per hour inclusive of VAT.  
7. Amount of subsidy 
 
2011 – €71,400.00 
2012 – €60,546.68 
 8. Duration of subsidy 
 This aid scheme will run until 31
 December 2013. 
 9. Trade effects of the subsidy 
 There are no effects on international trade.  
11  ERDF INTERNATIONAL COMP ETITIVENESS GRANT SCHEME 
1. Title of subsidy 
 
ERDF International Competitiveness Grant Scheme 
 (Regulation 8 of the Enterprise Support Incentives Regulations as subsidiary legislation 463.04 to the Malta Enterprise Act, Chapter 463 of the Laws of Malta) 
 
2. Period 
 
The period covered by this notification starts from 1 January 2011 until 31 December 2012. 
 3. Policy objective 
 This incentive aims to support undertakings to es tablish new markets or to introduce a new service 
or product in an existing market. It facilitates the development of new markets and the building of 
internal capacities within the undertaking. G/SCM/N/253/EU/Add.18 
 
- 25 - 
 
   
The assistance provided to any one undertaking shall not exceed €200,000 over any period of 
three consecutive fiscal years.18 
 
The aid will be based on a project proposal and should mainly cover the following cost items: 
 
1. Market Development (50% of costs) 
The following costs related to building the internal capacities of the undertaking and the 
development of a brand in the target market will be eligible for part financing:  
a. Translation services from and to the language(s) of the target market; 
b. Consultancy services related to the development and creation of a brand; 
c. Consultancy related to the acquisition of quality certifications and other certifications 
that might be required in the target market; 
d. Costs for localised marketing material (Brochures, leaflets and so on) and electronic 
content (Websites, CD-ROMs and so on); 
e. Cost leading to the certification of products and services (including training, audits and 
application costs) that may be required (or that may be beneficial) to sell in target 
markets; 
f. Other related costs. 
2. Participation in or organisation of  promotional events (50% of costs)  
Active participation in trade fairs, conferences, workshops or networking events relevant to the 
target market and organisation of promotional events may be partly financed. In the case of trade fairs, active participation will mean having a stand at the fair. Active participation in conferences, 
workshops and other events means that representa tives from the enterprise will be delivering a 
presentation during the event:  
Part-funding will be available for: 
 
a. Setting up and running a stand for the period of a fair; 
b. Hiring premises and equipment; 
c. Related travel and per diem of the enterprise's representatives; 
d. Travel cost related to incoming delegations. 
Beneficiaries may not claim the participation costs related to trade events organised by Malta 
Enterprise. 
 
3. Engagement of Market Develo pment Manager (50% of costs)  
 
The wage costs of employing a new manager who will support the undertaking in developing new markets may be part financed. Such costs must constitute a new employment and the post must also be new to the undertaking. 
 
The amount of aid which may be approved in favour of each undertaking eligible for assistance under this support measure is capped at €50,000 per project. 
 
4. Authority of subsidy 
 
Malta Enterprise – Malta Enterprise Corporation Act (Chapter 463 of the Laws of Malta). 
 
                                               
18 The terms and conditions of this assistance are in line with the de minimis  Regulation. G/SCM/N/253/EU/Add.18 
 
- 26 - 
 
  5. Form of subsidy 
 
The form of the subsidy of this aid scheme is a grant. 
 
6. To whom and how the subsidy is paid 
 
Assistance is provided to all undertakings involved in manufacturing and those involved in 
internationally tradable services related to Information and Communications Technology (ICT), 
health care, education and training and other expert solutions as may be approved by the Corporation.  
Interested undertakings will submit a formal application to Malta Enterprise following the 
publication of a 'Call for Proposals'. At the end of  each call period the proposals will be vetted, 
evaluated and ranked. The evaluation process will co nsider the significance of the proposal to the 
undertaking's competitiveness and its effect in the market. The highest ranking proposals will be 
given preference.  
Applicants must submit three comparable quotes from three independent suppliers for each cost 
item. Part financing and grant values will be calculated on the lowest value quoted.  Quotes submitted for the same cost item must be from suppliers which are related neither to each 
other nor to the applicant. Suppliers shall not be related to the applicants. 
 The approved project shall be based and operationa l in Malta since the objective of the European 
Regional Development Funds is to support projects that contribute to the development of the 
Maltese economy.  
Once an application is approved, Malta Enterprise Corporation will stipulate the maximum value of 
aid which would be capped at €50,000 per undertaking.  Costs incurred for replacing or reconditioning existing equipment are ineligible. 
 
A capping of €500.00 on assistance for travel co sts was applicable in Calls One, Two and Three 
since applicants were not requested to submit three quotations in respect to travel. In Call Four, 
applicants were obliged to submit three quotations as a result of modifications in ERDF rules.  
 Disbursement was calculated on the lowest quote subject to the maximum eligible costs as 
follows: 
 Travel within Europe or the Mediterranean region: 
 Maximum eligible cost: €500.00 
 Maximum reimbursement at 50%: that is, €250.00 per person. 
 Travel outside Europe or the Mediterranean region: 
 Maximum eligible cost: €1,000.00 
 Maximum reimbursement at 50%: that is, €500.00 per person. 
 
In Call Four, the per diem  rate of €100.00 applicable in Calls One, Two and Three was updated to 
reflect the official Government rates. Consequently, in Call Four the per diem  rate under this 
support measure allows for a refund of 50% of the Government rates.  
7. Amount of subsidy 
  
2011 – €194,121.30 
2012 – €920,204.70 
 The ERDF International Competitiveness Grant Sche me is mainly financed under the Grant Scheme 
for Enterprises implemented by Malta Enterprise wh ich operates under Priority Axis I – Enhancing 
Knowledge and Innovation of Malta's Operational Programme I Cohesion Policy 2007 – 2013 (ERDF Funds) with a top up by national funds. The amount of Community funding under this scheme is 85%. 
 G/SCM/N/253/EU/Add.18 
 
- 27 - 
 
  There were four competitive calls for the ERDF International Competitiveness Grant Scheme; two 
in 2009, one in 2010 and another one in 2012. Call One closed on 25 February 2009, Call Two 
closed on 31 July 2009, Call Three closed on 26 M a r c h  2 0 1 0  w h i l e  C a l l  F o u r  c l o s e d  o n  t h e  
3 April 2012. The assistance approved by the Corporation for Call One and Two was reported in 
2009 while that approved for Call Three was report ed in 2010. Two ERDF Grant Agreements under 
Call Three were countersigned in 2011; one as a result of the ERDF Appeals process while in the second case a rent arrears issue had to be settl ed before the issue of the Grant Agreement. The 
approved assistance under these two Grant Agreements is included in the total amount of 
assistance reported in 2011 to reflect the date of the Grant Agreements. Assistance approved by 
the Corporation for the fourth competitive ca ll for this aid scheme is reported in 2012. 
 
8. Duration of subsidy 
 
This aid scheme will run until 31 December 2013. 
 
9. Trade effects of the subsidy 
 
There are no effects on international trade. 
 12  CREATE TAX CREDITS FOR CREATIVE ENTERPRISES 
1. Title of subsidy 
 
Create Tax Credit for Creative Enterprises  
(Regulation 9 of the Enterprise Support Incentives Regulations as subsidiary legislation 463.04 to 
the Malta Enterprise Act, Chapter 463 of the Laws of Malta)  
2. Period covered by the notification 
 
The period covered by this notification starts from 1 January 2011 until 31 December 2012.  
3. Policy objective 
 
This aid scheme supports creative undertakings whos e economic performance is directly linked to 
the creative talent of the individual or individuals involved in the business. Further support is 
provided to help the development of creative communities in artistic zones thus sustaining the development of these zones and interdisciplinary creative cluster developments. 
 
Assistance is in the form of tax credits equivalent to 60% of the eligible expenditure which consists in costs incurred in relation to the development of creative zones and for the development and publication of creative work: 
 
1. Specific aid for the development of Creative Zones  – 
 
A. Creative undertakings  operating in a  creative zone may claim: 
i. Rent or lease costs on equipment, facilities and premises within the creative zone 
required for the development and producti on of an identifiable creative work. 
ii. Costs incurred for the development, furbishing and refurbishing of property within 
the creative zone to be utilised for the production of the creative work. 
iii. The rent of premises (theatres and other venues) and facilities for creative events, 
such as intercultural exchanges, workshops, master classes and public 
performances and exhibitions, held in artistic zones. 
 
B. Promoters of events, such as intercultural exchanges, workshops, master classes, and 
public performances and exhibitions, held by international artists in artistic zones may 
claim a tax credit on the rent of premises (theatres and other venues) and facilities in a creative zone utilised for these events. 
 G/SCM/N/253/EU/Add.18 
 
- 28 - 
 
  2. Development and publication costs  – 
 
a. Investment in the acquisition of machinery, technology, apparatus or instruments 
directly required for the development and production of the creative work. 
b. Registration of Intellectual Property: 
i. Legal fees for the preparation of documentation required for the registration of 
intellectual property; 
ii. Intellectual property registration fees; 
iii. Intellectual property costs may be claimed whether they are incurred in Malta or 
elsewhere as long as they are tied to an identifiable creative work and are claimed by the owner of the intellectual property rights. 
 
c. Subcontracting of pre-publication costs requir ed for the preparation of artistic works for 
first time publishing on traditional or ne w media formats. Such costs are defined as: 
i. Demo development, testing and pre-publication of digital games; 
ii. Design and related production costs incurred prior to printing (publishing and 
printed media); 
iii. Production, management and recording costs related to the production of a master 
copy (music). 
 
Development and production costs (including po st-production) of audiovisual works prior to 
exhibition or broadcasting. 
 
d. Subcontracted translation services for translating creative works from or to Maltese 
(literature and film). 
Any investment made must be maintained  for a minimum period of three years. 
 
The maximum tax credit per undertaking is capped at €25,000 for the duration of the support 
measure.  The tax credits granted under this scheme must be utilised by year of assessment 2015. 
 
For the purpose of this aid scheme a creative undertaking may be a company, partnership, cooperative society or an individual, engaged in an  economic activity, whose products or services 
contain a significant form of expressive discipline and either produces a creative product or invests 
in the creative undertaking.  
The aim of this support measure is to support undertakings carrying out a trade or business; 
consequently voluntary organisations are ineligible for assistance under this scheme.  For the purposes of this support measure, the creative undertaking must be engaged in any one of 
the following activities: 
 
a. Visual Arts 
The creation of original works of art of a visual  nature, such as ceramic origination, drawing, 
painting and sculpture;  
b. Crafts 
The design, creation and production of innovative crafts and restoration; 
 
c. Film and video 
Screen and script writing, provision of filming facilities, casting and production (including pre and 
post production) and artistic direction services leading to audiovisual production;  G/SCM/N/253/EU/Add.18 
 
- 29 - 
 
  d. Music 
Music production, recording, performance, song writing and composition; 
 
e. Performing Arts 
Content origination, performance production , dance, drama, theatrical performances; 
 
f. Literary Works 
Authoring of books and book publishing; 
 
g. Design 
Fashion, retail, architectural and spatial design; 
 
h. Digital and Media 
Interactive entertainment and game development, digital and graphical animation, story-boarding 
and production. 
 The following undertakings are ineligible for assistance under this support measure: 
 
1. Restaurants, cafeterias and providers of similar food and beverage services; 
2. Wholesale and retail; 3. Film projection (cinemas); 
4 Provision of premises, equipment and facilities and other logistical support. 
 The zones below are considered as creative zones for the purposes of this scheme: 
 
All Valletta Rabat, Gozo - Savina Square 
Rabat, Gozo - Archpriest Saver Cassar Street 
Rabat, Gozo - Saint Mary Street Birgu - The Collacchio area (details may be found in Annex II of the Incentive Guidelines covering the scheme) 
 
The assistance provided to any one undertaking could not exceed €200,000 over any period of 
three consecutive fiscal years.
19 
 
4. Authority of subsidy 
 
Malta Enterprise – Malta Enterprise Corporation Act (Chapter 463 of the Laws of Malta). 
 5. Form of subsidy 
 
The form of the subsidy of this aid scheme is tax relief (tax credits). 
 6. To whom and how the subsidy is paid 
 Micro, SMEs, large undertakings as well as self-employed persons are eligible for support under this scheme. Start-ups are also eligible for assistance. 
 
Applicants must be registered with the VAT Department and must also be in possession of the regulatory licences and permits where applicable.  
Applicants must submit an application containing a detailed description of the capital expenditure 
in relation to the project for support is requeste d. The application must be accompanied with the 
relative fiscal receipts as well as any other documents that the Corporation may deem necessary 
                                               
19 The terms and conditions of this assistance were in  line with the de minimis  Regulation. G/SCM/N/253/EU/Add.18 
 
- 30 - 
 
  to confirm the qualifying criteria of the scheme. The Corporation will issue a Certificate that will 
enable the applicant to benefit from a tax credit.  All beneficiaries are to submit a copy of the annual tax return from year of assessment in which 
the tax credit will be utilised. This will assist Malta Enterprise to verify the proper treatment of the 
relevant entries.  
Assistance provided under this support measure is on eligible capital expenditure carried out as 
from 1 September 2010 and 31 December 2013. The tax credit shall be available to the beneficiary from the year in which the investment is terminated and any unutilised tax credits may be carried forward to the subsequent fiscal year. 
 
The tax credit must be utilised by the year of assessment 2015.  
The Corporation and the Inland Revenue Department reserve the right to revoke the Certificate 
and recover any tax incentive the beneficiary may have benefited under this scheme in the case 
of: 
 
 1. Misuse or abuse of assets after the completion of the project;  2. Double funding of the same costs from  the Corporation or other public entities; 
 3. Any breach of State aid regulations; 
 4. Expenditure not directly related to the trade or business activity. 
 7. Amount of subsidy 
 2011 – Nil assistance 2012 – €16,342.80 
 
8. Duration of subsidy 
 This aid scheme will run until 31 December 2013. 
 
9. Trade effects of the subsidy 
 
There were no effects on international trade.  
 13  ERDF ENERGY GRANT SCHEME 
1. Title of subsidy 
 
ERDF Energy Grant Scheme  
(Regulation 10 of the Enterprise Support Incentives Regulations as subsidiary legislation 463.04 to 
the Malta Enterprise Act, Chapter 463 of the Laws of Malta)  
2. Period 
 
The period covered by this notification starts from 1 January 2011 until 31 December 2012. 
 
3. Policy objective 
 This incentive aims to provide assistance to undertakings in all sectors that invest in solutions that 
enhance energy efficiency by supporting investments related to energy saving and renewable non-
fossil energy sources. Projects supported under this incentive must result in lowering the utilisation of energy generated from fossil fuels. This may be achieved through a more efficient use of energy 
resources and through investments in alternative energy solutions. 
 The assistance provided consists in financing 50% of the eligible costs relating to: 
 G/SCM/N/253/EU/Add.18 
 
- 31 - 
 
  1. Energy saving measures: 
Investments for the implementation of energy saving solutions and lighting, such as the installation of intelligent systems, solar heating, thermal insulation, building management systems and energy-saving lighting; 
 
2. Alternative Energy Sources: Investments in renewable energy solutions such  as the installation of energy generating 
solutions based on the use of solar power and wind power. 
 The scheme does not cover activities aimed at achieving compliance to national or European regulations. 
 
The assistance provided to any one undertaking shall not exceed €200,000 over any period of 
three consecutive fiscal years.
20 
 
4. Authority of subsidy 
 
Malta Enterprise – Malta Enterprise Corporation Act (Chapter 463 of the Laws of Malta). 
 5. Form of subsidy 
 
The form of the subsidy of this aid scheme is a grant. 
 6. To whom and how the subsidy is paid 
 The ERDF Energy Grant Scheme applies to all sectors. 
 
Malta Enterprise will issue a public call on its website
21. Prior to commencement of the project, 
interested undertakings must submit a formal applic ation with details of the project. This will be 
examined for eligibility. Applications will be competitively evaluated. Each applicant may submit only one project per call. 
 
Final approval will be based on the presentation of a project plan which will be evaluated on the 
viability and development potential of the project. The applicant will be notified with the approval 
decision as well as with the eligible grant value for the project. 
 
Projects benefiting from this incentive must be co mpleted within eighteen (18) months of the issue 
of the Letter of Approval from the Corporation. Fo r an application to be considered for co-funding, 
the minimum project value (based on the eligible expenses) must be at least €25,000 and must not exceed €200,000. The resultant mini mum grant value per project is €12,500. 
 
7. Amount of subsidy 
 
2011 – €6,063,766.56 
2012 – €530,849.22 
 T h e  E R D F  E n e r g y  G r a n t  S c h e m e  i s  m a i n l y  f i n a nced under Priority Axis 4 – Mitigation and 
Adaptation to Climate Change of Malta's Operational Programme I Cohesion Policy 2007 – 2013 
(ERDF Funds) with a top up by national funds.  The amount of Community funding under this 
scheme is 85%.  
There were three competitive calls for the ERDF Energy Grant Scheme; two during 2009 and one 
in 2010. Call One closed on the 17
th April 2009, Call Two closed on the 2nd October 2009 while Call 
Three closed on the 26th March 2010. The assistance approved by the Corporation for Call One and 
Two was reported in 2009. Assistance reported in the year 2011 includes those Grant Agreements 
approved under Call Three issued and countersigned in 2011.  
The total amount of assistance reported for 2012 includes the following: 
 
                                               
20 The terms and conditions of this assistance are in line with the de minimis  Regulation. 
21 www.maltenterprise.com  G/SCM/N/253/EU/Add.18 
 
- 32 - 
 
  1. Two Grant Agreements issued under the Call Two that were countersigned in 2012 as 
the required MEPA or MRA permits or permits from other entities were issued late; 
 2. Six ERDF Grant Agreements under Call Three that were issued in 2012; one of them 
was a result of the ERDF Appeals process while the other applicants countersigned 
their Grant Agreement at a later date since some eligible projects fell through and the next in line were funded. 
 
8. Duration of subsidy 
 This aid scheme will run until 31 December 2013. 
 
9. Trade effects of the subsidy 
 
There are no effects on international trade. 
 14  TAX CREDTS FOR MICRO ENTERPRISES AND THE SELF EMPLOYED 
1. Title of subsidy 
 
Tax Credits for Micro Enterprises and the Self Employed  
(Regulation 13 of the Enterprise Support Incentives Regulations as subsidiary legislation 463.04 to 
the Malta Enterprise Act, Chapter 463 of the Laws of Malta)  
2. Period 
 
The period covered by this notification starts from 1 January 2011 until 31 December 2012. 
 
3. Policy objective 
 Under this aid scheme a tax credit of up to 40% of the value of the eligible expenditure may be 
provided to micro enterprises and the self-employed to: 
 
1. Invest in the business activity carried out; 
2. Innovate and expand; 
3. Implement compliance directives; or 
4. Develop their operations. 
 
Undertakings operating from Gozo will be provided  an additional bonus of 20%. This means that 
such undertakings may be provided up to 60% tax credit.  
The tax credit represents a percentage of the eligible expenditure and wages of newly recruited 
employees or apprentices.  
Eligible expenses include: 
1. Investment in furbishing, refurbishing and upgrading of business premises including 
extensions or modifications to premises; 
2. Investment in acquiring machinery, technology, apparatus or instruments which 
enhance the operations, including systems which help to save energy or to produce alternative energy; 
3. Investment required to become compliant with regulations including Health and 
Safety, Environmental directives and Physical access; or 
4. Wage costs covering a twelve month period pertaining to new jobs and apprenticeships 
created as from 10
 November 2009 as long as this constitutes a net increase in the 
total number of employees. 
 Part time employment is also considered as elig ible when such employment requires the employee 
to work at least twenty hours per week. All jobs mu st be maintained by the beneficiary for a period 
of at least thirty six months.  The costs must be incurred and paid for between 1 January 2010 and 31 December 2012. G/SCM/N/253/EU/Add.18 
 
- 33 - 
 
   
The following costs are considered as ineligible: 
1. The purchase of land or property; 
2. The acquisition of motor vehicles; 
3. The acquisition of works of art, antiques and any assets that are not directly related to 
the trade and business of the applicant; and 
4. Costs that are assisted (even partly) through other incentive measures. 
 
Eligible undertakings must: 
1. Employ not more than nine full time persons as at 10 November 2009. Micro start-ups 
set up after this date are also deemed eligible; and 
2. Have an annual turnover of not more than €2 million. 
 Under this scheme, the maximum tax credit per undertaking is capped at €25,000 for the duration 
of the incentive. 
 Costs related to investment in furbishing, refurbishing and upgrading of business premises 
including extensions or modifications to premises w ill have to be subcontracted to third parties as 
part of a specific job, Items related to furbishi ng, refurbishing and upgrading of business premises 
that are not part of a receipt issued by the subcontractor providing the services will not be 
accepted. 
 
Only claims for cost items that have a value of over €50.00 per item will be considered as eligible.  
The tax credit shall be available to the beneficiary from the year in which the investment is 
terminated and any unutilised tax credits shall be carried forward to the subsequent year of assessment and deemed to be a tax credit for that year. The tax credits are utilised against tax 
incurred on income derived from the trade or business activity only. The tax credit must be utilised 
by the year of assessment 2015.  The assistance provided to any one undertaking shall not exceed €200,000 over any period of 
three consecutive fiscal years.
22 
 4. Authority of subsidy 
 Malta Enterprise – Malta Enterprise Corporation Act (Chapter 463 of the Laws of Malta).  
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is tax relief (tax credits).  
6. To whom and how the subsidy is paid 
 
Eligible undertakings under this support measure are micro enterprises in terms of Article 2 (3) of 
Annex I of  the General block exemption Regulation. 
 An entity qualifying under this scheme includes self-employed persons. 
 
Applicants must submit an application containing a detailed description of the capital expenditure in relation to the project for which support is requested. The application must be accompanied by the relative fiscal receipts together with any other documents that the Corporation may deem 
necessary to confirm the qualifying criteria of the scheme. The Corporation will issue a Certificate 
that will enable the applicant to benefit from a tax credit.  
All beneficiaries are to submit a copy of the annual tax return for year of assessment in which the 
tax credit will be utilised. This will assist Malta Enterprise to verify the proper treatment of the relevant entries. 
 
Assistance provided under this incentive is on eligible capital expenditure carried out as from 1 January 2010 and 31 December 2012 and may submit the claim to the Corporation until 
                                               
22 The terms and conditions of this assistance are in line with the de minimis  Regulation. G/SCM/N/253/EU/Add.18 
 
- 34 - 
 
  31 March 2013. The tax credit shall be available to the beneficiary from the year in which the 
investment is terminated and any unutilised tax credits may be carried forward to the subsequent fiscal year.  
The tax credit must be utilised by the year of assessment 2015. 
 The Corporation and the Inland Revenue Department reserve the right to revoke the Certificate 
and recover any tax incentive the beneficiary may have benefited under this scheme in the case 
of:  
1. Misuse or abuse of assets after the completion of the project; 
2. Double funding of the same costs from th e Corporation or other public entities; 
3. Any breach of State aid regulations; 
4. Expenditure not directly related to the trade or business activity. 
 
The Corporation or the Inland Revenue Department may carry out onsite visits to determine whether: 
 
1. The investment has been implemented in line with the parameters set out in the 
Incentive Guidelines of the scheme; 
2. The application and documentation submitted are consistent with the actual 
investment project. 
 7. Amount of subsidy 
 2011 – €3,810,002.84 2012 – €8,256,693.65 
 
8. Duration of subsidy 
 This aid scheme terminated on 31 March 2013. 
 
9. Trade effects of the subsidy 
 
There are no effects on international trade. 
  
15  ERDF INNOVATION ACTIONS GRANT SCHEME (ENVIRONMENT) 
1. Title of subsidy 
 
ERDF Innovation Actions Grant Scheme (Environment) 
 
(Regulation 6 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) 
 
http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=11608&l=1  
 
2. Period 
 
The period covered by this notification starts from 1 January 2011 until 31 December 2012.  
3. Policy objective 
 
The aim of this incentive is to provide grants to SMEs in all sectors by part-financing costs incurred 
for the acquisition of equipment and services incu rred for the implementation of eco-innovation 
projects intended to improve environmental sustainability.  
Assistance is calculated in reference to: 
 G/SCM/N/253/EU/Add.18 
 
- 35 - 
 
  A. Consultancy 
Costs incurred for the attainment of recognised environmental certification such as EMAS, ISO, Eco-Label and other standards recognised by the Malta Standards Authority (MSA). Such costs may include: 
 
1. Environmental Audits; and 
2. Environmental Consultancy. 
 
B. Plant, Machinery and Equipment 
Costs incurred to achieve a better environment in relation to:  
1. Engineering services required to modify existing plant, machinery and equipment; 
2. Acquisition on new machinery and equipment. 
 
C. Licensing and Certification 
Costs incurred for the acquisition of:  
1. A licence to utilise technology and intellectual property required to achieve a better 
environmental performance; 
2. Environmental certification such as EMAS, ISO, Eco-Label and other standards recognised 
by the MSA. 
 
Consultancy or services must be subcontracted and must not be of a continuous or periodic activity nor relate to the usual operating costs of the undertaking, such as routine tax consultancy 
services, regular legal services, or advertising. 
 Costs for replacing or reconditioning existing equipment are ineligible. 
 
Assistance under this scheme cannot be granted to projects addressing environmental compliance.  Projects benefiting from this assistance mu st be completed within twenty four months. 
 
The aid intensity under this aid scheme is capped at 50%. The maximum grant value which may be approved under this scheme is set at €150,000 in the case of SMEs. The maximum grant value 
for undertakings in the transport sector is set at €100,000. 
 The assistance provided to any one undertaking shall not exceed €200,000 over any period of 
three consecutive fiscal years.
23 
 4. Authority of subsidy 
 
Malta Enterprise – Malta Enterprise Corporation Act (Chapter 463 of the Laws of Malta). 
 5. Form of subsidy 
 The form of the subsidy of this aid scheme is a grant. 
 
6. To whom and how the subsidy is paid 
 
The scheme applies to eligible SMEs in all sectors. 
 
Malta Enterprise will issue a public call on its website. Prior to commencement of the project, 
interested undertakings must submit a formal applic ation with details of the project. This will be 
examined for eligibility. Applications will be competitively evaluated. Each applicant may submit 
only one project per call. 
 
Final approval will be based on the presentation of a project plan which will be evaluated on the 
viability and development potential of the project. The applicant will be notified with the approval 
decision as well as with the eligible grant value for the project. 
 
                                               
23 The terms and conditions of this assistance are in line with the de minimis  Regulation. G/SCM/N/253/EU/Add.18 
 
- 36 - 
 
  Applicants must submit three comparable quotes from three independent suppliers for each cost 
item. Part financing and grant values will be calculated on the lowest value quoted. Quotes submitted for the same cost item must be from suppliers which are related neither to each other nor to the applicant. Suppliers shall not be related to the applicants. 
 
The approved project shall be based and operationa l in Malta since the objective of the European 
Regional Development Funds is to support projects that assist in the development of the Maltese 
economy. 
 7. Amount of subsidy 
 
2011 – €294,188.50 
2012 – €439,209.54  
The ERDF Innovation Actions Grant Scheme (Environment) is mainly financed under the Grant 
Scheme for Enterprises implemented by Malta Ente rprise which operates under Priority Axis I – 
Enhancing Knowledge and Innovation of Malta's Operational Programme I Cohesion Policy 2007 – 
2013 (ERDF Funds) with a top up by national fund s. The amount of Community funding under this 
scheme is 85%.  There were four competitive calls for the ERDF Innovation Actions Grant Scheme (Environment); 
two in 2009, one in 2010 and one in 2012. Call One closed on 18
 March 2009, Call Two closed on 
31 July 2009, Call Three closed on 26 March 2010 while Call Four closed on 3 April 2012. The 
assistance approved by the Corporation for Ca ll One and Two was reported in 2009. One ERDF 
Grant Agreement for Call Two was signed in 2010 as a result of the ERDF Appeals process. This 
assistance was reported in 2010. Assistance approved for Call Three is reported in 2011. Assistance approved by the Corporation for the fourth competitive call is reported in 2012. 
 
The total amount of assistance reported under the year 2012 includes one ERDF Grant Agreement issued for Call Three that was signed in 2012; this Grant Agreement was issued in 2012 as a result of an upgrade in the MEPA
24 permit of the project being co-financed. This assistance is included in 
the amount of assistance reported in 2012 to reflect the date of the Grant Agreement issued. 
 8. Duration of subsidy 
 This aid scheme will run until 31
 December 2013. 
 
9. Trade effects of the subsidy 
 
There are no effects on international trade.  
16  EXPLORATORY AWARD FP7 SCHEME 
1. Title of subsidy 
 
Exploratory Award FP7 Scheme 
 (Regulation 9 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) 
 2. Period 
 
The period covered by this notification starts from 1 January 2011 until 31 December 2012. 
 3. Policy objective 
 The Exploratory Award FP7 Scheme  aims to assist micros and SMEs to increase their research 
and development linkages with research perfor mers in the European Union and third country 
partners. Assistance is provided for the preparat ion and submission of proposals for the European 
Union's Seventh Research Framework Programme (FP7). 
                                               
24 Malta Environment and Planning Authority. G/SCM/N/253/EU/Add.18 
 
- 37 - 
 
   
The assistance provided by this support measure consists in financing 75% of the total eligible costs of the preparatory proposal relating to: 
 
1. Feasibility check (desk studies, literature survey, risk analysis and to determine if the 
project is realisable); 
2. Research and development for the compilation of the EU project; 
3. Market analysis to assess possible exploitation; 
4. Novelty verification (including a world-wide patent search); 
5. Search for partners together with consorti um-building activities and call info days; 
6. Preparatory meetings with potential partners for the EU Project; 
7. Detailed EU project planning; 
8. EU proposal writing. 
 
Each project funded under this scheme should  not exceed twelve months to complete. 
 The Seventh Framework Programme (FP7)
25 
The FP7 is set up by the EU in order to fund and promote European research and technological 
development. It covers the period between 2007 and 2013. The specific objectives that fall under this project are the following:  
1. To gain leadership in key scientific and technology areas; 
2. To stimulate the creativity and excellence of European research; 
3. To develop and strengthen the human potential of European research; and 
4. To enhance research and innovation capacity throughout Europe. 
 o Promoting SME 
participation in the "Co-
operation" programme:   SMEs are actively encouraged to participate in all research 
actions. The involvement of SMEs in Joint Technology Initiatives 
(JTIs) is also encouraged wherever such activity is considered appropriate;  
"Ideas" programme 
open to SMEs  
  Just like any other organisation, research teams from SMEs can 
compete on the basis of excellence;  
o Human potential in 
research and technology in the "People" 
programme   Greater attention is directed towards encouraging increased SME 
participation under "Industry-academia partnerships and pathways"; 
 
 
o "Research for the 
benefit of SMEs" in the 
"Capacities" programme   "Research for the benefit of SMEs" aims to strengthen the 
innovative capacity of European SMEs and their contribution to 
the development of new technology-based products and 
markets. The indicative budget for the SME specific actions is circa 
€1.3 billion. 
 The assistance provided to any one undertaking shall not exceed €200,000 over any period of 
three consecutive fiscal years.
26 
 4. Authority of subsidy 
 
Malta Enterprise – Malta Enterprise Corporation Act (Chapter 463 of the Laws of Malta). 
 
                                               
25 Source: http://ec.europa.eu/enterprise/smes/download/sp_2007_en.pdf   
 
Further information about the FP7 may be found on the following link - 
http://cordis.europa.eu/fp7/home_en.html .  
 
Information at a national level may be found on th e Malta Council for Science and Technology website - 
www.mcst.gov.mt  which is the National Contact Point for FP7 in Malta. 
26 The terms and conditions of this assistance are in line with the de minimis  Regulation. G/SCM/N/253/EU/Add.18 
 
- 38 - 
 
  5. Form of subsidy 
 
The form of the subsidy of this aid scheme is a grant. 
 
6. To whom and how the subsidy is paid 
 
Undertakings eligible for assistance under this aid scheme are SMEs. Assistance covers one or 
more of the areas identified below: 
 
1. Manufacturing: production, improvement processing; 
2. Repair, preservation, improvement or mainte nance of goods, materials, commodities, 
equipment, engines, plant and machinery, pl easure crafts and yachts, heavy equipment, 
aircraft; 
3. Rendering services to (2) above; 
4. ICT development activities, software development and ICT enabled services; 
5. Research and development and innovation; 
6. Waste treatment and environmental solutions; 
7. Biotechnology; 
8. Innovative start-ups; 
9. Other innovative SMEs proposing innovative pr ojects which are more advanced than those 
prevailing in the respective industry, in terms of technology, know-how and skills. 
 
Malta Enterprise will issue a public call. Prior to the commencement of the project interested undertakings must submit a formal application with details of the project. Applications will be 
examined for eligibility and will be competitively evaluated. Projects have to be sustainable, value-
added and trans-national. The applicant will be duly notified of the approval decision as well as the 
eligible grant value for the project. 
 
The assistance provided by this support measure consists in financing up to 75% of the costs relating to:  
1. Personnel costs  – the estimated costs of consultancy and professional services of 
scientific and administrative personnel directly employed by the micro and SME and assigned wholly and partially with the work for developing the proposal; 
2. Overheads  – each beneficiary is eligible to 7% of the refunded personnel costs as 
overheads. This covers minor administrative costs related to proposal development such as couriers and photocopying; 
3. Travel and per diem  – each beneficiary is entitled to a refund for travel costs for two 
travel trips in relation to the project proposal. The travelling has to be pre-approved in writing by Malta Enterprise. 
 
7. Amount of subsidy 
 
2011 – €6,895.32 
2012 – €4,689.12 
 8. Duration of subsidy 
 This aid scheme will run until 31 August 2013.   9. Trade effects of the subsidy 
 There are no effects on international trade.  
17  INNOVATIVE START-UP SCHEME 
1. Title of the subsidy 
 
Innovative Start-Up Scheme 
 (Regulation 4 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) G/SCM/N/253/EU/Add.18 
 
- 39 - 
 
   
2. Period covered by the notification 
 The period covered by this notification starts from 1 January 2011 until 31 December 2012. 
 
3. Policy objective 
 
The aim of the assistance provided by this aid scheme is to support innovative start-up 
undertakings that show a potential for job creation  and economic growth by part-financing costs 
incurred during their setting-up phase. A start-up undertaking is an undertaking in its initial five years. In order to benefit from this incentive the undertaking must submit an application within 
three years of its creation. 
 Assistance provided under this scheme falls under three levels: 
 
Level One: applies to start-up undertakings with a low innovation profile or a low 
potential for international trading. 
 
Undertakings falling under this level will NOT be eligible for cash grants. 
 
Level Two: applies to start-up undertakings that are significantly innovative or that 
have a potential to trade their products or services internationally. 
 Undertakings falling under this level will be eligible for a cash grant of up 
to €5,000; 
 
Level Three: applies to start-up undertakings supported as tenants or off-site clients of 
the Kordin Business Incubation Centre  (KBIC) with at least one of the 
following requirements: 1. the undertaking should be knowledge-based or highly innovative; 2. the proposed product or services has a good potential of being traded 
internationally; 
3. the undertaking has a potential of collaborating with larger undertakings (as partners within their value chain). 
 
Undertakings supported through KBIC will be eligible for a cash grant of up to €15,000. 
  
 Assistance under this scheme consists in part-financing eligible costs relating to:  
A. Investment in: 
 
i. Tangible Assets  - investment costs relating to land, buildings, plant, machinery and 
equipment. 
ii. Intangible Assets - costs related to the transfer of technology through the 
acquisition of patent rights, licences, know-how or unpatented technical 
knowledge. 
 The total amount of assistance that may be provid ed shall be as follows. It shall never exceed: 
 
- 50% of the eligible costs in the case of a small undertaking; 
- 40% of the eligible costs in the case of a medium undertaking. 
 
Since the beneficiaries of this scheme are SMEs, the investment must be maintained in Malta for 
three years after the whole investment has been completed. This shall not prevent the replacement of plant of equipment which has beco me out-dated due to rapid technological change, 
provided that the economic activity is retained in Malta for the minimum period. 
 Where the aid is calculated on the basis of tangible and intangible investment costs, or of acquisition costs in the case of takeovers, the beneficiary must provide a financial contribution of G/SCM/N/253/EU/Add.18 
 
- 40 - 
 
  at least 25% of the eligible costs, either through its own resources or by an external financing, in a 
form which is free of any public support.  In the case of acquisition of an establishment, only the costs of buying assets from third parties 
shall be taken into consideration, provided that the transaction has taken place under market 
conditions. Where the acquisition is accompanied by other investment, the costs relating to the latter shall be added to the cost of the purchase. 
 
Costs related to the acquisition of assets under lease, other than land and buildings, shall be taken into consideration only if the lease takes the form of financial leasing and contain an obligation to purchase the asset at the expiry of the term of th e lease. For the lease of land and buildings, the 
lease must continue for at least three years after the anticipated date of the completion of the 
investment project.  
In the case of takeovers, assets for the acquisition of which aid has already been granted prior to 
the purchase shall be deducted. For SMEs, the full costs of investments in intangible assets may also be taken into consideration.
27 
 
B. Consultancy costs of services provided by outside consultants: 
 The services concerned shall not be of a conti nuous or periodic activity nor relate to the 
undertaking's usual operating costs, such as routine tax consultancy services, regular legal 
services, or advertising.  
In the case of consultancy costs of services provid ed by outside consultants, the aid intensity shall 
not exceed 50% of the eligible costs.
28 
 
4. Authority of subsidy 
 
Malta Enterprise – Malta Enterprise Corporation Act (Chapter 463 of the Laws of Malta).  
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is a grant. 
 
6. To whom and how the subsidy is paid 
 
The aid is of a horizontal nature aimed to provide assistance to SMEs during the first two years of 
operation, that is, during the start-up phase.  The aid targets start-up SMEs engaged in the 
following activities:  
1. Manufacturing; 
2. ICT development activities, software deve lopment, and ICT enabled services. This 
excludes enterprises engaged in gaming and telecommunications; 
3. Research and development and innovation; 
4. Waste treatment and environmental solutions; 
5. Biotechnology; 
6. Other undertakings proposing innovative products, services and process development, 
which are typically more advanced in terms of technology, know-how and skills than those prevailing in their respective industry. 
 
7.  Amount of subsidy 
 
2011 – €46,700.00 
2012 – Nil assistance 
 
                                               
27 The terms and conditions of this assistance are in line with Regional investment in terms of Article 13 
of Section 1  of the General block exemption Regulation. 
28 The terms and conditions of this as sistance are in line with Consultancy costs of services provided by 
outside consultants in terms of Article 26 of Sect ion 5 of the General block exemption Regulation. G/SCM/N/253/EU/Add.18 
 
- 41 - 
 
  8. Duration of subsidy 
 
This aid scheme will run until 31 December 2013.  
9. Trade effects of the subsidy 
 
There are no effects on international trade. 
 
18  SMALL START-UP GRANTS SCHEME 
1. Title of subsidy 
 
Small Start-Up Grants Scheme 
 (Regulation 5 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) 
 
2. Period 
 The period covered by this notification starts from 1 January 2011 until 31 December 2012.  3. Policy objective 
 The aim of this incentive is to support business start-ups at their early stage of development. 
Grants may be approved to newly created small undertakings by financing 25% of the following 
costs which have to be incurred during the first five years of their creation: 
 
1. Legal advisory, consultancy and administrative costs directly related to the creation of 
the small undertaking; 
2. Interests on external finance; 
3. Fees for renting production facilities or equipment; 
4. Energy and water; 
5. Fees for leasing production facilities or equipment; and 
6. Wage costs including compulsory social charges. 
 
Written assurance must be provided that the undertaking did not benefit from aid under any other 
support measure for underlying investments of job creation and recruitment measures in respect of No. 6 (wage costs) above. The Corporation k eeps updated records of all aid awarded to newly 
created small undertakings. 
 The terms and conditions of the scheme are in line with par. 84 et seq. of Section 6 entitled Aid for Newly Created Small Enterprises of the Guidelines on National Regional Aid for 2007-2013 (2006/C 
54/08). 
 4. Authority of subsidy 
 Malta Enterprise – Malta Enterprise Corporation Act (Chapter 463 of the Laws of Malta).  
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is a grant. 
 
6. To whom and how the subsidy is paid 
 
Eligible undertakings under this scheme are small and autonomous undertakings29 which have 
been created less than five years ago engaged in the following activities: 
 
                                               
29 The small and autonomous undertakin gs must fall within the meaning of  Articles 2 and 3 of Annex I of 
the General block exemption Regulation. G/SCM/N/253/EU/Add.18 
 
- 42 - 
 
  1. Manufacturing: 
Including repair, preservation, improvement or maintenance of goods, materials, commodities, equipment, engines, plant and machinery, pleasure crafts and yachts, 
heavy equipment, aircraft; and 
The rendering of industrial services directly related to above; 
2. Information and Communication Technology development activities, software 
development and ICT enabled services; 
3. Research and Development and Innovation; 
4. Waste treatment and environmental solutions;  
5. Biotechnology; 
6. Start-ups proposing innovative products, services and process development, which are 
typically more advanced than those prevailing in their respective industry, in terms of 
technology, know-how and skills. 
 
In order to benefit from assistance under this scheme, undertakings engaged in the above 
mentioned activities have to promote innovative or high value-added projects.  
Applicants must submit three comparable quotes from three independent suppliers for each cost 
item. Part financing and grant values will be calculated on the lowest value quoted. Quotes submitted for the same cost item must be from suppliers which are related neither to each other nor to the applicant. Suppliers shall not be related to the applicants. 
 
The approved project shall be based and operationa l in Malta since the objective of the European 
Regional Development Funds is to support projects that contribute to the development of the 
Maltese economy. 
 Costs incurred for replacing or reconditioning existing equipment are considered as ineligible. 
 
This aid scheme is exclusively for newly created small undertakings and shall not apply to existing small undertakings that close down and re-open. The rule concerning restriction of undertakings controlled by owners of previously closed-down bu sinesses, preventing them from benefiting from 
this incentive if the new undertaking is operative in the related sector as that of the closed-down 
firm, will be applied for a definite period only. The restriction will apply for owners of companies 
that have previously closed-down for a period of  twelve months only following such closures. 
 
Interested undertakings must submit a formal ap plication. Final approval will be based on the 
presentation of a business plan which will be ev aluated on the viability and development potential 
of the proposed start-up. Once approved the be neficiary may claim a refund of up to 25% on 
eligible expenses.  7. Amount of subsidy 
  2011 – €100,000.00 2012 – €402,702.12 
 
The Small Start-Up Grants Scheme is mainly fi nanced under the Grant Scheme for Enterprises 
implemented by Malta Enterprise which operates under Priority Axis I – Enhancing Knowledge and 
Innovation of Malta's Operational Programme I Cohesion Policy 2007 – 2013 (ERDF Funds) with a 
top up by national funds. The amount of Community funding under this scheme is 85%.  There were four competitive calls under the Small Start-Up Grants Scheme; two during 2009, one 
in 2010 and one in 2012. Call One closed on the 4
th March 2009, Call Two closed on 31st July 2009, 
Call Three closed on the 26th March 2010 while Call Four closed on the 3rd April 2012. Assistance 
approved by the Corporation for Call One and Call Two was reported in 2009. Assistance approved 
for Call Three was partly reported in 2010 however one Grant Agreement was issued and 
countersigned in 2011; the latter amount is included in the total reported for 2011. Assistance approved for the fourth competitive call is partly reported in 2012 and partly will be reported in 
2013 to reflect the date of the countersigned Grant Agreements. 
 8. Duration of subsidy 
 
This aid scheme will run until 31 December 2013. G/SCM/N/253/EU/Add.18 
 
- 43 - 
 
   
9. Trade effects of the subsidy 
 There are no effects on international trade. 
 
19  ERDF INNOVATION ACTIONS (INNOV-ACT) GRANT  
1. Title of subsidy 
 
ERDF Innovation Actions (Innov-Act) Grant  (Regulation 6 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) 
 2. Period 
 The period covered by this notification starts from 1 January 2011 until 31 December 2012.  
3. Policy objective 
 
The aim of this scheme is to provide grants to SMEs by part-financing costs incurred for 
investment projects leading to: 
 
1. Product or Service Innovation – the develo pment of a new or significantly improved 
product or service which provides customers with an improved product or service; 
 
2. Process Innovation – the implementation or adoption of new or significantly improved 
production or delivery methods; 
 
3. Organisational Innovation – the implementation of new organisational methods in the 
undertaking's business practices, workplace organisation or external relations. 
 
The assistance consists in part-financing eligible costs relating to: 
 
A. Investment in: 
 
1. Tangible Assets  - investment costs shall include plant, machinery and equipment. 
 
2. Intangible Assets - costs related to the transfer of technology by the acquisition of 
patent rights, licences, know-how or  unpatented technical knowledge. 
 Such investment costs should result in: 
 
1. The diversification of output of the undertakings; 
2. A fundamental change in the overall production process. 
 
The total amount of assistance that may be provid ed shall be as follows. It shall never exceed: 
 
- 50% of the eligible investment in the case of a small undertaking; 
- 40% of the eligible investment in the case of a medium undertaking. 
 Since the beneficiaries of this scheme are SMEs, the investment must be maintained in Malta for 
three years after the whole investment has been completed. This shall not prevent the 
replacement of plant of equipment which has beco me out-dated due to rapid technological change, 
provided that the economic activity is retained in Malta for the minimum period. 
 
Where the aid is calculated on the basis of tangible and intangible investment costs, the beneficiary must provide a financial contribution of at least 25% of the eligible costs, either 
through its own resources or by an external financing, in a form which is free of any public 
support.  G/SCM/N/253/EU/Add.18 
 
- 44 - 
 
  In the case of acquisition of an establishment, only the costs of buying assets from third parties 
shall be taken into consideration, provided that the transaction has taken place under market conditions. Where the acquisition is accompanied by other investment, the costs relating to the latter shall be added to the cost of the purchase. 
 
Costs related to the acquisition of assets under lease, other than land and buildings, shall be taken into consideration only if the lease takes the form of financial leasing and contain an obligation to 
purchase the asset at the expiry of the term of th e lease. For the lease of land and buildings, the 
lease must continue for at least three years after the anticipated date of the completion of the investment project.  
For SMEs, the full costs of investments in intangib le assets may also be taken into consideration.
30 
 
B. Consultancy costs of services provided by outside consultants  required: 
 
a. For the implementation of Innovation Management Techniques (IMTs): 
Innovation Management Techniques provide a framework for supporting the process of innovation 
in firms. These include: 
 
i. Lean Management Techniques; 
ii. Quality Management; 
iii. Technology watch and audits; 
iv. Technology transfer; 
v. Business process re-engineering; and 
vi. Benchmarking. 
 
b. In relation to the process, product or organisational innovation: 
The services concerned shall not be of a continuous or periodic activity nor relate to 
the undertaking's usual operating costs, such as routine tax consultancy services, regular legal services, or advertising. 
 
 In the case of consultancy costs of servic es provided by outside consultants, the aid 
intensity shall not exceed 50% of the eligible costs.
31 
 
The scheme addresses innovation actions and does not cover other activities aimed at achieving 
compliance to national or European regulations.  
4. Authority of subsidy 
 
Malta Enterprise – Malta Enterprise Corporation Act (Chapter 463 of the Laws of Malta).  
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is a grant. 
 
6. To whom and how the subsidy is paid 
 
The scheme applies to eligible SMEs in all sectors. 
 7. Amount of subsidy 
  
2011 – €1,161,157.60 
2012 – €2,531,975.08  
                                               
30 The terms and conditions of this assistance are in line with Regional investment in terms of Article 13 
of Section 1  of the General block exemption Regulation. 
31 The terms and conditions of this as sistance are in line with Consultancy costs of services provided by 
outside consultants in terms of Article 26 of Sect ion 5 of the General block exemption Regulation. G/SCM/N/253/EU/Add.18 
 
- 45 - 
 
  The ERDF Innovation Actions (Innov-Act) Grant is mainly financed under the Grant Scheme for 
Enterprises implemented by Malta Enterprise which operates under Priority Axis I – Enhancing Knowledge and Innovation of Malta's Operational Programme I Cohesion Policy 2007 – 2013 (ERDF Funds) with a top up by national funds. The amount of Community funding under this scheme is 
85%. 
 There were four competitive calls for the ERDF Innovation Actions (Innov-Act) Grant; two during 
2009, one in 2010 and one in 2012. Call One closed on 11
 March 2009, Call Two closed on 
31 July 2009, Call Three closed on 26 March 2010 while Call Four closed on 3 April 2012. 
Assistance approved by the Corporation for Call One and Call Two were reported in 2009. One ERDF Grant Agreement for Call Two was countersigned in 2010 as a result of the ERDF Appeals 
process. This assistance was reported in 2010. Assistance approved for Call Three is reported in 
2011 to reflect the date of the Grant Agreements. Assistance approved by the Corporation for the 
fourth competitive call for this aid scheme is reported in State Aid Inventory 2012. 
 
8. Duration of subsidy 
 
This aid scheme will run until 31 December 2013. 
 9. Trade effects of the subsidy 
 
There are no effects on international trade. 
  
20  SME DEVELOPMENT GRANT SCHEME 
1. Title of the subsidy 
 
SME Development Grant Scheme 
 (Regulations 7 and 8 of the Assistance to Smal l and Medium-Sized Undertakings Regulations as 
subsidiary legislation 463.03 to the Malta Enterprise Act, Chapter 463 of the Laws of Malta) 
 
2. Period covered by the notification 
 
The period covered by this notification starts from 1 January 2011 until 31 December 2012. 
 3. Policy objective 
  The assistance provided by this aid scheme consists in financing up to 50% of the costs relating to:  
1. Consultancy in favour of SMEs: the services shall not be of a continuous or periodic 
activity nor relate to the undertaking's usual operating costs, such as routine tax consultancy services, regular legal services or advertising
32; 
 
2. First time participation in fairs and exhibitions: the eligible costs shall be the costs 
incurred for renting, setting up and running the stand for the first participation of an 
undertaking in any particular fair or exhibition33. 
 SMEs participating at such trade events are ex pected to broaden their international exposure, 
generate or establish contacts with trade partners, develop business networks with international 
partners, acquire knowledge about new markets and possibly carry out business in targeted 
markets.  
                                               
32 The terms and conditions of this assistance are in li ne with Article 26: Aid for consultancy in favour of 
SMEs under Section 5 – Aid for consultancy in favo ur of SMEs and SME participation in fairs of Commission 
Regulation (EC) No 800/2008 of 6 August 2008 declaring cert ain categories of aid compatible with the common 
market in application of Ar ticles 87 and 88 of the Treaty  (General block exemption Regulation). 
33 The terms and conditions of this  assistance are in line with Ar ticle 27 of Section 5 – Aid for SME 
participation in fairs under Section 5 – Aid for consultanc y in favour of SMEs and SME participation in fairs of 
the General block exemption Regulation. G/SCM/N/253/EU/Add.18 
 
- 46 - 
 
  4. Authority of subsidy 
 
Malta Enterprise – Malta Enterprise Corporation Act (Chapter 463 of the Laws of Malta).  
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is a grant. 
 
6. To whom and how the subsidy is paid 
 Eligible undertakings for assistance under this scheme are micro and SMEs in the manufacturing 
industry, ICT, waste treatment, environmental solutions and eco-innovations, research and 
development and innovation, and biotechnology. They  must be engaged in the following activities: 
 
1. Manufacturing;  
2. Repair, preservation, improvement or maintenance of goods, materials, commodities, 
equipment, engines, plant and machinery, pleasure crafts and yachts, heavy 
equipment and aircraft;  
3. Rendering of services directly related to (2) above; 
4. Information and Communications Technology (ICT) development activities, software 
development and ICT enabled services;  
5. Research and development and innovation (RDI);  
6. Waste treatment, environmental solutions and eco-innovations; 
7. Biotechnology; 
8. Start-up undertakings proposing innovative products, services and process 
development, which are typically more ad vanced than those prevailing in their 
respective industry, in terms of technology, know-how and skills. 
 
Interested SMEs will submit a formal application that describes the project or task for which they 
would like the support of the consultant. Such a pplications will be evaluated and reimbursement 
will be made upon submission of the relevant invoices. 
 
In the case of participation of event, approved applications will benefit from reduced charges or 
grants for participation in the particular overseas event. After participation in the event, the 
enterprise must submit all invoices pertaining to stand space and stand construction, shipping 
costs of exhibits, flight expenses, and other re lated expenditure. The value of aid (support 
provided) depends on the event and the market targeted. 
 
7. Amount of subsidy 
 2011 – €35,207.26 
2012 – €62,947.73 
 8. Duration of subsidy 
 This aid scheme will run until 31 December 2013.  
9. Trade effects of the subsidy 
 
There are no effects on international trade.  
21  ERDF E-BUSINESS DEVELOPMENT GRANT SCHEME 
1. Title of subsidy 
 
ERDF e-Business Development Grant Scheme 
 (Regulation 11 of the Assistance to Small an d Medium-Sized Undertakings Regulations as 
subsidiary legislation 463.03 to the Malta Enterprise Act, Chapter 463 of the Laws of Malta) 
 G/SCM/N/253/EU/Add.18 
 
- 47 - 
 
  2. Period 
 
The period covered by this notification starts from 1 January 2011 until 31 December 2010.  
3. Policy objective 
 
The aim of this support measure is to provide grants to SMEs that are willing to innovate through 
ICT solutions. This incentive will facilitate the realisation of ICT investments that will support 
growth through:  The diversification of the undertaking's products and services; and 
Significant changes to the undertaking's production process. 
 The assistance consists in part-financing eligible costs relating to: 
 
A. Investment in: 
 
a. Tangible Assets: investment in ICT Hardware. 
 Such costs include:  
i. Hardware for the optimal functioning of the ICT Solution; 
ii. Plant and machinery essential for the optimal operation of the ICT solution 
[such as equipment required for Computer Aided Manufacturing (CAM)]. 
 
b. Intangible Assets  - costs related to the transfer of technology by the acquisition of 
patent rights, licences, know-how or unpatented technical knowledge related to 
software; 
 
and other Tangible Assets  related to investment in ICT Software which include: 
 
- Readily available generic software tools and licences required for ICT solutions 
such as: 
 
a. Database Management Systems 
b. Enterprise Resource Planning Solutions 
c. Computer Aid Design and Manufacturing Software 
d. Content Management Solutions 
e. Client Relationship Management Systems. 
 
- Software developed for the enterprise as part of the ICT solution (includes 
technical knowledge acquired for the installation and operation of the ICT 
solution). 
 
The total amount of assistance that may be provided shall be as follows. It shall never 
exceed:  
- 50% of the eligible investment in the case of a small undertaking; 
- 40% of the eligible investment in the case of a medium undertaking. 
 
Since the beneficiaries of this scheme are SMEs, the investment must be maintained 
in Malta for three years after the whole investment has been completed. This shall not 
prevent the replacement of plant or equi pment which has become out-dated due to 
rapid technological change, provided that the economic activity is retained in Malta for 
the minimum period. 
 
Where the aid is calculated on the basis of tangible and intangible investment costs, 
the beneficiary must provide a financial contribution of at least 25% of the eligible 
costs, either through its own resources or by an external financing, in a form which is free of any public support. 
 G/SCM/N/253/EU/Add.18 
 
- 48 - 
 
  Costs related to the acquisition of assets under lease, shall be taken into consideration 
only if the lease takes the form of financial leasing and contains an obligation to purchase the asset at the expiry of the term of the lease. 
 
For SMEs, the full costs of investments in intangible assets may also be taken into 
consideration.
34 
 
B. Consultancy costs of services provided by outside consultants  required for designing, 
customising, implementing and testing the approved ICT solution. 
 
The services concerned shall not be of a continuous or periodic activity nor relate to 
the undertaking's usual operating costs, such as routine tax consultancy services, 
regular legal services, or advertising. 
 
In the case of consultancy costs of services  provided by outside consultants, the aid 
intensity shall not exceed 50% of the eligible costs.35 
 
4. Authority of subsidy 
 
Malta Enterprise – Malta Enterprise Corporation Act (Chapter 463 of the Laws of Malta).  
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is a grant. 
 
6. To whom and how the subsidy is paid 
 
The scheme applies to eligible SMEs in all sectors. 
 Malta Enterprise will issue a public call. Prior to commencement of the project interested undertakings must submit a formal application with details of the project. This will be examined for 
eligibility. Applications will be competitively evaluated. 
 The project must be: 
 
1. Innovative; 
2. Commercially viable; 
3. Technologically feasible. 
 Promoters must have the necessary technical and administrative knowledge and know-how required for the successful completion of the project. 
 
Final approval will be based on the presentation of a project plan which will be evaluated on the 
viability and development potential of the project. The applicant will be notified with the approval 
decision as well as with the eligible grant value for the project. 
 This scheme will be mainly financed under the Gr ant Scheme for Enterprises implemented by Malta 
Enterprise which will be operating under Priority Axis 1 – Enhancing Knowledge and Innovation of 
Malta's Operational Programme 1 Cohesion Policy 2007-2013 (ERDF Funds) with a top up by national funds.  
7. Amount of subsidy 
 
2011 – €1,112,483.87 
2012 – Nil assistance 
 The ERDF e-Business Development Grant Scheme is  mainly financed under the Grant Scheme for 
Enterprises implemented by Malta Enterprise which operates under Priority Axis I – Enhancing 
                                               
34 The terms and conditions of this assistance are in line with Regional investment in terms of Article 13 
of Section 1  of the General block exemption Regulation. 
35 The terms and conditions of this as sistance are in line with Consultancy costs of services provided by 
outside consultants in terms of Article 26 of Sect ion 5 of the General block exemption Regulation. G/SCM/N/253/EU/Add.18 
 
- 49 - 
 
  Knowledge and Innovation of Malta's Operational Programme I Cohesion Policy 2007 – 2013 (ERDF 
Funds) with a top up by national funds. The amount of Community funding under this scheme is 85%.  
There were three competitive calls for the ERDF e-Business Development Grant Scheme; two in 
2009 and one in 2010. Call One closed on 25
 March 2009, Call Two closed on 31 July 2009 while 
Call Three closed on 26 March 2010. Call One and Call Two were reported in 2009 while Call Three 
is reported in 2011. 
 8. Duration of subsidy 
 
This aid scheme will run until 31 December 2013. 
 9. Trade effects of the subsidy 
 There are no effects on international trade.  
22  EUREKA R&D GRANT 
1. Title of the subsidy 
 
EUREKA R&D Grant 
 
(Assistance for Research and Development and Innovation Regulations as subsidiary legislation 463.05 to the Malta Enterprise Act, Chapter 463 of the Laws of Malta) 
 
http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=11610&l=1  
 
2. Period covered by the notification 
 
The period covered by this notification starts from 1 January 2011 until 31 December 2012. 
 
3. Policy objective 
 
The aim of the EUREKA R&D Grant  is to assist SMEs and large undertakings by providing them 
with financial support to carry out collaborative research and development projects referred to as 
Eureka Projects36 with partners from the Eureka network, with an objective to create products, 
processes and services in areas of advanced technology as well as projects of innovation, research 
and technological development37. 
 In order to benefit from assistance under this  scheme, EUREKA Projects have to be either: 
 
1. Innovative Projects : such projects have ready-to-market results, representing a 
significant advance in their particular sector; or 
 
2. Cluster Projects : such projects are long-term, strategically significant industrial 
initiatives. They usually have a large number of participants and aim to develop generic technologies of key importance for European competitiveness, such as in 
Information and Communication Technologies (ICT), energy and biotechnology. 
 SMEs and large undertakings may benefit from assistance under the EUREKA R&D Grant  for 
costs incurred during the industrial research an d experimental development phase of the EUREKA 
Project. Only costs incurred by undertakings established in Malta may be part-financed. 
 
                                               
36 EUREKA is a pan-European network for market-o riented collaborative research and development 
which brings together industry and re search institutes from over thirty nine countries including the European 
Union. It aims primarily to stimul ate the research efforts of undertakings and to develop their innovation 
capacity. It assists undertakings in unifying their resour ces and to collaborate with research instit utes for the 
development of advanced technologies and market oriented products. 
37 This project is in line with the pan European EUREKA initiative (vide www.eureka.be ). G/SCM/N/253/EU/Add.18 
 
- 50 - 
 
  The aided part of the research project must fall within the following research categories38: 
 
 1. Industrial Research 
Industrial Research means planned research or critical investigation aimed at the 
acquisition of new knowledge and skills for developing new products, processes or 
services or for bringing about a significant improvement in existing products, processes or services. It comprises the creation of components parts to complex 
systems, which is necessary for the industrial research, notably for generic technology 
validation, to the exclusion of prototypes; 
  2. Experimental Development 
Experimental Development means the acquiring, combining, shaping and using 
existing scientific, technological, business and other relevant knowledge and skills for the purpose of producing plans and arrangements or designs for new, altered or 
improved products, processes or services. These may also include, for instance, other 
activities aiming at the conceptual definition, planning and documentation of new products, processes or services. Those activities may comprise producing drafts, 
drawings, plans and other documentation, provided that they are not intended for 
commercial use. 
 
The development of commercially usable prototypes and pilot projects is also included 
where the prototype is necessarily the fina l commercial product and where it is too 
expensive to produce for it to be used only for demonstration and validation purposes. In case of a subsequent commercial use of demonstration or pilot projects, any revenue 
generated from such use must be deducted from the eligible costs. 
 
The experimental production and testing of pr oducts, processes and services shall also be 
eligible, provided that these cannot be used or transformed to be used in industrial 
applications or commercially. 
 
Experimental Development shall not include routine or periodic changes made to products, 
production lines, manufacturing processes, existing services and other operations in 
progress even if such changes may represent improvements. 
 
To be eligible for assistance under the EUREKA R&D Grant : 
 1. The project consortium must be made up of a minimum of two undertakings which must 
be: 
 a. Independent from each other; and 
b. Established in the EUREKA member states. 
c. One of the undertakings must be established in Malta. 
 The following conditions must be fulfilled: 
 
A. If the project involves effective collaboration  between at least two undertakings which are 
independent of each other: 
 
a. No single undertaking must bear more than 70% of the eligible costs of the 
collaboration project, 
b. The project involves collaboration with at least one SME or is carried out in at least two 
different Member States; 
 Or 
 
B. If the project involves effective collaboration between an undertaking and a research 
organisation: 
 
                                               
38 The definitions of ‘industrial research’ and ‘experimental development’ are in line with those provided 
under Article 30 Definitions - Section 7 Aid for research and developm ent and innovation of the General block 
exemption Regulation. 
 G/SCM/N/253/EU/Add.18 
 
- 51 - 
 
  a. The research organisation must bear at least 10% of the eligible project costs, and 
b. The research organisation has the right to publish the results of the research projects 
insofar as they stem from research carried out by that organisation, 
 
Subcontracting is not considered as effective collaboration under (A) and (B) above. 
 Or 
 
C. In the case of industrial research, the results of the projects are widely disseminated 
through technical and scientific conferences or through publication in scientific or technical journals or in open access repositories (databases where raw research data can be 
accessed by anyone), or through free or open source software. 
 2. The project must attain EUREKA status. 
 
The total amount of assistance that may be provided under the EUREKA R&D Grant  shall be as 
follows: 
 
Industrial research and experimental development projects approved under the EUREKA R&D Grant may be supported with a grant of up to €200,000, which may be used to cover:  
a. 60% of the eligible costs in the case of a small undertaking; 
b. 50% of the eligible costs in the case of a medium sized undertaking; 
c. 40% of the eligible costs in the case of a large undertaking. 
 
This scheme is in line with Aid for research and development projects  under Article 31 of Section 7 
of the General block exemption Regulation. 
 
4. Authority of subsidy 
 Malta Enterprise – Malta Enterprise Corporation Act (Chapter 463 of the Laws of Malta). 
 
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is a cash grant. 
 6. To whom and how the subsidy is paid 
 SMEs as well as large undertakings that intend to carry out an industrial research or an experimental development project in collaborati on with members from the EUREKA network are 
eligible for assistance under this scheme. 
 
Assistance under the EUREKA R&D Grant  is provided to all sectors of the industry related to 
advanced technology development that have opted for innovation to improve their 
competitiveness. The latter must demonstrate that the research project will lead to the 
development of: 
 
1. New innovative products, processes and services, or 
2. The substantial improvement of any existing products, processes or services. 
 Interested undertakings must submit a formal application containing a detailed description of the 
kind of research or development project for whic h they request the support. The enterprise must 
provide a clear explanation of the objectives and capabilities of the end product. The application 
will then be competitively evaluated. 
 
Approved proposals will be periodically fina nced against expenditure incurred during the 
implementation of the project. Approval will be based on the st rategic, commercial and technical 
feasibility of the projects as well as the capabili ty of the company to financially support its own 
share of the project.  Once the application is approved, the Corporation will support accordingly in terms of the project 
planning agreement. G/SCM/N/253/EU/Add.18 
 
- 52 - 
 
   
7. Amount of subsidy 
 2011 – €160,889.90 
2012 – €47,269.20 
 8. Duration of subsidy 
 This aid scheme will run until 31
 December 2013. 
 9. Trade effects of the subsidy 
 There were no effects on international trade.  
23  EUROSTARS R&D GRANT 
1. Title of the subsidy 
 
Eurostars R&D Grant 
 (Assistance for Research and Development and Innovation Regulations as subsidiary legislation 463.05 to the Malta Enterprise Act, Chapter 463 of the Laws of Malta) 
 
2. Period covered by the notification 
 
The period covered by this notification starts from 1 January 2011 until 31 December 2012. 
 3. Policy objective 
 Under the Eurostars R&D Grant , the Corporation may approve assistance to undertakings 
established in Malta to participate in the Eurostars Joint Programme
39. The purpose of this 
Programme is to provide funding for market-oriented research and development with the active 
participation of research and development (R&D ) performing SMEs. In terms of the Eurostars 
Programme, an R&D performing SME is an SME that dedicates at least 10% of its turnover or full 
time equivalent (FTE) to research activities. 
 
The Eurostars R&D Grant is in line with Aid for research and development projects under Article 31  
of Section  7 of the  General block exemption Regulation.  
 
The aided part of the research project must fall within the following research categories40: 
 
1. Industrial Research  
Industrial Research means planned research or critical investigation aimed at the 
acquisition of new knowledge and skills for developing new products, processes or services or for bringing about a significant improvement in existing products, processes or services. 
It comprises the creation of components parts to complex systems, which is necessary for 
the industrial research, notably for generic technology validation, to the exclusion of prototypes; 
 
                                               
39 The Eurostars Programme is a European innovati on programme managed by EUREKA. Its purpose is 
to provide funding for market-oriented research and development with the active participation of R&D 
performing SMEs. Eurostars is a join t initiative between EUREKA and the EU Seventh Framework Programme 
for Research and Technological Develo pment (FP7). Further information on  the Eurostars Joint Programme may 
be accessed on www.eurostars-eureka.eu . When Malta joined as a member of the Eurostars Programme, Malta 
Enterprise Corporation was entruste d with the programme promotion and administration of the Eurostars 
Programme. The official announcement took place on the 27th October 2010, during the EUREKA meeting held in Israel. 
40 The definitions of ‘industrial research’ and ‘experimental development’ are in line with those provided 
under Article 30 Definitions - Section 7 Aid for research and developm ent and innovation of the General block 
exemption Regulation. G/SCM/N/253/EU/Add.18 
 
- 53 - 
 
  2. Experimental Development  
Experimental Development means the acquirin g, combining, shaping and using existing 
scientific, technological, business and other relevant knowledge and skills for the purpose of producing plans and arrangements or designs for new, altered or improved products, 
processes or services. These may also include, for instance, other activities aiming at the 
conceptual definition, planning and documentat ion of new products, processes or services. 
Those activities may comprise producing drafts, drawings, plans and other documentation, 
provided that they are not intended for co mmercial use. The development of commercially 
usable prototypes and pilot projects is also included where the prototype is necessarily the final commercial product and where it is too expensive to produce for it to be used only for demonstration and validation purposes. In case of a subsequent commercial use of 
demonstration or pilot projects, any revenue generated from such use must be deducted 
from the eligible costs. The experimental production and testing of products, processes and services shall also be eligible, provided that these cannot be used or transformed to be 
used in industrial applications or commercially. Experimental Development shall not 
include routine or periodic changes made to products, production lines, manufacturing processes, existing services and other operations in progress even if such changes may 
represent improvements. 
 
Only undertakings carrying out an economic activity in Malta may be part-financed. 
 
Industrial research and experimental developmen t projects approved under the Eurostars Joint 
Programme may be supported with a grant of up  to €200,000, which may be used to cover: 
 
 60% of the eligible costs in the case of a small undertaking; 
 50% of the eligible costs in the case of a medium sized undertaking; 
 40% of the eligible costs in the case of a large undertaking. 
 
1. The main project participant must be an R&D-performing SME; 
2. At least 50% of the project's core activity should be carried out by SMEs; 
3. The project should be market driven, that is: 
 
a. The project duration should not exceed three years; 
b. The product of the research should be ready for launch on to the market within two 
years of project completion. 
 Projects must: 
 
a. Be completed within thirty six months; 
b. Provide technological novelty; 
c. Be market oriented, that is, the project should lead to a marketable product, process 
or service having a civilian (non-military) purpose. 
 4. Authority of subsidy 
 Malta Enterprise – Malta Enterprise Corporation Act (Chapter 463 of the Laws of Malta).  
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is a cash grant.  
6. To whom and how the subsidy is paid 
 
Under the Eurostars R&D Grant , SMEs and large undertakings may be assisted to carry out cross 
border collaborative research and development projects that lead to the development of innovative 
products, services and processes. 
 
Pre-Proposal Check 
Interested undertakings are recommended to submit a Pre-Proposal Check prior to submitting their full R&D Application. This will assist applicants to complete and submit a full application.  G/SCM/N/253/EU/Add.18 
 
- 54 - 
 
  Application Process 
Undertakings applying under the Eurostars Joint Programme are to follow the application process described on the programme's website www.eurostars-eureka.eu . Once the project is approved, 
the applicant would be required to submit the proj ect costs and project details in order to request 
funding the Corporation. 
 Eligibility Checks 
Each project should comply with the foll owing eligibly checks. The project must: 
 
a. Have a civilian purpose; 
b. Result in a new product, process or service; 
c. Fall under the definition of industrial research and experimental development; 
d. Be in line with the eligibility criteria set in the official Incentive Guidelines. 
 
The project may not be undertaken by the applican t without the additional resources of one or 
more collaborating partners.  
Evaluation Process 
Projects will be evaluated on the following criteria:  
1. Crucial Criteria: 
The applicant shows the financial capacity  to implement the project and that a 
comprehensive formal agreement has been established between the project partners. 
 
2. Basic Assessment:  
The applicant provides a clear project method ology and proves that the project partners 
bring together the competences, experiences, skills and resources required for the project. 
The applicant also shows there is synergy and clarity in respect of the shared of risks, 
costs, know-how, benefits within the project timeframe and beyond.  
3. Technology and Innovation: 
The project should result in a significant development that will have an impact on industry 
resulting in new products, processes or services.  
4. Market and Competitiveness: 
The resulting products, processes or services are to provide a competitive advantage that 
may be exploited by one or more of the partners to establish or achieve a significant 
market presence. 
 
5. National Priorities: 
Through participation the applicant will envisage an increase in employment, investment 
and industrial activity in Malta. 
 
A positive evaluation must be achieved in each of  the above criteria. Each project should attain a 
minimum score of 50% of the total score from each criterion. 
 Claims should be submitted according to the terms and conditions set out in the Letter of Approval 
issued by Malta Enterprise. 
 Undertakings benefiting from this incentive will be required to maintain separate accounting information in relation to all costs incurred for the project. Claims for co-funding must be based on 
the reimbursement of eligible costs and may be su bmitted every six months and at the end of the 
research project.  
Claims 
Claims must be submitted on the claim fo rm made available by the Corporation. 
 
Some of the requirements at claim stage: 
 
1. Personnel costs: the beneficiary must submit the official Final Settlement System FSS 
forms and time sheets showing the time the person(s) spent directly engaged on the 
research project; G/SCM/N/253/EU/Add.18 
 
- 55 - 
 
   
2. Overhead costs: the beneficiary should provide a summary of the costs claimed and their 
relation to the project. Although the beneficiary is not expected to submit invoices or receipts of these costs, the undertaking is obliged to keep this documentation available for 
any audit checks that may be carried out by the Corporation. 
 
3. All costs claimed, excluding personnel and overhead costs: the beneficiary should submit: 
 
a. Original VAT invoices and receipts (an original fiscal receipt is required unless a 
VAT invoice is submitted together with a copy of the invoice); 
b. Proof of payment. Copies of the encashed cheques or original bank advice 
documents showing all payments effected in relation to the claimed costs. 
 
4. An Auditor's Report (Certified Public Accountant and Auditor) will be required to: 
 
a. Provide an explanation of how the depreciation costs corresponding to claimed 
instruments and equipment were calculated; 
b. Confirm that any technical and patented knowledge was acquired at its market 
value and followed arm's length principles; 
c. Overheads and material costs claimed have been incurred in the carrying out of 
the approved project. 
 
5. A progress report, based on the template made available by the Corporation. This will 
provide a summary of the technical progress achieved with respect to the original 
milestones set, and highlight any potential setbacks being foreseen to the running of the 
project as planned. 
 
7. Amount of subsidy 
 
2011 – €114,491.52 2012 – Nil assistance 
 
8. Duration of subsidy 
 
This aid scheme will run until 31 December 2013. 
 9. Trade effects of the subsidy 
 There were no effects on international trade.  24  INDUSTRIAL RESEACH AND EXPERIMENTAL DEVELOPMENT SCHEME 
1. Title of subsidy 
 
Industrial Research and Experimental Development Scheme 
 
(Regulation 4 of the Assistance for Research and Development and Innovation Regulations as subsidiary legislation 463.05 to the Malta Enterprise Act, Chapter 463 of the Laws of Malta) 
 
2. Period covered by the notification 
 The period covered by this notification starts from 1
 January 2011 until 31 December 2012. 
 
3. Policy objective 
  
Aid will be provided to stimulate industrial resear ch and experimental development in all types of 
undertakings from micro up to large. This performance measurement is designed to reflect an increase in research and development (R&D) activity and the number of undertakings participating 
in research and development and innovation (R&D&I) activities. The measure will provide a much 
needed incentive to increase R&D&I in Malta where such activities are still relatively low.  G/SCM/N/253/EU/Add.18 
 
- 56 - 
 
  The aid scheme forms part of a group of six support measures relating to R&D&I under Assistance 
for Research and Development and Innovation Regulations.41  
 4. Authority of subsidy 
 Malta Enterprise – Malta Enterprise Corporation Act (Chapter 463 of the Laws of Malta).  
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is tax relief (tax credits).  
6. To whom and how the subsidy is paid 
 
In order to benefit from assistance under the Industrial Research and Experimental 
Development Scheme , undertakings carrying out R&D&I activities must comply with the 
following conditions. They must be:  
 Duly incorporated under the Companies' Act, Chapter 386 of the Laws of Malta, being a 
partnership en nom collectif , en commandite  or a limited liability company
42; or 
 Any body of persons constituted, incorporated or  registered or registered outside Malta, and 
of a nature similar to the above; or 
 Duly registered as a Co-operative under the Co-operatives Societies Act, Chapter 442 of the 
Laws of Malta43 
 
Industrial Research and Expe rimental Development Scheme 
Tax credits will be provided as aid to stimulate industrial research and experimental development in all types of undertakings from micro up to large. 
 
Applicants must submit an application with clear information on the size of the undertaking as well as a detailed description of the research and development project for which support is requested. The applications will be evaluated and the applican t will be duly notified with the decision. Malta 
Enterprise will verify that the content of the project is in line with the definition of R&D&I as 
stipulated in the Community Framework for State Aid for Research and Development and 
Innovation (OJ C 323 of 30.12.2006, p. 1) . 
 
Approved proposals will be periodically fina nced against expenditure incurred during the 
implementation of the project. Approval will be based on the st rategic, commercial and technical 
feasibility of the projects. The applicant must be ab le to support financially its share of the project. 
Once the application is approved, Malta Enterprise Corporation will support accordingly in terms of the project planning agreement.  
Fiscal support is distributed according to the eligib le expenses declared within the claimed period 
once the project is approved and commences. Approv al for funding will be based on the claims and 
on the costing submitted in the project proposal originally approved by Malta Enterprise. 
 
Assistance provided by the above support measures is not available to firms in difficulty in terms of Community Guidelines on State Aid for Rescuing and Restructuring Firms in Difficulty, Official 
Journal C244, 01.10.2004, pages 2-17 . 
 
                                               
41 (State aid No N 604/2007) 
The six support measures under this group are the following: Industrial Research and Expe rimental Development Scheme 
Industrial Property Rights  Costs for SMEs Scheme 
ERDF – Industrial Research and Experimental Development Scheme 
Innovation Clusters an d Collaborations Scheme 
Preparatory Technical Feasibility Studies Scheme Loan of Highly Qualified Personnel Scheme.  The aim of the above schemes is to provide assistance to undertakings to carry out R&D&I activities in 
line with the Community Framework for State Aid for Research and Development and Innovation (OJ C 323 of 
30.12.2006, p. 1). 
42 http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8853&l=1  
43 http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8908&l=1  G/SCM/N/253/EU/Add.18 
 
- 57 - 
 
  Subcontracting is not considered to be effective collaboration. 
 7. Amount of subsidy 
 
2011 – €788.00 
2012 – €304,975.00  
8. Duration of subsidy 
 
This aid scheme will run until 31 December 2013. 
 
9. Trade effects of the subsidy 
 
There are no effects on international trade. 
 
25  ERDF INDUSTRIAL RESEARCH AND EXPERIMENTAL DEVELOPMENT 
1. Title of subsidy 
 
ERDF Industrial Research and Experimental Development  Regulation 4 of the Assistance for Research and Development and Innovation Regulations as 
subsidiary legislation 463.05 to the Malta Enterprise Act, Chapter 463 of the Laws of Malta) 
 2. Period 
 The period covered by this notification starts from 1
 January 2011 until 31 December 2012. 
 
3. Policy objective 
 
Assistance under the ERDF – Industrial Research and Experimental Development Scheme is provided to stimulate industrial research and experimental development projects to undertakings 
from micro up to large. This performance measurem ent is designed to reflect an increase in R&D 
activity and the number of undertakings partic ipating in the research and development and 
innovation (R&D&I). This scheme provides ca sh grants based on competitive basis.  
 
The aid scheme forms part of a group of six support measures relating to R&D&I under Assistance for Research and Development and Innovation Regulations.  
 
The objective is to assist undertakings to engage and to invest in R&D&I activities in line with the Lisbon agenda. Aid for R&D&I actions will help und ertakings improve profits and grow by creating 
new high value-added products, processes and services. 
 
The eligible costs for this aid scheme:  
1. Personnel costs: researchers, technicians approved by the Corporation to the extent that 
they are directly employed on the research project; 
2. Costs of instruments and equipment: to the extent and for the direct use of the research 
project at depreciation cost if these are not used  for their full life fo r the research project; 
3. Cost of contractual research, technical knowledge and patents bought or licensed from 
outside sources at market prices: where the transaction has been carried out at arm's length and there is no element of collusion involved, as well as costs of consultancy and 
equivalent services used exclusively for the research activity. Only up to 20% of the total 
project costs are covered;  
4. Other operating expenses: costs of materials bo ught specifically for the project and for the 
duration of the research projec t, incurred directly as a result of the research activity and 
as long as these are justified. 
 
The maximum aid intensities for the above schemes are as follows: 
 G/SCM/N/253/EU/Add.18 
 
- 58 - 
 
  Maximum aid intensities for Industrial Research: 
 
Small Enterprise: 70% Medium Enterprise: 60% 
Large Enterprise: 50% 
 Maximum aid intensities if the Industrial Research Project is subject to: 
 
Collaboration between undertakings; 
 For large undertakings: cross border  or with at least one SME; or 
Collaboration of an undertaking with a research organisation. 
 
Small Enterprise: 80% Medium Enterprise: 75% 
Large Enterprise: 65% 
 Maximum aid intensities if the Experimental Development Project subject to: 
 
Collaboration between undertakings; 
 For large undertakings: cross border  or with at least one SME; or 
Collaboration of an undertaking with a research organisation. 
 
Small Enterprise: 60% Medium Enterprise: 50% 
Large Enterprise: 40%
 44 
 Where the project involves effective collaboration  between at least two undertakings which are 
independent of each other, the following conditions must be fulfilled: 
 
 No single undertaking must bear more than 70% of the eligible costs of the collaboration 
project; 
 The project must involve collaboration with at least one SME or be cross border, that is to 
say, the research and development activities ar e carried out in at least two different Member 
States. 
 
Where the project involves effective collaboration between an undertaking and a research organisation, the following conditions must be fulfilled: 
 
 The research organisation must bear at least 10% of the eligible project costs; 
 The research organisation has the right to pub lish the results of the research project insofar 
as they stem from research implemented by the organisation. 
 
Undertakings benefiting from this aid will e nhance their economic efficiency and constitute 
sustainable growth and jobs. Economic efficiency is increased by shifting market demand towards 
new and improved products, processes or services. 
 4. Authority of subsidy 
 Malta Enterprise – Malta Enterprise Corporation Act (Chapter 463 of the Laws of Malta).  5. Form of subsidy 
 The form of the subsidy of this aid scheme is a grant. 
 
6. To whom and how the subsidy is paid 
 
The aid is provided to micro up to large undertakings in all sectors of the industry related to 
advanced technology development mainly to undertakings that have opted for innovation to 
                                               
44 The aid intensities mentioned above are in line with those provided by the table illustrating aid 
intensities under par. 5.1.3 of the Community Framew ork for State Aid for Research and Development and 
Innovation (OJ C 323 of 30.12.2006, p. 1). G/SCM/N/253/EU/Add.18 
 
- 59 - 
 
  improve their competitiveness. The latter must demonstrate that the research project will lead to 
the development of innovative products, processes and services.  Assistance under this aid scheme is based on competitive basis. 
 
Applicants must submit an application with clear information on the size of the company as well as a detailed description of the research and develo pment project for which they request the support 
and the methodologies to be adopted. The applications will be evaluated and the applicant will be 
duly notified with the decision.  Approved proposals need to be innovative, nove l and above the current state of the art. The 
applicant must be able to support financially its share of the project. 
 Applicants must submit three comparable quotes from three independent suppliers for each cost 
item. Part financing and grant values will be calculated on the lowest value quoted. Quotes 
submitted for the same cost item must be from suppliers which are related neither to each other nor to the applicant. Suppliers shall not be related to the applicants. 
 
The approved project shall be based and operationa l in Malta since the objective of the European 
Regional Development Funds is to support projects that contribute to the development of the Maltese economy. 
 
Once the application is approved, Malta Enterprise Corporation will support up to the established intensity levels. 
 
Approval for funding will be based on the claims  and on the costing submitted in the project 
proposal originally approved by Malta Enterprise. 
 
Costs incurred for replacing or reconditioning existing equipment are considered ineligible.  For the purposes of the above scheme, subcontracting is not considered to be effective 
collaboration. 
 7. Amount of subsidy 
  2011 – €1,569,019.85 2012 – €348,083.44 
 
The ERDF Industrial Research and Experimental Development is mainly financed under the Grant Scheme for Enterprises implemented by Malta Ente rprise which operates under Priority Axis I – 
Enhancing Knowledge and Innovation of Malta's Operational Programme I Cohesion Policy 2007 – 
2013 (ERDF Funds) with a top up by national fund s. The amount of Community funding under this 
scheme is 85%.  
There were three competitive calls under the ERDF Industrial Research and Experimental 
Development; one in 2009, one in 2010 and another one in 2012. Call One closed on 2
 October 2009, Call Two closed on 26 March 2010 while Call Three closed on 3 April 2012. The 
assistance approved by the Corporation for Call One was reported in 2009, that approved for Call 
Two is reported in 2011 while that approved for Call Three is reported in 2012.  8. Duration of subsidy 
 This aid scheme will run until 31
 December 2013. 
 
9. Trade effects of the subsidy 
 
There are no effects on international trade. 
 G/SCM/N/253/EU/Add.18 
 
- 60 - 
 
  26  PREPARATORY TECHNICAL FE ASIBILITY STUDIES SCHEME 
1. Title of subsidy 
 
Preparatory Technical Feasibility Studies Scheme 
 
(Regulation 6 of the Assistance for Research and Development and Innovation Regulations as subsidiary legislation 463.05 to the Malta Enterprise Act, Chapter 463 of the Laws of Malta) 
 
2. Period 
 The period covered by this notification starts from 1
 January 2011 until 31 December 2012. 
 
3. Policy objective 
 
Assistance under the Preparatory Technical Feasibility Studies Scheme  will support 
undertakings to engage in pre-R&D activities such as technical feasibility studies in preparation to carry out industrial research or experimental development. 
 
The scheme forms part of a group of six support me asures relating to R&D&I under Assistance for 
Research and Development and Innovation Regulations.   
4. Authority of subsidy 
 
Malta Enterprise – Malta Enterprise Corporation Act (Chapter 463 of the Laws of Malta). 
 
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is a grant. 
 6. To whom and how the subsidy is paid 
 
Micro, SMEs as well as large undertakings may submit applications for assistance under this 
scheme.  
The aid is provided to all sectors of the industry related to advanced technology development 
mainly to undertakings that have opted for innovation to improve their competitiveness. The latter must demonstrate that the research project will lead to the development of innovative products, 
processes and services. 
 Prior to commencement of the project interested undertakings must submit a formal application with clear information on the size of the company as well as a detailed description of the kind of 
research and development project for which they re quest the support. The application will then be 
evaluated. Applicants will be duly notified by the decision. Projects that commence before such 
application and before formal approval will not be assisted. 
 
Approved proposals will be periodically fina nced against expenditure incurred during the 
implementation of the project. Approval will be based on the st rategic, commercial and technical 
feasibility of the projects. The applicant must be ab le to support financially its share of the project. 
 Once the application is approved, the Corporation will support accordingly in terms of the project 
planning agreement. 
 
Financial support is distributed according to the eligible expenses declared within the claimed period once the project is approved and commenc es. Approval for funding will be based on the 
claims and on the costing submitted in the project proposal originally approved by the Corporation. 
 7. Amount of subsidy 
  2011 – Nil assistance 2012 – €16,890.00  G/SCM/N/253/EU/Add.18 
 
- 61 - 
 
  8. Duration of subsidy 
 
This aid scheme will run until 31 December 2013. 
 
9. Trade effects of the subsidy 
 
 There are no effects on international trade. 
 
27  INTEREST RATE SUBSIDY SCHEME FOR THE REFURBISHMENT OF HOTELS, 
ACCOMMODATION FACILITIES AND RESTAURANTS 
1. Title of subsidy 
 
Interest Rate Subsidy Scheme for the Refurbishment of Hotels, Accommodation Facilities and Restaurants) 
 
Loan Interest Rate Subsidy (Guest Houses, Hostels, Hotels, Farmhouses and Restaurants) Regulations as subsidiary legislation 463.06 to the Malta Enterprise Act, Chapter 463 of the Laws 
of Malta) 
 http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=11585&l=1  
 
2. Period 
 
The period covered by this notification starts from 1 January 2011 until 31 December 2012. 
 
3. Policy objective 
 
This scheme provides assistance to guest houses, hostels, hotels, farmhouses and restaurants, in 
the form of an interest rate subsidy between 1% and 3% on interest payable to a Bank during the first five years of a loan period. The maximum subsidy is calculated on a straight line reducing balance of the initial loan amount over a period of five years: 
 
a. Undertakings investing in an eligible project on property licensed by the Malta Tourism 
Authority as a hotel, guest house or hostel may qualify for an interest rate subsidy on 
a loan of a maximum value of €7 million; 
b. Undertakings investing in an eligible project on property licensed by the Malta Tourism 
Authority as a farmhouse, snack bar or restaurant may qualify for an interest rate 
subsidy on a loan of a maximum value of €0.5 million. 
 Assistance under this scheme is regional investment for tangible assets in terms of Article 13 of 
Section 1 of the General block exemption Regulation . 
 
Assistance may be provided for investments relating to:  
1. Furbishing and upgrading of premises  including extensions, modifications and 
extension to premises. Investments relating to extension of premises will only be considered in relation to hotel facilities; 
2. The acquisition of plant, machinery, apparatus and instruments. 
 The total amount of assistance that may be provided shall never exceed:  
 50% of the eligible investment in the case of a small undertaking; 
 40% of the eligible investment in the case of a medium undertaking; 
 30% of the eligible investment in the case of a large undertaking. 
 
The loan on which the interest rate subsidy is granted must be taken in relation to refurbishment, product upgrade or expansion projects undertaken between 1
 June 2010 and 31 December 2013. 
The loan must be utilised only to fund tangible assets acquired in the implementation of a planned 
investment project that should result in the provision of additional services or fundamental changes of the business process. The project must ai m at the diversification of the existing market 
position through the introduction of new services or fundamental changes in business processes. G/SCM/N/253/EU/Add.18 
 
- 62 - 
 
   
4. Authority of subsidy 
 Malta Enterprise – Malta Enterprise Corporation Act (Chapter 463 of the Laws of Malta). 
 
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is a grant. 
 6. To whom and how the subsidy is paid 
 
Eligible undertakings under the Interest Rate Subsidy Scheme for the Refurbishment of 
Hotels, Accommodation Facilities and Restaurants  must be guest houses, hostels, hotels, 
farmhouses and restaurants, licensed under the Malta Travel and Tourism Services Act, Chapter 
409 of the Laws of Malta45. Such undertakings may be micro, small and medium-sized or large. 
 Voluntary organisations are ineligible for assistance under this scheme. 
 
Interested undertakings are to contact Malta Enterprise to request a business and operations review which will be conducted by an advisor appointed by the Corporation. The role of the advisor is to recommend possible improvements and enhancements to the business. The project has to fall 
in line with the recommendations of the business and operations review undertaken. 
 Applicants must submit a formal application together with a copy of the sanction letter issued by 
the commercial bank which has accepted the loan request. 
 The application will be evaluated on the following parameters: 
 
1. The applicant's ability to implement: 
 Evaluators will consider – 
 
a. An analysis of the applicant's performance in recent years; 
b. The sources of finance being utilised for the proposed project; 
c. The applicant's resources and previous experience in similar projects. 
 
2. The projects forecasted results: 
 
Evaluators will consider:  
a. The expected increase in turnover; 
b. Any envisaged increase in staff competencies; 
c. The applicant's knowledge and the ability to link to any existing process and value 
chains. 
 
3. The project's alignment to national strategies and priorities. 
 
All costs financed through the loan must be in relation to acquired assets or subcontracted services 
and must be incurred after the aid is granted.  Applicants will be notified in writing of the outcome of the application and will receive a Letter of 
Intent with the terms and conditions of the assistance approved. 
 The interest rate subsidy will be reimbursed on interest paid to the bank in six month intervals. 
 
The assets acquired must be new except in the case of SMEs and takeovers. In the case of 
takeovers, assets for the acquisition of which ai d has already been granted prior to the purchase 
shall be deducted. 
 
                                               
45 http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8875&l=1  G/SCM/N/253/EU/Add.18 
 
- 63 - 
 
  The following costs are ineligible: 
 
1. Purchase of land or property; 2. Wages; 
3. Operating expenditure. 
 Large investment projects in terms of par. 12 und er Article 2 – Definitions of the General block 
exemption Regulation are ineligible under this scheme. 
 7. Amount of subsidy 
  
2011 – €1,007,349.55 
2012 – €107,675.00  
8. Duration of subsidy 
 
This aid scheme will run until 31 December 2013. 
 
9. Trade effects of the subsidy 
 There are no effects on international trade. 
 
28  TRAINING ASSISTANCE 
1. Title of the subsidy 
 
Training Assistance – Regulation 14 of the Business Promotion Regulations   
2. Period covered by the notification 
 
The period covered by this notification starts from 1 January 2011 until 31 December 2012.  
3. Policy objective 
 
The objective of this scheme is th e improvement of workers' skills. 
 
4. Authority of subsidy 
 
Employment and Training Corporation – Employme nt and Training Services Act (Chapter 343 of 
the Laws of Malta)  5. Form of subsidy 
 The form of the subsidy of this aid scheme is a grant. 
 
6. To whom and how the subsidy is paid 
 
Beneficiaries from this incentive are undertakings engaged in the manufacturing or analogous 
services sectors, research and development and biotechnology. In this case, Malta Enterprise 
confirms to the Employment and Training Corporation (ETC) the eligibility or otherwise of the applicant and confirms whether the said enterpri se is large, small or medium-sized. ETC will 
approve a grant in favour of the enterprise depending on its size and on whether the training 
provided is general or specific. The grant is calculated on the basis of eligible costs (specified in the 
law) incurred by the company in providing training to its employees.  
7. Amount of subsidy 
 
2011 – 47,228.03 
2012 – 8,358.10 
 G/SCM/N/253/EU/Add.18 
 
- 64 - 
 
  8. Duration of subsidy 
 
The Training Assistance scheme has now been superseded with the Training Aid Framework co funded through The European Social Fund (ESF) under Malta's Operational Programme 
'Empowering People for More Jobs and a Better Quality of Life' for the 2007-2013 Programming 
Period.   
9. Trade effects of the subsidy 
 
There are no effects on international trade.   
29  TRAINING AID FRAMEWORK 
1. Title of the subsidy 
 
Training Aid Framework- ESF 2.65, Operational Programme II, Cohesion Policy 2007 – 2013. 
  2. Period covered by the notification 
 The TAF Scheme was launched in February 2009 and has been extended till December 2014.  3. Policy objective 
 The objective of this scheme is to help the private sectors invest in the knowledge and skills of the people which are actively participating in the labour market, in line with the objectives of OP II 
"Empowering People for More Jobs and a better quality of Life". 
 4. Authority of subsidy 
 Employment and Training Corporation – Acting as the Intermediate Body to the Managing Authority.  
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is a grant which covers a percentage of the costs 
incurred according to the aid intensity under which the beneficiary falls 
 6. To whom and how the subsidy is paid 
 Beneficiaries from this incentive are undertakings carrying out an economic activity irrespective of its legal form excluding public sector entities but inclusive of self-employed persons, non-government organisations and professional bodies.  
 
As the IB, the Corporation approves the reimburs ement of the costs incurred after conducting its 
checks at application, evaluation and reimbursement stage. The aid intensity of the amount 
reimbursed depends on the type of training categorized as general or specific, and the size of the 
undertaking as stipulated in the General block exemption regulation Commission Regulation (EC) No 800/2008.    
 
7. Amount of subsidy 
 2011 - €968,133.62 
2012 - €1,282,208.21 
 8. Duration of subsidy 
 The potential Beneficiaries are to conclude all training programmes by end June 2013 however the scheme will continue to reimburse funds till end December 2014. 
 
9. Trade effects of the subsidy 
 There are no effects on international trade. G/SCM/N/253/EU/Add.18 
 
- 65 - 
 
   
30  EMPLOYMENT AID PROGRAMME 
1. Title of the subsidy 
 
Employment Aid Programme (EAP) - ESF 2.64, Operational Programme II, Cohesion Policy 2007 – 
2013.  
2. Period covered by the notification 
 
The EAP was launched in February 2009 and has been extended till December 2014.  
3. Policy objective 
 
The objective of this scheme is to increase the participation of disadvantaged groups in the labour 
market, in line with the objectives of OP II "Empowering People for More Jobs and a better quality 
of Life".  
4. Authority of subsidy 
 
Employment and Training Corporation – Acting as the Intermediate Body to the Managing Authority. 
 
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is a grant which covers a percentage of the wage costs 
including the National Insurance Contribution paid by the beneficiary.  
6. To whom and how the subsidy is paid 
 
Beneficiaries from this incentive are undertakings carrying out an economic activity irrespective of its legal form excluding public sector entities but inclusive of self-employed persons. 
 
As the IB, the Corporation approves the reimburs ement of the costs incurred after conducting its 
checks at application, evaluation and reimbursement stage. The aid intensity of the amount 
reimbursed depends on the target group under which the participant was found eligible.  
 7. Amount of subsidy 
 2011 - €714,445.18 2012 - €2,730,118.15  
8. Duration of subsidy 
 
The potential Beneficiaries are to conclude the operation by end November 2013 however the 
scheme will continue to reimburse funds till end December 2014. 
 9. Trade effects of the subsidy 
 There are no effects on international trade. G/SCM/N/253/EU/Add.18 
 
- 66 - 
 
   
31  AGRICULTURAL NATIONALLY FULL-FINANCED AID 
Special Marketing Policy Programme for Maltese Agriculture (SMPPMA) – Aid in the Tomatoes for 
Processing Sector 
 
1. Title of Subsidy 
 
Special Marketing Policy Programme for Maltese Agriculture (SMPPMA) – Aid in the Tomatoes for 
Processing Sector  2. Period covered by the notification 
 The period covered by this notification starts from 1 January 2011 until 31 December 2012.  
3. Policy objectives 
 
Income supplements to producers plus marketing aid to compensate the loss of revenue deriving 
from Maltese processed tomato products resulting from the fall of prices after accession, due to 
the dismantling of import levies on agricultural pr oducts in the crops sector (vide Accession Treaty 
Annex XI/en p3271 et. seq.).  
4. Authority of subsidy 
 
Ministry for Resources and Rural Affairs 
 
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is fiscal. 
 6. To whom and how the subsidy is paid 
 
Producers of tomatoes production for processing. Income supplement provided directly to 
producers.  
7. Amount of subsidy 
 
2011 – €740,080. 
2012 – €573,550. 
 8. Duration of subsidy 
 
The aid scheme will run until 31 December 2014. 
 9. Trade effects of the subsidy 
 There are no effects on international trade.  
Special Marketing Policy Programme for Malt ese Agriculture (SMPPMA) – Aid in the 
Fresh Fruit Sector  1. Title of Subsidy 
 Special Marketing Policy Programme for Maltese Agriculture (SMPPMA) – Aid in the Fresh Fruit Sector. 
 
2. Period covered by the notification 
 
The period covered by this notification starts from 1 January 2011 until 31 December 2012. 
 G/SCM/N/253/EU/Add.18 
 
- 67 - 
 
  3. Policy objectives 
 
Income supplements to compensate the loss of revenue of Maltese fruit producers resulting from the fall of local prices after accession, due to the dismantling of import levies on fruit 
(vide Accession Treaty Annex XI/en p3271 et. seq.). 
 4. Authority of subsidy 
 Ministry for Resources and Rural Affairs  5. Form of subsidy 
 The form of the subsidy of this aid scheme is fiscal.  
6. To whom and how the subsidy is paid 
 
Producers of fresh fruit. Income supplement provided directly to producers. 
 
7. Amount of subsidy 
 2011 – € 622,593. 
2012 – €477,909 (estimate). 
 8. Duration of subsidy 
 The aid scheme will run until 31 December 2014.  
9. Trade effects of the subsidy 
 
There are no effects on international trade.  
Special Marketing Policy Programme for Malt ese Agriculture (SMPPMA) – Aid in the 
Fresh Vegetables Sector  
1. Title of Subsidy 
 
Special Marketing Policy Programme for Maltese Agriculture (SMPPMA) – Aid in the Fresh 
Vegetables Sector 
 2. Period covered by the notification 
 
The period covered by this notification starts from 1 January 2011 until 31 December 2012. 
 3. Policy objectives 
 Income support to compensate the loss of revenue  of Maltese vegetable producers resulting from 
the fall of local prices after accession, due to the dismantling of import levies on fresh vegetables 
(vide Accession Treaty Annex XI/en p3271 et. seq.). 
 4. Authority of subsidy 
 
Ministry for Resources and Rural Affairs 
 5. Form of subsidy 
 The form of the subsidy of this aid scheme is fiscal.  
6. To whom and how the subsidy is paid 
 
Producers of fresh vegetables. Income supplement provided directly to producers.  G/SCM/N/253/EU/Add.18 
 
- 68 - 
 
  7. Amount of subsidy 
 
2011 – € 526,375. 2012 – € 367,880 (estimate). 
 
8. Duration of subsidy 
 
The aid scheme will run until 31 December 2014. 
 9. Trade effects of the subsidy 
 
There are no effects on international trade. 
 State aid for the transport of produce from Gozo 
 
1. Title of Subsidy 
 
Neutralisation of Additional Costs for the Transportation of Gozitan Agriculture produce to Malta. 
 2. Period covered by the notification 
 
The period covered by this notification starts from 1 January 2011 until 31 December 2012. 
 3. Policy objectives 
 Ferry transport costs reimbursement to neutralise the additional cost for the transportation of 
Gozitan Agriculture and Fisheries produce to Malta. 
 
4. Authority of subsidy 
 Ministry for Resources and Rural Affairs 
 
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is fiscal. 
 6. To whom and how the subsidy is paid 
 Re-imbursement of costs is provided to bene ficiaries making use of transport to Malta. 
 7. Amount of subsidy 
 2011 – €44,311.05 2012 – €44,761.50 
 
8. Duration of subsidy 
 
This aid scheme terminated on 31 December 2010. 
 9. Trade effects of the subsidy 
 
There are no effects on international trade. 
 32  AGRICULTURAL TEMPORARY STATE AID 
Herd Improvement Aid for the Pig Sector 
 1. Title of Subsidy 
 Herd Improvement Aid to Pig Breeders  G/SCM/N/253/EU/Add.18 
 
- 69 - 
 
  2. Period covered by the notification 
 
The period covered by this notification starts from 1 January 2011 until 31 December 2012.  
3. Policy objectives 
 
The main objective of the scheme is to attenuate th e impact of utilities costs and the price-hike of 
feed on the pig sector in a period when their costs surpassed their income, in a bid to safeguard 
and improve their competitiveness and keeping consumer prices stable, while the sector 
implements measures including reducing herd size, improving meat quality, optimising the feed conversion ratio, decreasing carcass weights, increasing sales, promoting the on-farm use of 
energy efficient technologies and water saving measures, as well as promoting a label of 
distinction  
4. Authority of subsidy 
 
Ministry for Resources and Rural Affairs 
 
5. Form of subsidy 
 The form of the subsidy of this aid scheme is fiscal. 
 
6. To whom and how the subsidy is paid 
 
This aid was given to those pig breeders who reache d certain prescribed goals in line with the KIM 
strategy such as herd size reduction and carcass weight reduction. Those pig breeders who got in line with the sow number on their license got th e full sum of €13.25 per pig slaughtered but those 
who did not get in line by two deadlines had their sum deducted by 25% or 50% respectively. Pig 
breeders who did not do any effort to improve their herd were dismissed outright from this scheme.   
7. Amount of subsidy 
 
2011 – €500,000. 
2012 – € NIL. 
 8. Duration of subsidy 
 The aid scheme ended in July 2011.  9. Trade effects of the subsidy 
 There were no effects on international trade.  
Training Scheme for the Poultry Sector 
 1. Title of Subsidy 
 Training Scheme for the poultry sector  2. Period covered by the notification 
 The period covered by this notification starts from 1 January 2011 until 31 December 2012.  
3. Policy objectives 
 
The objective of this aid scheme was to provide on -farm training by expert consultants to each 
producer in the broiler/layer sector to enable them to acquire practical knowledge as to how best 
address shortcomings on their farm in four areas: broiler/laying hen welfare, best feed conversion practices, salmonella avoidance and handling/st orage and disposal of nitrates. The scheme was 
administered through Producers' Organisations in the poultry sector. 
 G/SCM/N/253/EU/Add.18 
 
- 70 - 
 
  4. Authority of subsidy 
 
Ministry for Resources and Rural Affairs  
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is fiscal. 
 
6. To whom and how the subsidy is paid 
 Beneficiaries were farmers holding a valid licence to breed broilers and/or laying hens issued by 
the Fish and Farming Regulation and Control Department and must have been engaged in active 
production since October 2010. Although the scheme was administered through Producers' Organisations, membership was not a pre-condition for participation in the scheme. 
 
7. Amount of subsidy 
 
2011 – €70,000 
2012 – €NIL.  8. Duration of subsidy 
 The aid scheme was valid between March 2011 and May 2011  
9. Trade effects of the subsidy 
 
There are no effects on international trade  
 
 
__________