G/SCM/N/315/EU/Add.19  
 
28 July 2017  
(17-4157) Page: 1/61 
Committee on Subsidies and Countervailing Measures  Original: English  
 
 SUBSIDIES  
NEW AND FULL NOTIFIC ATION PURSUANT TO AR TICLE XVI:1  
OF THE GATT 1994 AND  ARTICLE 25 OF THE AG REEMENT  
ON SUBSIDIES AND COU NTERVAILING MEASURES  
EUROPEAN UNION 
Addendum  
The following addendum to the notification of the European Union relates to su bsidy programmes 
of Malta . 
 
_______________  
 
 G/SCM/N/315/EU/Add.19  
 
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  MALTA  
 
TABLE OF CONTENTS  
1   INVESTMENT AID SCHEM E ................................ ................................ ..........................  3 
2   INVESTMENT AID TAX C REDITS 201 4 - 2020  ................................ ..............................  5 
3   BUSINESS START [B.ST ART]  ................................ ................................ .......................  8 
4   CERTIFY TAX CREDITS  ................................ ................................ ..............................  11 
5   SOFT LOANS  ................................ ................................ ................................ ..............  13 
6   INTEREST RATE SUBSID IES SCHEME  ................................ ................................ .........  14 
7   LOAN GUARANTEES  ................................ ................................ ................................ ... 15 
8   STRENGTHENING MARKET  ENTRY AND INTERNATIO NALISATION  ............................  17 
9   NETWORK SUPPORT SCHE ME ................................ ................................ ....................  19 
10   BUSINESS DEVEL OPMENT GRANT SCHEME  ................................ ..............................  21 
11   BUSINESS DEVELOPMENT  AND CONTINUITY SCHEM E ................................ .............  23 
12   BUSINESS ADVISORY SE RVICES SCHEME  ................................ ................................  25 
13   GOZO TRANSPORT GRANT S SCHEME  ................................ ................................ ....... 27 
14   MICRO INVEST  ................................ ................................ ................................ ........  29 
15   MICRO GUARANT EE SCHEME  ................................ ................................ ...................  32 
16   RENT SUBSIDY SCHEME  ................................ ................................ ..........................  34 
17   RESEARCH AND DEVELOP MENT 2014 - 2020  ................................ ...........................  36 
18   R & D FEASIBILITY ST UDIES 2014 - 2020  ................................ ...............................  38 
19   START -UP FINANCE  ................................ ................................ ................................ . 40 
20   BUSINESS ASSOCIATION S GRANT SC HEME  ................................ .............................  42 
21   AID FOR THE DEVELOPM ENT OF WORKSHOPS AND  ASSOCIATE RETAIL 
OUTLETS AT THE TA' Q ALI AND TA' DBIEGI C RAFTS VILLAGE  ................................ ........  43 
22   TRAINEESHIP SCHEME  ................................ ................................ ............................  45 
23   WORK EXPOSURE SCHEME  ................................ ................................ ......................  47 
24   WORK PLACEMENT SCHEM E ................................ ................................ ....................  48 
25   YOUTH GUARANTEE SCHE ME ESF3.231  ................................ ................................ ... 49 
26   TRAINING  AID FRAMEWORK 2015 ( TAF2)  ................................ ..............................  51 
27   EMPLOYMENT AID PRO GRAMME – GOZO (EAPG)  ................................ .....................  52 
28   ACCESS TO EMPLOYMNT (A2E) SCHEME  ................................ ................................ .. 54 
29   ENHANCING MARKETING OPPORTUNITIES FOR DR IVING SECTOR  .........................  55 
30   SUPPORTING MARKETING  INITIATIVES FOR SPEC IFIC NICHE MARKETS I N 
GOZO  ................................ ................................ ................................ .............................  56 
31   SUPPORTING BUSINESS ENTITIES TO ATTEND T HE WEB SU MMIT IN LISBON 
IN 2016  ................................ ................................ ................................ ..........................  57 
32   PROMOTING ECONOMIC C OHESION IN GOZO (FIS HERIES SECTOR)  .......................  58 
33   FRUIT AND VEGETABLES  GRADING AND P ACKING FACILITY  ................................ .. 58 
34   TRANSPORT OF FODDER SCHEME  ................................ ................................ ............  59 
35   PROMOTING ECONOMIC C OHESION IN GOZO (AGR ICULTURE SECTOR)  ..................  60 
36   PROMOTING ECONOMIC C OHESION IN GOZO (IND USTRIAL SECTOR)  ....................  61 G/SCM/N/315/EU/Add.19  
 
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  INTRODUCTION  
 
This report covers state aid programmes and schemes that were in op eration between 2015 an d 
2016. The amoun ts stated in this report are in the Euro currency (€).  
 
1  INVESTMENT AID SCHEM E 
1. Title of the subsidy  
 
Investment Aid Scheme.  
 
2. Period covered by the notification  
 
The period covered by this notification starts from 1 January  2015 until 31 December  2016. 
 
3. Policy objective and / or purpose of the subsidy  
 
The Investment Aid Scheme seeks to assist the develop ment of Malta by promoting the expansion 
and diversification of economic activities of enterprises located in Malta as well  as to encourage 
firms t o set up new establishments.  
 
The main benefits derived from this assistance include:  
 
- Increased investment;  
- Increased job opportunities;  
- Increase in the GDP . 
 
4. Background and Authority for the subsidy  
 
The Investment Aid Scheme is administered by Malta Enterprise Corporation.  
 
Malta Enterprise Corporation may issue and publish the official Incentive Guidelines covering this 
aid scheme in terms of Article 8 [3][a] of the Malta Enterprise Act, Chapter 463 of the Laws of 
Malta.  
 
The Corporation may d esign support measures in terms of the Malta Enterprise Act:  
 
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1   
 
The Investment A id Regulations as subsidiary legislation 463.02 to the Malta Enterprise Act, 
mentioned in the previous paragraph, forms the national legal basis of this aid scheme.  
http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=11607&l=1  
 
The terms and conditions covering this aid scheme are in line with Article 13 – Regional 
investment and employment aid of Section 1 - Regional Aid of Commission Regul ation (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). 
The State Aid number of the Investment Aid Scheme is SA 34221 (2012 /X). 
 
In terms of the Malta Enterprise Act mentioned above, the parameters of aid and details of the 
support measure are found in the Incentive Guidelines. These Incentive Guidelines are a set of 
rules issued by the Corporation from time to time containing  details on the definition, application, 
administration, grant and revocation of the schemes. The Incentive Guidelines for Investment 
Aid Scheme may be accessed by using the following link:  
 
https://www.maltaenterprise.com/support/investment -aid-tax-credits -2008-june-2014-closed -
measure  
 
5. Form of the subsidy  
 
The form of the aid is variable in line with Article 37 of the Guidelines on National Regional Aid for 
2007 – 2013 [2006/C 54/08] but will usually be awarded in the form of a tax credit.  When aid is G/SCM/N/315/EU/Add.19  
 
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  awarded as a tax credit, the aid will be granted automatically subject to certain objec tive criteria 
being fulfilled. If the form of aid is not  in the form of a tax credit, then the aid must be pre -
approved in writing before work on the project is initiated.  
 
The assistance provided by this support measure is calculated either in reference to material and 
immaterial investment costs resulting fro m an initial investment project or in reference to wage 
costs for the initial two [2] years of jobs directly created by the investment project.  
 
6. To whom and how the subsidy is provided  
 
Eligible enterprises for the assistance provided by this aid scheme  may be Micro, SMEs or Large 
Enterprises.  
 
Aid intensities  
 
The total amount of investment aid that may be awarded in terms of these regulations for a given 
investment project shall be:  
 
- In the case of a company which qualifies as a 'Small ' enterprise, n ever exceed 50% of 
the eligible investment;  
 
- In the case of a company which qualifies as a 'Medium ' enterprise, never exceed 40% 
of the eligible investment;  
 
- In the case of a company which qualifies as a 'Large ' enterprise, never exceed 30% of 
the elig ible investment;  
 
Qualifying a ctivities  
 
The activities that qualify for Investment Aid are as follows:  
 
 (a) (i) the production, manufacture, improv ement, assembly, preservation, processing 
of any goods, materials, commodities, equipment, plant and  machi nery;  
 
  (ii) the rendering of any industrial services analogous to the activities mentioned in 
 (i) above;  
 
  (iii) the repair, overhaul or maintenance of pleasure crafts, yachts not having more 
 than thirty berths, aircraft, engines or equipment incorpor ated or used in such 
 vessels or aircraft;  
 
(b) Information and Communications Technology (I.C.T. ) development activities, software 
development, Information Technology (I.T.) enabled services including call centres 
and Information Technology (I.T.) solutio ns, but excluding telecommunications service 
providers;  
 
(c) research and development, and innovative start -ups; 
 
(d) eco-innovations, waste treatment and environmental solutions;  
 
(e) biotechnology, comprising the production or development of intellectual  property or 
goods or the rendering of services resulting from, or related to, the study, research, 
discovery, application, modification or development of living organisms or materials 
derived from them;  
 
(f) the provision of facilities directly required i n the development or production of feature 
films, television programmes or commercials;  
 
(g) the provision of science and technology private tertiary education;  
 G/SCM/N/315/EU/Add.19  
 
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  (h) the provision of private health -care services through the setting up of new projects 
carrying out an investment o f not less than € 2.5 million in medical equipment, 
excluding land or buildings;  
 
(i) the provision of logistics services that include part -transformation that adds value by 
undertakings employing not less than 250 full -time employees or their equivalent;  
 
(j) activities set out in Article 11 of the Malta Freeports Act and carried on mainly in a 
Freeport as defined by the Act by an undertaking licensed under the Act.  
 
7.  Amount of the subsidy  
 
2015 – € 31,818,454.00  
2016 – € 54,229,493.00  
 
The values found  in this report relate to fiscal incentives utilised by undertakings as follows:  
 
2015: the values are for year of assessment 2015 [financial year 2014];  
2016: the values are for year of assessment 2016 [financial year 2015].  
 
The Corporation is not yet in  a position to report the values of the aid applicable to fiscal incentives 
for financial year 2016.  This information will be reported in the next WTO Report since the Audited 
Financial Statements for financial year 2016 are still not available.  
 
8. Durati on of the subsidy  
 
This incentive measure was implemented on 1 January  2008 and terminated on 30 June 2014.  
 
9. Trade effects of the subsidy  
 
There are no effects on international trade . 
 
2  INVESTMENT AID TAX C REDITS 2014 - 2020  
1. Title of the subsidy  
 
Investment Aid Tax Credits 2014 – 2020.  
 
2. Period covered by the notification  
 
The period covered by this notification starts from 1 January  2015 until 31 December  2016. 
 
3. Policy objective and / or purpose of the subsidy  
 
Investment Aid Tax Credits 2014 – 2020 is intended to fac ilitate initial investments by encouraging 
the setting up of new establishments and the expansion and  development of existing businesses.  
 
4. Background and Authority for the subsidy  
 
The Investment Aid Tax Credits 2014 – 2020 is ad ministered by Malta Enterprise Corporation.  
 
Malta Enterprise Corporation may issue and publish the official Incentive Guidelines covering this 
aid scheme in terms of Article 8 [3][a] of the Malta Enterprise Act, Chapter 463 of the Laws of 
Malta.  
 
The Corp oration may design support measures in terms of the Malta Enterprise Act:  
 
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1   
 
The Investment Aid [July 2014] Regulations as Subsidiary Legislation 463.10 to the Malta 
Enterprise Act, mentioned in the previous paragraph, forms the national legal basis of this aid 
scheme.  G/SCM/N/315/EU/Add.19  
 
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http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=12252&l=1  
 
The terms and conditions covering this aid scheme shall be in line with Commission R egulation 
[EU] No 651/2014 of 17 June 2014 declaring certain cate gories of aid compatible with the internal 
market in application of Articles 107 and 108 of the Treaty, [OJ L 187/1, 26.6.2014].  
 
http://eur -lex.europa.eu/legal -content/EN/TXT/PDF/?uri=CELEX:32014R0651&from=EN  
 
In terms of the Malta Enterprise Act mentioned above, the parameters of aid and details of the 
support measure are found in the Incentive Guidelines. These Incentive Guidelines are a set of 
rules issued by  the Corporation from time to time containing details on the definition, application, 
administration, grant and revocation of the schemes. The Incentive Guidelines for Investment 
Aid Tax Credits 2014 – 2020 may be accessed by using the following link:  
 
https://www.maltaenterprise.com/support/investment -aid-tax-credits -2014-2020 
 
5. Form of the subsidy  
 
Investment Aid shall be awarded to a qualifying company in respe ct to an Initial Investment 
Project.  The investment must remain in the region of Malta for at least five [5] years or three [3] 
years in the case where the beneficiary is an SME.   
 
In principle this is a fiscal measure, yet at the discretion of the Corpor ation, cash grants may be 
exceptionally awarded in respect to initial investment projects that provide a significant 
contribution to the development of the Maltese economy.  
 
Qualifying expen diture  
 
The value of qualifying expenditure is calculated either a s the value of:  
 
a. qualifying tangible and intangible assets acquired in relation to an initial investment 
project;  or  
b. the value of wage costs for jobs directly created by the initial investment project.   
6. To whom and how the subsidy is provided  
 
This inc entive is available to undertakings engaged solely in eligible activities, [as per Incentive 
Guidelines] and not otherwise disqualified by the Guidelines.  To be eligible for aid through this 
incentive, undertakings shall be:  
 
a. duly incorporated under the Co mpany 's Act, Chapter 386 of the Laws of Malta being a 
partnership en nom collectif, en commandite or a limited liability company;  or 
b. anybody of persons constituted, incorporated or registered outside Malta, and of a 
nature similar to the above; or 
c. be duly registered as a Cooperative under the  Co-operatives Societies Act,  Chapter  442 
of the Laws of Malta.  
Applicable aid i ntensity1  
 
Investment Aid is calculated either in reference to tangible and intangible investment costs 
resulting from the initial investm ent project or to the value of wage costs2 for jobs directly created 
by the initial investment project.   
                                                
1 For the purposes of calculating aid intensity and eligible costs, all figures used shall be taken before 
any deduction of tax or other charge.  
2 For the purposes of this Incentive, ‘wage cost’ means the total amount actually payable by the 
beneficiary of the aid in respect of the employment concerned, compr ising over a defined period of time t he 
gross wage before tax and compulsory contributions such as social security, child care and parent care costs.  G/SCM/N/315/EU/Add.19  
 
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A. Applicable Aid intensities for project where the 'start of works ' is on or after 
01/07/2014 and before 31/12/2017   
 
The total amount of investment aid that may be awarded in terms of these regulations for a given 
investment project shall not exceed:   
 
a. 35% of the qualifying expenditure for an undertaking which qualifies as a 'Small ' 
undertaking;  
b. 25% of the qualifying expenditure for an undertaking whi ch qualifies as a 'Medium -sized' 
undertaking;  
c. 15% of the qualifying expenditure for an undertaking which qualifies as a 'Large ' 
undertaking;  
d. 15% of the eligible expenditure in the case of hotels.  
B. Applicable Aid intensities for projects where the 'start  of works ' is on or after 
01/01/2018 and before 31/12/2020  
  
The total amount of investment aid that may be awarded in terms of these regulations for a given 
investment project shall not exceed:  
 
a. 30% of the qualifying expenditure for an undertaking which q ualifies as a 'Small ' 
undertaking;  
b. 20% of the qualifying expenditure for an undertaking which qualifies as a 'Medium -sized' 
undertaking;  
c. 10% of the qualifying expenditure for an undertaking which qualifies as a 'Large ' 
undertaking;  
d. Hotels are eligible to, 10% of the eligible expenditure in the case large undertakings, and 
15% in the case of small and medium undertakings.  
C. Start of W orks 
  
'Start of Works' means the earlier of either the start of construction works relating to the 
investment, or the first  legally binding commitment to order equipment or any other commitment 
that makes the investment irreversible.  
 
Buying land and preparatory works such as obtaining permits and conducting feasibility studies are 
not considered 'start of works '.  
 
For take -overs, 'start of works ' means the moment of acquiring the assets directly linked to the 
acquired establishment;  
 
D. Large I nvestment Projects  
 
For 'large investment projects' that is undergoing an initial investment as previously described and 
with eligib le costs exceeding EUR 50 million, the applicable maximum permissible aid shall be 
adjusted according to the following formula:  
 
maximum aid amount = R × [50 + 0.50 × B + 0 × C]  
 
where: R is the maximum aid intensity applicable in the area concerned establ ished in an approved 
regional map and which is in force on the date of granting the aid, excluding the increased aid 
intensity for SMEs; B is the part of eligible costs between EUR 50 million and EUR 100 million; C is 
the part of eligible costs above EUR 1 00 million.  
 G/SCM/N/315/EU/Add.19  
 
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  Any initial investment started by the same beneficiary [at group level] within a period of three [3] 
years from the date of start of works on another aided investment shall be considered to be part of 
a single investment project.  
 
7.  Amount of the subsidy  
 
 2015 – Cash Grants :  € 250,000.00  Tax Credits :  €    154,961.00  
 2016 – Cash Grans :  € 872,350.00  Tax Credits :  € 2,155,659.00  
 
The values found in this report relate to fiscal incentives utilised by undertakings as follows:  
 
2015: the va lues are for year of assessment 2015 [financial year 2014];  
2016: the values are for year of assessment 2016 [financial year 2015].  
 
The Corporation is not yet in a position to report the values of the aid applicable to fiscal incentives 
for financial year  2016.  This information will be reported in the next WTO Report since the Audited 
Financial Statements for financial year 2016 are still not available.  
 
8. Duration of the subsidy  
 
The Investment Aid Tax Credits [2014 – 2020] was affective as from 1 July 2 014 and will remain 
in force until 31 December  2020.   
  
9. Trade effects of the subsidy  
 
There are no effects on international trade.  
 
3  BUSINESS START [B.ST ART]  
1. Title of the subsidy  
 
Business START  [also known as B.Start].  
 
2. Period covered by the noti fication  
 
The period covered by this notification starts from 1 January  2015 until 31 December  2016. 
 
3. Policy objectives  
 
Business START  was launched as a pilot project intended to offer assistance to small start -up 
undertakings that have a viable busine ss concept and are in their early stages of their 
development. Ensuring that viable small start -up undertakings have access to suitable assistance 
is essential for a sustainable economy.  
 
The benefits expected to be derived from this scheme is related to f acilitating access to finance for 
small start -up undertakings that are in the process of establishing and/or consolidating a business 
operation that has been deemed as economically feasible and innovative.  Various studies have 
shown that financial access p romotes growth for undertakings through the provision of credit to 
both new and existing businesses. Such financing is beneficial to both the beneficiaries and in 
return to the economy in general by accelerating economic growth, intensifying competition, a s 
well as boosting employment.  
 
For the purpose of this support measure, a small start -up undertaking is an unlisted small 
undertaking that has been established for less than five [5] years which has not yet distributed 
profits and has not formed through a merger. The term excludes any undertakings that close down 
and re -open, as well as undertakings controlled by owners of previously closed down businesses if 
the new undertaking is operative in the same or related sectors as that of the closed down firm. 
These restrictions apply for a period of twelve [12] months following such closure.  
 
For eligible undertakings that are not subject to registration, the five [5] years eligibility period will 
be considered to start from the moment when the undertaking bec omes liable to tax on income 
from its economic activity.  G/SCM/N/315/EU/Add.19  
 
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  Undertakings controlled by owners of existing businesses cannot be considered as start -up 
undertakings if the new undertaking is operative in the same or related sector.  
  
4. Background and Authorit y for the subsidy  
 
Business START  is administered by Malta Enterprise Corporation.  
 
The official Incentive Guidelines covering this aid scheme are issued and published in terms of 
Article 8 [3][a] of the Malta Enterprise Act, Chapter 463 of the Laws of Mal ta. 
 
The Corporation may design support measures in terms of the Malta Enterprise Act:  
 
http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1    
 
Regulation 12 of the Assistance to Small and Medium -Sized Undertakings Regulations as subsidiary 
legislation 463.03 to the Malta Enterprise Act, Chapter 463 of the Laws of Malta forms the national 
legal basis of this Aid Scheme.  
 
http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=11608&l=1  
 
The terms and conditions of this support measure are in line Commission R egulation [EU] 
No 651/2014 of 17 Ju ne 2014 declaring certain categor ies of aid compatible with the internal 
market in application of Articles 107 and 108 of the Treaty [General Block  Exemption Regulation].  
 
http://eur -lex.europa.eu/legal -content/EN/TXT/PDF/?uri=CELEX:32014R0651&from=EN  
 
In terms of the Malta Enterprise Act mentioned above, the parameters of aid and details of the 
support measure are found in the Incentive Guidelines. These Incent ive Guidelines are a set of 
rules issued by the Corporation from time to time containing details on the definition, application, 
administration, grant and revocation of the schemes. The Incentive Guidelines for Business START 
[B.START]  may be accessed by u sing the following link:  
 
https://www.maltaenterprise.com/support/business -start-bstart  
 
5. Form of the subsidy  
 
Eligible undertakings with a viable business concept which is in its early stage of  development and 
that is economically viable shall be sup ported through a cash grant of up to € 25,000.  
 
6. To whom and how the subsidy is provided  
 
In order to be eligible for assistance in terms of B.START , Small S tart-up Undertakings must fill the 
following criteria:  
 
Business a ctivity:  
 
Beneficiaries must carry out a commercial activity w here principle business shall be classified 
under one [1] of these sectors:  
 
a. Manufacturing;  
b. Electricity, gas, steam and air conditioning supply;  
c. Water supply, sewerage, waste management and remediation activities;  
d. Transport and storage;  
e. Information and com munication;  
f. Professional, scientific and technical activities;  
g. Human health and social work activities;  G/SCM/N/315/EU/Add.19  
 
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  h. Arts, entertainment and recreation;  
i. Other service activities.  
Innovation:  
 
In order to be eligible, the applicant must be:  
 
a. proposing products and / or services that have potential to be marketed and distributed 
internationally; and  
b. producing products and / or services which are new or substantially improved compared 
to the state of the art in the local industry.  
Knowledge:  
 
The activities of the start -up undertaking must be linked to the knowledge of the Key Promoter/s.  
It is expected that the key persons engaged in the start -up have the academic background and / 
or hands on experience in the relevant sector.  
 
State aid r egulations:  
 
The applicant must a dhere to the applicable State Aid Regulations.  
 
Other p rovisions:  
 
Small start -up undertakings will not be eligible for this incentive if the applicant is controlled by:  
 
a. owners of existing businesses or other undertakings that are operative or have intere sts 
that exceed 25% in other undertakings in the same or related sector.  
b. owners of an undertaking operative in the same or related sector that had closed down 
in the twelve [12] months preceding their establishment date.  
Eligible start -up undertakings may be awarded a maximum grant of up to € 25,000 over a period 
of twelve [12] months.  
 
An initial instalment of up to € 10,000 shall be paid once the project is approved. Subsequent 
installments shall be paid quarterly after the Corporation reviews and endors es that the progress 
achieved is in line with the business plan as approved or as adjusted to adapt to market 
requirement.  The maximum grant awarded through subsequen t payments shall be capped at 
€ 600 per Full Time Employee engaged in the undertaking mult iplied by the number of full months 
elapsed from previous payment.  
 
Approved assistance in terms of this support measure may be utilised for investment costs as the 
beneficiary may procure tangible and intangible assets, however, the beneficiary may also utilise 
the assistance for operating costs.  
 
7. Amount of the subsidy  
 
2015 – €      75,000.00  
2016 – € 1,275,000.00  
 
8. Duration of the subsidy  
 
This support measure was launched as a pilot project for a period of twelve [12] months between 
1 June 2015 and 30 June 2016.  
 
Scheme extended d eadline  
 
In view of the positive interest th at has been received, Ma lta Enterprise Corporation has extended 
the deadline for this incentive measure to 3 1 December 2020.   G/SCM/N/315/EU/Add.19  
 
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Amendment to the conditions of e ligibility  
  
Eligible start -up undertakings may be awarded a maximum grant of up to € 25,000 ove r a period 
of twelve [12] months.  
 
An initial instalment of up to € 10,000 shall be paid once the project is approved.  Subsequent 
instalments shall be paid quarterly after the Corporation reviews and endorses that the progress 
achieved is in line with the business plan as approved or as adjusted to adapt to market 
requirement.  Subsequent instalments shall be paid quarterly after the Corporation reviews and 
endorses that the progress achieved is in line with the business plan as approved or as adjusted to 
adapt to market requirement.  The grant at the end of each quarter shall be calculated by 
multiplying € 1,500 to the number of Full Time Employees which has been engaged with the 
beneficiary at least one [1] month prior to the end of the quarter in review.  The total payment in 
any quar ter shall not exceed € 10,000.  
 
9. Trade effects of the subsidy  
 
There were no effects on international trade.  
 
4  CERTIFY TAX CREDITS  
1. Title of the subsidy  
 
Certify [Tax Credits].  
 
2. Period covered by the notification  
 
The period covered by this notificat ion starts from 1 January  2015 until 31 December  2016. 
 
3. Policy objective  
 
Certify [Tax Credits] is a fiscal measure to encourage eligible undertakings to continuously 
improve the quality of their products, services and processes through the attainment o f industry 
recognised certifications and quality marks.  This incentive is intended to boost awareness of the 
added value that may be achieved through certification when competing in international markets.  
 
4. Background and Authority for the subsidy  
 
Certify [Tax Credits] is administered by Malta Enterprise Corporation.  
 
The official Incentive Guidelines covering this aid scheme are issued and published in terms of 
Article 8 [3][a] of the Malta Enterprise Act, Chapter 463 of the Laws of Malta.  
 
The Corporat ion may design support measures in terms of the Malta Enterprise Act:  
 
http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1  
 
The Enterprise S upport Incentives Regulation as subsidiary legislation 463.04 to the Malta 
Enterprise Act, Chapter 463 of the Laws of Malta forms the national legal basis of this Aid Scheme.  
 
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=11609&l=1  
 
The terms and conditions of this support measure are in line with the Commission Regulation [EU] 
No. 1407/2013 of 18 December 2013 on the a pplication of Arti cles 107 and 108 of the Treaty on 
the Functioning of the European Union to de minimis  aid [the de minimis  Regulation].  
 
The total amount of de minimis  aid granted to a single undertaking shall not exceed the amount of 
€ 200,000 over any period of three con secutive fiscal years.  
 
This aggregate maximum threshold applies in principle to all economic sectors with the exception 
of the road transport, agriculture and fisheries sectors for which different thresholds and criteria G/SCM/N/315/EU/Add.19  
 
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  apply. The term 'undertaking ' includes also all companies in a group [which fall under the direct or 
indirect ownership or control of the same ultimate parent company] and relevant partner and 
linked enterprises as defined in Annex I of Commission R egulation [EU No. 651/2014 of 
17 June 2014]. This period covers the fiscal year concerned as well as the previous two fiscal 
years. 'Fiscal year ' means the fiscal year as used for tax purposes by the undertaking concerned.  
 
This maximum threshold would include all State aid granted under this a id scheme and any other 
State aid measure granted under the de minimis  rule including that received from any entity other 
than Malta Enterprise.  Any de minimis  aid received in excess of the established threshold will have 
to be recovered, with interest, fr om the undertaking receiving the aid.  
 
http://ec.europa.eu/competition/state_aid/legislation/de_minimis_regulation_en.pdf  
 
In terms of the Malta Enterprise Act mentioned earlier, the parameters of aid and details of the aid 
scheme are found in the Incentive Guidelines. These Incentive Guidelines are a set of rules issued 
by the Corporation from time to time containing details on the definition, application, 
administration, grant and revocation of aid schemes. The Incentive Guidelines for the aid scheme 
Certify [Tax Credits] are accessible on the following link:  
 
https://www.maltaenterpr ise.com/support/certify -tax-credits  
 
5. Form of the subsidy  
 
This incentive will award tax credits to single undertakings that achieve qualifying Certifications 
awarded by a Certifying Body.  
 
Maximum support  
 
The total aid that may be awarded to any singl e undertaking thro ugh this measure is capped at 
€ 25,000 for the duration of the Incentive and the maximum aid intensity shall be capped at 50% 
of the actual eligible costs incurred in consultancy and certification costs.  
 
The Corporation may however estab lish a tax credit capping based on the size of the single 
undertaking for any qualifying Certification.  Such capping may be established through market 
studies or through a review or previous application received for the same Certification.  
 
Tax credits awa rded shall only be utilised against profit derived from the applicant 's relevant trade 
or business activity and used from the first year of assessment following the date of the Incentive 
Entitlement Certificate issued by the Corporation.  Any unutilised tax  credits may be carried 
forward to the next two [2] years of assessment.  
 
6. To whom and how the subsidy is provided  
 
This incentive is open to all undertakings which, at the point of application, satisfy the criteria 
established within the Official Guidel ines. 
 
The Certifications must be required to:  
 
a. improve the processes, products or services of the undertaking; or  
b. achieve growth in international markets.  
The Corporation published a list of qualifying Certifications on its website which includes the 
capping established by the Corporation in relation to a Certification.  
 
Undertakings seeking to achieve a certification which at the time is not listed, should determine 
whether the certification qualifies by submitting the Certification Verification Form , dow nloadable 
from the Corporation 's website.  
 
The undertaking will be required to provide details of the certifying body and an explanation of 
how the certification would address the criteria set the Incentive Guidelines.  
 G/SCM/N/315/EU/Add.19  
 
- 13 - 
 
  Malta Enterprise will provide the b eneficiary with a written opinion within eight [8] weeks from the 
submission of the request.  
 
Eligible c osts  
 
Eligible costs must be rendered and paid for on a date which is after the launch of this incentive 
and prior to the submission of the applicatio n form to the Corporation.  
 
 Consultancy Costs  
 Certification Costs  
 
7.  Amount of the subsidy  
 
2015 – €   1,401.00  
2016 – € 17,999.00  
 
8. Duration of the subsidy  
 
This aid scheme will remain in force until 31 December  2017.  
  
9. Trade effects of the subsidy  
 
There are no effects on international trade.  
 
5  SOFT LOANS  
1. Title of the subsidy  
 
 Soft Loan s. 
 
2. Period covered by the notification  
 
The period covered by this notification starts from 1 January  2015 until 31 December  2016. 
 
3. Policy objective  
 
This support measure provides assistance through loans at low interest rates for part financing 
investments in qualifying expenditure.  
 
This assistance aims at promoting competitiveness through:  
 
- the acquisition of tangible and intangible capital assets for more effective and efficient 
production and supply of services;  
 
- innovation;  
 
- energy and wat er conservation.  
 
The assistance also encourages investment in:  
 
- Research and development;  
 
- Plant and machinery first used in Malta.  
 
4. Background and Authority for the subsidy  
 
This Incentive is administered by Malta Enterprise Corporation.  
 
The lega l basis of this assistance is Regulation 8 of the Business Promotion Regulations as 
subsidiary legislation 325.06 to the Business Promotion Act, Chapter 325 of the Laws of Malta:  
 
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=9791&l=1  G/SCM/N/315/EU/Add.19  
 
- 14 - 
 
   
The Regulation for Soft Loans may be accessed using the following link:  
 
https://www.malt aenterprise.com/support/soft -loans 
 
5. Form of the subsidy  
 
Assistance provided by this support measure is in the form of a low interest loan.  
 
The company benefiting from the soft loan has to issue the following securities in favour of Malta 
Enterprise:  
 
- A general hypothec over all of the company 's assets present and future, however, this may 
vary on the percentage of the loan and may also exclude current assets;  
 
- A pledge on an insurance policy adequately covering the company 's fixed assets against f ire 
and theft;  
 
- A letter of undertaking by the company accompanied by a Board Resolution whereby it is 
declared that the company may not, without the consent of Malta Enterprise:  
 
o Pay shareholders ' loan or interest thereon;  
o Declare and / or pay dividends ; 
o Incur further capital expenditure unless covered by surplus cash generation or outside 
financing.  
 
6. To whom and how the subsidy is provided  
 
Qualifying companies may be assisted by low interest rate loans covering up to 75% of the 
qualifying expenditur e undertaken by them.  
 
7.  Amount of the subsidy  
 
 2015 – €   77,767.00  
 2016 – € 901,600.00  
 
8. Duration of the subsidy  
 
There is no fixed duration for this aid scheme.  
 
9. Trade effects of the subsidy  
 
There are no effects on international trade.  
 
6  INTEREST RATE SUBSID IES SCHEME  
1. Title of the subsidy  
 
Interest Rate Subsidies Scheme.  
 
2. Period covered by the notification  
 
The period covered by this notification starts from 1 January  2015 until 31 December  2016. 
 
3. Policy objective  
 
To encourage capital investments by subsidising the interest rate charg ed on a loan taken from a 
commercial bank to finance an investment.  This cash grant is in the form of loan interest rate 
subsidy on bank financing taken to finance the proposed investment in plant and equipment.  
 
The Interest Rate Subsidies Scheme  is an a ccess to finance tool that aims to help increase the 
competitiveness and innovative capacity of enterprises by supporting  the acquisition of tangible G/SCM/N/315/EU/Add.19  
 
- 15 - 
 
  and intangible capital assets that lead to a more effective and efficient production and supply of 
service . 
 
The aim of this incentive is to increase the competitiveness and innovative capacity of enterprises 
by supporting the acquisition of tangible and intangible capital assets that lead to a more effective 
and efficient production and supply of service.  
 
The assistance also encourages investment in:  
 
- Research and development;  
- Innovation;  
- Plant and machinery first used in Malta.  
 
4. Background and Authority for the subsidy  
 
This Incentive is administered by Malta Enterprise Corporation.  
 
The legal basis  of this assistance is Regulation 9 of the Business Promotion Regulations as 
subsidiary legislation 325.06 to the Business Promotion Act, Chapter 325 of the Laws of Malta:  
 
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=9791&l=1  
 
The Regulations for Interest Rates Subsidies Scheme  may be accessed using the following link:  
 
https://www.maltaenterprise.com/support/interest -rate-subsidies   
 
5. Form of the subsidy  
 
Aid provided by this support measure is a subsidy on the interest rate payable on loans.  
 
6. To whom and how the subsidy is provided  
 
This incentive inte nds to support new investment projects undertaken by enterprises engaged in 
manufacturing.  
 
This incentive consists of a loan interest r ate subsidy of 1%, 2%, or 3%.  This interest rate subsidy 
may be granted on interest payable to a bank during the first f ive years of the duration of the loan 
taken to finance investment in plant and equipment.   
 
7. Amount of the subsidy  
 
2015 – €    198,778.00  
2016 – € 8,919,199.00  
 
8. Duration of the subsidy  
 
There is no fixed duration for this aid scheme.  
 
9. Trade effects of the subsidy  
 
There are no effects on international trade.  
 
7  LOAN GUARANTEES  
1. Title of the subsidy  
 
 Loan Guarantees.  
 
2. Period covered by the notification  
 
The period covered by this notification starts from 1 January  2015 until 31 December  2016. 
  G/SCM/N/315/EU/Add.19  
 
- 16 - 
 
  3. Policy objective  
 
Loan Guarantees facilitate access to finance to assist enterprises in the acquisition of capital assets 
that will lead to a more effective and efficient production and supply of service/s.  
 
This support measure encourages capital investments by providing guarantees to secure up to 
75% of the loans taken by qualifying companies to finance the acquisition of a ssets.  
 
The benefits expected to be derived from this Scheme is to encourage investment in:  
 
 Research and development  
 Innovation  
 Plant and machinery first used in Malta  
 
4. Background and Authority for the subsidy  
 
This Incentive is administered by Malta E nterprise Corporation.  
 
The legal basis of this assistance is Regulation 10 of the Business Promotion Regulations as 
subsidiary legislation 325.06 to the Business Promotion Act, Chapter 325 of the Laws of Malta.  
 
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=9791&l=1  
 
The Regulations for the Loan Guarantees  may be accessed by using the following link:  
 
https://www.maltaenterprise.com/support/loan -guarantees  
 
5. Form of the subsidy  
 
Assistance provided by this support measure is in the form of a loan guarantee.  
 
6. To whom and how the subsidy is provided  
 
This incentive  is intended to support new investment projects  undertaken by enterprises engaged 
in manufacturing.  
 
This incentive is provided on plant and machinery  which is new or first used in Malta.  However, it 
is not granted on moulds since these are normally speci fic to the use of the qualifying company.  
Therefore, qualifying tangible assets include:  
 
1. The cost of the equipment, plant and machinery excluding any tax paid thereon;  
2. Freight costs and installation costs related to such assets;  
3. Tools to a value of not exceeding 2% of the cost of machinery;  
4. Spare parts to a value not exceeding 2% of the cost of machinery;  
5. Computer hardware and software exclusively related to the production process.  
 
The assets on which assistance is granted are expected to b e retained by the qualifying company 
for the duration of the loan o r a shorter period as approved by Malta Enterprise.  
 
Loan guarantees are only issued on loans by banks and licensed financial institutions.  
 
The beneficiary must provide a General Hypot hec on all assets, present and future,  in favour of 
Malta Enterprise.  However, the beneficiary may also be asked to provide other guarantees such as 
a parent or prime bank guarantee.  
 
In order to benefit from such assistance, a qualifying  company must submit a  full application / 
business proposal.  Apart from details regarding the proposed project, product and target markets, 
the proposal must include:  
 
 Three years financial projections [Profit and Loss  Account, Balance Sheet and Cash Flow 
Projections];  
 Audited Accounts of the previous two years;  G/SCM/N/315/EU/Add.19  
 
- 17 - 
 
   A list of qualifying expenditure to be financed  by the loan on which the loan guarantee is 
being requested, in the case of machinery whether this is new or second hand;  
 If possible pro -forma invoice/s.  
 
7. Amount of the subsidy  
 
2015 – € 21,320.00  
2016 – € 45,400.00  
 
8. Duration of the subsidy  
 
There is no fixed duration for this aid scheme.  
 
9. Trade effects of the subsidy  
 
There are no effects on international trade.  
 
8  STRENGTHENING MARKET  ENTRY AND INTERNATIO NALISATION  
1. Title of the subsidy  
 
Strengthening Market Entry and Internationalisation.  
 
2. Period covered by the notification  
 
The period covered by this notification starts from 1 January  2015 until 31 December  2016. 
 
3. Policy objective  
 
This support measure is intended to a ssist business undertakings in developing their international 
competitiveness by supporting the development of new markets. 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 development plan covering a period of at least 12 
months which should lead to developing and/or enhancing the undertaking 's market 
competencies and knowledge.  
 
This incentive also aims to facilitate access to foreign markets by allowing enterprises to explore 
growth opportunities, establish business contacts and consolidate existing markets. This scheme 
provides part -financing to business undertakings that partici pate in international trade events, 
fairs and trade missions. Business undertakings can capitalise on these events by establishing 
trade partners, developing value chains, identifying new business opportunities and acquiring 
knowledge about new markets, te chnologies and consumer trends.  
 
4. Background and Authority for the subsidy  
 
This Incentive is administered by Malta Enterprise Corporation.  
 
The official Incentive Guidelines covering this aid scheme are issued and published in terms of 
Article 8 [3][a] of the Malta Enterprise Act, Chapter 463 of the Laws of Malta.  
 
The Corporation may design support measures in terms of the Malta Enterprise Act:  
 
http://justiceserv ices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1    
 
The Enterprise Support Incentives Regulations SL 463.04 [Malta Enterprise Act, Chapter 463 of the 
Laws of Malta] provides the legal basis of this incentive.  
 
The Corporation may design support m easures in terms of the Malta Enterprise Act:  G/SCM/N/315/EU/Add.19  
 
- 18 - 
 
   
http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=11609&l=1    
 
These Incentive Guidelines are in li ne with the Commission Regulation [EU] No. 1407/2013 of 
18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of 
the European Union to de minimis aid .  
 
The terms and conditions of the Strengthening Market Entry and I nternationalisation  Scheme are 
in line with the Commission Reg ulation [EU] No. 1407/2013 of 18  December 2013 on the 
application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de 
minimis aid [the de minimis Regulation] .  
 
The total amount of de minimis aid granted to a single undertaking shall not exceed the amount of 
€ 200,000 over any period of three consecutive fiscal years.  
 
This aggregate maximum threshold applies in principle to all economic sectors with the exception 
of the road transport, agricul ture and fisheries sectors for which different thresholds and criteria  
apply. The term 'undertaking ' includes also all companies in a group [which fall under the direct or 
indirect ownership or control of the same ultimate parent company] and relevant part ner and 
linked enterprises as defined in Annex I of Commission Regulation [EC No 800/2008]. This period 
covers the fiscal year concerned as well as the previous two fiscal years. 'Fiscal year ' means the 
fiscal year as used for tax purposes by the undertaki ng concerned.  
 
http://ec.europa.eu/competition/state_aid/legislation/de_minimis_regulation_en.pdf  
 
In terms of the Malta Enterprise Act mentioned earlier, th e parameters of aid and details of the aid 
scheme are found in the Incentive Guidelines. These Incentive Guidelines are a set of rules issued 
by the Corporation from time to time containing details on the definition, application, 
administration, grant and revocation of aid schemes. The Incentive Guidelines for the aid scheme 
Strengthening Market Entry and Internationalisation are accessible on the following link:  
 
https://www.maltaenterprise.com/support/strengthening -market -entry-and-internationalisation  
 
5. Form of the subsidy  
 
The assistance provided under the Strengthening Market Entry and Internationalisation  Scheme is 
in the form of a cash grant.  
 
6. To whom and how the subsidy is provided  
 
This incentive is open to undertakings engaged in an economic activity in Malta.  
 
Support may be approved for part financing eligible costs incurred for the participation in:  
 
 Business to Business internationa l trade events and fairs where the applicant is present as 
an exhibitor with a managed promotional stand, promoting the undertaking 's products and 
services.  
 Small start -up undertakings and undertakings that are mainly focused on the local market 
may also be supported to visit trade events or fairs [without having a promotional stand] as 
long as they form part of a contingent managed [or otherwise approved] by Malta Enterprise 
or whilst being mentored [as approved by Malta Enterprise] by an established expo rter 
participating in the event.  
 Events organised specifically by international organisations for the purpose of seeking 
project partners, venture capital or business angel financing in relation to a potential 
business opportunity.  
 Trade missions organis ed or approved by Malta Enterprise. Trade missions may include 
delegations organised for the purpose of:  
 
i. better promoting business links between regions; or  
ii. supporting undertakings in developing their export potential and knowledge of 
specific markets.  G/SCM/N/315/EU/Add.19  
 
- 19 - 
 
  Maximum aid and applicable aid intensity  
 
The total aid that may be granted to a single undertaking is limited to €  30,000 in any fiscal year.  
 
Malta Enterprise 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.  
 
In order to be eligible for assistance un der this support measure, undertakings should be 
registered with the Value Added Tax Department and expecti ng an annual turnover of over 
€ 7,000 per annum.  This requirement is not applicable in the case of entrapreneurs in the process 
of establishing a new  business.  
 
7. Amount of the subsidy   
 
2015 – € 773,416.58  
2016 – € 767,665.53  
 
8. Duration of the subsidy  
 
This support measure was to run until 3 1 December 2017.  
 
Changes to the scheme termination date  
 
Malta Enterprise Corporation had notified the comp etent authorities that this incentive measure 
was to be terminated on 3 1 October 2016 instead of 31 December  2017 as previously notified.  
 
9. Trade effects of the subsidy  
 
There are no effects on international trade.  
 
9  NETWORK SUPPORT SCHE ME 
1. Title of the  subsidy  
 
Network Support Scheme.  
 
2. Period covered by the notification  
 
The period covered by this notification starts from 1 January  2015 until 31 December  2016. 
 
3. Policy objective  
 
The Network Support Scheme aims  to promote the development of network s as mechanisms for 
facilitating collaboration between undertakings with the aim of enhancing competitiveness.  Since 
the term 'network ' is used to describe different forms of inter -firm collaboration, Malta Enterprise 
will support networks falling within t wo particular  categories – Business Networks [Category 1] and 
Development Networks [Category 2].  
 
Networks should:  
 
a. focus on manufacturing, ICT, biotechnology, R&D or other innovative or high value 
adding activities;  
b. aim to stimulate growth, development and increased competitiveness.  
4. Background and Authority for the subsidy  
 
This Incentive is administered by Malta Enterprise Corporation.  
 
Malta Enterprise is enabled to issue and publish official Incentive G uidelines in terms of 
Article  8 [3][a] of the  Malta Enterprise Act, Chapter 463 of the Laws of Malta.  
 G/SCM/N/315/EU/Add.19  
 
- 20 - 
 
  The Corporation may design support measures in terms of the Malta Enterprise Act:  
 
http://justiceservices.g ov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1    
 
The Enterprise Support Incentives Regulations  SL 463.04 [Malta Enterprise Act, Chapter 463 of the 
Laws of Malta] provides the legal basis of this incentive . 
 
http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=11609&l=1    
 
These Incentive Guidelines are in line with the Commission Reg ulation [EU] No. 1407/2013 of 
18 December 2013 on the applicati on of Articles 107 and 108 of the Treaty on the Functioning of 
the European Union to de minimis aid .  
 
The terms and conditions of the Network Support Scheme are in line with the Commission 
Regulation [EU] No. 1407/2013 of 18 December 2013 on the applicati on of Articles 107 and 108 of 
the Treaty on the Functioning of the European Union to de minimis aid [the de minimis 
Regulation] .  
 
The total amount of de minimis aid granted to a single undertaking shall not exceed the amount of 
€ 200,000 over any period of three consecutive fiscal years.  
 
This aggregate maximum threshold applies in principle to all economic sectors with the exception 
of the road transport, agricu lture and fisheries sectors for which different thresholds and criteria  
apply. The term 'undertaking ' includes also all companies in a group [which fall under the direct or 
indirect ownership or control of the same ultimate parent company] and relevant par tner and 
linked enterprises as defined in Annex I of Commission Regulation [EC No 800/2008]. This period 
covers the fiscal year concerned as well as the previous two fiscal years. 'Fiscal year ' means the 
fiscal year as used for tax purposes by the undertak ing concerned.  
 
http://ec.europa.eu/competition/state_aid/legislation/de_minimis_regulation_en.pdf  
 
In terms of the Malta Enterprise Act mentioned earlier, t he parameters of aid and details of the aid 
scheme are found in the Incentive Guidelines. These Incentive Guidelines are a set of rules issued 
by the Corporation from time to time containing details on the definition, application, 
administration, grant and  revocation of aid schemes. The Incentive Guidelines for the aid scheme 
Network Support Scheme  [Assistance for Collaboration]  are accessible on the following link:  
 
https://www.m altaenterprise.com/support/network -support -scheme  
 
5. Form of the subsidy  
 
The assistance provided under the Network Support Scheme is in the form of a cash grant.  
 
6. To whom and how the subsidy is provided  
 
This incentive is targeted towards those under takings engaged in manufacturing, industrial 
services, ICT, biotechnology or in other innovative or high value adding operations as may be 
approved by Malta Enterprise.   
 
As previously stated in [3] above, Malta Enterprise will support networks falling wi thin two 
particular Categories.  
 
Business Networks [Category 1 ]  
 
These networks involve firms collaborating with the aim of achieving specific business objectives. 
The results of their combined actions should have some identifiable and measurable impact o n 
their business. Specifically a Business Network is a defined as a grouping of firms that have agreed 
to cooperate to achieve specific business objectives that are likely to result in increased 
competitiveness and/or mutual financial gain.  
 
The network m ust consist of at least three undertakings which are not linked and may have a 
maximum of ten participating undertakings.  G/SCM/N/315/EU/Add.19  
 
- 21 - 
 
   
Development Networks [Category 2 ]  
 
The main purpose of Development Networks should be to support the development of the specific 
market in which the members operate. This is expected to be achieved through:  
 
a. actions that facilitate the exchange of information;  
b. the development of shared services;  
c. capacity building and training;  
d. establishing and improving standards;  
e. promoting and su pporting Research and Development and Innovation;  
f. quality management;  
g. various other actions providing a common benefit to the member enterprises.  
Summary  
 
 Business Networks  Development Networks  
   
Network Size  At least 3 enterprises that are not 
linked At least 10 member 
enterprises  
   
 Not more than 10 enterprise   
   
Aid Intensity  The aid is capped to € 60,000 over 
a 24 month period  The aid is capped up to 
€ 30,000 per annum  
 
7. Amount of the subsidy  
 
2015 – € 10,000.00  
2016 – € 30,000.00  
 
8. Duration of the subsidy  
 
Malta Enterprise Corporation had notified the competent authorities that this incentive me asure 
was to be terminated on 30 November 2016 instead of 31 December  2017 as previously notified.  
 
9. Trade effects of the subsidy  
 
 There are  no effects on international trade.  
 
10  BUSINESS DEVELOPMENT  GRANT SCHEME  
1. Title of the subsidy  
 
Business Development Grant Scheme.  
 
2. Period covered by the notification  
 
The period covered by this notification starts from 1 January  2015 until 31 December  2016. 
 
3. Policy objective  
 
The incentive aims to facilitate high value -adding projects that are likely to offer a significant 
contribution to the regional development of Malta.  The assistance promotes the expansion and 
diversification of economic activiti es particularly by encouring firms in setting up new v entures and 
projects in Malta. This scheme will stimulate growt h and enhance competitiveness. It will facilitate G/SCM/N/315/EU/Add.19  
 
- 22 - 
 
  job creation, the aquisition of additional skills, advanced knowledge and new economic 
development.  
 
4. Background and Authority for the subsidy  
 
This Incentive is administered by Malta Enterprise Corporation.  
 
Malta Enterprise is enabled to issue and publish official Incentive G uidelines in terms of 
Article  8 [3][a] of the Malta Enterprise Ac t, Chapter 463 of the Laws of Malta.  
 
The Corporation may design support measures in terms of the Malta Enterprise Act:  
 
http://www.justiceservices.gov.mt/Downlo adDocument.aspx?app=lom&itemid=8929&l=1  
 
The Enterprise Support Incentives Regulations SL 463.04 [Malta Enterprise Act, Chapter 463 of the 
Laws of Malta] provides the legal basis of this incentive . 
 
http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=11609&l=1    
 
These Incentive Guidelines are in line with the Commission Reg ulation [EU] No. 1407/2013 of 
18 December  2013 on the application of Articles  107 and 108 of the Treaty on the Functioning of 
the European Union to de minimis aid .  
 
The terms and conditions of the Network Support Scheme are in line with the Commission 
Regulation [EU] No. 1407/2013 of 18 December 2013 on the application of Articles  107 and 108 of 
the Treaty on the Functioning of the European Union to de minimis aid [the de minimis 
Regulation] .  
 
The total amount of de minimis aid granted to a single undertaking shall not exceed the amount of 
€ 200,000 over any period of three consecutive fiscal years.  
 
This aggregate maximum threshold applies in principle to all economic sectors with the exception 
of the road transport, agricu lture and fisheries sectors for which different thresholds and criteria  
apply. The term 'undertaking ' includes also all companies in a group [which fall under the direct or 
indirect ownership or control of the same ultimate parent company] and relevant par tner and 
linked enterprises as defined in Annex I of Commission Regulation [EC No 800/2008]. This period 
covers the fiscal year concerned as well as the previous two fiscal years. 'Fiscal year ' means the 
fiscal year as used for tax purposes by the undertak ing concerned.  
 
http://ec.europa.eu/competition/state_aid/legislation/de_minimis_regulation_en.pdf  
 
In terms of the Malta Enterprise Act mentioned earlier, t he parameters of aid and details of the aid 
scheme are found in the Incentive Guidelines. These Incentive Guidelines are a set of rules issued 
by the Corporation from time to time containing details on the definition, application, 
administration, grant and  revocation of aid schemes. The Incentive Guidelines for the aid scheme 
Business Development Grant Scheme  are accessible on the following link : 
 
https://www.maltaenterprise. com/support/business -development -scheme  
 
5. Form of the subsidy  
 
The assistance provided by this support measure will be in the form of a cash grant.  
 
6. To whom and how the subsidy is provided  
 
Undertakings in all sectors may be eligible for assistance u nder this aid scheme.  
 
The approved financing shall have the objective to support the undertaking in mitigating various 
costs related to the proposed project. Examples of costs items that may be supported include:  
 
a. Professional and consultancy fees;  G/SCM/N/315/EU/Add.19  
 
- 23 - 
 
  b. Fees related to selection process and recruitment of staff;  
c. Relocation costs of personnel;  
d. Cost related to capacity building;  
e. Transport and freight costs;  
f. Setting up costs; and  
g. Costs related to the handicaps encountered by enterprises setting up an operat ion in 
Malta.  
7.  Amount of the subsidy  
 
2015 – € 2,272,070.00  
2016 – € 1,528,427.00  
 
8. Duration of the subsidy  
 
Malta Enterprise Corporation had notified the competent authorities that this incentive me asure 
was to be terminated on 30 April 2016 instead  of 31 December  2020 as previously notified.  
 
9. Trade effects of the subsidy  
 
There are no effects on international trade.  
 
11  BUSINESS DEVELOPMENT  AND CONTINUITY SCHEM E 
1. Title of the subsidy  
 
Business Development and Continuity Scheme.  
 
2. Period covered by the notification  
 
The period covered by this notification starts from 1 January  2015 until 31 December  2016. 
 
3. Policy objective  
 
The Business Development and Continuity Scheme is intended to facilitate value adding projects 
that are expected to contri bute to the regional development of Malta and to support existing 
undertakings sustain operations during restructuring.  The scheme may support various activities 
such as the initial development phase of undertakings establishing an operational base in Malt a, 
expansion projects, consolidation of activities and the reorganisation of activities.  Supported 
initiatives should lead to the development of new business or to ensuring the continuity of current 
operations.  
 
4. Background and Authority for the subsidy  
 
This Incentive is administered by Malta Enterprise Corporation.  
 
Malta Enterprise is enabled to issue and publish official Incentive G uidelines in terms of 
Article  8 [3][a] of the Malta Enterprise Act, Chapter 463 of the Laws of Malta.  
 
The Corporation ma y design support measures in terms of the Malta Enterprise Act:  
 
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1  
 
The Enterprise  Support Incentives Regulations SL 463.04 [Malta Enterprise Act, Chapter 463 of the 
Laws of Malta] provides the legal basis of this incentive . 
 G/SCM/N/315/EU/Add.19  
 
- 24 - 
 
  http://www.justi ceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=11609&l=1  
 
These Incentive Guidelines are in line with the Commission Reg ulation [EU] No. 1407/2013 of 
18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of 
the European Union to de minimis aid .  
 
The terms and conditions of the Business Development & Continuity Scheme are in line with the 
Commission Reg ulation [EU] No. 1407/2013 of 18 December 2013  on the application of 
Articles  107 and 108 of the Treaty on th e Functioning of the European Union to de minimis aid [the 
de minimis Regulation] .  
 
The total amount of de minimis aid granted to a single undertaking shall not exceed the amount of 
€ 200,000 over any period of three consecutive fiscal years.  
 
This aggregate maximum threshold applies in principle to all economic sectors with the exception 
of the road transport, agriculture and fisheries sect ors for which different thresholds and criteria  
apply. The term 'undertaking ' includes also all companies in a group [which fall under the direct or 
indirect ownership or control of the same ultimate parent company] and relevant partner and 
linked enterpri ses as defined in Annex I of Commission Regulation [EC No 800/2008]. This period 
covers the fiscal year concerned as well as the previous two fiscal years. 'Fiscal year ' means the 
fiscal year as used for tax purposes by the undertaking concerned.  
 
http://ec.europa.eu/competition/state_aid/legislation/de_minimis_regulation_en.pdf  
 
In terms of the Malta Enterprise Act mentioned earlier, the parameters of aid and  details of the aid 
scheme are found in the Incentive Guidelines. These Incentive  Guidelines are a set of rules issued 
by the Corporation from time to time containing details on the definition, application, 
administration, grant and revocation of aid schem es. The Incentive Guidelines for the aid scheme 
Business Development and Continuity Scheme  are accessible on the following link : 
 
https://www.maltaenterprise.com/sites/default/files/Incentive%20Guidelines%20Version%203%2
0%2801.04.2017%29.pdf  
 
5. Form of the subsidy  
 
Assistance of up to € 200,000 shall be awarded through this support measure, either in the form 
of a tax credit or a cash grant.  
 
The total amount of de minimis aid granted to a single undertaking shall not exceed the amount of 
€ 200,000 over any period of three consecutive fiscal years.  
 
6. To whom and how the subsidy is provided  
 
The support available through this measure may be awarded to undertakings that, following an 
evaluation by the Corporation, are deemed to be relevant to the economic development o f Malta.   
 
The Corporation shall consider all proposals but shall give priority to:  
 
a. Manufacturing operations;  
b. Providers of Industrial Services;  
c. Creative Enterprises;  
d. Developers of Digital Media; and  
e. Activities linked to Life Sciences.  G/SCM/N/315/EU/Add.19  
 
- 25 - 
 
  The value disburse d in any fiscal year shall not exceed the wage costs incurred by the single 
undertaking in that fiscal year3. 
 
The approved financing shall be directly related to the operation of the undertaking and in any 
case shall be limited to:  
 
a. Relocation Costs of Ke y Personnel:  
b. Temporary Secondment of Personnel:  
c. Relocation Costs of Assets:  
d. Operating expenditure covering the twelve [12] months  
e. Services directly related to the business operations  
f. Wage Costs  
Applicants benefitting from temporary secondment may not clai m for relocation of costs of the 
same personnel.  
 
Once a project is approved, the Corporation will issue a Letter of Approval or an Incentive 
Entitlement Certificate in line with Part VI of the Malta Enterprise Act, Chapter 463 of the Laws of 
Malta.  
 
7.  Amount of the subsidy  
 
2015 – €     NIL  
2016 – € 472,500.00  
 
8. Duration of the subsidy  
 
The implementation date of this aid scheme was 1 May 2016 and will run till 31 December 2020.  
 
9. Trade effects of the subsidy  
 
There are no effects on international trade.  
 
12  BUSINESS ADVISOR Y SERVICES SCHEME  
1. Title of the subsidy  
 
Business Advisory Services Scheme [Assistance for the engagement of Advisors].  
  
2. Period covered by the notification  
 
The period covered by this notification starts from 1 January  2015 until 31 December  2016. 
 
3. Policy objective  
 
The Scheme aims to provide tailored business advice to undertakings through Advisors selected by 
Malta Enterprise.  Each advisory service will address various aspects, key to the completive 
development and growth of the undertaking.  
 
The advice provided should facilitate buisness owners and management in maintaining 
competitivity and developing new market and business growth opportunities.  The knowledge 
gained should help decision makers in the supported undertaking in evaluating projects  and 
embark on business develoment projects.  
 
                                                
3 This Regulation will not apply to undertakings that have been registered in Malta for less than five [5] 
years . G/SCM/N/315/EU/Add.19  
 
- 26 - 
 
  4. Background and Authority for the subsidy  
 
This Incentive is administered by Malta Enterprise Corporation.  
 
Malta Enterprise is enabled to issue and publish official Incentive Guidelines in terms of 
Article 8 [3][a] of the Malta Enterprise Act, Chapter 463 of the Laws of Malta.  
 
The Corporation may design support measures in terms of the Malta Enterprise Act:  
 
http:/ /www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1  
 
The Enterprise Support Incentives Regulations SL 463.04 [Malta Enterprise Act, Chapter 463 of the 
Laws of Malta] provides the legal basis of this incentive . 
 
http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=11609&l=1  
 
These Incentive Guidelines are in line with the Commission Reg ulation [EU] No. 1407/2013 of 
18 December 201 3 on the application of Articles 107 and 108 of the Treaty on the Functioning of 
the European Union to de minimis aid .  
 
The terms and conditions of the Business Advisory Services Scheme [Assistance for the 
engagement of Advisors] are in line with the Comm ission Reg ulation [EU] No. 1407/2013 of 
18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of 
the European Union to de minimis aid [the de minimis Regulation] .  
 
The total amount of de minimis aid granted to a sing le undertaking shall not exceed the amount of 
€ 200,000 over any period of three consecutive fiscal years.  
 
This aggregate maximum threshold applies in principle to all economic sectors with the exception 
of the road transport, agriculture and fisheries secto rs for which different thresholds and criteria 
apply. The term 'undertaking ' includes also all companies in a group [which fall under the direct or 
indirect ownership or control of the same ultimate parent company] and relevant partner and 
linked enterpris es as defined in Annex I of Commission Regulation [EC No 800/2008]. This period 
covers the fiscal year concerned as well as the previous two fiscal years. 'Fiscal year ' means the 
fiscal year as used for tax purposes by the undertaking concerned.  
 
http://ec.europa.eu/competition/state_aid/legislation/de_minimis_regulation_en.pdf  
 
In terms of the Malta Enterprise Act mentioned earlier, the parameters of aid and details of the aid 
scheme are found in the Incentive Guidelines. These Incentive Guidelines are a set of rules issued 
by the Corporation from time to time containing details on the definition, application, 
administration, grant and revocation of aid scheme s. The Incentive Guidelines for the aid scheme 
Business Advisory Services Scheme  [Assistance for the Engagement of Advisors]  are accessible on 
the following link:  
 
https://www.maltaenterprise.com/sites/default/files/Business%20Advisory%20Incentive%20Guide
lines%20%28April%202014%29.pdf  
 
5. Form of the subsidy  
 
Assistance under this aid scheme is in the form of a cash grant . 
 
6. To whom and how the subsidy is provided  
 
Aid under this support measure is available to small and medium -sized enterprises [SMEs] as well 
as large undertakings.  
 
Business advisory services are provided with the aim to support undertakings identify st rengths 
and overcome weaknesses in specific areas.  A range of business advisory services are available 
and every effort is made to match the right advisor to the specific needs of the applicant.  
 
Business advisory services are available for:  G/SCM/N/315/EU/Add.19  
 
- 27 - 
 
   
a. Business Star t-up Support;  
b. Business Planning and Modelling;  
c. International Competitiveness and Export Readiness;  
d. Market Development;  
e. Human Resources Management  
f. Intellectual Property Management and Registration  
g. Product and Service Development;  
h. Quality – Certification and  Improvement;  
i. Information Management;  
j. Engineering and Logistics;  
k. Business Processes Reengineering;  
l. Supply Chain Management  
Eligible costs and the applicable aid intensity  
 
Typically advisory services will be provided in two stages.  Stage one involves a pre liminary 
investigation of particular areas which the undertaking wishes to address.  This stage will be 
financed by Malta Enterprise and is normally completed in less than ten hours.  The value of this 
stage is estimated by Malta Enterprise at the start of t he service and is granted as de minimis  aid. 
During stage two advisors will provide more focused consultancy, support and handholding and will 
be charged at by Malta Enterprise at an hourly rate  of € 40. Yet the costs levied will be discounted 
according to the size of the enterprise as follow s: 
 
 Large Enterprises    30% 
 Medium Sized Enterprise  40% 
 Small and Micro Enterprise  50%  
 
An undertaking may receive business advisory services  on multiple  projects yet the total direct 
value financed by Malta Enterprise under this scheme is limited to €  2,500 per annum.  In the case 
an undertaking reaches this limit, additional advisory services will be charged at 100% of cost.  
 
7. Amount of the subsidy  
 
2015 – € 15,500.00  
2016 – € 35,500.00  
 
8. Duration of the subsidy  
 
This aid scheme was implemented on 1 January  2014 and will run until 31 December  2017.  
 
9. Trade effects of the subsidy  
 
There are no effects on international trade.  
 
13  GOZO TRANSPORT GRANT S SCH EME 
1. Title of the subsidy  
 
Gozo Transport Grants Scheme.  G/SCM/N/315/EU/Add.19  
 
- 28 - 
 
   
2. Period covered by the notification  
 
The period covered by this notification starts from 1 January  2015 until 31 December  2016. 
 
3. Policy objective  
 
The aim of the Gozo Transport Grants Scheme  is to support manufacturing undertakings operating 
from Gozo by reducing the additional inter -island transport cost incurred for transporting 
materials, goods and finished products between Malta and Gozo.  
 
4. Background and Authority for the subsidy  
 
This Incentive is administered by Malta Enterprise Corporation.  
 
Malta Enterprise is enabled to issue and publish official Incentive G uidelines in terms of 
Article  8 [3][a] of the Malta Enterprise Act, Chapter 463 of the Laws of Malta.  
 
The Corporation may desi gn support measures in terms of the Malta Enterprise Act:  
 
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1   
 
The Enterprise Supp ort Incentives Regulations SL 463.04  [Malta Enterprise Act, Chapter 463 of the 
Laws of Malta] provides the legal basis of this incentive . 
 
http://justiceservices.go v.mt/DownloadDocument.aspx?app=lom&itemid=11609&l=1   
 
These Incentive Guidelines are in line with the Commission Reg ulation [EU] No. 1407/2013 of 
18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of 
the European Union to de minimis aid .  
 
The terms and conditions of the Gozo Transport Grants Scheme are in line with the Commission 
Regulation [EU] No. 1407/2013 of 18 December 2013 on the application of Articles 107 and 108 of 
the Treaty on the Functioning of the Eur opean Union to de minimis aid [the de minimis 
Regulation] .  
 
The total amount of de minimis aid granted to a single und ertaking shall not exceed the amount of 
€ 200,000 over any period of three consecutive fiscal years.  
 
This aggregate maximum threshold applies in principle to all economic sectors with the exception 
of the road transport, agriculture and fisheries sectors  for which different thresholds and criteria  
apply.  The term 'undertaking ' includes also all companies in a group [which fall under the direct or 
indirect ownership or control of the same ultimate parent company] and relevant partner and 
linked enterprises  as defined in Annex I of Commission Regulation [EC No 800/2008]. This period 
covers the fiscal year concerned as well as the previous two fiscal years. 'Fiscal year ' means the 
fiscal year as used for tax purposes by the undertaking concerned.  
 
http://ec.europa.eu/competition/state_aid/legislation/de_minimis_regulation_en.pdf  
 
In terms of the Malta Enterprise Act mentioned earlier, the parameters of aid and de tails of the aid 
scheme are found in the Incentive Guidelines. These Incentive Guidelines are a set of rules issued 
by the Corporation from time to time containing details on the definition, application, 
administration, grant and revocation of aid schemes.  The Incentive Guidelines for the aid scheme 
Gozo Transport Grants Scheme  are accessible on the following link:   
 
https://www.maltaenterprise.com/sites/default/files/Gozo%20Transport%20Grant%20Incentive%
20Guidelines%20%28March%202014%29.pdf  
 
5. Form of the subsidy  
 
The aid shall be granted in the form of a cash grant.  
 G/SCM/N/315/EU/Add.19  
 
- 29 - 
 
  6. To whom and how the subsidy is provided  
 
This measure supports manufacturing undertakings operating from Gozo by reducing the 
additional inter -island transport costs incurred for transporting materials, goods and finished 
products between Malta and Gozo.  This assistance serves to reduce cost -disadvan tages for 
manufacturers based in Gozo, rendering these businesses in a better position to compete 
effectively within the single market.  
 
The intended beneficiaries of this scheme are micro, small and medium -sized enterprises [SMEs] 
as well as large underta kings.  
 
The benefits expected to be derived from this incentive are in relation to providing assistance to 
counter the effects of the additional operating expenses which manufacturing companies operating 
from Gozo have to incur as a direct result of the do uble insularity of the sister island.   
 
Qualifying Costs  
 
a. The following expenses may be claimed when commercial vehicles, listed in the 
applicant 's fixed asset register or leased by the applicant from third parties, are used:  
i. The ferry fare for the comme rcial vehicles used;  
ii. Wage costs of two employees covering the time required for the ferry crossing. 
Eligible wage costs may not exceed four hours per person per round trip and the 
applicable hourly rate is capped at the national minimum wage.  
iii. Fuel expens es may be claimed for commercial vehicles which are longer than five 
metres as follows:  
- € 5.50 per round trip may be claimed on commercial vehicles with length of 
over 5 meters; and  
- € 6.50 per round trip may be claimed on commercial vehicles with length of 
over 8 meters.  
 
Note:  Costs incurred in relation to non -commercial vehicles are not  eligible for funding.  
 
b. Subcontracted haulage expenses are eligible for a refund of up to 50% of  the 
invoiced value excluding VAT.  
7. Amount of the subsidy  
 
2015 – € 278,249.05  
2016 – € 711,536.17  
  
8. Duration of the subsidy  
 
The Gozo Transport Grants Scheme was terminated on 31 December  2015.   
 
However, enterprises may submit an annual application to Malta Ent erprise [Gozo Office] within 
12 months from the end of the financial year under which the assistance is being claimed.   
 
9. Trade effects of the subsidy  
 
There are no effects on international trade.  
 
14  MICRO INVEST  
1. Title of the subsidy  
 
Micro Invest.  
 G/SCM/N/315/EU/Add.19  
 
- 30 - 
 
  2. Period covered by the notification  
 
The period covered by this notification starts from 1 January  2015 until 31 December  2016. 
 
3. Policy objecti ve 
 
Micro Invest encourages undertakings [including start -ups and self -employed] to invest in their 
business, so as to innovate, expand and develop their operations.  Undertakings benefiting from 
this measure will be supported through a tax credit calculate d as a percentage of eligible 
expenditure and wages costs.  
 
4. Background and Authority for the subsidy  
 
This Incentive is administered by Malta Enterprise Corporation.  
 
Malta Enterprise is enabled to issue and publish official Incentive Guidelines in terms of 
Article  8 [3][a] of the Malta Enterprise Act, Chapter 463 of the Laws of Malta.  
 
The Corporation may design support measures in terms of the Malta Enterprise Act:  
 
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1  
 
The Tax Credits for Micro Enterprises and Self -Employed Regula tions as Subsidiary 
Legislation  463.09 to the Malta Enterprise Act, forms the national legal basis of th is aid scheme.  
 
http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=12194&l=1  
 
These Incentive Guidelines are in line with the Commission Regulatio n [EU] No. 1407/2013 of 
18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of 
the European Union to de minimis aid .  
 
The terms and conditions of the Micro Invest Scheme are in line with the Commission Regulation 
[EU] No. 1407/2013 of 18 December 2013 on the application of Articles 107 and 108 of the Treaty 
on the Functioning of the European Union to de minimis aid [the de minimis Regulation] .  
 
The total amount of de minimis aid granted to a single undertaking shall  not exceed the amount of 
€ 200,000 over any period of three consecutive fiscal years.  
 
This aggregate maximum threshold applies in principle to all economic sectors with the exception 
of the road transport, agriculture and fisheries sectors for which different thres holds and criteria 
apply.  The term 'undertaking ' includes also all companies in a group [which fall under the direct or 
indirect ownership or control of the same ultimate parent company] and relevant partner and 
linked enterprises as defined in Annex I of Commission Regulation [EC No 800/2008]. This period 
covers the fiscal year concerned as well as the previous two fiscal years. 'Fiscal year ' means the 
fiscal year as used for tax purposes by the undertaking concerned.  
 
http://ec.europa.eu/competition/state_aid/legislation/de_minimis_regulation_en.pdf  
 
In terms of the Malta Enterprise Act mentioned earlier, the parameters of aid and details of the aid 
scheme ar e found in the Incentive Guidelines. These Incentive Guidelines are a set of rules issued 
by the Corporation from time to time containing details on the definition, application, 
administration, grant and revocation of aid schemes. The Incentive Guidelines for the aid scheme 
Micro Invest are accessible on the following link:  
 
https://www.maltaenterprise.com/support/micro -invest  
 
5. Form of the subsidy  
 
Aid awarded under this support measure  is in the form of a tax relief [tax credit].  
 G/SCM/N/315/EU/Add.19  
 
- 31 - 
 
  6. To whom and how the subsidy is paid  
 
This incentive is open to all undertakings [including start -ups and self -employed] , which at point of 
application satisfy all of the following criteria:  
 
a. The applicant m ust be a single undertaking that for the year in which the costs were 
incurred did not employ more than thirty [30] persons Full Time [FT].  The applicant 
must calculate their Full -Time employment on the average level of Full -Time 
employment reached during the calendar year when the costs were incurred4.  
b. The applicant must be an undertaking whose turnover did not exceed € 10 Million5 in the 
fiscal year preceding the year in whic h the application is submitted.  
c. At the date of application, the applicant [legal person submitting the application] must 
employ at  least one [1] person [on full or part time basis]6.  
d. Unless exempted, applicants should be duly registered with the VAT department.  
e. The Inland Revenue Department may refuse an Incentive Entitlement Certificate issued 
by the Corporation if the undertaking is defaulting on VAT, Income Tax and Social 
Security.   
f. Persons or undertakings engaged in activities specifically excluded under the de minimis  
regulations [Vide Section 6 of the Incentive Guidelines] are not eligible for this incentive.  
Undertakings wish ing to benefit from this incentive may submit one [1] application per calendar 
year which can only include costs incurred during the previous year .  
 
Malta Enterprise Corporation has established a primary deadline for the submission of applications 
coverin g costs for the previous calendar year as per Table 1 below.   
 
Claims for 
costs incurred 
in  
Primary 
Deadline  
 Late Submissions  Eligib le Application will 
receive an Incentive 
Entitlement Certificate 
commencing from year of 
assessment  
2014 30 March 2015   2015 
 30 November 2015  2016 
2015 30 March 2016   2016 
 30 November 2016  2017 
2016 30 March 2017   2017 
 30 November 2017  2018 
2017 29 March 2018   2018 
 30 November 2018  2019 
2018 29 March 2019   2019 
 29 November 2019  2020 
2019 27 March 2020   2020 
 27 November 2020  2021 
2020 27 March 2021   2021 
  30 November 2021  2022 
 
Applicable aid intensity  
 
Malta Enterp rise will approve a tax credit equivalent to 45% of eligible expenditure.  An additional 
bonus of 20% [total 65% tax credit] applies to  undertakings operating from Gozo.  
 
                                                
4 As per Audited Accounts or Income Tax return for the previous base year of the year the application is 
submitted.  
5 As per audit accounts or income tax return for the previous base year of the year the application is 
submitted.  
6 The person employed may be the applicant in the case of self -employed persons.  In any case such 
employment must be registered with the Jobsplus.  G/SCM/N/315/EU/Add.19  
 
- 32 - 
 
  Maximum aid per undertaking  
 
The maximum eligible tax credits per single undertaking is capped at € 30,000 over any period of 
three [3] consecutive fiscal years, starting from eligible expenses incurred and paid for dur ing the 
period 1 January 2013 to 3 1 December 2013, except for start -ups established in Gozo and Female -
Owned undertakings where the capping is set at € 50,000.  
 
In case of partnerships the eligible amount will be split according to ownership.  Hence, as an 
example, in case of a partnership where ownership is split equally between two persons, two 
Incentive Entitlement Certificates, each equivalent to 50% of the approved tax credits will be 
issued to the persons forming the partnership . 
 
Legal persons fo rming  part of a partnership may not benefit  from more  than € 30,000 or €  50,000 
[as may be applicable in line with the Guidelines], if they are engaged in more than one 
partnership and /or are also registered as self -employed.  
 
Eligible costs  
 
 employment costs  
 furbishing and refurbishing  
 investment costs  
 motor  vehicle costs  
 
7. Amount of the subsidy  
 
2015 – €   9,717,453.01  
2016 – € 12,540,564.02  
 
8. Duration of the subsidy  
 
This incentive was effective as from 1 January 2014 and shall be available until 
31 December  2020.  
 
9. Trade effects of the subsidy  
  
There are no effects on international trade.  
 
15  MICRO GUARANTEE SCHE ME 
1. Title of the subsidy  
 
Micro Guarantee Scheme.  
 
2. Period covered by the notification  
 
The period covered by this notification starts from 1 January  2015 until 31 December  2016. 
 
3. Policy objective  
 
Limited availability of funds many times prohibits small business from carrying out new investment 
projects and may consequently lead to the loss of business opportunities.  The Micro Guarantee 
Scheme has the objective to accelerate growth by fac ilitating access to debt finance for smaller 
business undertakings.  
 
This Micro Guarantee Scheme shall provide eligible undertakings with a guarantee of up to 80% on 
loans of up to € 100,000 which may be used to finance projects leading to business enhance ment, 
growth and development.    
 
4. Background and Authority for the subsidy  
 
This Incentive is administered by Malta Enterprise Corporation.  
 G/SCM/N/315/EU/Add.19  
 
- 33 - 
 
  Malta Enterprise is enabled to issue and publish official Incentive G uidelines in terms of 
Article  8 [3][a] of t he Malta Enterprise Act, Chapter 463 of the Laws of Malta.  
 
The Corporation may design support measures in terms of the Malta Enterprise Act:  
 
http://www.justice services.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1  
 
The Enterprise Support Incentives Regulations SL 463.0 8 [Malta Enterprise Act, Chapter 463 of the 
Laws of Malta] provides the legal basis of this incentive . 
 
http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=12002&l=1    
 
These Incentive Guidelines are in line with the Commission Reg ulation [EU] No. 1407/2013 of 
18 December 2013 on the a pplication of Articles 107 and 108 of the Treaty on the Functioning of 
the European Union to de minimis aid .  
 
The terms and conditions of the Micro Guarantee Scheme are in line with the Commission 
Regulation [EU] No. 1407/2013 of 18 December 2013 on the a pplication of Articles 107 and 108 of 
the Treaty on the Functioning of the European Union to de minimis aid [the de minimis 
Regulation] .  
 
The total amount of de minimis aid granted to a single undertaking shall not exceed the amount of 
€ 200,000 over any period of three consecutive fiscal years.  
 
This aggregate maximum threshold applies in principle to all economic sectors with the exception 
of the road transport, agricu lture and fisheries sectors for which different thresholds and criteria 
apply.  The term 'undertaking ' includes also all companies in a group [which fall under the direct or 
indirect ownership or control of the same ultimate parent company] and relevant par tner and 
linked enterprises as defined in Annex I of Commission Regulation [EC No 800/2008]. This period 
covers the fiscal year concerned as well as the previous two fiscal years. 'Fiscal year ' means the 
fiscal year as used for tax purposes by the undertak ing concerned.  
 
http://ec.europa.eu/competition/state_aid/legislation/de_minimis_regulation_en.pdf  
 
In terms of the Malta Enterprise Act mentioned earlier, t he parameters of aid and details of the aid 
scheme are found in the Incentive Guidelines. These Incentive Guidelines are a set of rules issued 
by the Corporation from time to time containing details on the definition, application, 
administration, grant and  revocation of aid schemes. The Incentive Guidelines for the aid scheme 
Micro Guarantee Scheme  are accessible on the following link :  
 
https://www.maltaenterprise.com/support/mic ro-guarantee -scheme  
 
5. Form of the subsidy  
 
The assistance provided under the Micro Guarantee Scheme will be in the form of a Loan 
Guarantee to support a new loan required to finance eligible costs approved by the Corporation.  
Eligible loans between € 2,500 and € 100,000 may be supported through this scheme. The value 
of aid shall be calculated at 27% of the guaranteed amount.  
 
6. To whom and how the subsidy is provided  
 
This incentive is open to all business undertakings, inclu ding start -ups.  
 
Guarantee  
 
Applicants that are in line with these guidelines and demonstrate a feasible business proposal shall 
receive a Letter of Intent which may be used for accessing a loan from a bank. The Letter of Intent 
will be issued in line wit h Part 6 Section 28 et seq. of the Malta Enterprise Act.    
 
The Letter of Intent issued by Malta Enterprise  may be presented to any bank.  Before Malta 
Enterprise may proceed with the issuance of any guarantee, the applicant shall provide Malta 
Enterprise w ith a sanction letter from the bank issuing the loan to finance the project with terms G/SCM/N/315/EU/Add.19  
 
- 34 - 
 
  and conditions as specified in a valid letter of intent issued by Malta Enterprise under this 
incentive.  
 
7. Amount of the subsidy  
 
2015 – € 17,010.00  
2016 – € 68,208.00  
 
8. Duration of the subsidy  
 
Malta Enterprise Corporation had notified the competent authorities that this incentive measure 
was to be terminated on 3 1 December 2016 instead of 31 December  2018 as previously notified.  
 
9. Trade effects of the subsidy  
 
There are no effects on international trade.  
 
16  RENT SUBSIDY SCHEME  
1. Title of the subsidy  
 
Rent Subsidy Scheme.  
 
2. Period covered by the notification  
 
The period covered by this notification starts from 1 January  2015 until 31 December  2016. 
 
3. Policy objec tive 
 
The main objective of the support measure Rent Subsidy  is to support small undertakings engaged 
in manufacturing activities that require industrial space as a temporary, or permanent, solution to: 
implement growth plans, handle an increase in orders,  and/or carry out process innovations 
required to increase efficiency.   
 
4. Background and Authority for the subsidy  
 
This Incentive is administered by Malta Enterprise Corporation.  
 
Malta Enterprise is enabled to issue and publish official Incentive G uidelines in terms of 
Article  8 [3][a] of the Malta Enterprise Act, Chapter 463 of the Laws of Malta.  
 
The Corporation may design support measures in terms of the Malta Enterprise Act:  
 
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1  
 
The Enterprise Support Incentives Regulations SL 463.04  [Malta Enterprise Act, Chapter 463 of the 
Laws of Malta] provides the legal basis of this incenti ve. 
 
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=11609&l=1  
 
These Incentive Guidelines are in line with the Commission Reg ulation [E U] No. 1407/2013 of 
18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of 
the European Union to de minimis aid .  
 
The terms and conditions of the Rent Subsidy Scheme are in line with the Commission Reg ulation 
[EU] No. 1407/2013 of 18 December 2013 on the application of Articles 107 and 108 of the Treaty 
on the Functioning of the European Union to de minimis aid [the de minimis Regulation] .  
 
The total amount of de minimis aid granted to a single undertaking shall no t exceed the amount of 
€ 200,000 over any period of three consecutive fiscal years.  
 G/SCM/N/315/EU/Add.19  
 
- 35 - 
 
  This aggregate maximum threshold applies in principle to all economic sectors with the exception 
of the road transport, agriculture and fisheries sectors for which differ ent thresholds and criteria  
apply.  The term 'undertaking ' includes also all companies in a group [which fall under the direct or 
indirect ownership or control of the same ultimate parent company] and relevant partner and 
linked enterprises as defined in An nex I of Commission Regulation [EC No 800/2008]. This period 
covers the fiscal year concerned as well as the previous two fiscal years. 'Fiscal year ' means the 
fiscal year as used for tax purposes by the undertaking concerned.  
 
http://ec.europa.eu/competition/state_aid/legislation/de_minimis_regulation_en.pdf  
 
In terms of the Malta Enterprise Act mentioned earlier, the parameters of aid and details of the aid 
scheme are found in the Incentive Guidelines. These Incentive Guidelines are a set of rules issued 
by the Corporation from time to time containing details on the definition, application, 
administration, grant and revocation of aid schemes. The Incentive Gu idelines for the Rent Subsidy 
Scheme  are accessible on the following link :  
 
https://www.maltaenterprise.com/sit es/default/files/Rent%20Subsidy%20Incentive%20Guidelines
%20%28Version%201%2008.04.2016%29.pdf  
 
Enterprise Support incentives Legal Notice:  
 
http://justiceservices.g ov.mt/DownloadDocument.aspx?app=lp&itemid=27625&l=1  
 
5. Form of the subsidy  
 
The aid shall be granted in the form of a cash grant.  
 
6. To whom and how the subsidy is provided  
 
This incentive is intended to support small undertakings engaged in manufactur ing activities that 
require industrial space as a temporary, or permanent, solution to:  
 
i. implement growth plans;  
ii. handle an increase in orders; and/or  
iii. carry out process innovations required to increase efficiency.   
The Corporation may support, through parti al reimbursement, costs incurred for rental or l easing 
of premises required for : 
 
 Manufacturing activities;  
 
 Storage of works in progress related to manufacturing activities carried out in Malta by the 
applicant;  
 
 Storage of raw materials required for manu facturing activities carried out in Malta by the 
applicant.  
 
Maximum applicable aid intensity  
 
The aid intensity is established at 50% of the cost incurred after excluding any taxes.  
 
The total aid which may be granted to a single undertaking is capped at  € 20,000 over a period of 
two [2] consecutive years.  This amount is limited up to € 10,000 over any period of 12 months 
and up to € 50 per square meter per annum.  
 
7. Amount of the subsidy  
  
2015 – €    NIL  
2016 – € 8,120.00  
 G/SCM/N/315/EU/Add.19  
 
- 36 - 
 
  8. Duration of the subsidy  
 
This support measure became effective on 1 March 2016 and will terminate on 31 December  2019.  
 
9. Trade effects of the subsidy  
 
There are no effects on international trade.  
 
17  RESEARCH AND DEVELOP MENT 2014 - 2020  
1. Title of the subsidy  
 
Research and Develop ment 2014 – 2020.  
 
2. Period covered by the notification  
 
The period covered by this notification starts from 1 January  2015 until 31 December  2016. 
 
3. Policy objective  
 
The aim of this incentive is to:  
 
a. assist undertakings that carry out Industrial Resea rch or Experimental Development 
required for acquisition of knowledge leading to the development of innovative products 
and solutions.  
b. encourage cooperation between firms by providing additional assistance for collaborative 
Industrial Research and Experime ntal Development projects, which may include Eureka 
endorsed projects and accepted under the Eurostars framework of the European 
Commission.  
4. Background and Authority for the subsidy  
 
This Incentive is administered by Malta Enterprise Corporation.  
 
Malta Enterprise is enabled to issue and publish official Incentive G uidelines in terms of 
Article  8 [3][a] of the Malta Enterprise Act, Chapter 463 of the Laws of Malta.  
 
The Corporation may design support measures in terms of the Malta Enterprise Act:  
 
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1  
 
The Assistance for Research and Development and Innovation Regulations SL 463.05  [Malta 
Enterprise Act, Chapter 463 of the Laws of Malta] provides the legal basis of this incentive . 
 
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=l om&itemid=11610&l=1  
 
The terms and conditions set out in these guidelines are in line with the Commission Regulation 
[EU] No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal 
market in application of Articles 107 an d 108 of the Treaty.  
 
http://eur -lex.europa.eu/legal -content/EN/TXT/PDF/?uri=CELEX:32014R0651&from=EN  
 
In terms of the Malta Enterprise Act mentioned earlier, t he parameters of aid and details of the aid 
scheme are found in the Incentive Guidelines.  These Incentive Guidelines are a set of rules issued 
by the Corporation from time to time containing details on the definition, application, 
administration, grant and  revocation of aid schemes. The Incentive Guidelines for the Research 
and Development 2014 - 2020 are accessible on the following link :  
 
https://www.maltaenterprise.com/sites/default/files/Research%20and%20Development%202014
%20-%202020%20Incentive%20Guidelines.pdf  
 G/SCM/N/315/EU/Add.19  
 
- 37 - 
 
  5. Form of the subsidy  
 
The assistance shall be granted to undertakings established in Malta as:  
 
a. Tax Credits; and/or  
b. Cash Grants  
Cash grants will only be awarded if the project is approved by the EUREKA2 network or the 
Eurostars Joint Programme3 or is deemed by the Corporation as having the potential increase 
employment or economic growth in the region . Cash grants shal l be limited to the amount of 
€ 250,000 per project. However, any eligible aid exceeding this amount may still be awarded in 
the form of Tax Credits.  
 
6. To whom and how the subsidy is provided  
 
This incentive is awarded to undertakings carrying out resear ch and development projects and 
which are classified as Industrial Research or Experimental Development as per terms and 
conditions set within the Incentive Guidelines.  The objective is to assist enterprises create or 
improve technology that can provide a competitive advantage at the business, industry, or 
national level.  
 
Moreover, Malta Enterprise has re -committed itself to participating in the Eureka Network and 
Eurostars Joint Programme between 2014 and 2020.  As a result the proposed scheme encourages 
cooperation between firms by providing additional assistance for collaborative Eureka or Eurostars 
projects.  
 
Maximum aid i ntensities  
 
The maximum levels of assistance that may be provided under this incentive are found in the table 
below .  
 
 
 
Eligible costs  
 
The following costs are considered as eligible as long as they are incurred in relation to an 
approved Industrial Research or Experimental Development project after the 'start of works '.  
 
Personnel costs  
Instruments and equipment  
Costs for buildings  
Contractual research, technical knowledge and patents  
 
Costs under this heading may only be considered for cash grants if adequate market testing is 
carried out. Such market testing could be carried out pri or to the application or during the project. 
Adequate market testing implies that for any cost up to € 200,000, the undertaking should present 
three [3] quotations from three [3] different sources that are not related to each other and neither 
to the suppl ier. For cost items above € 200,000 the undertaking would need to issue a request for 
proposal in the local press.  
 
Quotations should be comparable and funding will be limited on the cheapest, technically 
compliant quotation.  Research and De velopment Tax Credits  Small 
Undertaking  Medium 
Undertaking  Large 
Undertaking  
Industrial Research Projects  70% 60% 50% 
Experimental Development Projects  45% 35% 25% 
Collaborative Industrial Research Projects  80% 75% 65% 
Collaborative Experimental Dev elopment 
Projects  60% 50% 40% G/SCM/N/315/EU/Add.19  
 
- 38 - 
 
   
Other operating expenses  
 
Costs of materials, supplies and similar products, incurred directly as a result of the project.  
 
7. Amount of the subsidy  
  
2015 – € 166,135.00  
2016 – €   NIL  
 
8. Duration of the subsidy  
 
This support measure became effective on the 1 November 2014 and wil l terminate on 
31 December  2020.  
 
9. Trade effects of the subsidy  
 
There are no effects on international trade.  
 
18  R & D FEASIBILITY ST UDIES 2014 - 2020  
1. Title of the subsidy  
 
R & D Feasibility Studies 2014 – 2020.  
 
2. Period covered by the notification  
 
The period covered by this notification starts from 1 January  2015 until 31 December  2016. 
 
3. Policy objective  
 
Since Research & Development initiatives are associated with high risk, it is advisable that 
undertakings undertake R&D Feasibility studies to determine that the key elements of the 
proposed research project are based on sound principals.  
 
The objective of this incentive is to support undertakings intending to undertake Industrial 
Research and Experimental Development projects in carrying out R& D Feasibility Studies in 
preparation for these projects.  
 
4. Background and Authority for the subsidy  
 
This Incentive is administered by Malta Enterprise Corporation.  
 
Malta Enterprise is enabled to issue and publish official Incentive G uidelines in terms of 
Article  8 [3][a] of the Malta Enterprise Act, Chapter 463 of the Laws of Malta.  
 
The Corporation may design support measures in terms of the Malta Enterprise Act:  
 
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1  
 
The Assistance for Research and Development and Innovation Regulations SL 463.05  [Malta 
Enterprise Act, Chapter 463 of the Laws of Malta] provides the legal basis of th is incentive . 
 
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=11610&l=1  
 
The terms and conditions set out in these guidelines are in li ne with the Commission Regulation 
[EU] No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal 
market in application of Articles 107 and 108 of the Treaty.  
 
http://eur -lex.europa.eu/legal -content/EN/TXT/PDF/?uri=CELEX:32014R0651&from=EN  
 G/SCM/N/315/EU/Add.19  
 
- 39 - 
 
  In terms of the Malta Enterprise Act mentioned earlier, the parameters of aid and details of the aid 
scheme are found in the Incentive Guidel ines. These Incentive Guidelines are a set of rules issued 
by the Corporation from time to time containing details on the definition, application, 
administration, grant and revocation of aid schemes. The Incentive Guidelines for the R & D 
Feasibility Studi es 2014 - 2020 are accessible on the following link :  
 
https://www.maltaenterprise.com/sites/default/files/R%26D%20Feasibility%2 0Studies%20Incenti
ve%20Guidelines_0.pdf  
 
5. Form of the subsidy  
 
Undertakings carrying out an R&D feasibility study may receive up to € 50,000 per project. Aid is 
capped at € 5,000 per Full -Time Employee engaged by the applicant at the time of application, 
provided that applicants established in the twenty four [24] months preceding the date of 
application may still be approved a grant of up to € 20,000 irrespective of the number of Full -Time 
Employees engaged.  
 
6. To whom and how the subsidy is provided  
 
Undertakings employing at least two [2] full time employees that intend to carry out an Industr ial 
Research or Experimental Development project may benefit from assistance under this incentive.  
 
The aim of carrying out such studies is to establish the feasibility of a planned industrial research 
and experimental development project.  The study should  lead to research that has clear scope and 
objectives and is of strategic importance to the undertaking.  The Applicant should justify that the 
result of the envisaged research is expected to lead in an increase of employment and 
productivity.  The applicati on requesting assistance should clearly indicate the methodology which 
will be adopted in carrying out the study and should also identify clear milestones and deliverables.  
 
Supported projects must be completed within six [6] months from the date the proje ct is approved 
by the Corporation.  All eligible costs should be incurred and paid for within this timeframe.  
 
Eligible costs  
 
Personnel costs  
 
Acquisition of knowledge  
 
Costs of contractual research and technical knowledge bought or licensed from outside sources at 
arm's length conditions, as well as costs of consultancy and equivalent services used exclusively 
for feasibility study;  
 
Costs of consultancy and equivalent services must be rendered by either:  
 
i. experts in the relevant field of research that have successfully completed doctoral 
training;  
ii. research and knowledge -dissemination organisation; or  
iii. technical laboratories or other similar infrastructures.  
 
Aid intensity  
 
The maximum level of assistance provided through this incentive is further capp ed at:  
 
Type of Undertaking  % 
Small  70 
Medium  60 
Large  50 
 G/SCM/N/315/EU/Add.19  
 
- 40 - 
 
  7. Amount of the subsidy  
  
2015 – €    NIL  
2016 – € 40,000.00  
 
8. Duration of the subsidy  
 
This support measure became effective on the 1 November 2014 and will terminate on 
31 December  2020.  
 
9. Trade effects of the subsidy  
 
There are no effects on international trade.  
 
19  START -UP FINANCE  
1. Title of the subsidy  
 
Start-Up Finance.  
 
2. Period covered by the notification  
 
The period covered by this notification starts from 1 January  2015 until 31 December  2016.  
 
3. Policy objective  
 
This incentive awards mezzanine finance to support small start -up undertakings in their setting -up 
and initial growth phases.  These small start -up undertakings must demonstrate a viable business 
concept.  
 
4. Background  and Authority for the subsidy  
 
This Incentive is administered by Malta Enterprise Corporation.  
 
Malta Enterprise is enabled to issue and publish official Incentive G uidelines in terms of 
Article  8 [3][a] of the Malta Enterprise Act, Chapter 463 of the Law s of Malta.  
 
The Corporation may design support measures in terms of the Malta Enterprise Act:  
 
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&i temid=8929&l=1  
 
The Assistance to Small and Medium -Sized Undertakings Regulations SL 463.03  [Malta Enterprise 
Act, Chapter 463 of the Laws of Malta] provides the legal basis of this incentive . 
 
http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=11608&l=1  
 
The terms and conditions set out in these guidelines are in line with the Commission Regulation 
[EU] No 651/2014 of 17 June 2014 declaring certain  categories of aid compatible with the internal 
market in application of Articles 107 and 108 of the Treaty.  
 
http://eur -lex.europa.eu/legal -content/EN/TXT/PDF/? uri=CELEX:32014R0651&from=EN  
 
In terms of the Malta Enterprise Act mentioned earlier, the parameters of aid and details of the aid 
scheme are found in the Incentive Guidelines.  These Incentive Guidelines are a set of rules issued 
by the Corporation from t ime to time containing details on the definition, application, 
administration, grant and revocation of aid schemes. The Incentive Guidelines for the Start-Up 
Finance  are accessible on the following link :  
 
https://www.maltaenterprise.com/sites/default/files/Start -
up%20Finance%20Incentive%20Guidelines%20%28Version%201%2023.02.2016%29.pdf  
 G/SCM/N/315/EU/Add.19  
 
- 41 - 
 
  5. Form of the subsidy  
 
Assistance under this support measure is provided as a repayable grant of up to € 200,000 and 
will be linked to private equity.  The repayable grant may be increased to € 500,000 in the case of 
innovative or knowledge based technology start -up undertakings  to cover the procurement of 
tangible assets.  
 
The support shall be lined to either:  
 
a. Co-investment linked to private equity; or  
b. The procurement of tangible assets; or  
c. To crowd funding campaigns.  
The grant must be repaid over a period of ten years and an i nterest will be charged on any value 
outstanding at the end of each calendar year.  The repayment period may be extended in line with 
the performance of the supported undertaking.  
 
6. To whom and how the subsidy is provided  
 
Assistance in terms of this supp ort measure will be provided as a repayable grant of up to 
€ 200,000.  The grant will be linked to private equity.  The repaya ble grant may be increased to 
€ 500,000 in the case of innovative or knowledge based technology start -up undertakings to cover 
the procurement of tangible assets.  
 
Eligible costs  
 
In order to be eligible for assistance under this incentive, the small start -up undertaking must be a 
limited liability company set up in the terms of the Companies Act and engaged in one or more of 
the follo wing activities:  
 
a. Manufacturing  
b. Information Technology, digital media and communications  
c. Research, development and technical innovation  
d. Biotechnology, pharmaceuticals and life sciences.   
 Or 
 
Is proposing products and / or services that can be marketed and  distributed internationally and 
which are typically more advanced than those prevailing in their respective industry, in terms of 
technology, know -how and skills.  
 
This support shall be linked to either:  
 
1. Co-Investment linked to private equity; or  
 
2. The procurement of tangible assets; or  
 
3. To crowd funding campaigns  
 
7. Amount of the subsidy  
  
2015 – €     NIL  
2016 – € 300,000.00  
 G/SCM/N/315/EU/Add.19  
 
- 42 - 
 
  8. Duration of the subsidy  
 
This support measure became effective on the 1 October  2015 and has terminated on 
31 October  2016.  
 
9. Trade effects of the subsidy  
 
There are no effects on international trade.  
 
20  BUSINESS A SSOCIATIONS GRANT SC HEME  
1. Title of the subsidy  
 
Business Associations Grant Scheme.  
 
2. Period covered by the notification  
 
The period covered by this notification starts from 1 January  2015 until 31 December  2016. 
 
3. Policy objective  
 
The main objectiv e of this Scheme is to assist business associations achieve common objectives 
that in return support =  growth, innovation and development of their member undertakings.  In 
order to achieve such benefits, through this support measure eligible associations ar e being 
encouraged to employ a coordinator to animate and support the association 's activities as well as 
to affiliate with international associations and attend international events relevant to the goals and 
objectives of the business associations.  
 
This assistance will also support the business associations and their member undertakings to be 
more competitive.  
 
4. Background and Authority for the subsidy  
 
This Incentive is administered by Malta Enterprise Corporation.  
 
Malta Enterprise is enabled to issue  and publish official Incentive G uidelines in terms of 
Article  8 [3][a] of the Malta Enterprise Act, Chapter 463 of the Laws of Malta.  
 
The Corporation may design support measures in terms of the Malta Enterprise Act:  
 
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1  
 
The Enterprise Support Incentives Regulations SL 463.04  [Malta Enterprise Act, Chapter 463 of the 
Laws of Malta] provides the legal basis of this incentive . 
 
http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=11609&l=1  
 
These Incentive Guidelines are in line with  the Commission Reg ulation [EU] No. 1407/2013 of 
18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of 
the European Union to de minimis aid .  
 
The terms and conditions of the Business Associations Grant Scheme are in line with the 
Commission Reg ulation [EU] No. 1407/2013 of 18 December 2013 on the application of Articles 
107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid [the de 
minimis Regulation] .  
 
The total amount of de minimis aid granted to a single undertaking shall not exceed the amount of 
€ 200,000 over any period of three consecutive fiscal years.  
 
This aggregate maximum threshold applies in principle to all economic sectors with the exception 
of the road transport, agriculture and fisheries sectors for which differen t thresholds and criteria 
apply.  The term 'undertaking ' includes also all companies in a group [which fall under the direct or G/SCM/N/315/EU/Add.19  
 
- 43 - 
 
  indirect ownership or control of the same ultimate parent company] and relevant partner and 
linked enterprises as defined in Anne x I of Commission Regulation [EC No 800/2008]. This period 
covers the fiscal year concerned as well as the previous two fiscal years. 'Fiscal year ' means the 
fiscal year as used for tax purposes by the undertaking concerned.  
 
http://ec.europa.eu/competition/state_aid/legislation/de_minimis_regulation_en.pdf  
 
In terms of the Malta Enterprise Act mentioned earlier, the parameters of aid and details of the aid 
scheme are found in the Incentive Guidelines. These Incentive Guidelines are a set of rules issued 
by the Corporation from time to time containing details on the definition, application, 
administration, grant and revocation of aid schemes. The Incentive Guid elines for the aid scheme 
Business Associations Grant Scheme  are accessible on the following link :  
 
https://www.maltaenterprise.com/s ites/default/files/Business%20Associations%20Grant%20IG%2
0Version%202.pdf  
 
5. Form of the subsidy  
 
Aid under this support measure is awarded in the form of a cash grant.  Each business association 
may receive up to € 10,000 per annum.  
 
6. To whom and how the subsidy is provided  
 
Eligible business associations that enhance collaboratiohn between undedrtakings in 
manufacturing, industrial services, information and communicati ons technology [ICT], aviation and 
maritime, creative undertakings, digital media, life sciences or crafts may be assisted through this 
support measure.  
 
The assistance provided consists in financing eligible costs relating to:  
 
1. Wage costs of a coordina tor or administrator;  
2. Annual memberships; and  
3. Attendance to international sectoral events held outsidde Malta.  
 
7. Amount of the subsidy  
  
2015 – €    NIL  
2016 – € 4,200.00  
 
8. Duration of the subsidy  
 
This support measure became effective on 1 January  2016 and will run till 31 December  2020.  
 
9. Trade effects of the subsidy  
 
There are no effects on international trade.  
 
21  AID FOR THE DEVELOPM ENT OF WORKSHOPS AND  ASSOCIATE RETAIL OUT LETS AT 
THE TA ' QALI AND TA ' DBIEGI CRAFTS VILLAG E 
1. Title of the subsidy  
 
Aid for the Development of Workshops and Associate Retail Outlets at the Ta ' Qali and Ta ' Dbiegi 
Crafts Village.  
 
2. Period covered by the notification  
 
The period covered by this notification starts from 1 January  2015 until 31 December  2016.  
 G/SCM/N/315/EU/Add.19  
 
- 44 - 
 
  3. Policy objective  
 
The aim of this support measure is to encourage capital investment.  The support provided shall 
assist undertakings to upgrade the ir services through further capital investment.  
 
4. Background and Authority for the subsidy  
 
This Incentive is administered by Malta Enterprise Corporation.  
 
Malta Enterprise is enabled to issue and publish official Incentive Guidelines in terms of 
Article 8 [3][a] of the Malta Enterprise Act, Chapter 463 of the Laws of Malta.  
 
The Corporation may design support measures in terms of the Malta Enterprise Act:  
 
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1  
 
The Enterprise Support Incentives Regulations SL 463.11  [Malta Enterprise Act, Chapter 463 of the 
Laws of Malta] provides the legal basis of this incentive . 
 
http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=12331&l=1  
 
These Incentive Guidelines are in line with the Commission Reg ulation [EU] No. 1407/2013 of 
18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of 
the European Union to de minimis aid .  
 
The terms and conditions of the Business Associations Grant Scheme are in line with the 
Commission Regulation [EU] No. 1407/ 2013 of 18 December 2013  on the application of 
Articles  107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid [the 
de minimis Regulation] .  
 
The total amount of de minimis aid granted to a single undertaking shall not exceed the amount of 
€ 200,000 over any period of three consecutive fiscal years.  
 
This aggregate maximum threshold applies in principle to all economic sectors with the exception 
of the road transport, agriculture and fisheries sectors for which different thres holds and criteria 
apply.  The term 'undertaking ' includes also all companies in a group [which fall under the direct or 
indirect ownership or control of the same ultimate parent company] and relevant partner and 
linked enterprises as defined in Annex I of Commission Regulation [EC No 800/2008]. This period 
covers the fiscal year concerned as well as the previous two fiscal years. 'Fiscal year ' means the 
fiscal year as used for tax purposes by the undertaking concerned.  
 
http://ec.europa.eu/competition/state_aid/legislation/de_minimis_regulation_en.pdf  
 
In terms of the Malta Enterprise Act mentioned earlier, the parameters of aid and details of the aid 
scheme ar e found in the Incentive Guidelines. These Incentive Guidelines are a set of rules issued 
by the Corporation from time to time containing details on the definition, application, 
administration, grant and revocation of aid schemes. The Incentive Guidelines for the aid scheme 
Business Associations Grant Scheme  are accessible on the following link :  
 
https://ww w.maltaenterprise.com/sites/default/files/Ta%27Qali%20and%20Ta%27Dbiegi%20Craf
ts%20Incentive%20Guidelines%2011%2001%202016.pdf  
 
5. Form of the subsidy  
 
Assistance under this Incentive may be awarded in the form of a Loan Interest Subsidy and a Cash 
Grant.  
 
6. To whom and how the subsidy is provided  
 
This subsidy is availabe to Small and medium -sized undertakings, including self -employed 
persons:  
 G/SCM/N/315/EU/Add.19  
 
- 45 - 
 
  - carrying out a project as part of the upgrading of the Ta ' Qali Crafts Village in Malta 
may be supported thro ugh an inter est subsidy up to 2% of a new loan, up to a 
maximum of € 6,000.  
 
- undertakings in possession of Category A certification of producing authentic Maltese 
crafts that are operating from either Ta ' Qali Crafts Village in Malta or Ta ' Dbiegi Crafts 
Village in Gozo, may be awarded a cash grant of € 5,000.  The benefit will be reduced 
to € 2,000 over a period of two years in the case of part -time employees.  
 
Eligibility:  
 
As previously indicated, assistance under this Scheme may be awarded in the form of Loan 
Interest Subsidy and/or a Cash Grant.   
 
7. Amount of the subsidy  
  
2015 – €    NIL  
2016 – € 15,000.00  
 
8. Duration of the subsidy  
 
This support me asure became effective on the 15 May 2015.  The Corporation will accept 
applications of assistance for the Loan Int erest Subsidy  and the Cash Grant until the 30  April 2018.  
 
9. Trade effects of the subsidy  
 
There are no effects on international trade.  
 
22  TRAINEESHIP SCHEME  
1. Title of the subsidy programme  
 
Traineeship Scheme.   
 
2. Period covered by the notification   
 
Under the ESF2.201 – Enhancing Employability through Training Project, Jobsplus started running 
the first Traineeship Schemes in 2014.  All traineeships offered under this project were concluded 
by end 2015.  In 2016, Jobsplus re -launched the Traineeship Sche me through another ESF Project 
(ESF.01.001 – Training for Employment).  
 
3. Policy objective and/or purpose of the subsidy  
 
The Traineeship Scheme provides jobseekers with initial vocational training (pre -employment 
training) that would help individuals ob tain the knowledge, skills and competences required to find 
and retain employment. Traineeships are based on the dual system of vocational training providing 
a combination of on -the-job and off -the-job training. The programmes offered are labour market 
driven, whereby the job preferences of the jobseekers are matched with the requests made by 
employers participating in the scheme.  
 
4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted)  
 
For 2015:  
 
- The reimbursements payable to trainees and employers is co -financed by the European 
Social Funds (85% through ESF and 15% through National Funds).  
 
- Jobsplus, Malta 's Public Employment Service, is responsible for administering the ESF funded 
project 'Enhancing Employability through Training '. 
 G/SCM/N/315/EU/Add.19  
 
- 46 - 
 
  - The general framework for traineeships in Malta was set by articles 29 to 45 of the 
Employment and Training Services Act (Chapter 343).  
 
For 2016:  
  
- The reimbursements payable to trainees is co -financed by th e European Social Funds (80% 
through ESF and 20% through National Funds).  
 
- Jobsplus, Malta 's Public Employment Service is responsible for administering the ESF funded 
project 'Training for Employment '. 
 
- The general framework for traineeships in Malta w as set by articles 29 to 45 of the 
Employment and Training Services Act (Chapter 343).  
 
5. Form of the subsidy (i.e., grant, loan, tax concession, etc.)  
 
Periodic payments . 
 
6. To whom and how the subsidy is provided  
 
In 2015:  
 
- During participation in th e scheme, trainees had to choose between the training allowance 
payable by Jobsplus and social benefits.  The training allowance to be paid by Jobsplus was 
set at €3.33 per hour attended (the hourly rate was set at 80% of the National Statutory 
Minimum Wage applicable at the time).  Irrespective whether a trainee chose training 
allowance or benefits, trainees h ad to submit original attendance sheets that highlighted the 
time when they started and concluded the on -the-job and off -the-job training for each day.  
The attendance sheets had to be endorsed by the employer representative.  Once the 
attendance sheets were  verified and computation was confirmed as correct, a 
reimbursement request form for trainees opting for the training allowance was generated 
and trainee was paid accordingly.  Payments were issued on  the 20th day of each month.  
 
- Employers who participat ed in the scheme were also entitled for a grant that was calculated 
at €1 per hour attended by the trainee.  Employers did not submit additional documentation 
since their reimbursement was based on the trainees ' on-the-job attendance sheets.   
 
In 2016:  
 
- During participation in the scheme, trainees were no longer requested to choose between 
the training allowance payable by Jobsplus and social benefits, but they were only eligible 
for the training allowance payable by Jobsplus.  The training allowance was se t at €4.20 per 
hour attended (the hourly rate was set on the National Statutory Minimum Wage applicable 
at the time).  Trainees were requested to submit original attendance sheets that highlighted 
the time when they started and concluded the on -the-job and off-the-job training for each 
day. The attendance sheets had to be endorsed by the employer representative.  Once the 
attendance sheets were verified and computation was confirmed as correct, a 
reimbursement request form for trainees opting for the training  allowance was generated 
and trainee was paid accordingly.  Payments were issued on the 20th day of each month.     
 
- Under the Training for Employment Project employers are not entitled for any allowances.  
 
7. Subsidy per unit, or the total amount  
 
The Tr aineeship Scheme disbursed €1,032,567.35 in 2015 and €452,674.95 in 2016. These 
amounts comprise ESF and National Funds combined.  
  
8. Duration of the subsidy  
 
In 2015:  
 G/SCM/N/315/EU/Add.19  
 
- 47 - 
 
  - Typical duration planned for a participant: 26 weeks f rom January to June 2015 and 
12 weeks from July till September 2015.  
 
- Maximum duration planned or allowed: 26 weeks from January to June 2015 and 12 weeks 
from July till September 2015.  
 
- Maximum extended duration which applies under special conditions or for particular groups: 
N/A as traineeship agreements cannot be extended.  
 
In 2016:  
 
- Typical and maximum duration planned for a participant as per below:  
 
• 14 weeks for the Sales Techniques Traineeship  
• 14 weeks for the Life Skills for the Work Environment Traineeship  
• 16 week s for the Process Manufacturing Traineeship  
• 16 weeks for the Office Procedures Traineeship  
 
- Maximum extended duration which applies under special conditions or for particular groups: 
N/A as Traineeship Agreements cannot be extended.  
 
9. Statistical da ta  
 
There are no effects on trade.  
 
23  WORK EXPOSURE SCHEME   
1. Title of the subsidy programme  
 
Work Exposure Scheme.   
 
2. Period covered by the notification   
 
Under the ESF2.201 – Enhancing Employability through Training Project, Jobsplus started running 
the Work Exposure Scheme in 2015.  In 2016, Jobsplus re -launched the Work Exposure Scheme 
under the new ESF.01.001 – Training for Employment Project.  
 
3. Policy objective and/or purpose of the subsidy  
 
The Work Exposure Scheme is intended to facilitate trans ition into employment by providing 
jobseekers with initial hands -on training that would help individuals obtain the knowledge, skills 
and competences required to find and retain employment. This scheme is designed to mirror 
contemporary labour market deman d, whereby the job preferences of the jobseekers are matched 
with employers ' requests.  
 
4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted)  
 
In 2015, the training allowance payable to trainee s was co -financed by the European Social Funds 
(85% through ESF and 15% through National Funds).  
 
In 2016, the training allowance payable to trainees was co -financed by the European Social Funds 
(80% through ESF and 20% through National Funds). Jobsplus, Malta 's Public Employment Service 
is responsible for administering the ESF funded project. The general framework for this scheme 
was set by the Employment and Training Services Act (Chapter 343).  
 
5. Form of the subsidy (i.e., grant, loan, tax concession, etc.) 
 
Periodic payments.  
 G/SCM/N/315/EU/Add.19  
 
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  6. To whom and how the subsidy is provided  
 
During the participation in the scheme, trainees received a training allowance paya ble by Jobsplus, 
which in 2015 was set at €4.00 per hour attended; while in 2016 it was set at €4.20 per hour 
attended (the hourly rate was based on the National Statutory Minimum Wage applicable at the 
time).  To claim the reimbursement, trainees had to su bmit original attendance sheets that 
highlighted the time when they started and concluded the on -the-job training for each day.  The 
attendance sheets had to be endorsed by the employer representative.  Once the attendance 
sheets were verified and computatio n was confirmed correct, a reimbursement request form was 
generated and trainee was paid accordingly.  Payments were issued on the 20th day of each 
month.  
 
Those trainees who received social benefits prior to the scheme, continued to receive part of their 
benefits throughout the scheme since the remuneration triggered through the scheme was based 
on part -time employment instead of full -time employment.  
 
7. Subsidy per unit or the total amount  
 
The Work Exposure Scheme disbursed €238,670.84 in 2015 and €282, 040.50 in 2016. These 
amounts comprise ESF and National Funds combined.  
 
8. Duration of the subsidy  
 
For both 2015 and 2016:  
 
- Typical duration planned for a participant: 12 weeks  
 
- Maximum duration planned or allowed: 12 weeks  
 
- Maximum extended dura tion which applies under special conditions or for particular groups: 
N/A as Work Exposure Agreements cannot be extended.  
 
9. Statistical data   
 
There are no effects on trade.  
 
24  WORK PLACEMENT SCHEM E 
1. Title of the subsidy programme  
 
Work Placement Scheme.  
 
2. Period covered by the notification  
 
The Work Placement Scheme started being offered in 2016 under the ESF.01.001 – Training for 
Employment Project.  
 
3. Policy objective and/or purpose of the subsidy  
 
The Work Placement Scheme provides training to part icipants following a course offered by 
Jobsplus, which includes a practical component. The Work Placement Scheme gives Jobsplus ' 
trainees an opportunity to acquire both theoretical and practical training.  
 
4. Background and authority for the subsidy (incl uding identification of the legislation under 
which it is granted)   
  
The training allowance payable to trainees is co -financed by the European Social Funds (80% 
through ESF and 20% through National Funds).   
 
Jobsplus, Malta 's Public Employment Service, is  responsible for administering the ESF funded 
project.  
 G/SCM/N/315/EU/Add.19  
 
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  The general framework for this scheme was set by the Employment and Training Services Act 
(Chapter 343).  
 
5. Form of the subsidy (i.e., grant, loan, tax concession, etc.)  
 
Periodic payments.  
 
6. To wh om and how the subsidy is provided  
 
- This scheme is available to persons who were/are unemployed or inactive.  Other entry 
requirements may be requested depending on the chosen work/study area;  
 
- The on -the-job training takes place at the employer 's premi ses with whom the trainee is 
placed. The hours trainees have to perform are set by Jobsplus, although trainees are 
allowed a degree of attendance flexibility ranging approximately between 20 hours to  
40 hours per week.  
 
- Any employers from both the public  and private entities, including NGOs are eligible to 
benefit from having participants in this scheme.  
 
7. Subsidy per unit or the total amount  
 
The Work Placement scheme disbursed €59,635.80 in 2016. These amounts comprise ESF and 
National Funds combined.   
 
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
 
Each trainee has a maximum of 26 weeks to make up the following placement hours:  
 
- Care Workers for the Elderly: 100 hours  
- Care Workers for Persons with Disability: 71 hours  
- Childcare: 500 hours  
 
9. Statistical data  
 
There are no effects on trade.  
 
25  YOUTH GUARANTEE SCHE ME ESF3.231  
1. Title of the subsidy programme  
 
Youth Guarantee Scheme ESF3.231 / Garanzija għaż -Żgħażagħ FSE3.231.  
 
2. Period covered by the notification  
 
The Youth Guarantee Scheme started in 2014 till end of December 2015.  
 
3. Policy objective and/or purpose of the subsidy  
 
The scheme is targeted tow ards job seeking and inactive youth, including the long term 
unemployed and youth detached from the labour market. This scheme targets the sustainable 
integration into the labour market of young people, in particular those not in employment, 
education or t raining (NEETs), including young people at risk of social exclusion and young people 
from marginalised communities.  
 
The Youth Guarantee project focuses on both the current stock of NEETs as well as those at risk of 
becoming NEETs or young unemployed throu gh a mix of interventions tailor -made for the specific 
cohorts. The project provides training and personalised assistance to these youth. Thus the Youth 
Guarantee is composed of initiatives to prevent young people becoming NEETs (Secondary 
Education Certif icate Revision Classes, Alternative Learning Programme (ALP) ICT Summer Course, G/SCM/N/315/EU/Add.19  
 
- 50 - 
 
  MCAST remedial classes together with an initiative aimed at reintegrating NEET youths into the 
labour market (NEET Activation Scheme I).  
 
4. Background and authority for the s ubsidy (including identification of the legislation under 
which it is granted)  
 
The Youth Guarantee is an EU initiative and is a commitment by all Member States to ensure that 
all young people under the age of 25 years receive a good quality offer of emplo yment, continued 
education, apprenticeship or traineeship within a period of four months of becoming unemployed 
or leaving formal education. The legal basis for this intervention in Malta is the Employment and 
Training Services Act, Chapter 343.  
 
The sour ce of finance comes from the European Social Fund 2007 -2013 programming period. The 
co-financing rate is that of 85% ESF funds while the remaining 15% via national funds.  
 
5. Form of the subsidy (i.e., grant, loan, tax concession, etc.)  
 
NEETs Activation S cheme I: each participant received an allowance based on his/her performance 
and attendance.  
 
ALP ICT Courses: Each participant is offered 54 hours of ICT training at one of the available 
centres depending on the locality of each participant. Allowance is  received on the condition that 
the participant attends 80% of tuition.  
 
SEC Revision Classes: Teachers are recruited by the Youth Guarantee Office to provide the tuition 
during the revision classes. Officers in charge are also engaged to develop and issu e timetables 
and to act as mentors throughout the duration of the summer initiative.  Both teachers and 
coordinators are paid a fixed hourly rate. In addition to this, teachers are also paid for every hour 
of preparation work. Participants are not given an allowance.  
 
MCAST remedial classes: Teachers are recruited by MCAST to provide the tuition during the 
revision classes. One officer in charge is also engaged to develop and issue timetables and to act 
as a mentor throughout the duration of the summer init iative. Both teachers and coordinators are 
paid a fixed hourly rate through ESF funds. Participants are not given an allowance.  
 
Financial transfers are distributed via periodic cash payments, lump -sum payments and 
reimbursements.  
 
6. To whom and how the subsidy is provided  
 
NEETs Activation Scheme I: In order to participate in the sc heme youths have to be under 
25 years of age at the month prior the issuing of the call for applications, resident in Malta or Gozo 
and unemployed or inactive. This initiative  attempts to empower youth and re -integrate them into 
the education system or labour market. This initiative is composed of two phases. The first phase 
involves; profiling, providing psychological -wellbeing courses and other employment -short courses 
and th e second phase consists of providing education or work exposure opportunity. In both the 
training and education/work exposure streams, each participant is paid an allowance grant, based 
on his/her performance and attendance. After the first four weeks of t raining, the participant 
receives the first payment provided that he/she completes 80% or more of the attendance. After 
the part icipant is matched with an employer, the participant is paid €240.00 at the end of the first 
month and another €240.00 at the end of the second month provided that the participant works 
for 80% or more of the 20 hours per week. Lastly upon finishing the sc heme, the participant 
receives the final payment provided that he/she attends 80% or more of all the activities of the 
NEET Activation Scheme I.  
 
ALP ICT Courses: The ALP ICT Courses is targeted at NEETs who participated in the Alternative 
Learning Progra mme during the previous scholastic year. Provided that each participant attends 
80% of tuition, then he/she is paid at a rate of €4.05 per hour. Hence a participant attending 80% 
or more would be paid the amount of €202.50 at the end of the course.  
 
SEC Re vision Classes: The SEC Revision Classes target NEETs who were students previously 
enrolled at State and non -State schools, who do not sit for the May exam session, or who get the G/SCM/N/315/EU/Add.19  
 
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  grades 6 or 7 or "U" in at least one of the core subjects offered. Teachers are recruited by the 
Youth Guarantee Office to provide the tuition during the revision classes.  Officers in charge are 
also engaged to develop and issue timetables and to act as mentors throughout the duration of the 
summer initiative.  Both teachers and co ordinators are paid a fixed hourly rate of €12.00. In 
addition to this, teachers are also paid €12.00 for every hour of preparation work. Payments are 
issued once at the end of the initiative. Participants are not given an allowance.  
 
MCAST remedial classe s: Students who fail one of the exams through Level 1, Level 2 or Level 3 of 
the respective course at the Malta College for Arts, Science and Technology (MCAST) are given the 
opportunity to receive remedial classes during the summer period. Teachers are re cruited by 
MCAST to provide the tuition during the revision classes. One officer in charge is also engaged to 
develop and issue timetables and to act as a mentor throughout the duration of the summer 
initiative. Teachers and coordinators are paid at an hou rly rate of €24.00 and €12.00 respectively 
through ESF funds. Payments are issued once at the end of the initiative. Participants are not 
given an allowance.  
 
7. Subsidy per unit or the total amount   
 
The total disbursed for the Youth Guarantee Scheme for 2015 totalled €1,614,354.97 and for 2016 
€448,264.48. These amounts comprise ESF and National Funds combined.  
 
8. Duration of the subsidy   
 
NEETs Activation Scheme I:  
 
• Typical duration planned for a participant: 18 weeks  
• Maximum duration planned or al lowed: 21 weeks  
• Maximum extended duration which applies under special conditions or for particular groups: 
30 weeks  
 
ICT Course for ALP participants: 54 hours of training  
 
SEC Revision Classes: 5 weeks of tuition  
 
MCAST Remedial Classes: 6 weeks of tuiti on 
 
9. Statistical data  
  
There is no effect on trade.  
 
26  TRAINING  AID FRAMEWORK 2015 ( TAF2)  
1. Title of the subsidy programme   
 
Training Aid Framework 2015 (TAF2).  
 
2. Period covered by the notification  
 
The period covered by this notification starts from 1 January 2013 until 3 1 December 2014.  
 
However, as per Addendum 4 to the Covenant dated 04/05/2015 , the TAF was extended till 
end December 2015 in light of the second launch of the scheme known as TAF2.  
 
3. Policy objective and/or purpose of the subsidy  
 
The objective of this scheme was to help the private sector invest in the knowledge and skills of 
the people who were actively participating in the labour market, in line with the objectives of 
Operational Programme II "Empowering People for More Jobs and a better quality of Life ". 
 G/SCM/N/315/EU/Add.19  
 
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  4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted)  
 
Jobsplus (Malta 's Public Employment Service) acted as the Intermediate Body to the Managing 
Authority. For prog ramming period 2007 – 2013, the co -financing was set at 85% ESF funds and 
15% National funds.  
 
5. Form of the subsidy (i.e., grant, loan, tax concession, etc.)  
 
The form of the subsidy of this aid scheme was a grant which covered a percentage of the costs 
incurred according to the aid intensity under which the beneficiary fell.  
 
6. To whom and how the subsidy is provided  
 
Beneficiaries from this incentive were undertakings carrying out an economic activity irrespective 
of their legal form excluding public s ector entities but inclusive of self -employed persons, non -
government organisations and professional bodies.   
 
As the Intermediary Body, Jobsplus approved the reimbursement of the costs incurred after 
conducting its checks at application, evaluation and re imbursement stage. The aid intensity of the 
amount reimbursed depended on the type of training. TAF2 was in line with the Commission 
Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with 
the common market in applic ation of Articles 107 and 108 of the Treaty on the Functioning of the 
European Union (TFEU), known as the General Block Exemption Regulation (GBER)  
 
7. Subsidy per unit or the total amount   
 
The Training Aid Framework 2 has disbursed a total of €1,270,534. 25 in 2015. These amounts 
comprise ESF and National Funds combined.  
 
8. Duration of the subsidy  
 
TAF2 was open for training that was carried out between 1 January  2015 till the end of June 2016. 
All grants under TAF2 were reimbursed by end December 2015.  
 
9. Statistical data   
 
There were no effects on international trade.  
 
27   EMPLOYMENT AID PROGR AMME – GOZO (EAPG)  
1. Title of the subsidy programme  
 
Employment Aid Programme - Gozo (EAPG).  
 
2. Period covered by the notification  
 
The period covered by this no tification started from 1 January 2013 until 3 1 December 2014. 
However, reimbursement of funds was to be concluded by 2015.  
 
3. Policy objective and/or purpose of the subsidy  
 
The objective of this scheme was to increase the participation of disadvantaged groups in the 
labour market, in line with the objectives of Operational Programme II "Empowering People for 
More Jobs and a better quality of Life ". 
 
4. Background and authority for the subsidy (including identification of the legislation under 
which it is  granted)  
 
Jobsplus (Malta 's Public Employment Service) acted as the Intermediate Body to the Managing 
Authority. The co -finance rate for the EAPG was set at 85% ESF fund and 15% National funds.  
 G/SCM/N/315/EU/Add.19  
 
- 53 - 
 
  5. Form of the subsidy (i.e., grant, loan, tax concession, e tc.) 
 
The form of the subsidy of this aid scheme was in the form of a grant which covered a percentage 
that varied from 50% -75% of the wage costs including the National Insurance Contribution paid by 
the beneficiary. The percentage varied according to whic h target group the participant was found 
eligible.  
 
6. To whom and how the subsidy is provided  
 
Eligibility Criteria:  
 
Beneficiaries from this incentive were undertakings carrying out an economic activity irrespective 
of their legal form excluding public s ector entities but inclusive of self -employed persons. As the 
Intermediary Body, Jobsplus approved the reimbursement of the costs incurred after conducting 
its checks at application, evaluation and reimbursement stage. The aid intensity of the amount 
reimb ursed depended on the target group under which the participant was found eligible.  
 
Target Groups:  
 
1. Any person who has not been in regular paid employment for the previous 6 months and 
does not have a job.  
 
2. Any person who wishes to enter or to re -enter working life and who has been absent both 
from work and from education for at least two years – particularly any person who gave up 
work on account of the difficulty of reconciling his or her working life and family life.  
 
3. Any person who lives as a single adult with one or more dependants. By dependants, 
Jobsplus understands persons who are either under 18 years of age or bedridden or who are 
severely mentally/physically disabled because they need continuous care.  
 
4. Any person who has not attained an upper secondary educational or vocational qualification 
(ISCED 3).  
 
5. Any person older than 50 years.  
 
6. Any long -term, registered unemployed person, i.e. any person who has been unemployed 
for twelve of the previous sixteen months, or six of the pr evious eight months in the case of 
persons under 25.  
 
7. Any person who is a registered disabled person and who has a recognized, serious, physical, 
mental or psychological impairment  
 
7. Subsidy per unit or total amount  
 
Year  No of Claims  Amount Paid  
2015  433   € 840,765.81  
Total  433   € 840,765.81  
 
These amounts comprise ESF and National Funds combined.  
 
8. Duration of the subsidy  
 
The potential beneficiaries had to conclude the operations by the end of September 2013 though 
the scheme continued to re imburse funds till the end of December 2015. However, during 2013 
additional funds were allocated to the scheme which amounted to €1,962,500. The Grant 
Agreement period for this allocated budget was issued between January till December 2014 and 
reimburseme nts of funds had to be concluded till December 2015. The duration of subsidy was for 
a maximum of 52 weeks.  
 
9. Statistical data   
 
There were no effects on international trade.  G/SCM/N/315/EU/Add.19  
 
- 54 - 
 
   
28   ACCESS TO EMPLOYMNT (A2E) SCHEME  
1. Title of the subsidy programme   
 
Access to Employment (A2E) Scheme.  
 
2. Period covered by the notification  
 
The scheme started in 2015 and will remain active up to 2020.  
 
3. Policy objective and/or purpose of the subsidy  
 
Access to Employment (A2E) Scheme provides employment aid to enterprises i n Malta and Gozo to 
promote the recruitment of the more challenged amongst jobseekers and inactive persons.  
 
This scheme facilitates the integration of job seekers and inactive people in the labour market by:  
 
• Enhancing opportunities to access the labo ur market and providing work experience to those 
furthest away from gainful occupation;  
• Bridging the gap between labour market supply and demand;  
• Increasing social cohesion.  
 
4. Background and authority for the subsidy  
 
Jobsplus (Malta 's Public Emplo yment Service) is acting as the Intermediate Body to the Managing 
Authority. This scheme is in line with the Commission Regulat ion (EU) No 651/2014 of 
17 June 2014 declaring certain categories of aid compatible with the common market in application 
of Arti cles 107 and 108 of the Treaty on the Functioning of the European Union (TFEU) (General 
Block Exemption Regulation. The co -financing rate for the A2E scheme is 80% ESF funds and 20% 
National funds.  
 
5. Form of the subsidy (i.e., grant, loan, tax concession , etc.)  
 
The Scheme is managed on a demand driven basis meaning that Undertaking can apply whenever 
they identify a recruitment need within the company. Grant awards will be provided on a first -
come first -served basis and subject to calendar year total cei lings. The total available budget for 
this scheme is €12 million, with an indicative annual calendar year ceilings of circa €2.4 million per 
annum.  The Scheme is co -financed by the European Social Fund (80%) and National Funds (20%) . 
 
6. To whom and how th e subsidy is provided  
 
Eligibility Criteria:  
 
Beneficiaries who are eligible for this Scheme are undertakings carrying out an economic activity 
irrespective of their legal form excluding public sector  entities but inclusive of self -employed 
persons. Jobspl us, as the intermediary body will approve the reimbursement if the beneficiary 
provides a correct claim for reimbursement, employment has actually taken place and employer 
declares that the expenditure has actually been incurred. All applications for fundi ng will be 
assessed against the eligibility criteria and will proceed for funding subject to availability of funds 
as well as subject that the employment is effected within the eligible period. For the recruitment to 
be eligible, the Undertaking must send a duly completed A2E application form and relevant 
documentation before the end of August 2019. Recruitment must take place no later than 
September 2019 to be considered eligible for the subsidy.  
 
Target Groups:  
 
1. Any person of age 24 and over who has be en unemplo yed/inactive for the previous 
6 months;  
 
2. Any person of age 24 and over who has been unemployed for the previous 12 months 
during which he/she participated in a traineeship with the applicant undertaking;  G/SCM/N/315/EU/Add.19  
 
- 55 - 
 
   
3. Any person who is living as a singl e adult who has one or more dependants and is not in full -
time employment;    
 
4. Any person of age 24 and over who has not attained an upper secondary educational or 
vocational qualification (ISCED 3) and who does not have a job;  
 
5. Any person older than  50 years who does not have a job;  
 
6. Any person who has been unemployed/inactive for the previous 12 months during which 
he/she has not benefited from a traineeship with the applicant undertaking and who belongs 
to either category (3) to (5);  
 
7. Any pe rson of age 24 and over who has been unemployed/inactive for the previous 24 
months during which he/she has not benefited from a traineeship with the applicant 
undertaking;  
 
8. Any person who is a registered disabled person under national law and is not i n full -time 
employment.  
 
7. Subsidy per unit or the total amount   
 
Target Group  Description   Standard Scale of Unit Cost based on 40 hours per week
      Standard Scale of Unit Cost based on 20 hours per week  
 
1 to 7  Disadvantaged and Severely Disadvantaged  Persons  €85  €42.50  
8 Registered Disabled Persons      €125  €62.50  
 
The Access to Employment Scheme in 2016 disbursed €223,079.49. These amounts comprise ESF 
and National Funds combined.  
 
8. Duration of the subsidy  
 
Target Group     Duration   Retention Pe riod 
Disadvantaged Persons  
(Target Group 1 to 5)    26 or 52 weeks  2 to 4 months  
Severely Disadvantaged Persons  
(Target Group 6 to 7)    104 weeks   8 months  
Registered Disabled Persons  
(Target Group 8)     156 weeks   12 months  
 
9. Statistical data   
 
There are  no effects on international trade.  
 
STATE AID SCHEMES ADMINISTERED FOR GOZO IN 2015 & 2016  
 
29  ENHANCING MARKETING OPPORTUNITIES FOR DR IVING SECTOR  
1. Title of the subsidy  
 
Enhancing Marketing Opportunities for the Diving Sector.  
 
2. Period covered by the notific ation 
 
1 January 2015 – 1 December 2016.  
 
3. Policy objectives  
 
To provide assistance to Diving Centres based in Gozo in their international marketing efforts.  
 G/SCM/N/315/EU/Add.19  
 
- 56 - 
 
  4. Background and Authority for the subsidy  
 
Scheme was administered by the Tourism & Economic Develo pment Directorate within the Ministry 
for Gozo. It was administered on the basis of P&I 5723 'Business Promotion & Incentive 
Framework '. This forms part of the recurrent vote of MGOZ.  
 
5. Form of the subsidy  
 
Eligible Beneficiaries were entitled for a reimbur sement of 50% of eligible costs up to €2,000 when 
pursuing advertising activities through publications, television, social media and websites. This 
threshold increases to €3,000 in those instances when Beneficiary participates as well in 
international spec ialised fares.     
  
6. To whom and how the subsidy is provided  
 
Eligible Participants were Gozo -based Diving Centres licensed from the Malta Tourism Authority 
and who have undertaken international advertising initiatives or participated in international 
specialised fairs abroad with the objective of promoting both the diving market segment and Gozo 
as a travel destination. The subsidy is provided on presentation of evidence of expenditure.       
 
7. Amount of the subsidy  
 
2015 - €12,000  
2016 - €15,720.02  
 
8. Durati on of the subsidy  
 
The duration of the subsidy was between 1 January 2015 and 1 December 2016  
 
9. Trade effects of the subsidy  
 
There were no effects on international trade.  
 
30  SUPPORTING MARKETING  INITIATIVES FOR SPEC IFIC NICHE MARKETS I N GOZO  
1. Title of the s ubsidy 
 
Supporting Marketing Initiatives for Specific Niche Markets in Gozo.  
 
2. Period covered by the notification  
 
1 January 2016 – 1 December 2016.  
 
3. Policy objectives  
 
To provide assistance to tourist operators in Gozo in the promotion of the following nich es: Sports 
and Adventure Tourism (excl Diving); Religious Tourism; Meetings, Events & Conferences; 
Weddings  
 
4. Background and Authority for the subsidy  
 
Scheme was administered by the Tourism & Economic Development Directorate within the Ministry 
for Gozo. It was administered on the basis of P&I 5723 'Business Promotion & Incentive 
Framework '. This forms part of the recurrent vote of MGOZ.  
 
5. Form of the subsidy  
 
Eligible Beneficiaries were entitled for a reimbursement of 50% of eligible costs up to €2,000 to 
cover the advertisement costs in publications, television, social media and websites. This threshold 
increases to €3,000 in those instances when Beneficiary participated as well in international 
specialised fares.  
 G/SCM/N/315/EU/Add.19  
 
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  6. To whom and how the subsidy is provided  
 
Eligible Participants are Gozo -based tourism operators registered with the Malta Tourism Authority 
and who have either undertaken international advertising initiatives or participate in international 
specialised fares abroad with the objective of promoting  both the particular segment and Gozo as 
a travel destination. The subsidy is provided on presentation of evidence of expenditure.     
   
7. Amount of the subsidy  
 
2016 - €17,327.07  
 
8. Duration of the subsidy  
 
The duration of the subsidy was between 1 January 2 016 and 1 December 2016.  
 
9. Trade effects of the subsidy  
 
There were no effects on international trade.  
 
31  SUPPORTING BUSINESS ENTITIES TO ATTEND T HE WEB SUMMIT IN LIS BON IN 2016  
1. Title of the subsidy  
 
Supporting Business Entities to attend the Web Summit in Li sbon in 2016.  
 
2. Period covered by the notification  
 
6 November 2016 and 11 November 2016.  
 
3. Policy objectives  
 
To support ICT companies based in Gozo to attend the Web Summit in Lisbon that was held 
between 7 & 10  November 2016.  
 
4. Background and Authority for  the subsidy  
 
Scheme was administered by the Tourism & Economic Development Directorate within the Ministry 
for Gozo. It was administered on the basis of P&I 5723 'Business Promotion & Incentive 
Framework '. This forms part of the recurrent vote of MGOZ.  
 
5. Form of the subsidy  
 
Eligible Beneficiaries were provided financial support to cover up to a maximum of one (1) person 
for the following activities: (a) economy class air fare ticket to and from the location of the Web 
Summit; (b) registration costs / parti cipation fees equivalent to the 'standard ticket '; and (c) 
subsistence costs to be calculated according to the standard daily rates published by the Ministry 
for Finance for government and public sector employees. The total subsistence allowance 
entitlemen t for travel abroad was calculated on the number of nights spent abroad multiplied by 
the per diem allowance, irrespective of the time of departure from Malta.  Through this allowance 
the applicant was to cover local transportation to/from the airport, acco mmodation costs, 
breakfast and meals, hotel/airport transfers, local travel when abroad, telecommunications and all 
other incidental and sundry expenses.  
 
6. To whom and how the subsidy is provided  
 
Eligible Participants are Gozo -based business entities speci alised in the development of high tech 
and software products or specialist companies in digital media operations and participate in the 
Web Summit in Lisbon.       
 G/SCM/N/315/EU/Add.19  
 
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  7. Amount of the subsidy  
 
2016 - €6,395.48  
 
8. Duration of the subsidy  
 
The duration of the subsi dy was between 6 November 2016 and 11 November 2016.  
 
9. Trade effects of the subsidy  
 
There were no effects on international trade.  
 
32  PROMOTING ECONOMIC C OHESION IN GOZO (FIS HERIES SECTOR)  
1. Title of the subsidy  
 
Promoting Economic Cohesion in Gozo (Fisheries S ector).  
 
2. Period covered by the notification  
 
1 July 2014 – 31 December 2020.  
 
3. Policy objectives  
 
The purpose of this scheme is to promote economic cohesion in Gozo through the provision of 
assistance earmarked to partially mitigate the handicap of double i nsularity faced by fisheries 
operators.  
 
4. Background and Authority for the subsidy  
 
The scheme is an administrative measure implemented under Vote 20 Item 5278 of the Ministry 
for Gozo.  
 
5. Form of the subsidy  
 
The form of subsidy entail a refund of eligible c osts incurred which is paid to beneficiaries in the 
form of a cash grant.    
 
6. To whom and how the subsidy is provided  
 
Eligible participants are economic operators (including individuals) that carry out an economic 
activity in the Fisheries Sector. Subsidy  is granted based on submission of evidence of expenditure 
incurred.            
 
7. Amount of the subsidy  
 
2015 - €97.80  
2016 - €48.90  
 
8. Duration of the subsidy  
 
The duration of the subsidy is between 1 July 2014 and 3 1 December 2020.  
 
9. Trade effects of the sub sidy 
 
There were no effects on international trade.  
 
33   FRUIT AND VEGETABLES  GRADING AND PACKING FACILITY  
1. Title of the subsidy  
 
Fruit and Vegetables Grading and Packing Facility.  G/SCM/N/315/EU/Add.19  
 
- 59 - 
 
   
2. Period covered by the notification  
 
15 March 2016 – 31 December 2020.  
 
3. Policy  objectives  
 
The purpose of this scheme is to support the agricultural sector in Gozo by providing assistance for 
the setting -up, implementation and operation of fruit and vegetables grading and packing facilities.  
 
4. Background and Authority for the subsid y 
 
The scheme is an administrative measure being implemented by the Ministry for Gozo.  
 
5. Form of the subsidy  
 
The form of subsidy entail a refund of eligible costs incurred which is paid to beneficiaries in the 
form of a cash grant.    
 
6. To whom and how the subsidy is provided  
 
Eligible participants are agricultural cooperatives based in Gozo.  
 
7. Amount of the subsidy  
 
2016 - €32,000  
 
8. Duration of the subsidy  
 
The duration of the subsidy is between 15 March 2016 and 3 1 December 2020.  
 
9. Trade effects of the subsid y 
 
There were no effects on international trade.  
 
34  TRANSPORT OF FODDER SCHEME  
1. Title of the s ubsidy  
 
Transport of Fodder Scheme . 
 
2. Period covered by the notification  
 
2 January 2015 – 31 December 2017.  
 
3. Policy objectives  
 
The scheme will focus on the provisi on of support to breeders of livestock intended for 
slaughtering, who are operating in Gozo and purchase fodder for their livestock from Malta and 
thus incur additional transport costs commuting between Gozo and Malta.  
 
4. Background and Authority for the sub sidy 
 
The scheme is an administrative measure being implemented by the Ministry for Gozo.  
 
5. Form of the subsidy  
 
The aid is a refund of eligible costs incurred which is paid to beneficiaries in the form of a cash 
grant. The subsidy shall cover a percentage of the additional costs incurred in the transportation of 
fodder between Malta and Gozo. Eligible costs shall not be higher than the relevant official tariff 
pertaining to the established scheduled inter -island sea transport.     
 G/SCM/N/315/EU/Add.19  
 
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  6. To whom and how the subsi dy is provided  
 
Eligible beneficiaries are exclusively breeders of bovines, broilers, layers, swine and sheep in Gozo.  
 
7. Amount of the subsidy  
 
2015 - €42,999.96  
2016 - €50,125.75  
 
8. Duration of the subsidy  
 
The duration of the subsidy is between 2 January 20 15 and 3 1 December 2017.  
 
9. Trade effects of the subsidy  
 
There were no effects on international trade.  
 
35  PROMOTING ECONOMIC C OHESION IN GOZO (AGR ICULTURE SECTOR)  
1. Title of the s ubsidy  
 
Promoting Economic Cohesion in Gozo (Agriculture Sector).  
 
2. Period covered  by the notification  
 
1 January 2014 – 31 December 2020.  
 
3. Policy objectives  
 
The purpose of this scheme is to promote economic cohesion in Gozo through the provision of 
assistance earmarked to partially mitigate the handicap of double insularity faced by a griculture 
operators.  
 
4. Background and Authority for the subsidy  
 
The scheme is an administrative measure implemented under Vote 20 Item 5278 of the Ministry 
for Gozo.  
 
5. Form of the subsidy  
 
The form of subsidy entail a refund of eligible costs incurred whic h is paid to beneficiaries in the 
form of a cash grant.    
 
6. To whom and how the subsidy is provided  
 
Eligible participants are economic operators and individuals that carry out an economic activity in 
the Agriculture Sector. Subsidy is provided on evidence  of payment.  
 
7. Amount of the subsidy  
 
2015 - €40,771.95  
2016 - €38,970.15  
 
8. Duration of the subsidy  
 
The duration of the subsidy is between 1 January 2014 and 3 1 December 2020.  
 
9. Trade effects of the subsidy  
 
There were no effects on international trade.  
 G/SCM/N/315/EU/Add.19  
 
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  36  PROMOTING ECONOMIC COHE SION IN GOZO (INDUST RIAL SECTOR)  
1. Title of the S ubsidy  
 
Promoting Economic Cohesion in Gozo (Industrial Sector).  
 
2. Period covered by the notification  
 
1 January 2014 – 31 December 2020.  
 
3. Policy objectives  
 
The purpose of this scheme is to  promote economic cohesion in Gozo through the provision of 
assistance earmarked to partially mitigate the handicap of double insularity faced by Gozo -based 
manufacturing undertakings.  
 
4. Background and Authority for the subsidy  
 
The scheme is an administrat ive measure implemented under Vote IX Item 7096 of the Ministry 
for Gozo.  
 
5. Form of the subsidy  
 
The form of subsidy entail a refund of the additional costs incurred to transport any machinery, 
plant, material, goods or products directly connected with the economic activities of the eligible 
beneficiaries between Malta and Gozo. Eligible costs shall not be higher than the relevant official 
tariff pertaining to the established scheduled inter -island sea transport plus half of the related on -
land haulage costs .    
 
6. To whom and how the subsidy is provided  
 
Eligible beneficiaries are business concerns engaged in manufacturing activities in Gozo. Subsidy is 
provided as a grant based on actual expenditure incurred.  
 
7. Amount of the subsidy  
 
2015 - €304,477  
2016 - €421,553  
 
8. Duration of the subsidy  
 
Activities have to be undertaken by 2020.  
 
9. Trade effects of the subsidy  
 
There were no effects on international trade.  
 
 
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