G/SCM/N/284/EU/Add.19  
 
27 August 2015  
(15-4322)  Page: 1/80  
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES 
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1  
OF THE GATT 1994 AND ARTICLE 25 OF THE AGREEMENT  
ON SUBSIDIES AND COUNTERVAILING MEASURES 
EUROPEAN UNION 
Addendum 
The following addendum to the notification of the European Union relates to subsidy programmes 
of Malta . 
 
_______________ 
 
 G/SCM/N/284/EU/Add.19 
 
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  MALTA  
 
 
TABLE OF CONTENTS 
1   INVESTMENT AID SCHEME .......................................................................................... 4  
2   REDUCED RATE OF TAX ON REINVESTED PROFITS .................................................... 15  
3   INDUSTRY IN GOZO .................................................................................................. 16  
4   SOFT LOANS .............................................................................................................. 1 7 
5   LOAN INTEREST RATE SUBSIDIES ............................................................................. 18  
6   LOAN GUARANTEES ................................................................................................... 18  
7   STRENGTHENING MARKET ENTR Y AND INTERNATIO NALISATI ON ............................ 19  
8   NETWORK SUPPO RT SCHEME .................................................................................... 21  
9   BUSINESS DEVELOPM ENT GRANT SCHEME ................................................................ 24  
10   BUSINESS DEVELOPM ENT GRANT SCHEME .............................................................. 25  
11   BUSINESS ADVISORY SERVICES SCHEME ................................................................ 27  
12   BUSINESS ADVISORY SERVICES SCHEME ................................................................ 29  
13   ERDF INTERNATIONAL CO MPETITIVENESS GRANT SCHEME .................................... 31  
14   CREATE TAX CREDITS FO R CREATIVE ENTERPRISES ............................................... 33  
15   GOZO TRANSPOR T GRANT SC HEME ......................................................................... 36  
16   TAX CREDITS FOR MICRO ENTERPRISES AND THE SELF EMPLOYED (ALSO 
KNOWN AS MICRO INVEST ) ........................................................................................... 39  
17   EXPLORATORY AW ARD FP7 SC HEME ....................................................................... 42  
18   INNOVATIVE ST ART-UP SC HEME ............................................................................. 44  
19   SMALL START-UP GRANTS SC HEME ......................................................................... 46  
20   SME DEVELOPMEN T GRANT SC HEME ....................................................................... 48  
21   QUALITY+ TAX DEDUCTIONS FO R ENTERPRISES THAT IMPROVE THE 
QUALITY OF THE PRODUCTS, SERVICES AND PROCESSES .............................................. 50  
22   EUREKA R&D GRAN T ............................................................................................... 54  
23   EUROSTARS R&D GRANT ......................................................................................... 57  
24   INDUSTRIAL RESEACH AND EXPE RIMENTAL DEVELOPMENT SCHEME ..................... 61  
25   ERDF INDUSTRIAL RESEARCH AND EXPERIMENTAL DEVELOPMENT ........................ 63  
26   PREPARATORY TECHNICAL FE ASIBILITY STUDIE S SCHEME .................................... 66  
27   INTEREST RATE SUBSIDY SCHEME FOR THE REFURBISHMENT OF HOTELS, 
ACCOMMODATION FACILITIES  AND RESTAU RANTS ....................................................... 67  
28   MICRO GUARAN TEE SCHE ME ................................................................................... 70  
29   TRAINING ASSISTAN CE .......................................................................................... 73  
30   TRAINING AI D FRAMEW ORK ................................................................................... 74  
31   EMPLOYMENT AI D PROGRAMME .............................................................................. 75  
32   AGRICULTURAL NATIONALLY FULL-FINANCED AID ................................................. 76  
32.1   Special Marketing Policy Programme for Maltese Agriculture (SMPPMA) – Aid in the 
Tomatoes for Proc essing Sector ......................................................................................... 76 G/SCM/N/284/EU/Add.19 
 
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  32.2   Special Marketing Policy Programme for Maltese Agriculture (SMPPMA) – Aid in the 
Fresh Fruit Sector ............................................................................................................  76 
32.3   Special Marketing Policy Programme for Maltese Agriculture (SMPPMA) – Aid in the 
Fresh Vegetables Sector ................................................................................................... 77 
32.4   Special Marketing Policy Programme for Maltese Agriculture (SMPPMA) – Aid in the 
Wine Se ctor ................................................................................................................... . 78 
32.5   State aid for the transport of produce from Gozo – Agricultur e and Fisher ies 2013 ........... 79 
32.6   State aid for the transport of produce from Gozo – Agriculture 2014 .............................. 79 
32.7   State aid for the transport of produce from Gozo – Fisheries 2014 ................................. 80 
 
 G/SCM/N/284/EU/Add.19 
 
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INTRODUCTION 
This report covers state aid programmes and schemes that were in operation between 2013 and 
2014. The amounts stated in this report are in the Euro currency (€). 
 
1  INVESTMENT AID SCHEME 
1. Title of the subsidy 
 
Investment Aid Scheme.  (Investment Aid Regulations as subsidiary legislation 463.02
1 to the Malta Enterprise Act, 
Chapter 463 of the Laws of Malta2). 
 2. Period covered by the notification 
 The period covered by this notification starts from 1
 January 2013 until 31 December 2014. 
 
3. Policy objective 
 
The terms and conditions of the Investment Aid Scheme  are in line with Article 13  – Regional 
investment and employment aid  of Section 1  - Regional Aid  of Commission Regulation (EC) 
No 800/2008 of 6 August 2008 declaring certain categories of aid compatible with the common 
market in application of Articles 87 and 88 of the Treaty  (General block exemption Regulation) 
[GBER].3 
 
Undertakings which carry out solely  one or more of the eligible activities listed below may qualify 
for assistance under this support measure: 
 
1. Manufacturing : 
 
a. Undertakings engaged in the production, manufacture, improvement, assembly, 
preservation, processing of any goods, materials, commodities, equipment, plant and 
machinery. 
Provided that: 
 
i. The resultant product(s) should be clearly distinct from the materials and 
components utilised; and 
ii. Undertakings engaged in the production of motor vehicles require prior approval. 
b. The rendering of any industrial services analogous to the activities mentioned in (a) 
above. 
c. The repair, overhaul or maintenance of: 
i. Pleasure crafts and yachts not having more than thirty berths; 
ii. Aircraft; 
iii. Engines or electromechanical equipment incorporated or used in (i) and (ii) above. 
An undertaking whose activities includes the installation, commissioning or assembly of 
goods on site, is only considered as eligible if the goods are manufactured by the same undertaking. 
 
                                               
1 http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=11607&l=1 . 
2 http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1 . 
3 http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:214:0003:0047:EN:PDF . G/SCM/N/284/EU/Add.19 
 
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  2. Information Technology  
Undertakings engaged in Information Tec hnology (I.T.) carrying out significant 
developmental activities and providing infrastructure services for I.T. developmental activities. 
 
3. Call Centre Activities  
Undertakings engaged in inbound or outbound call centre services that receive customer 
orders, provide product information, deal with  customer requests for assistance, address 
customer complaints, sell or market goods or services to potential customers, undertake market research or public opinion polling and similar activities for clients. 
 
Eligible undertakings for Call Centre activities may only benefit from assistance under this 
support measure or claim any accumulated tax credits if the number of full time equivalent employment for the year in review is at least equal to twenty five. 
 
4. Research and Develo pment and Innovation  
Undertakings engaged in the design, development, testing and technical analysis of new 
products and processes that at application stage are considered as the leading edge of the 
applicable market. 
 
5. Eco-innovations, waste treatment and environmental solutions  
Undertakings engaged in: 
 
a. Waste Treatment 
For the purposes of this support measure, "waste treatment" means the operation of 
physical, thermal, chemical or biological process, and includes sorting, which changes the characteristics of the waste in order to reduce its volume or hazardous nature, facilitate its 
handling or enhance recovery; 
 
b. "Eco-Innovation Services" and "Environmental Solutions" 
For the purposes of this support measure, "eco-innovation" means an innovation resulting in 
significant and demonstrable progress towards th e goal of sustainable development, through 
reducing impacts on the environment or achieving a more efficient and responsible use of resources, including energy. 
 
The operation of "eco-innovation services" and "environmental solutions" that significantly prevent, reduce or reverse the negative impact s of human activities on the environment is 
eligible for assistance. 
 
6. Biotechnology  
 
Undertakings that are engaged in: 
 a. The research, development, quality assurance (including clinical trials and validation) or 
production of, products and services requiring the use of bio-technologies for their 
modification, synthesis or exploitation; 
b. The research, development, validation and commercialisation (introducing a new 
product, service or production method to the market) of human tissue programmes 
(stem cells, tissue transplantation and so on); 
c. The production, quality assurance and clinical validation of new medical devices based 
on research in life sciences; 
d. The development and application (including knowledge transfer) of research in life 
sciences within industry. G/SCM/N/284/EU/Add.19 
 
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  7. Pharmaceuticals  
 
Undertakings holding a Good Manufacturing Practice certificate issued by the Medicines Authority in Malta that are engaged in the: 
 
a. Formulation, development and manufacturing of pharmaceuticals licensed for use as 
medications; 
b. Preparation and packaging of pharmaceuticals license for use as medications. 
8. Facilities for Filming and Audiovisual Productions  
 
For the purposes of this support measure, facilities for filming and audiovisual productions 
include: 
 a. The production (through script writing, casting, shooting, directing and editing) of 
audiovisual productions consisting of feature films, television films, advertisements and 
documentaries; or 
b. The operation and provision of facilities and equipment (such as film studios audiovisual 
editing facilities and film and filming equipment) required in the production of feature 
films, television films, advertisements and documentaries; or 
c. The operation of a sound studio; or 
d. The development of digital media and digital games. 
Undertakings engaged in broadcasting of audi ovisual content to live audiences through any 
media channels or engaged in programming and broadcasting activities (NACE rev. 2 Class 60.0) are ineligible for assistance under this support measure. 
 
9. Provision for Tertiary Education  
 
Undertakings engaged solely in the provision of tuition leading to qualifications classified by 
the Malta Qualifications Council as Level 5 of higher. An undertaking is considered as eligible for assistance under this support measure if it carries out a new investment project that within a twenty four month period: 
 
a. Constitutes an investment of at least two million Euro in educational and teaching 
resources (I.T. equipment, multimedia equipment, laboratory equipment, software, 
literature); or 
b. Comprises an investment in educational and teaching resources and results in the 
creation of at least twenty five direct new full time jobs. 
10. Provision of Private Health Care Services  
 
For the purposes of this support measure, eligible applicants should undertake a new investment project for the provision of private health care in Malta that: 
 
a. Constitutes an investment of at least five million Euro in medical equipment (diagnostic 
equipment [such as ultrasound and MRI machines, PET and CT scanners and X-Ray 
machines], therapeutic equipment [which incl uded infusion pumps, medical lasers and 
LASIK surgical machines], life support equipment [such as medical ventilators, anaesthetic machines, heart-lung machines and dialysis machines] used to maintain a 
patient's bodily function, and medical moni tors [which measure a patient's medical 
condition such as vital organs, ECG, EEG and blood pressure], within a twenty four month period; or 
b. Comprises an investment in medical equipment and results in the creation of at least 
twenty five direct new full time equivalent  jobs within a twenty four month period. G/SCM/N/284/EU/Add.19 
 
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  Undertakings qualifying for assistance under this support measure for the provision of health 
care services through the creation of employment may claim accumulated tax credits if the number of full time equivalent employees for the year in review is at least equal to twenty five. 
 
11. Logistics Operations by Large Undertakings  
 
Large undertakings
4 creating more than fifty new direct full time equivalent jobs and carry 
out in the region of Malta an activity which includes: 
 
a. The management of the flow of third party goods; and 
b. The part-transformation that added value to such goods. 
Mere warehousing, transportation, inventory management, material handling and packaging 
operation are ineligible activities under this support measure. 
 
Undertakings may only benefit for assistance or claim accumulated tax credits if the number of full time equivalent employees for the year in review is at least equal to fifty. 
 
12. Freeport Activities  
 
Undertakings licensed under and carrying out the activities set out in Article 10 of the Malta 
Freeports Act, Chapter 334 of the Laws of Malta.
5 
 
13. Hotels, Resort Hotels, Suites/Apartment Hotels or Guest Houses  
 
Undertakings whose economic activity consists mainly in the operation or management of a licensed hotel or group of hotels, that invests in the development or upgrading of a licensed 
hotel, apartment hotel or guest house for the purpose of providing short term hospitality, 
shall be deemed to be eligible for assistance under this support measure. In such cases, the 
investment aid intensity shall not exceed 15% of the qualifying expenditure incurred. 
 
14. Shared Regional and Global Management  and Services linked to established 
manufacturing activities : 
 
Undertakings established in Malta after 1 January 2012 that: 
 
a. Are linked to an existing undertaking that has: 
i. Been considered eligible for the aid for at least the preceding two years; and 
ii. For the past twenty four months had an employment total equivalent to at least fifty 
full time employees; and 
 
b. Create at least thirty direct new full time equivalent jobs during the first twelve months 
from commencement of operations, that result in a net increase in the number of employees within linked companies operating in Malta; and 
c. Provide solely one or more of the follow ing shared services for the purpose of 
consolidation and vertical integration of existing operations: 
i. Marketing, sales and business development; 
ii. Legal services; 
iii. Financial services; 
iv. Back office services; 
v. Corporate services; 
vi. Logistical services; 
                                               
4 Large undertakings in terms of Annex I of the GBER: 
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:214:0003:0047:EN:PDF . 
5 http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8807&l=1 . G/SCM/N/284/EU/Add.19 
 
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  Are considered as eligible for assistance under this support measure. 
 
The shared services are considered as ineligible activities if they do not consist of solely the mere expansion, duplication or replacement of a trade of business formerly carried out in 
Malta by any person or undertaking directly or indirectly connected with the said 
undertaking. 
 
Undertakings may only benefit from assistance under this support measure or claim 
accumulated tax credits if the number of full time equivalent employees for the year in review is at least equal to thirty. 
 
15. Knowledge Intensive Business Services  
 
An undertaking established in Malta after the 1 January 2012 that: 
 
a. Is solely engaged in the provision of one of the following shared knowledge intensive 
services: 
i. Treasury management; 
ii. International market research and public opinion polling; 
iii. Architectural, engineering and technical design services; 
iv. Human resource recruitment, provision and management; 
v. Strategic and organisational planning, decision making, operational control and 
operations management of linked and partnered undertakings; 
Where such services do not consist mainly of the mere expansion, duplication or 
replacement of a trade or business formerly carried out in Malta by any person or 
undertaking directly or indirectly connected with the said undertaking; and that 
 
a. Creates at least thirty direct full time equivalent jobs within twelve months from 
commencement of operations within a services centre based in Malta or twenty direct full 
time equivalent jobs within a services centre that is based in Gozo; where such employment results in a net increase within linked undertakings operating in Malta; and 
b. Is not related directly or indirectly to Banks and other credit institutions, audit firms, 
fiduciary services, insurance firms and other undertakings engaged in financial services; 
Such undertakings shall be considered as eligible for assistance under this support measure. 
  
Eligible undertakings may only benefit from assistance under this support measure and claim accumulated tax credits, if: 
 
i. The number of direct full time equivalent employment for the year in review is at 
least equal to thirty when the services centre is based in Malta or twenty when the services centre is based in Gozo; and 
ii. At least 60% of the employees have at least a qualification of Level 6 of higher 
(Bachelor's Degree or higher) as defined by the Malta Qualifications Council. 
Undertakings carrying out the activities set out under Nos. 2 till 15 above shall only qualify 
for tax credits under the Investment Aid Scheme  if their project is approved a priori  by 
the Corporation in writing. The Corporation may impose any conditions it deems fit. Undertakings engaged solely in software deve lopment are deemed eligible for assistance 
under this scheme. 
 Disqualifying Activities 
 
An undertaking is considered to be ineligible for assistance under this support measure if it carries 
out any of the activities listed below and this irrespective of whether the same undertaking is carrying out eligible activities: 
 G/SCM/N/284/EU/Add.19 
 
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  1. Sale by Retail  
 
An undertaking is deemed not to sell by retail if: 
 
a. The sales of goods or services are made to an undertaking and the goods or services are 
either resold or used by such undertaking in carrying out an economic activity; 
b. The sales of goods or services are made to  an undertaking that used those goods or 
services for the purpose of carrying out an economic activity; 
c. The sales of goods or services are made to a person or undertaking through e-commerce 
activities resulting in online transactions effected by means of a secure payment system; 
d. Such undertaking is a micro sized undertaking that sells solely goods manufactured by 
that same undertaking. 
2. Non Value Adding Processes  
 
For the purposes of this support measure, non-value adding processes are defined as: 
 
a. Dividing, sorting, packaging, mixing without changing the character of the good, drying, 
labelling, or other similar processes or any combination of such processes to goods 
which are acquired in bulk to prepare those goods for sale or distribution; 
b. Unless such processes are carried out as part of a manufacturing activity as defined 
under No. 1 Manufacturing above; 
c. The assembly of any goods where: 
i. The final assembled good is clearly recognisable from the individual components or 
parts from which it is assembled without regards being taken to any exterior casing 
of the good; and 
ii. The components and parts from which the good is assembled are such that the good 
is nearly complete. 
d. The work and supervision of such assemb ly work almost exclusively require the 
employment of unskilled workers such that the assembly operation is of a spurious nature when considered in the light of manufacturing activities. 
3. Catering  
 
The undertaking's trade or business includes the preparation or production of "food in the course catering" which is directly supplied to the final consumer. Such processes are eligible 
only if carried out as part of a hotel, resort hotel, suite or apartment hotel or guest house 
operation as defined in No. 13 above. 
 
4. Authority of subsidy 
 
Malta Enterprise Corporation – Malta Enterprise Act (Chapter 463 of the Laws of Malta).  
5. Form of subsidy 
 
The form of assistance under this support measure is tax relief (tax credits). At the Corporation's 
discretion the entitlement of aid may be exceptionally converted to other forms of aid in respect to 
initial investment projects that provide a significant contribution to the development of the Maltese economy: 
 
1. Grants 
2. Low-interest loans 
3. Interest rebates G/SCM/N/284/EU/Add.19 
 
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  4. Loan Guarantees 
5. Rent rebates. 
 Such conversions must be pre-approved in writing by the Corporation before commencement of 
work on the project. 
 6. To whom and how the subsidy is paid 
 Undertakings falling under any of the following cate gories carrying out any of the eligible activities 
listed earlier on may qualify for assistance under this support measure:  
A partnership constituted under the Companies Act (Chapter 386 of the Laws of Malta)
6, being a 
partnership en nom collectif , en nom commandite  or a limited liability company; or 
 
A body of persons constituted, incorporated or regi stered outside Malta, and of a nature similar to 
the aforesaid partnerships and registered as an overseas company in accordance with the 
Companies Act; or 
 
A co-operative society duly registered as such under the Co-operative Societies Act (Chapter 442 of the Laws of Malta).
7 
 
Investment aid shall be awarded to a qualifying undertaking in respect to an initial investment 
project.  
An Initial Investment Project  shall entail the acquisition or development of tangible and 
intangible assets for:  
a. The setting up of a new establishment; 
b. The extension of an existing establishment; 
c. The diversification of the output of an establishment into new, additional products; 
d. A fundamental change in the overall producti on process of an existing establishment; 
e. The acquisition by an independent qualifying co mpany of capital assets directly linked to 
an establishment which has closed or which would have closed had it not been purchased. 
Investment aid is calculated either in reference to tangible  and intangible  investment costs 
resulting from the initial investment project or to the value of wage costs for jobs directly created by the initial investment project. The total amount of investment aid that may be awarded for a 
given investment project shall not exceed: 
 
 50% of the eligible investment in the case of a small  undertaking; 
 40% of the eligible investment in the case of a medium  undertaking; 
 30% of the eligible investment in the case of a company which qualifies as a large 
undertaking; 
 
In the case of large investment projects, investment aid shall never exceed 15% of the eligible 
investment for the part in excess of €50 million and 10.2% of the eligible investment for the part exceeding €100 million. 
 
Such large projects need to be approved in writing before commencement of works.  The value of qualifying expenditure is  calculated as the value of either: 
 
a. Qualifying tangible and intangible assets acquired in relation to an initial investment 
project; or 
                                               
6 http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8853&l=1 . 
7 http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8908&l=1 . G/SCM/N/284/EU/Add.19 
 
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  b. Wage costs for jobs directly created by the initial investment project. 
Where the aid is calculated on the basis of tangible or intangible investment costs, or of acquisition 
costs, the beneficiary must provide a financial contribution of at least 25% of the eligible costs, either through its own resources or by external financing, in a form which is free of any public 
support. 
 Qualifying tangible assets  means assets relating to land, buildings as well as plant and 
machinery related to an initial investment programme. 
 Provided that:  
a. Investment in land, buildings or structures is preapproved by the Corporation and 
excludes costs related to the construction of showrooms; 
b. The term 'plant and machinery' shall have the meaning attributed to it for the purposes 
of the Income Tax Act, Chapter 123 of the Laws of Malta
8 but excludes: 
i. Motor vehicles, except for such specialised motor vehicles as may be approved by 
the Corporation; 
ii. Works of art and antiques; 
iii. Any asset that is not directly related to the eligible economic activities of the 
undertaking. 
c. Except in the case of small and medium-sized undertakings (SMEs), any "plant and 
machinery" acquired should be new and first used in Malta. 
d. With the exception of plant or equipment that has become outdated due to rapid 
technological change, tangible assets must be kept by the undertaking for at least five 
years or three years in the case of SMEs. The underlying economic activity shall be 
retained in Malta for the minimum period of at least five years or three years in the case where the beneficiary was an SME. 
e. Expenditure incurred on the improvement or extension of immovable property held by 
title of emphyteusis or contracted on a lease not less than five years, shall be as assets acquired by the company. 
f. The acquisition of tangible assets under a contract of hire which stipulates that 
ownership of an asset shall or may pass to the lessee when a specified amount has been 
paid, shall be deemed as acquired by the company. 
g. The acquisition of tangible assets directly li nked to an establishment that has closed or 
would have closed had it not been purchased may also be regarded as an initial 
investment if: 
i. Such assets are bought by an independent undertaking; 
ii. Only the costs of buying assets from third parties should be taken into consideration; 
iii. All aid awarded in the past is deducted; 
iv. The transaction took place under market conditions. 
h. The sole acquisition of the shares of an undertaking does not qualify as initial 
investment. 
Qualifying intangible assets  means assets entailed by the transfer of knowledge through the 
acquisition of patent rights, licences, know -how or unpatented technical knowledge. 
 
Provided that:  
a. For SMEs, the full expenditure in qualifying intangible assets is considered; 
                                               
8 http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8658&l=1 . G/SCM/N/284/EU/Add.19 
 
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  b. For large undertakings, the value of qualifying expenditure in intangible assets is limited 
to 50% of the total qualifying investment. 
c. Qualifying intangible assets must be: 
i. Used exclusively in the undertaking receiving the aid; 
ii. Regarded as amortizable assets; 
iii. Purchased from third parties under market co nditions without the acquirer being in a 
position to exercise control on the seller or vice versa  (vide Article 3 of Council 
Regulation (EC) No 139/2004, OJ L 29, 29.1.2004, p. 1); 
iv. Included in the assets of the company receiving the aid and remain in the 
establishment receiving the investment aid for at least five years or three years in the case of SMEs. 
Calculating the value of investment in relation to job creation  
The qualifying wage costs covering new employment created within three years of the completion of the investment project shall be considered for calculating the value of qualifying investment on 
the basis of job creation. The value of investment is calculated as the qualifying wage costs 
incurred in the first twenty-four month period of employment of an individual recruited to fulfil a new job directly created by an investment project. 
 
Job creation  meant jobs created as a result of an investment project provided that: 
 
a. A net increase in the number of employees directly employed in a particular 
establishment over the previous twelve mont hs is registered. Therefore any jobs lost 
during that twelve month period shall be deducted from the apparent number of jobs created during the same period. 
b. New employees are employed by the undertaking in relation to the investment and not 
as replacements of other employees. 
c. A job is deemed to be directly created by an investment project if the job is directly 
connected with the economic activity to which the investment related and is created 
within three years from the completion of the investment. Jobs created shall also include additional employment following an increase in the utilisation rate of the capacity created by the investment. 
d. For the purposes of determining whether jobs have been created, the number of 
individuals who are employed by the company on a part-time basis shall be deemed to 
be full time employees as is produced by dividing the number of hours worked per 
annum  by such number of part time employees by one thousand, seven hundred and 
sixty (1760). 
Where the accounting period ending the year of assessment was more or less than 
twelve months, the number of hours worked by part time employees shall be divided 
by an amount which shall be arrived at by dividing the amount of one thousand seven hundred and sixty by three hundred and sixty five and then multiplying the result by the number of days comprised in that accounting period. 
 
e. Qualifying wage costs entailed wage costs covering the first twenty four months of 
employees recruited within three years from  the completion of the investment to: 
i. Fulfil jobs directly created by an investment project; or 
ii. Address an increase in jobs directly created through additional productive capacity 
generated by the investment project. 
f. Each job must be maintained in Malta for a period of three years if the beneficiary is an 
SME, or otherwise for five years. 
For the purpose of determining whether a job ha s been maintained for the required period 
specified above: G/SCM/N/284/EU/Add.19 
 
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i. The commencement date of employment of an  individual employed in replacement of 
another individual shall be deemed to be  the commencement date of employment of 
the individual whose employment was replaced; 
ii. An individual whose employment is for whatever reason terminated is replaced 
within six months of the termination date of employment of the individual. 
Utilisation of Tax Credits  
No tax credit is due to an undertaking for a year of assessment unless it: 
 
a. Is claimed in the appropriate section of a tax return submitted by electronic means; 
b. Submitted the annual return and a copy of the audited accounts to the Corporation 
within a period not exceeding two months after the relative tax return date. 
Any tax credit awarded under this support measure shall not give rise to a right of any tax refund. 
 
Any tax credit that is not absorbed in a particular year of assessment may be carried forward and 
shall be increased at the rate established as the applicable State Aid reference rate for Malta as calculated by the European Commission in accordance with Commission Notice on the method for 
setting the reference and discount rates . 
 Application  Process  
First time applicants may submit an application for the determination of eligibility under this 
support measure by downloading the applicat ion form from the Corporation's website. 
 The following documents must be submitted together with the application form: 
 
a. The Memorandum and Articles of Association; 
b. The latest financial statements, where applicable; 
c. The Enterprise Size Declaration form; 
d. A statement declaring that the undertaking's trade and business consists solely of one or 
more of the eligible activities. 
The Corporation will consider applications from undertakings that met the eligibility criteria 
and that demonstrated a potential positive contribution to the regional development of 
Malta. 
 
The Corporation will issue an Incentive Entitl ement Certificate if the criteria under the Investment 
Aid Scheme  are met. The Certificate is issued subject to terms and conditions as may be imposed 
by the Corporation. The benefits in the Incentive Entitlement Certificate will not remain valid if: 
 
i. The undertaking does not abide by the terms and conditions; or  
ii. If the undertaking's trade or business do not remain solely one or more of the 
activities eligible for this support measure. 
An undertaking shall only be entitled to benefit fr om the investment tax credits if for every year of 
assessment in respect of which it claims such tax credits, it submits:  
a. Audited financial statements; 
b. Income Tax Return; 
c. A statement by the auditor of the company for the accounting period in question, 
confirming that, to the best of his knowledge and belief, the declaration referred to in 
(iv) below is correct; G/SCM/N/284/EU/Add.19 
 
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  d. A declaration signed by all the directors of the undertaking confirming that throughout 
the relevant accounting period the undertaking's trade or business consisted solely of the activities eligible for tax credit under this support measure and that the undertaking is not disqualified from benefitting fr om assistance under support measure. 
In the case of limited liability companies, the declaration as approved by the Board of 
Directors may be signed by the Company Secretary. In such cases the declaration shall state whether: 
 
i. All the directors were present at the meeting approving the declaration and whether 
the meeting was properly convened as re quired by the company's Memorandum and 
Articles; 
ii. The declaration was unanimously approved by the directors present at the meeting 
and, if approval was not unanimous, the number of votes against and the number of votes for the motion. 
e. The official Final Settlement System (FSS) forms. These are required where: 
i. The qualifying expenditure is calculated on the value of jobs created; 
ii. The applicable qualifying activities require a minimum employment level. 
The Corporation may specify other requirements in the Incentive Entitlement Certificate and may 
also request other relevant documents considered to be necessary to verify the claims submitted under this support measure.  
In case the undertaking opts to calculate the qualif ying expenditure on the value of jobs created, it 
should request approval prior to the submission of the relative claim for the tax credit by not later 
than three months from the end of the relative financial year for which the assistance is being 
sought. The request should be submitted on the applicable form and included: 
 
i. The details and value of the investment as a consequence of which the jobs have 
been created; and 
ii. The details of the jobs created. 
7.  Amount of subsidy 
 
2013 – €49,695,113.00. 
2014 – €40,729,552.00.  
In terms of Regulation 20 of the Business Prom otion Regulations (subsidiary legislation 325.06), 
beneficiaries of assistance under the Business Promotion Act must submit a copy of their income tax returns to the Corporation within three months  of filing such returns at the Inland Revenue 
Department. Most undertakings have a financ ial year which ends on 31 December. Such 
undertakings have up to the 30
th October of the following year to submit their return to the Inland 
Revenue Department as well as a further three months to submit it to Malta Enterprise Corporation. 
 
Consequently, the values found in this report relate to fiscal incentives utilised by undertakings as follows: 
 
2013: the values are for year of assessment 2013 (financial year 2012); 2014: the values are for year of assessment 2014 (financial year 2013). 
 
The Corporation is not yet in a position to report the values of the aid applicable to fiscal incentives for the year 2014.  
8. Duration of subsidy 
 
The duration of this aid scheme terminated on 31 December 2013.  
 
This termination date coincided with the termination of the validity of the following State Aid Regulation which was the State Aid regime of the Investment Aid Scheme : G/SCM/N/284/EU/Add.19 
 
- 15 - 
 
  Commission Regulation (EC) No 800/2008 of 6 August 2008 declaring certain categories of aid 
compatible with the common market in application of Articles 87 and 88 of the Treaty  (General 
block exemption Regulation)9. 
 
In December 2013, the European Commission (hereinafter referred to as 'the Commission') 
prolonged the duration of the General block exempt ion Regulation by six months, and that is, till 
30 June 2014. Malta Enterprise Corporation requeste d an extension of the duration of validity of 
the Investment Aid Scheme  so that it could continue to approve assistance for new investment 
projects under this scheme till 30 June 2014. The State Aid Monitoring Board approved this request.  
Consequently, the duration of the Investment Aid Scheme  terminated on 30 June 2014. 
 The revised General block exemption Regulation, Commission Regulation (EU) No 651/2014 of 
17 June 2014 declaring certain categories of aid compatible with the internal market in application 
of Articles 107 and 108 of the Treaty  [General block exemption Regulation (July 2014)
10] came 
into force on 1 July 2014. 
 
Malta Enterprise Corporation notified a new aid scheme entitled Investment Aid Tax Credits 
2014 – 2020 SA39234 . Although the 1st July 2014 is the implementation date of the new 
scheme, the data for assistance for this aid schem e will be available for year of assessment 2015 
(financial year 2014). Consequently, this data will be reported in the next WTO Subsidy 
Notification.   
9. Trade effects of the subsidy 
 
There are no effects on international trade. 
 
2  REDUCED RATE OF TAX ON REINVESTED PROFITS 
1. Title of Subsidy 
 
Reduced Rate of Tax on Reinvested Profits. 
 (Article 6 and 24B of the Business Promotion Act, Chapter 325 of the Laws of Malta).
11 
 
2. Period covered by the notification 
 
The period covered by this notification starts from 1 January 2013 until 31 December 2014. 
 3. Policy objectives 
 
This aid scheme encouraged the re-investment of pr ofits by charging a lower tax rate. Profits set 
aside and used to finance investments in qualifying projects by Malta Enterprise Corporation were charged at a lower tax rate than 35%. In the case of manufacturing companies the tax rate would 
be reduced by 19.25 percentage points while in the case of hotels, the tax rate would be reduced 
by 17.5 percentage points.  
The assets through which this assistance was applicable were expected to be retained by the 
company for at least five years or less as approved  by the Corporation. In the case of unabsorbed 
investment at the end of the fifth year of th e project, the company could opt to use this 
investment to recover the necessary set-aside profits from the gains of the following two years. 
 
A company benefitting from this incentive had to transfer from its distributable reserves to the Incentives and Benefits Reserve Fund, an amount equivalent to the value of the set-aside profits, 
net of tax. Such reserve could not be distributed, or converted into share capital, nor could it be 
reduced to take account of losses before the laps e of eight years from the end of the investment 
period, after which the reserve could be distributed in tax free fully paid bonus shares. 
                                               
9 http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:214:0003:0047:EN:PDF . 
10 http://eur-lex.europa.eu/legal-content /EN/TXT/PDF/?uri=CELEX:32014R0651&from=EN . 
11 http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8799&l=1 . G/SCM/N/284/EU/Add.19 
 
- 16 - 
 
  This aid scheme aimed to increase competitiveness through the acquisition of capital assets for 
more effective and efficient production and supply of service.  4. Authority of subsidy 
 Malta Enterprise Corporation – Malta Enterprise Act (Chapter 463 of the Laws of Malta).  
5. Form of subsidy 
 
The form of the subsidy of this aid scheme was tax relief.  
6. To whom and how the subsidy is paid 
 
Undertakings carrying out activities listed in the Business Promotion Regulations (subsidiary 
legislation 325.06 to the Business Promotion Act, Chapter 325 of the Laws of Malta)12, could 
benefit from reduced rates of tax under this aid scheme.  
7. Amount of subsidy 
 
2013 – €483,180.00. 2014 – €156,615.00. 
 
8. Duration of subsidy 
 
There is no fixed duration for this aid scheme. 
 9. Trade effects of the subsidy 
 There were no effects on international trade.  3  INDUSTRY IN GOZO 
1. Title of the subsidy 
 
Industry in Gozo. 
 
(Article 23 of the Business Promotion Act, Chapter 325 of the Laws of Malta)  
2. Period covered by the notification 
 
The period covered by this notification starts from 1 January 2013 until 31 December 2014.  
3. Policy objective 
 
The aim of the assistance provided by this aid sch eme is to offset the additional transport costs 
incurred by undertakings based in Gozo due to double insularity. 
 4. Authority of subsidy 
 Malta Enterprise Corporation – Malta Enterprise Act (Chapter 463 of the Laws of Malta).  5. Form of subsidy 
 The form of the subsidy of this aid scheme is a grant. 
 
6. To whom and how the subsidy is paid 
 
Undertakings engaged in the manufacturing or anal ogous services sector operating from Gozo are 
eligible for assistance under this aid scheme. The grant covers the actual, additional and necessary 
                                               
12 http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=9791&l=1 . G/SCM/N/284/EU/Add.19 
 
- 17 - 
 
  transport costs incurred in transporting plant, ma chinery, equipment, materials and finished goods 
between Malta and Gozo.  7.  Amount of subsidy 
 2013 – €271,088.38. 2014 – €18,147.92. 
 
8. Duration of subsidy 
 There is no fixed duration for this aid scheme. 
 
9. Trade effects of the subsidy 
 
There are no effects on international trade. 
 4  SOFT LOANS 
1. Title of the subsidy 
 
Soft Loans.  
(Regulation 8 of the Business Promotion Regulations as subsidiary legislation 325.06 to the 
Business Promotion Act, Chapter 325 of the Laws of Malta)  
2. Period covered by the notification 
 
The period covered by this notification starts from 1 January 2013 until 31 December 2014. 
 
3. Policy objective 
 The aim of the assistance provided by this aid scheme is to: 
 
a. Stimulate capital investment; and 
b. Provide access to finance. 
4. Authority of subsidy 
 
Malta Enterprise Corporation – Malta Enterprise Act (Chapter 463 of the Laws of Malta). 
 
5. Form of subsidy 
 The form of the subsidy of this aid scheme is a low interest loan. 
 
6. To whom and how the subsidy is paid 
 
Undertakings engaged in the manufacturing or analogous services sectors, research and 
development and biotechnology are eligible for assistance under this aid scheme. Malta Enterprise Corporation may finance up to 75% of an undertaking 's investment in tangible or intangible assets 
through a loan payable over a maximum period of te n years, with a two year moratorium period at 
a low interest rate.  7.  Amount of subsidy 
 2013 – €180,714.00. 2014 – €489,675.00. 
 
8. Duration of subsidy 
 
There is no fixed duration for this aid scheme. 
 G/SCM/N/284/EU/Add.19 
 
- 18 - 
 
  9. Trade effects of the subsidy 
 
There are no effects on international trade.  
5  LOAN INTEREST RATE SUBSIDIES 
1. Title of the subsidy 
 
Loan Interest Rate Subsidies. 
 (Regulation 9 of the Business Promotion Regulations as subsidiary legislation 325.06 to the Business Promotion Act, Chapter 325 of the Laws of Malta) 
 
2. Period covered by the notification 
 
The period covered by this notification starts from 1 January 2013 until 31 December 2014. 
 3. Policy objective 
 The aim of this assistance is to increase the competitiveness and innovative capacity of undertakings by providing support for the acquisition of tangible and intangible capital assets that lead to a more effective and efficien t production and supply of service. 
 
4. Authority of subsidy 
 
Malta Enterprise Corporation – Malta Enterprise Act (Chapter 463 of the Laws of Malta). 
 5. Form of subsidy 
 The form of the subsidy of this aid scheme is an interest rate subsidy.  6. To whom and how the subsidy is paid 
 Undertakings engaged in manufacturing or analog ous services sectors, research and development 
and biotechnology may receive a subsidy on a loan taken up by an undertaking from a licensed 
financial institution to finance investment in tangible or intangible assets. 
 7. Amount of subsidy 
 2013 – €1,030,726.00. 2014 – €3,830,478.00.  
8. Duration of subsidy 
 
There is no fixed duration for this aid scheme. 
 
9. Trade effects of the subsidy 
 
There are no effects on international trade. 
 6  LOAN GUARANTEES 
1. Title of the subsidy 
 
Loan Guarantees  
(Regulation 10 of the Business Promotion Regulations as subsidiary legislation 325.06 to the 
Business Promotion Act, Chapter 325 of the Laws of Malta.)  
2. Period covered by the notification 
 
The period covered by this notification starts from 1 January 2013 until 31 December 2014. G/SCM/N/284/EU/Add.19 
 
- 19 - 
 
  3. Policy objective 
 
The aim of the assistance provided by this aid scheme is to encourage capital investments by providing guarantees to secure up to 75% of the loans taken up by qualifying undertakings to 
finance the acquisition of assets. 
 4. Authority of subsidy 
 Malta Enterprise Corporation – Malta Enterprise Act (Chapter 463 of the Laws of Malta).  5. Form of subsidy 
 The form of the subsidy of this aid scheme is a loan guarantee. 
 
6. To whom and how the subsidy is paid 
 
The Corporation may guarantee up to 75% of a loan taken up from a licensed financial institution 
to finance an investment on tangible or intangible assets of undertakings engaged in the 
manufacturing or analogous services sectors,  research and development and biotechnology. 
 7. Amount of subsidy 
 2013 – €176,150.00. 2014 – €533,975.00. 
 
8. Duration of subsidy 
 
There is no fixed duration for this aid scheme. 
 9. Trade effects of the subsidy 
 
There are no effects on international trade. 
 7  STRENGTHENING MARKET ENTR Y AND INTERNATIONALISATION 
1. Title of the subsidy 
 
Strengthening Market Entry and Internationalisation. 
(Trade Fair and Trade Mission Support also known as Trade Promotion Scheme) 
 (Regulation 4 of the Enterprise Support Incentives Regulations as subsidiary legislation 463.04 to the Malta Enterprise Act, Chapter 463 of the Laws of Malta)
13 
 
2. Period covered by the notification 
 
The period covered by this notification starts from 1 January 2013 until 31 December 2014. 
 3. Policy objective 
 Under this support measure, undertakings will be provided with assistance that covers participation costs in trade fairs, or studies or consultancy services needed for the launch of a new or existing product in targeted markets. The aim of this support measure is to support 
undertakings in their endeavours to diversify and penetrate new markets, establish business 
contacts, and consolidate the existing market share.  
The value of aid awarded will be equivalent to a percentage of the costs incurred by the 
undertaking. If the aid is provided through a collabo rative event, the percentage will be based on 
the number of participants. 
 
                                               
13 http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=11609&l=1 . G/SCM/N/284/EU/Add.19 
 
- 20 - 
 
  Apart from trade events, fairs and trade missions, assistance under this support measure may also 
be approved to cover events organised specifical ly by international organisations for the purpose 
of seeking project partners, venture capital or business angel financing in relation to a potential business opportunity. 
 
An undertaking may be supported in:  
 Building partnerships and business relations through participation in trade fairs, networking 
meetings, trade missions and other similar events; 
 The implementation for a holistic market deve lopment plan covering a period of at least 
twelve months which should lead to developing or enhancing the undertaking's market 
competencies and knowledge. 
 Malta Enterprise Corporation provides advi sory and training programmes through which 
undertakings may be assisted in compiling business and market development plans that may be 
used as supporting documentation for this support measure.  
In order to be eligible for assistance under this support measure, applicants should be registered 
with the Value Added Tax Department and ex pecting an annual turnover of over €7,000 per 
annum . This requirement is not applicable in the case of entrepreneurs in the process of 
establishing a new business. 
 
Undertakings engaged in the following sectors are only eligible to receive funding when participating in specific contingents coordinated or endorsed by the Corporation. The eligibility of 
undertakings engaged in these sectors shall be defined in the public information made available by 
the Corporation in respect to indi vidual event, fair or mission: 
 
 Wholesale and retail trade; 
 Medical services; 
 Real estate; 
 Tourism activities, including hotels and restaurants, travel agencies, tour operators and 
related activities; 
 Libraries, archives, museums and other cultural activities; 
 Sports activities, and amusement and recreation activities; 
 Financial and insurance activities; 
 Legal and accounting activities. 
 
This support measure will also support market pr eparedness and development actions as identified 
in a holistic market development plan covering a period of at least twelve months. Undertakings with an approved market development plan may receive part-financing for: 
 
1. Translation of publicity material and product information; 
2. Design and development of marketing material; 3. Attending a trade fair or similar event; 
4. Pre-determined business meetings; 
5. Hosting potential business partners to visit an undertaking's premises in Malta or to 
participating in an event organised by an undertaking in Malta. 
 
Per diem  Costs: 
 Undertakings may also be granted a per diem  for the number of days spanned by the event for 
participation in trade events and fairs. 
 The applicable per diem  rates shall be set at 35% of the official rates set by Government for the 
public sector. 
 The total aid that may be granted to a single undertaking is limited to €30,000 in any fiscal year. 
 
The Corporation may part-finance eligible costs at a rate of 40% in the case of large undertakings and at a rate of 50% in the case of  small or medium-sized undertakings. 
 G/SCM/N/284/EU/Add.19 
 
- 21 - 
 
  The assistance provided to any one undertaking shall not exceed €200,000 over any period of 
three consecutive fiscal years.14 
 4. Authority of subsidy 
 Malta Enterprise Corporation – Malta Enterprise Act (Chapter 463 of the Laws of Malta).  
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is a grant. 
 
6. To whom and how the subsidy is paid 
 
Undertakings eligible for assistance under this support measure are SMEs in terms of in terms of 
Annex I  of 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  as 
well as large undertakings in all sectors. 
 
A formal application must be submitted to the Corporation. Requests for assistance are screened for eligibility and feasibility. Eligible applications  will be awarded assistance in the form of reduced 
charges for participation during overseas trade events under specific terms and conditions agreed 
to by the Corporation. Alternatively, undertakings may be supported through a cash grant for 
participating in specialised events.  
After participation in the event, the undertaking must submit all invoices pertaining to stand space 
and stand construction, shipping costs of exhibits , flight expenses, and other related expenditure. 
The value of aid depends on the event and the market targeted. 
 
7. Amount of subsidy 
 2013 – €497,810.67. 
2014 – €450,850.81. 
  8. Duration of subsidy 
 This aid scheme will run until 31 December 2017.  
9. Trade effects of the subsidy 
 
There are no effects on international trade.  
8  NETWORK SUPPORT SCHEME 
1. Title of the subsidy 
 
Network Support Scheme. 
 (Regulation 5 of the Enterprise Support Incentives Regulations as subsidiary legislation 463.04 to 
the Malta Enterprise Act, Chapter 463 of the Laws of Malta) 
 
                                               
14 The terms and conditions of this assistance are in line with Commission Regulation (EC) 
No. 1998/2006 of 15 December 2006 on the application of Articles 87 and 88 of the Treaty to de minimis aid – Official Journal L379 of 28.12.2006  (de minimis  Regulation): 
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2006:379:0005:0010:EN:PDF . 
The validity of this Regulation terminated on the 31st December 2013. A new de minimis  Regulation 
came into force as from the 1st January 2014, 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): 
http://ec.europa.eu/competition/state_aid/legislation/de_minimis_regulation_en.pdf . 
In January 2014, the aid scheme Strengthening Market Entry and Internationalisation was brought in 
line with the terms and conditions of the new de minimis  Regulation. G/SCM/N/284/EU/Add.19 
 
- 22 - 
 
  2. Period covered by the notification 
 
The period covered by this notification starts from the 1 January 2013 until 31 December 2014.  
3. Policy objective 
 
This incentive aims to promote the development of  networks for facilitating collaboration between 
undertakings with the aim of enhancing competitiv eness. The following two types of networks are 
supported by this incentive:  
1. Business Networks 
2. Development Networks 
 Business Networks 
A business network is a group of undertakings which have agreed to co-operate in order to achieve 
specific business objectives. The network must consist of at least three undertakings which are not associated. The network members may be micro, sm all, medium-sized or large undertakings. The 
network must be established to address a particular business objective through collaboration. 
 The beneficiaries are individual undertakings forming the network.  
Development Networks 
This type of network consists of undertakings which group together whose activity or activities may often be confined to networking, the exchan ge of information, or shared services. The 
network may be constituted of undertakings operat ing in the same sector or that otherwise have 
complimentary business activities.  
Financial support will be provided to the Development Network to facilitate network animation. The 
activities supported will not support the individual activities of the members.  The assistance is provided to undertakings forming up: 
 
1. Business Networks; 
2. Development Network. 
 
Business Networks The aid intensity will be limited to 75% of the eligible costs. Since the aid will be received by 
participating undertakings, the value of aid per undertaking may vary according to any 
agreements established among the members.  Wage or Contract Costs of Network Manager 
Up to 75% of the wage costs of the Network Manager. This support will be limited for a fixed 
number of years.  
Additionally to the above mentioned aid, Busine ss Networks may also benefit from the following 
grants:  
A. Product Development : up to 75% of the costs related to the procurement of tangible 
and intangible assets required for joint product development and value chain integration, including the development of B2B (intra-network) solutions to facilitate just-in-time processes; 
 
B. Market Development Services : up to 75% of the costs incurred by the network for 
developing the competitiveness of the network, including: 
 
 Participation in trade fairs and trade events including costs related to hiring of 
facilities, setting up and running of the stand; 
 Studies or consultancy services needed for: 
i. The launch of a new or existing product on a new market; 
ii. The branding of network and the prod ucts and services provided by the 
network; G/SCM/N/284/EU/Add.19 
 
- 23 - 
 
   The development of promotional material including brochures, multilingual 
websites; 
 Certification of products as may be re quired to sell in target markets; 
 Attainment of quality certifications. 
 
The assistance provided to any one undertaking shall not exceed €200,000 over any period of 
three consecutive fiscal years.15 
 
Development Networks The assistance provided to each development ne twork shall not exceed €200,000 over any period 
of three consecutive fiscal years. A Developmen t Network may be awarded up to 100% of the 
costs related to the activities listed below. This includes the costs related to the employment of the 
Network Manager over for a fixed number of years. The activities will be approved annually and should be related to the following activities: 
 
 Dissemination of information; 
 Organisation of network conferences, work shops, seminars and other similar events; 
 Consultancy services; 
 Participation in trade fairs and trade events including the costs related to hiring of facilities, 
setting up and running of the stand. 
 
4. Authority of subsidy 
 
Malta Enterprise Corporation – Malta Enterprise Act (Chapter 463 of the Laws of Malta). 
 
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is a grant. 
 6. To whom and how the subsidy is paid 
 
The network may be constituted of undertakings operating in the same sector or that otherwise 
have complimentary business activities. Assistance is  provided to all sectors of industry especially 
those which demonstrate a growth potential in line with local capacity and resources. 
 
The aid will only be awarded if after submission of the business plan by  the network, and after 
evaluation, the project is deemed commercially viable and beneficial to the Maltese economy. 
 
Requests for assistance will be screened for elig ibility and feasibility. The aid awarded will be a 
cash grant (reimbursement) covering a percentage of the wage costs of a Network Manager and other qualifying costs. 
 
7. Amount of subsidy 
 
2013 – €30,000.00 
2014 – €19,696.00  
8. Duration of subsidy 
 
The duration this aid scheme terminated on 31 December 2013.  
This termination date coincided with the termination of the validity of the following State Aid 
Regulation which was the State Aid regime of the Network Support Scheme : 
 
Commission Regulation (EC) No. 1998/2006 of 15 December 2006 on the application of Articles 87 
and 88 of the Treaty to de minimis aid – Official Journal L379 of 28.12.2006  (de minimis  
Regulation): 
 
http://eur-lex.europa.eu/LexUriServ/LexUri Serv.do?uri=OJ:L:2006:379:0005:0010:EN:PDF  
                                               
15 The terms and conditions of this assistance are in line with the de minimis  Regulation: 
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2006:379:0005:0010:EN:PDF . G/SCM/N/284/EU/Add.19 
 
- 24 - 
 
  A new de minimis  Regulation came into force as from 1 January 2014: 
 Commission Regulation (EU) No 1407/2013 on th e application of Articles 107 and 108 of the 
Treaty on the functioning of the European Union to de minimis aid 
 
 http://ec.europa.eu/competition/state_aid/legislation/de_minimis_regulation_en.pdf  
 
Malta Enterprise Corporation notified a new aid scheme with similar parameters that was also 
entitled Network Support Scheme  and which was implemented on the 1 January, 2014. The 
Corporation did not approve any assistance under the new Network Support Scheme . The 
assistance that is reported for 2014 covers one application under the previous Network Support 
Scheme ; although the application was submitted in  2013, the applicable document awarding 
assistance was issued in 2014 and dated 2014.  
9. Trade effects of the subsidy 
 
There are no effects on international trade. 
 
9  BUSINESS DEVELOPMENT GRANT SCHEME 
1. Title of the subsidy 
 
Business Development Grant Scheme. 
 Regulation 6  of the Enterprise Support Incentives Regulations  as subsidiary legislation 
463.04 to the Malta Enterprise Act, Chapter 463 of the Laws of Malta. 
 2. Period covered by the notification 
 The period covered by this notification starts from 1 January 2013 until 31 December 2014.  3. Policy objective 
 The aim of this aid scheme is to provide assistance to undertakings that intend to establish a new project in Malta by reducing the burdens of setti ng up. The assistance promotes the expansion and 
diversification of economic activities particularly by encouraging firms to setting up new ventures 
and projects in Malta.  
The assistance covers the following: 
 
 Professional and consultancy fees; 
 Fees related to the selection process and recruitment of staff; 
 Relocation costs of personnel; 
 Costs related to capacity building; 
 Transport and freight costs; 
 Setting up costs; and 
 Costs related to the handicaps encountered by en terprises setting up an operation in Malta. 
 
The assistance provided to any one undertaking shall not exceed €200,000 over any period of 
three consecutive fiscal years.
16 
 4. Authority of subsidy 
 Malta Enterprise Corporation – Malta Enterprise Act (Chapter 463 of the Laws of Malta).  
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is a grant. 
 
                                               
16 The terms and conditions of this assistance are in line with the de minimis  Regulation: 
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2006:379:0005:0010:EN:PDF . G/SCM/N/284/EU/Add.19 
 
- 25 - 
 
  6. To whom and how the subsidy is paid 
 
Assistance is provided to SMEs to address the ha ndicaps and to reduce the burdens of setting up 
new projects that offer a significant contribution to the regional development of Malta. Such 
undertakings must provide sufficient details which describe the proposed new project. The details 
provided should demonstrate that the project will co ntribute to the regional economic growth or to 
the creation of new jobs. 
 
An evaluation of the strategic, commercial and technical feasibility of the project will be carried out to ensure its viability. The Corporation will establish a schedule detailing the financial support available to the beneficiary. 
 
7.  Amount of subsidy 
 
2013 – €1,823,750.00. 
2014 – Nil assistance.  
8. Duration of subsidy 
 
The duration of this aid scheme terminated on 31st December 2013. 
 
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  Regulation 6  of the Enterprise Support Incentives Regulations  as subsidiary legislation 
463.04 to the Malta Enterprise Act, Chapter 463 of the Laws of Malta 
 The termination date of the Business Development Grant Scheme  in No. X  above coincided 
with the termination of the validity of the following State Aid Regulation which was its State Aid 
regime:  
Commission Regulation (EC) No. 1998/2006 of 15 December 2006 on the application of Articles 87 
and 88 of the Treaty to de minimis aid – Official Journal L379 of 28.12.2006  (de minimis  
Regulation):  
http://eur-lex.europa.eu/LexUriServ/LexUri Serv.do?uri=OJ:L:2006:379:0005:0010:EN:PDF  
 
A new de minimis  Regulation came into force as from 1 January 2014: 
 
Commission Regulation (EU) No 1407/2013 on th e application of Articles 107 and 108 of the 
Treaty on the functioning of the European Union to de minimis aid : 
 
http://ec.europa.eu/competition/state_aid/legislation/de_minimis_regulation_en.pdf  
 
Malta Enterprise Corporation notified a new aid scheme that was also entitled Business 
Development Grant Scheme  and which was implemented on 1 January, 2014. The assistance 
approved by the Corporation under the new Business Development Grant Scheme  is reported 
in No. 7 below. 
 
2. Period covered by the notification 
 
The period covered by this notification starts from 1 January 2013 until 31 December 2014. 
 G/SCM/N/284/EU/Add.19 
 
- 26 - 
 
  3. Policy objective 
 
De minimis  assistance in the form of a cash grant may be approved to eligible SMEs as well as 
large undertakings to address the handicaps and to reduce the burdens of setting up a new project 
in Malta. The project must offer a significant contribution to the regional development of Malta. 
 
The assistance covers the following costs: 
 
- Professional and consultancy fees; - Fees related to the selection process and recruitment of staff; - Relocation costs of personnel; 
- Costs related to capacity building; 
- Transport and freight costs; - Setting up costs; and 
- Costs related to the handicaps encountered by enterprises setting up an operation in 
Malta. 
 
The total amount of assistance provided to a single undertaking shall not exceed €200,000 over 
any period of three consecutive fiscal years.
17 
 4. Authority of subsidy 
 Malta Enterprise Corporation – Malta Enterprise Act (Chapter 463 of the Laws of Malta).  
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is a grant. 
 
6. To whom and how the subsidy is paid 
 Eligible undertakings are SMEs in terms of Annex I  of 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  as well as large undertakings. 
 
Undertakings in all sectors may be eligible for assistance under this aid scheme. 
 This aid scheme is intended to support undertakings that carry out a trade or business, and is 
therefore not intended for voluntary organisations. 
 Applicants must submit an application containing a detailed description of the project. The Corporation will examine the project's potential to provide a significant contribution to the Maltese 
economy by evaluating various criteria that include: 
 
a. Feasibility – whether the project is feasible and is reasonably likely to remain feasible in 
the foreseeable future; 
b. Track Record – the investor's reputation (listing of the undertaking on international 
stock-exchanges; whether the undertaking is in a leading position in the same line of 
business or industry; whether the investor ha s successfully executed any cross-border 
investments); 
c. Technology – whether the proposed technology and the associated technological know-
how expand local capabilities, potentially providing access to technology to other local 
undertakings through technology transfer; 
d. Employment – whether the project will generate employment in areas where the 
required human capital is available and whether it offers job opportunities to qualified or 
highly skilled personnel; 
                                               
17 The terms and conditions of this assistance are in line with the de minimis  Regulation that came into 
force on 1 January 2014: 
http://ec.europa.eu/competition/state_aid/legislation/de_minimis_regulation_en.pdf . G/SCM/N/284/EU/Add.19 
 
- 27 - 
 
  e. Impact – whether the investment will generate a positive impact on the productivity of 
other domestic companies through networking and clustering opportunities. 
A due diligence process may be required in order to establish that the proposed project is feasible 
and that it demonstrates a fair chance of success. 
 Once a project is approved, the Corporation will issue a Letter of Approval or an Incentive Entitlement Certificate in line with Part VI of th e Malta Enterprise Act, Chapter 463 of the Laws of 
Malta. 
 In order to be eligible for assistance, applicants must not be defaulting on Value Added Tax, Income Tax, Social Security and rent payments to the Government. 
 
7.  Amount of subsidy 
 
2013 – Nil assistance. 
2014 – €1,669,700.00.  
8. Duration of subsidy 
 
This aid scheme will run until 31 December 2017.  
9. Trade effects of the subsidy 
 
There are no effects on international trade. 
 
11  BUSINESS ADVISORY SERVICES SCHEME 
1. Title of the subsidy 
 
Business Advisory Services Scheme. (Assistance for the engagement of advisors)  
 
(Regulation 7 of the Enterprise Support Incentives Regulations as subsidiary legislation 463.04 to 
the Malta Enterprise Act, Chapter 463 of the Laws of Malta)  
2. Period covered by the notification 
 
The period covered by this notification starts from 1 January 2013 until 31 December 2014. 
 
3. Policy objective 
 The aim of this support measure is to provide assistance to SMEs as well as large undertakings by 
financing the fee of a business advisor to support the undertaking on a specific project. This 
assistance will help the undertaking build the internal capacity to address future developments in the respective area. The knowledge gained will help decision makers in the supported undertaking 
in evaluating the projects and emba rk on business development projects. 
 The supported advisory services are grouped into the following five distinct categories: 
 
1. Start-Up 
2. General Business Development 
3. Innovation  
4. International Competitiveness 
5. Energy. 
 
An initial phase will be fully financed by the Corporation while part financing will be provided 
during the second phase of the support. The first part of the assistance covers the first fifteen hours of an advisor's intervention on a specific project or task. 
 
After the first fifteen hours, the undertakin g may benefit from a ma ximum number of fifty 
additional hours. The part financing of the advisors for these additional hours is capped at 65%. G/SCM/N/284/EU/Add.19 
 
- 28 - 
 
  Gozo companies may be granted an additional 10%, thus increasing the effective aid intensity to 
75%, for any business advisory services received beyond the initial fifteen hours. (In terms of 
Article 23 of the Business Promotion Act, Chapter 325 of the Laws of Malta, a "Gozo company" is a company which has all or part of its activities being carried out in Gozo). 
 
This aid scheme applies to all sectors.  
The assistance provided to any one undertaking shall not exceed €200,000 over any period of 
three consecutive fiscal years.
18 
 Undertakings controlled or owned by Government are ineligible for assistance under this support 
measure. 
 4. Authority of subsidy 
 Malta Enterprise Corporation – Malta Enterprise Act (Chapter 463 of the Laws of Malta).  
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is a grant. 
 
6. To whom and how the subsidy is paid 
 
Undertakings in all sectors that demonstrate that their project leads to growth and improvement in 
performance are eligible for assistance under this aid scheme. 
 Once an application is approved, Malta Enterprise  Corporation will assign an advisor. A kick-off 
meeting between the advisor and the applicant is fi xed. In this initial meeting, the advisor will 
review the company structure and operations so that the objectives of the assignment are agreed upon. Once the project is approved a Letter of  Approval stipulating the maximum amount of 
assistance is issued. 
 
An undertaking may receive business advisory servic es on multiple projects; however, the total aid 
under the Business Advisory Services Scheme  (Assistance for the engagement of advisors) 
may never exceed €10,000 per annum . The applicable value will be based on the number of hours 
of mentoring received by the undertaking. Only the costs related to the advisor input towards the project or task may be claimed. Such costs may not exceed the standard rate established by Malta 
Enterprise which is set at €50.00 per hour inclusive of VAT. 
 Re-imbursement will be based on the number of hours of mentoring received by the undertaking. Only the costs related to the advisor input towards the project or task may be claimed. These 
costs may not exceed the standard rate established by the Corporation which is set at €50.00 per 
hour inclusive of VAT.  
7. Amount of subsidy 
 
2013 – €26,550.00. 
2014 – Nil assistance. 
 8. Duration of subsidy 
 
The duration of this aid scheme terminated on 31 December 2013. 
 9. Trade effects of the subsidy 
 There are no effects on international trade.  
                                               
18 The terms and conditions of this assistance are in line with the de minimis  Regulation: 
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2006:379:0005:0010:EN:PDF . G/SCM/N/284/EU/Add.19 
 
- 29 - 
 
  12  BUSINESS ADVISORY SERVICES SCHEME 
1. Title of the subsidy 
 
Business Advisory Services Scheme. 
(Assistance for the engagement of advisors)  
 (Regulation 7 of the Enterprise Support Incentives Regulations as subsidiary legislation 463.04 to 
the Malta Enterprise Act, Chapter 463 of the Laws of Malta) 
 The termination date of the Business Advisory Services Scheme  in No. XII  above coincided 
with the termination of the validity of the following State Aid Regulation which was its State Aid 
regime: 
 Commission Regulation (EC) No. 1998/2006 of 15 December 2006 on the application of Articles 87 
and 88 of the Treaty to de minimis aid – Official Journal L379 of 28.12.2006  (de minimis  
Regulation):  
http://eur-lex.europa.eu/LexUriServ/LexUri Serv.do?uri=OJ:L:2006:379:0005:0010:EN:PDF  
 
A new de minimis  Regulation came into force as from 1 January 2014: 
 
Commission Regulation (EU) No 1407/2013 on th e application of Articles 107 and 108 of the 
Treaty on the functioning of the European Union to de minimis aid  
http://ec.europa.eu/competition/state_aid/legislation/de_minimis_regulation_en.pdf  
 
Malta Enterprise Corporation notified a new aid scheme that was also entitled Business Advisory 
Services Scheme  and which was implemented on 1 Janua ry, 2014. The assistance approved by 
the Corporation under the new Business Advisory Services Scheme  is reported in No. 7 below. 
 2. Period covered by the notification 
 The period covered by this notification starts from 1 January 2013 until 31 December 2014.  
3. Policy objective 
 
De minimis  assistance in the form of a cash grant may be approved to eligible SMEs as well as 
large undertakings to finance the fee of a business advisor. The aid scheme aims to provide 
tailored business advice to undertakings through advisors selected by the Corporation. Each 
advisory service will address various aspects, ke y to the complete development and growth of the 
undertaking.   
 
Business advisory services are available for: 
 
a. Business start-up support; 
b. Business planning and modelling; 
c. International competitiveness and export readiness; 
d. Market development; 
e. Human resources management; 
f. Intellectual property management and registration; 
g. Product and service development; 
h. Quality – Certification and Improvement; 
i. Information management; 
j. Engineering and logistics;  
k. Business processes reengineering;  
l. Supply chain management. 
 
The advice provided should facilitate business owners and managers in maintaining competitivity, 
developing new markets and business growth op portunities. The knowledge gained should help 
decision makers in the supported undertaking in evaluating projects and embark on business development projects. G/SCM/N/284/EU/Add.19 
 
- 30 - 
 
  The total amount of assistance provided to a single undertaking shall not exceed €200,000 over 
any period of three consecutive fiscal years.19 
 4. Authority of subsidy 
 Malta Enterprise Corporation – Malta Enterprise Act (Chapter 463 of the Laws of Malta).  
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is a grant. 
 
6. To whom and how the subsidy is paid 
 
Eligible undertakings are SMEs in terms of Annex I  of 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  as well as large undertakings. 
 
Undertakings in all sectors may be eligible for assistance under this aid scheme. This aid scheme is 
intended to support undertakings that carry out a trade or business, and is therefore not intended 
for voluntary organisations.  
A formal application indicating the key requirement(s) which should be addressed through the 
business advice must be submitted to the Corporation. Applicants must indicate the key requirement(s) which should be addressed th rough the business advice. These requirements 
should be related to growth, competitiven ess and sustainability of the business. 
 
Once an application is accepted, the Corporation will issue a Letter of Approval in favour of the 
beneficiary and assign a contractual advisor to deliver the requested service. 
 
Typically advisory services will be provided in two stages: 
 
1. Stage One: 
This involves a preliminary investigation of particular areas which the undertaking wishes to 
address. This value of this stage is estimated at  the start of the service and will be financed 
by the Corporation as de minimis  aid. This stage is normally completed in less than ten 
hours. 
 
2. Stage Two: 
During this stage two advisors will prov ide more focused consultancy, support and 
handholding. These advisors will be charged by the Corporation at an hourly rate of €40.00. 
The costs levied will be discounted according to the size of the undertaking as follows: 
 
 Small undertakings: 50% 
 Medium undertakings: 40% 
 Large undertakings: 30% 
 
An undertaking may receive business advisory servic es on multiple projects yet the total direct 
value financed by the Corporation under this aid scheme is limited to €2,500 per annum . In the 
case an undertaking reaches this limit, additional ad visory services will be charged at 100% of the 
cost. At any point in time financing or part financing may only be utilised to cover a single 
business advisory service. 
 
If the supported undertaking, for whatever reason , feels that the business advisor is not meeting 
the needs of the undertaking, a different business advisor may be assigned. 
 
While an assignment covers a specific number of hours, it can be terminated earlier by the undertaking if the objectives have been met. 
 
                                               
19 The terms and conditions of this assistance are in line with the de minimis  Regulation that came into 
force on 1 January 2014: 
http://ec.europa.eu/competition/state_aid/legislation/de_minimis_regulation_en.pdf . G/SCM/N/284/EU/Add.19 
 
- 31 - 
 
  7. Amount of subsidy 
 
2013 – Nil assistance. 2014 – €26,250.00. 
 
8. Duration of subsidy 
 
This aid scheme will run until 31 December 2017. 
 9. Trade effects of the subsidy 
 
There are no effects on international trade. 
 13  ERDF INTERNATIONAL COMP ETITIVENESS GRANT SCHEME 
1. Title of subsidy 
 
ERDF International Competitiveness Grant Scheme. 
 
(Regulation 8 of the Enterprise Support Incentives Regulations as subsidiary legislation 463.04 to the Malta Enterprise Act, Chapter 463 of the Laws of Malta)  
2. Period 
 
The period covered by this notification starts from 1 January 2013 until 31 December 2014. 
 
3. Policy objective 
 
This incentive aims to support undertakings to es tablish new markets or to introduce a new service 
or product in an existing market. It facilitates the development of new markets and the building of 
internal capacities within the undertaking.  
The assistance provided to any one undertaking shall not exceed €200,000 over any period of 
three consecutive fiscal years.
20 
 
The aid will be based on a project proposal and should mainly cover the following cost items: 
 
1. Market Development (50% of costs) 
The following costs related to building the internal capacities of the undertaking and the 
development of a brand in the target market will be eligible for part financing: 
 
a. Translation services from and to the language(s) of the target market; 
b. Consultancy services related to the development and creation of a brand; 
c. Consultancy related to the acquisition of quality certifications and other certifications 
that might be required in the target market; 
d. Costs for localised marketing material (Brochures, leaflets and so on) and electronic 
content (Websites, CD-ROMs and so on); 
e. Cost leading to the certification of products and services (including training, audits and 
application costs) that may be required (or that may be beneficial) to sell in target 
markets; 
f. Other related costs. 
 
2. Participation in or organisation of  promotional events (50% of costs)  
Active participation in trade fairs, conferences,  workshops or networking events relevant to 
the target market and organisation of promotional events may be partly financed. In the 
case of trade fairs, active participation will mean having a stand at the fair. Active 
participation in conferences, workshops and ot her events means that representatives from 
the undertaking will be delivering a presentation during the event: 
 
                                               
20 The terms and conditions of this assistance are in line with the de minimis  Regulation: 
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2006:379:0005:0010:EN:PDF . G/SCM/N/284/EU/Add.19 
 
- 32 - 
 
  Part-funding will be available for: 
 
a. Setting up and running a stand for the period of a fair; 
b. Hiring premises and equipment; 
c. Related travel and per diem of the enterprise's representatives; 
d. Travel cost related to incoming delegations. 
 
Beneficiaries may not claim the participation costs related to trade events organised by 
Malta Enterprise. 
 
3. Engagement of Market Develo pment Manager (50% of costs)  
 
The wage costs of employing a new manager who will support the undertaking in developing new markets may be part financed. Such costs must constitute a new employment and the 
post must also be new to the undertaking. 
 
The amount of aid which may be approved in favour of each undertaking eligible for 
assistance under this support measure is capped at €50,000 per project. 
 4. Authority of subsidy 
 
Malta Enterprise Corporation – Malta Enterprise Act (Chapter 463 of the Laws of Malta). 
 5. Form of subsidy 
 The form of the subsidy of this aid scheme is a grant. 
 
6. To whom and how the subsidy is paid 
 
Assistance is provided to all undertakings involved in manufacturing and those involved in internationally tradable services related to Information and Communications Technology (ICT), 
health care, education and training and other expert solutions as may be approved by the 
Corporation.  
Interested undertakings will submit a formal app lication to Malta Enterprise Corporation following 
the publication of a 'Call for Proposals'. At the end of each call period the proposals will be vetted, 
evaluated and ranked. The evaluation process will co nsider the significance of the proposal to the 
undertaking's competitiveness and its effect in the market. The highest ranking proposals will be 
given preference.  Applicants must submit three comparable quotes from three independent suppliers for each cost 
item. Part financing and grant values will be calculated on the lowest value quoted. 
 Quotes submitted for the same cost item must be from suppliers which are related neither to each 
other nor to the applicant. Suppliers shall not be related to the applicants. 
 The approved project shall be based and operationa l in Malta since the objective of the European 
Regional Development Funds (hereinafter referred to as 'ERDF') is to support projects that 
contribute to the development of the Maltese economy.  Once an application is approved, Malta Enterprise Corporation will stipulate the maximum value of 
aid which would be capped at €50,000 per undertaking. 
 Costs incurred for replacing or reconditioning existing equipment are ineligible. 
 
A capping of €500.00 on assistance for travel co sts was applicable in Calls One, Two and Three 
since applicants were not requested to submit three quotations in respect to travel. In Call Four, 
applicants were obliged to submit three quotations as a result of modifications in ERDF rules.  
 Disbursement was calculated on the lowest quote subject to the maximum eligible costs as follows: 
 G/SCM/N/284/EU/Add.19 
 
- 33 - 
 
  Travel within Europe or the Mediterranean region: 
 
 Maximum eligible cost: €500.00. 
 Maximum reimbursement at 50%: that is, €250.00 per person. 
 
Travel outside Europe or the Mediterranean region:  
 Maximum eligible cost: €1,000.00. 
 Maximum reimbursement at 50%: that is, €500.00 per person. 
 In Call Four, the per diem  rate of €100.00 applicable in Calls One, Two and Three was updated to 
reflect the official Government rates. Consequently, in Call Four the per diem  rate under this 
support measure allows for a refund of 50% of the Government rates.  
7. Amount of subsidy 
 
2013 – €195,292.26. 
2014 – Nil assistance. 
 The ERDF International Competitiveness Grant Scheme  is mainly financed under the Grant 
Scheme for Enterprises implemented by Malta Ente rprise which operates under Priority Axis I – 
Enhancing Knowledge and Innovation of Malta's Operational Programme I Cohesion Policy 2007 – 
2013 (ERDF Funds) with a top up by national fund s. The amount of Community funding under this 
scheme is 85%. 
 
There were four competitive calls for the ERDF International Competitiveness Grant Scheme ; 
two in 2009, one in 2010 and another one in 2012. Ca ll One closed on 25 February 2009, Call Two 
closed on 31 July 2009, Call Three closed on 26
 March 2010 while Call Four closed on 3 April 2012. 
The assistance approved by the Corporation for Call One and Two was reported in 2009 while that 
approved for Call Three was reported in 2010. Two ERDF Grant Agreements under Call Three were 
countersigned in 2011; one as a result of the ERDF Appeals process while in the second case a 
rent arrears issue had to be settled before th e issue of the Grant Agreement. The approved 
assistance under these two Grant Agreements was reported in 2011 to reflect the date of the Grant Agreements. Assistance approved by the Corporation for the fourth competitive call was 
reported in 2012. Three Grant Agreements for Call Four were issued in 2013; two as a result of a 
review process while the remaining grant was issued  as a result of the ERDF Appeals process; the 
latter assistance is reported in 2013. 
 
8. Duration of subsidy 
 The duration of this aid scheme terminated on 31 December 2013. 
 
9. Trade effects of the subsidy 
 
There are no effects on international trade. 
 14  CREATE TAX CREDITS FOR CREATIVE ENTERPRISES 
1. Title of subsidy 
 
Create Tax Credit for Creative Enterprises.  
(Regulation 9 of the Enterprise Support Incentives Regulations as subsidiary legislation 463.04 to 
the Malta Enterprise Act, Chapter 463 of the Laws of Malta)  
2. Period covered by the notification 
 
The period covered by this notification starts from 1 January 2013 until 31 December 2014. 
 G/SCM/N/284/EU/Add.19 
 
- 34 - 
 
  3. Policy objective 
 
This aid scheme supports creative undertakings whos e economic performance is directly linked to 
the creative talent of the individual or individuals involved in the business. Further support is 
provided to help the development of creative communities in artistic zones thus sustaining the 
development of these zones and interdisciplinary creative cluster developments.  
Assistance is in the form of tax credits equivalent to 60% of the eligible expenditure which consists 
in costs incurred in relation to the development of creative zones and for the development and publication of creative work:  
1. Specific aid for the development of Creative Zones  – 
 
A. Creative undertakings  operating in a  creative zone may claim: 
 
i. Rent or lease costs on equipment, facilities and premises within the creative zone 
required for the development and producti on of an identifiable creative work. 
ii. Costs incurred for the development, furbishing and refurbishing of property within 
the creative zone to be utilised for the production of the creative work. 
iii. The rent of premises (theatres and other venues) and facilities for creative events, 
such as intercultural exchanges, workshops,  master classes and public performances 
and exhibitions, held in artistic zones. 
 
B. Promoters of events, such as intercultural exchanges, workshops, master classes, and 
public performances and exhibitions, held by international artists in artistic zones may 
claim a tax credit on the rent of premises (theatres and other venues) and facilities in a creative zone utilised for these events. 
 
2. Development and publication costs  – 
 
a. Investment in the acquisition of machinery, technology, apparatus or instruments 
directly required for the development and production of the creative work. 
 
b. Registration of Intellectual Property: 
i. Legal fees for the preparation of documentation required for the registration of 
intellectual property; 
ii. Intellectual property registration fees; 
iii. Intellectual property costs may be claimed whether they are incurred in Malta or 
elsewhere as long as they are tied to an identifiable creative work and are claimed by the owner of the intellectual property rights. 
 
c. Subcontracting of pre-publication costs requir ed for the preparation of artistic works for 
first time publishing on traditional or ne w media formats. Such costs are defined as: 
i. Demo development, testing and pre-publication of digital games; 
ii. Design and related production costs incurred prior to printing (publishing and printed 
media); 
iii. Production, management and recording costs related to the production of a master 
copy (music). 
 
Development and production costs (including po st-production) of audiovisual works prior to 
exhibition or broadcasting. 
 
d. Subcontracted translation services for translating creative works from or to Maltese 
(literature and film). 
Any investment made must be maintained  for a minimum period of three years. 
 The maximum tax credit per undertaking is capped at €25,000 for the duration of the support 
measure. 
 G/SCM/N/284/EU/Add.19 
 
- 35 - 
 
  The tax credits granted under this scheme must be utilised by year of assessment 2015. 
 For the purpose of this aid scheme a creative undertaking may be a company, partnership, cooperative society or an individual, engaged in an  economic activity, whose products or services 
contain a significant form of expressive discipline and either produces a creative product or invests 
in the creative undertaking.  
The aim of this support measure is to support undertakings carrying out a trade or business; 
consequently voluntary organisations are ineligible for assistance under this scheme.  For the purposes of this support measure, the creative undertaking must be engaged in any one of 
the following activities: 
 
a. Visual Arts 
The creation of original works of art of a visual  nature, such as ceramic origination, drawing, 
painting and sculpture; 
b. Crafts 
The design, creation and production of innovative crafts and restoration; 
c. Film and video 
Screen and script writing, provision of filming facilities, casting and production (including pre 
and post production) and artistic direction services leading to audiovisual production; 
d. Music 
Music production, recording, performance, song writing and composition; 
e. Performing Arts 
Content origination, performance production , dance, drama, theatrical performances; 
f. Literary Works 
Authoring of books and book publishing; 
g. Design 
Fashion, retail, architectural and spatial design; 
h. Digital and Media 
Interactive entertainment and game developmen t, digital and graphical animation, story-
boarding and production. 
The following undertakings are ineligible for assistance under this support measure: 
 
1. Restaurants, cafeterias and providers of similar food and beverage services; 
2. Wholesale and retail; 3. Film projection (cinemas); 
4. Provision of premises, equipment and facilities and other logistical support. 
 The zones below are considered as creative zones for the purposes of this scheme:  
All Valletta 
Rabat, Gozo - Savina Square Rabat, Gozo - Archpriest Saver Cassar Street 
Rabat, Gozo - Saint Mary Street 
Birgu - The Collacchio area (details may be found in Annex II of the Incentive Guidelines covering the scheme) 
 
The assistance provided to any one undertaking could not exceed €200,000 over any period of 
three consecutive fiscal years.
21 
 
                                               
21 The terms and conditions of this assistance are in line with the de minimis  Regulation: 
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2006:379:0005:0010:EN:PDF . G/SCM/N/284/EU/Add.19 
 
- 36 - 
 
  4. Authority of subsidy 
 
Malta Enterprise – Malta Enterprise Act (Chapter 463 of the Laws of Malta).  
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is tax relief (tax credits). 
 
6. To whom and how the subsidy is paid 
 Micro, SMEs, large undertakings as well as self-employed persons are eligible for support under 
this scheme. Start-ups are also eligible for assistance. 
 Applicants must be registered with the VAT Department and must also be in possession of the 
regulatory licences and permits where applicable. 
 Applicants must submit an application containing a detailed description of the capital expenditure 
in relation to the project for support is requeste d. The application must be accompanied with the 
relative fiscal receipts as well as any other documents that the Corporation may deem necessary to confirm the qualifying criteria of the scheme. The Corporation will issue a Certificate that will enable the applicant to benefit from a tax credit. 
 
All beneficiaries are to submit a copy of the annual tax return from year of assessment in which the tax credit will be utilised. This will assist Malta Enterprise to verify the proper treatment of the 
relevant entries. 
 Assistance provided under this support measure is on eligible capital expenditure carried out as 
from 1 September 2010 and 31 December 2013. The tax credit shall be available to the beneficiary 
from the year in which the investment is terminated and any unutilised tax credits may be carried forward to the subsequent fiscal year.  
The tax credit must be utilised by the year of assessment 2015. 
 The Corporation and the Inland Revenue Department reserve the right to revoke the Certificate 
and recover any tax incentive the beneficiary may have benefited under this scheme in the case 
of:  
1. Misuse or abuse of assets after the completion of the project; 
2. Double funding of the same costs from th e Corporation or other public entities; 
3. Any breach of State aid regulations; 
4. Expenditure not directly related to the trade or business activity. 
 
7.  Amount of subsidy 
 
2013 – €20,756.00. 
2014 – Nil assistance.  
8. Duration of subsidy 
 
The duration of this aid scheme terminated on 31 December 2013.  
9. Trade effects of the subsidy 
 
There were no effects on international trade.  
 
15  GOZO TRANSPORT GRANT SCHEME 
1. Title of the subsidy 
 
Gozo Transport Grant Scheme.  G/SCM/N/284/EU/Add.19 
 
- 37 - 
 
  (Regulation 12 of the Enterprise Support Incentives Regulations as subsidiary legislation 463.04 to 
the Malta Enterprise Act, Chapter 463 of the Laws of Malta)22. 
 2. Period covered by the notification 
 The period covered by this notification starts from 1 January 2013 until 31 December 2014.  
3. Policy objective 
 
This support measure addresses a disadvantage suffered by undertakings engaged in manufacturing activities operating from Gozo, sister island of Malta. Such undertakings have to 
pay higher costs than their competitors on the mainland, itself an island, in order to carry out their 
economic activities.  
Under this support measure, de minimis assistance in the form of a cash grant will be provided to 
undertakings engaged in manufacturing activities, which operate from Gozo. This assistance will 
reduce the additional transport costs incurred for th e transportation of machinery, plant, materials, 
goods and finished products between Malta and Gozo. 
 The assistance provided consists in financing eligible costs relating to -  
1. Transportation by the undertaking's own facilities ; such costs cover: 
 
i. Ferry costs; 
ii. Cost of wages; 
iii. Fuel expenses. 
 
2. Subcontracted Haulage ; such costs cover: 
 
i. Ferry costs; 
ii. Haulage costs. 
 
Funding will be based on re-imbursement of eligible costs. 
 
The intended beneficiaries of this scheme are SMEs as well as large undertakings. 
 
The assistance provided to any one undertak ing shall not exceed €200,000 over any period 
of three consecutive fiscal years.
23 
 4. Authority of subsidy 
 
Malta Enterprise Corporation – Malta Enterprise Act (Chapter 463 of the Laws of Malta). 
 5. Form of subsidy 
 The form of the subsidy of this aid scheme is a grant. 
 
6. To whom and how the subsidy is paid 
 
Assistance under this support measure may be prov ided to micro undertakings, SMEs as well as 
large undertakings that are engaged in manufacturing activities and which operate from Gozo. In 
                                               
22 http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=11609&l=1 . 
23 The terms and conditions of this assistance are in line with the  Commission Regulation (EC) 
No. 1998/2006 of 15 December 2006 on the application of Articles 87 and 88 of the Treaty to de minimis aid – Official Journal L379 of 28.12.2006  (de minimis  Regulation): 
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2006:379:0005:0010:EN:PDF . 
The validity of this Regulation terminated on 31 December 2013. A new de minimis  Regulation came 
into force as from the 1st January 2014, 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): 
http://ec.europa.eu/competition/state_aid/legislation/de_minimis_regulation_en.pdf . 
The aid scheme was brought in line with the terms and conditions of the new de minimis  Regulation. G/SCM/N/284/EU/Add.19 
 
- 38 - 
 
  order to be eligible for assistance under the Gozo Transport Grant Scheme , all or a significant 
part of the manufacturing activities must be carried out in Gozo.  The eligible undertaking must be either: 
 
a. a partnership constituted under the Companie s Act, Chapter 386 of the Laws of Malta
24, 
being a partnership en nom collectif , en nom commandite  or a limited liability company; 
or 
b. a body of persons constituted, incorporated or  registered outside Malta, and of a nature 
similar to the aforesaid partnerships and registered as an overseas company in accordance with the Companies Act; or 
c. a co-operative society duly registered as such under the Co-operative Societies Act, 
Chapter 442 of the Laws of Malta.
25 
In order to benefit from assistance under this scheme, the undertaking must be in possession of 
an Incentive Entitlement Certificate issued in te rms of Part VI of the Malta Enterprise Act, 
Chapter 463 of the Laws of Malta.26 
 
The application for assistance must be submitted to the Corporation within twelve months from the 
end of the financial year for which the assistance is being claimed.  The application must contain the following information / documents: 
 
1. In the case of claims related to transport using the company's own facilities or leased 
vehicles, the applicant must provide: 
 
- A list of vehicles utilised for the transport of eligible merchandise between Malta 
and Gozo as well as details on the type, length and transport capacity of each 
vehicle; 
- FSS forms of the persons whose wage costs are being claimed; - The original ferry tickets. 
 
2. In the case of claims related to transp ort services provided by third parties, the 
applicant must submit the original invoices or a copy of the original invoices certified by the auditor, issued by the subcontracte d haulage service provider for the transport 
of goods between Malta and Gozo; 
 
3. A declaration signed by the auditor and the applicant confirming that the expenses 
submitted constitute the actual and eligible costs incurred. 
 The declaration must also state that such expenses will not be recovered from any other source and also that they will form an inte gral part of the financial statements. 
 
7. Amount of subsidy 
 
2013 – €149,051.81. 
2014 – €139,787.86.  
8. Duration of subsidy 
 
This aid scheme will run until 31 December 2015.  
9. Trade effects of the subsidy 
 
There are no effects on international trade. 
 
                                               
24 http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8853&l=1 . 
25 http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8908&l=1 . 
26 http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8929&l=1 . G/SCM/N/284/EU/Add.19 
 
- 39 - 
 
  16  TAX CREDITS FOR MICRO ENTERPRISES AND THE SELF EMPLOYED (ALSO KNOWN AS 
MICRO INVEST ) 
1. Title of subsidy 
 
Tax Credits for Micro Enterprises and the Self Employed (also known as Micro Invest ). 
 (Regulation 13 and 15 of the Enterprise Support Incentives Regulations as subsidiary legislation 
463.04 to the Malta Enterprise Act, Chapter 463 of the Laws of Malta) 
 2. Period 
 
The period covered by this notification starts from 1 January 2013 until 31 December 2014. 
 3. Policy objective 
 Under this aid scheme a tax credit of up to 40% of the value of the eligible expenditure may be 
provided to micro enterprises and the self-employed to: 
 
1. Invest in the business activity carried out; 
2. Innovate and expand; 
3. Implement compliance directives; or 
4. Develop their operations. 
 Undertakings operating from Gozo will be provided  an additional bonus of 20%. This means that 
such undertakings may be provided up to 60% tax credit. 
 The tax credit represents a percentage of the eligible expenditure and wages of newly recruited 
employees or apprentices. 
 Eligible expenses include:  
1. Investment in furbishing, refurbishing and upgrading of business premises including 
extensions or modifications to premises; 
2. Investment in acquiring machinery, technology, apparatus or instruments which 
enhance the operations, including systems which help to save energy or to produce 
alternative energy; 
3. Investment required to become compliant with regulations including Health and Safety, 
Environmental directives and Physical access; or 
4. Wage costs covering a twelve month period pertaining to new jobs and apprenticeships 
created as from 10 November 2009 as long as this constitutes a net increase in the total number of employees. 
 
Part time employment is also considered as elig ible when such employment requires the employee 
to work at least twenty hours per week. All jobs mu st be maintained by the beneficiary for a period 
of at least thirty six months. 
 The costs must be incurred and paid for between 1 January 2010 and 31 December 2012. 
 
The following costs are considered as ineligible:  
1. The purchase of land or property; 
2. The acquisition of motor vehicles; 
3. The acquisition of works of art, antiques and any assets that are not directly related to 
the trade and business of the applicant; and 
4. Costs that are assisted (even partly) through other incentive measures. 
 Eligible undertakings must: 
 
1. E m p l o y  n o t  m o r e  t h a n  n i n e  f u l l  t i m e  p e r s o n s  a s  a t  t h e  1 0
th November 2009. Micro 
start-ups set up after this date are also deemed eligible; and 
2. Have an annual turnover of not more than €2 million. G/SCM/N/284/EU/Add.19 
 
- 40 - 
 
  Besides the above, in 2013 the terms and conditions of this support measure were updated to the 
effect that eligible und ertakings may be those: 
 
1. Employing up to thirty employees (full time equivalent) as at 30 November 2012; and 
2. Having an annual turnover for 2012 which must not exceed €10 million as per audit 
accounts or statutory income tax return for base year 2012. 
 
Also, a number of undertakings that: 
 
1. Have incurred costs on eligible cost items between 1 July 2012 and 
31 December 2012; 
2. Have applied for regulatory licences and permits as required by this aid scheme by not 
later than 31 March 2013; and 
3. Have attained these regulatory licences and permits after 31 March 2013;  
 
May be deemed to be eligible for assistance on eligible cost items.  
Under this scheme, the maximum tax credit per undertaking is capped at €25,000 for the duration 
of the incentive.  Costs related to investment in furbishing, refurbishing and upgrading of business premises 
including extensions or modifications to premises w ill have to be subcontracted to third parties as 
part of a specific job, Items related to furbishi ng, refurbishing and upgrading of business premises 
that are not part of a receipt issued by the subcontractor providing the services will not be 
accepted. 
 Only claims for cost items that have a value of over €50.00 per item will be considered as eligible. 
 
The tax credit shall be available to the beneficiary from the year in which the investment is terminated and any unutilised tax credits shall be carried forward to the subsequent year of assessment and deemed to be a tax credit for that year. The tax credits are utilised against tax 
incurred on income derived from the trade or business activity only. The tax credit must be utilised 
by the year of assessment 2015.  
The assistance provided to any one undertaking shall not exceed €200,000 over any period of 
three consecutive fiscal years.
27 
 
4. Authority of subsidy 
 
Malta Enterprise Corporation – Malta Enterprise Act (Chapter 463 of the Laws of Malta).  
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is tax relief (tax credits). 
 
6. To whom and how the subsidy is paid 
 
Eligible undertakings under this support measure are micro enterprises in terms of Article 2 (3) of 
Annex I of  the Commission Regulation (EC) No 800/2008 of 6 August 2008 declaring certain 
categories of aid compatible with the common mark et in application of Articles 87 and 88 of the 
Treaty  (General block exemption Regulation). 
 
An entity qualifying under this scheme includes self-employed persons.  
Applicants must submit an application containing a detailed description of the capital expenditure 
in relation to the project for which support is requested. The application must be accompanied by the relative fiscal receipts together with any other documents that the Corporation may deem 
necessary to confirm the qualifying criteria of the scheme. The Corporation will issue a Certificate 
that will enable the applicant to benefit from a tax credit. 
                                               
27 The terms and conditions of this assistance are in line with the de minimis  Regulation: 
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2006:379:0005:0010:EN:PDF . G/SCM/N/284/EU/Add.19 
 
- 41 - 
 
  All beneficiaries are to submit a copy of the annual tax return for year of assessment in which the 
tax credit will be utilised. This will assist Malta Enterprise Corporation to verify the proper treatment of the relevant entries.  
Assistance provided under this incentive is on eligible capital expenditure carried out as from 
1 January 2010 and 31 December 2012 and may submit the claim to the Corporation until 31 March 2013. The tax credit shall be available to the beneficiary from the year in which the 
investment is terminated and any unutilised tax credits may be carried forward to the subsequent 
fiscal year.  The tax credit must be utilised by the year of assessment 2015. 
 
The Corporation and the Inland Revenue Department reserve the right to revoke the Certificate and recover any tax incentive the beneficiary may have benefited under this scheme in the case 
of: 
 
1. Misuse or abuse of assets after the completion of the project; 
2. Double funding of the same costs from th e Corporation or other public entities; 
3. Any breach of State aid regulations; 
4. Expenditure not directly related to the trade or business activity. 
 
The Corporation or the Inland Revenue Department may carry out onsite visits to determine 
whether:  
1. The investment has been implemented in line with the parameters set out in the 
Incentive Guidelines of the scheme; 
2. The application and documentation submitted are consistent with the actual 
investment project. 
 7. Amount of subsidy 
 
2013 – €6,637,986.80. 
2014 – €6,331,859.48.  
8. Duration of subsidy 
 
The duration of this aid scheme terminated on 31 December 2013. 
 
This termination date coincided with the termination of the validity of the following State Aid Regulation which was the State Aid regime of the Tax Credits for Micro Enterprises and the 
Self Employed (also known as Micro Invest ): 
 
Commission Regulation (EC) No. 1998/2006 of 15 December 2006 on the application of Articles 87 and 88 of the Treaty to de minimis aid – Official Journal L379 of 28.12.2006  (de minimis  
Regulation): 
 
http://eur-lex.europa.eu/LexUriServ/LexUri Serv.do?uri=OJ:L:2006:379:0005:0010:EN:PDF  
 
A new de minimis  Regulation came into force as from 1 January 2014: 
 Commission Regulation (EU) No 1407/2013 on th e application of Articles 107 and 108 of the 
Treaty on the functioning of the European Union to de minimis aid 
 
http://ec.europa.eu/competition/state_aid/legislation/de_minimis_regulation_en.pdf  
 
Malta Enterprise Corporation notified a new aid scheme entitled Micro Invest  Tax Credit 
Incentive for Enterprises and Self Employed  and which was implemented on 1 January, 2014. 
The Corporation did not approve any assistance under the new Micro Invest  Tax Credit 
Incentive for Enterprises and Self Employed . The assistance that is reported for 2014 covers 
applications under the previous Tax Credits for Micro Enterprises and the Self Employed 
(also known as Micro Invest ); a number of applications submitted in December 2013 were G/SCM/N/284/EU/Add.19 
 
- 42 - 
 
  processed throughout the first quarter of 2014, the applicable documents awarding assistance 
were issued in 2014 and dated 2014.  9. Trade effects of the subsidy 
 There are no effects on international trade.  
17  EXPLORATORY AWARD FP7 SCHEME 
1. Title of subsidy 
 
Exploratory Award FP7 Scheme. 
 
(Regulation 9  of the Assistance to Small and Medium-S ized Undertakings Regulations  as 
subsidiary legislation 463.0328 to the Malta Enterprise Act, Chapter 463 of the Laws of Malta) 
 
2. Period 
 
The period covered by this notification starts from 1 January 2013 until 31 December 2014. 
 3. Policy objective 
 
The Exploratory Award FP7 Scheme  aims to assist micros and SMEs to increase their research 
and development linkages with research perfor mers in the European Union and third country 
partners. Assistance is provided for the preparat ion and submission of proposals for the European 
Union's Seventh Research Framework Programme (FP7). 
 The assistance provided by this support measure consists in financing 75% of the total eligible 
costs of the preparatory proposal relating to: 
 
1. Feasibility check (desk studies, literature survey, risk analysis and to determine if the 
project is realisable); 
2. Research and development for the compilation of the EU project; 
3. Market analysis to assess possible exploitation; 
4. Novelty verification (including a world-wide patent search); 
5. Search for partners together with consorti um-building activities and call info days; 
6. Preparatory meetings with potential partners for the EU Project; 
7. Detailed EU project planning; 
8. EU proposal writing. 
 Each project funded under this support measure should not exceed twelve months to complete. 
 
The Seventh Framework Programme (FP7)
29 
The FP7 is set up by the EU in order to fund and promote European research and technological development. It covers the period between 2007 and 2013. The specific objectives that fall under 
this project are the following: 
 
1. To gain leadership in key scientific and technology areas; 
2. To stimulate the creativity and excellence of European research; 
3. To develop and strengthen the human potential of European research; and 
4. To enhance research and innovation capacity throughout Europe. 
 
                                               
28 http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=11608&l=1 . 
29 Source: 
http://ec.europa.eu/enterprise/smes/download/sp_2007_en.pdf . 
Further information about the FP7 may be found on the following link - 
http://cordis.europa.eu/fp7/home_en.html . 
Information at a national level may be found on th e Malta Council for Science and Technology website - 
www.mcst.gov.mt  which is the National Contact Point for FP7 in Malta. G/SCM/N/284/EU/Add.19 
 
- 43 - 
 
  o Promoting SME 
participation in the "Co-operation" programme: SMEs are actively encouraged to part icipate in all research actions. The 
involvement of SMEs in Joint Technology Initiatives (JTIs) is also encouraged wherever such activi ty is considered appropriate; 
"Ideas" programme 
open to SMEs  Just like any other organisation, research teams from SMEs can compete 
on the basis of excellence; 
o Human potential in 
research and technology 
in the "People" 
programme Greater attention is directed to wards encouraging increased SME 
participation under "Industry-academia partnerships and pathways"; 
o "Research for the 
benefit of SMEs" in the "Capacities" programme "Research for the benefit of SMEs" ai ms to strengthen the innovative 
capacity of European SMEs and their contribution to the development of new technology-based products and markets. The indicative budget for the SME specif ic actions is circa €1.3 billion. 
 
The assistance provided to any one undertaking shall not exceed €200,000 over any period of 
three consecutive fiscal years.30 
 4. Authority of subsidy 
 Malta Enterprise – Malta Enterprise Act (Chapter 463 of the Laws of Malta).  
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is a grant. 
 
6. To whom and how the subsidy is paid 
 
Undertakings eligible for assistance under this aid scheme are SMEs. Assistance covers one or 
more of the areas identified below: 
 
1. Manufacturing: production, improvement processing; 
2. Repair, preservation, improvement or maintenance of goods, materials, commodities, 
equipment, engines, plant and machinery, pleasure crafts and yachts, heavy equipment, aircraft; 
3. Rendering services to (2) above; 
4. ICT development activities, software development and ICT enabled services; 
5. Research and development and innovation; 
6. Waste treatment and environmental solutions; 
7. Biotechnology; 
8. Innovative start-ups; 
9. Other innovative SMEs proposing innovative projects which are more advanced than 
those prevailing in the respective industry, in terms of technology, know-how and 
skills. 
 Malta Enterprise Corporation will issue a public call. Prior to the commencement of the project 
interested undertakings must submit a formal application with details of the project. Applications 
will be examined for eligibility and will be competit ively evaluated. Projects have to be sustainable, 
value-added and trans-national. The applicant will be  duly notified of the approval decision as well 
as the eligible grant value for the project. 
 The assistance provided by this support measure consists in financing up to 75% of the costs 
relating to: 
 
1. Personnel costs  – the estimated costs of consultancy and professional services of 
scientific and administrative personnel directly employed by the micro and SME and 
assigned wholly and partially with the work for developing the proposal; 
2. Overheads  – each beneficiary is eligible to 7% of the refunded personnel costs as 
overheads. This covers minor administrative costs related to proposal development 
such as couriers and photocopying; 
                                               
30 The terms and conditions of this assistance are in line with the de minimis  Regulation: 
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2006:379:0005:0010:EN:PDF . G/SCM/N/284/EU/Add.19 
 
- 44 - 
 
  3. Travel and per diem  – each beneficiary is entitled to a refund for travel costs for two 
travel trips in relation to the project propos al. The travelling has to be pre-approved in 
writing by Malta Enterprise. 
 
7. Amount of subsidy 
 
2013 – €4,094.34. 
2014 – Nil assistance. 
 8. Duration of subsidy 
 
The duration of this aid scheme terminated on 31 August 2013. 
 9. Trade effects of the subsidy 
 There are no effects on international trade.  
18  INNOVATIVE START-UP SCHEME 
1. Title of the subsidy 
 
Innovative Start-Up Scheme 
 
(Regulation 4  of the Assistance to Small and Medium-S ized Undertakings Regulations  as 
subsidiary legislation 463.03 to the Malta Enterprise Act, Chapter 463 of the Laws of Malta) 
 
2. Period covered by the notification 
 
The period covered by this notification starts from 1 January 2013 until 31 December 2014. 
 3. Policy objective 
 
The aim of the assistance provided by this aid scheme is to support innovative start-up 
undertakings that show a potential for job creation  and economic growth by part-financing costs 
incurred during their setting-up phase. A start-up undertaking is an undertaking in its initial five 
years. In order to benefit from this incentive the undertaking must submit an application within 
three years of its creation.  
Assistance provided under this scheme falls under three levels: 
 
Level One: applies to start-up undertakings with a low innovation profile or a low 
potential for international trading. 
 
Undertakings falling under this level will NOT be eligible for cash grants. 
 
Level Two: applies to start-up undertakings that are significantly innovative or that 
have a potential to trade their products or services internationally.  
Undertakings falling under this level will be eligible for a cash grant of up 
to €5,000;  
Level Three: applies to start-up undertakings supported as tenants or off-site clients of 
the Kordin Business Incubation Centre  (KBIC) with at least one of the 
following requirements:  
1. the undertaking should be knowledge-based or highly innovative; 
2. the proposed product or services has a good potential of being 
traded internationally; 
3. the undertaking has a potential of collaborating with larger 
undertakings (as partners within their value chain). 
  G/SCM/N/284/EU/Add.19 
 
- 45 - 
 
  Undertakings supported through KBIC will be eligible for a cash grant of 
up to €15,000. 
 Assistance under this scheme consists in part-financing eligible costs relating to: 
 
A. Investment in: 
 
i. Tangible Assets  - investment costs relating to land, buildings, plant, machinery and 
equipment. 
ii. Intangible Assets - costs related to the transfer of technology through the acquisition 
of patent rights, licences, know-how or unpatented technical knowledge. 
The total amount of assistance that may be provid ed shall be as follows. It shall never exceed: 
 
- 50% of the eligible costs in the case of a small undertaking; 
- 40% of the eligible costs in the case of a medium undertaking. 
 Since the beneficiaries of this scheme are SMEs, the investment must be maintained in Malta for 
three years after the whole investment has been completed. This shall not prevent the 
replacement of plant of equipment which has beco me out-dated due to rapid technological change, 
provided that the economic activity is retained in Malta for the minimum period.  
Where the aid is calculated on the basis of tangible and intangible investment costs, or of 
acquisition costs in the case of takeovers, the beneficiary must provide a financial contribution of at least 25% of the eligible costs, either through its own resources or by an external financing, in a 
form which is free of any public support. 
 In the case of acquisition of an establishment, only the costs of buying assets from third parties 
shall be taken into consideration, provided that the transaction has taken place under market 
conditions. Where the acquisition is accompanied by other investment, the costs relating to the latter shall be added to the cost of the purchase.  
Costs related to the acquisition of assets under lease, other than land and buildings, shall be taken 
into consideration only if the lease takes the form of financial leasing and contain an obligation to purchase the asset at the expiry of the term of th e lease. For the lease of land and buildings, the 
lease must continue for at least three years after the anticipated date of the completion of the 
investment project.  
In the case of takeovers, assets for the acquisition of which aid has already been granted prior to 
the purchase shall be deducted. For SMEs, the full costs of investments in intangible assets may also be taken into consideration.
31 
 
B. Consultancy costs of services provided by outside consultants: 
 The services concerned shall not be of a conti nuous or periodic activity nor relate to the 
undertaking's usual operating costs, such as routine tax consultancy services, regular legal 
services, or advertising.  
In the case of consultancy costs of services provid ed by outside consultants, the aid intensity shall 
not exceed 50% of the eligible costs.
32 
 4. Authority of subsidy 
 Malta Enterprise Corporation – Malta Enterprise Act (Chapter 463 of the Laws of Malta).  
                                               
31 The terms and conditions of this assistance are in line with Regional investment in terms of Article 13 
of Section 1  of the General block exemption Regulation: 
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:214:0003:0047:EN:PDF . 
The validity of this Regulation terminated on 30 June 2014. 
32 The terms and conditions of this as sistance are in line with Consultancy costs of services provided by 
outside consultants in terms of Article 26 of Sect ion 5 of the General block exemption Regulation ( vide footnote 
No. 31). G/SCM/N/284/EU/Add.19 
 
- 46 - 
 
  5. Form of subsidy 
 
The form of the subsidy of this aid scheme is a grant. 
 
6. To whom and how the subsidy is paid 
 
The aid is of a horizontal nature aimed to provide assistance to SMEs during the first two years of 
operation, that is, during the start-up phase.  The aid targets start-up SMEs engaged in the 
following activities:  
1. Manufacturing; 
2. ICT development activities, software deve lopment, and ICT enabled services. This 
excludes enterprises engaged in gaming and telecommunications; 
3. Research and development and innovation; 
4. Waste treatment and environmental solutions; 
5. Biotechnology; 
6. Other undertakings proposing innovative products, services and process development, 
which are typically more advanced in terms of technology, know-how and skills than 
those prevailing in their respective industry. 
 7.  Amount of subsidy 
 2013 – €56,500.00. 2014 – €60,000.00. 
 
8. Duration of subsidy 
 
The duration of this aid scheme terminated on 31 December 2013. 
 This termination date coincided with the termination of the validity of the following State Aid Regulation which was the State Aid regime of the Innovative Start-Up Scheme : 
 
Commission Regulation (EC) No 800/2008 of 6 August 2008 declaring certain categories of aid compatible with the common market in application of Articles 87 and 88 of the Treaty  (General 
block exemption Regulation). 
 In December 2013, the Commission prolonged the duration of the General block exemption 
Regulation by six months, and that is, till 30 June 2014. Malta Enterprise Corporation requested an 
extension of the duration of validity of the Innovative Start-Up Scheme  so that it could continue 
to approve assistance under this scheme till 30 June 2014. The State Aid Monitoring Board approved this request. 
 
Consequently, the duration of the Innovative Start-Up Scheme  terminated on 30 June 2014. 
 
9. Trade effects of the subsidy 
 
There are no effects on international trade. 
 
19  SMALL START-UP GRANTS SCHEME 
1. Title of subsidy 
 
Small Start-Up Grants Scheme. 
 (Regulation 5  of the Assistance to Small and Medium-S ized Undertakings Regulations  as 
subsidiary legislation 463.03 to the Malta Enterprise Act, Chapter 463 of the Laws of Malta) 
 2. Period 
 The period covered by this notification starts from 1 January 2013 until 31 December 2014.  G/SCM/N/284/EU/Add.19 
 
- 47 - 
 
  3. Policy objective 
 
The aim of this incentive is to support business start-ups at their early stage of development. 
Grants may be approved to newly created small undertakings by financing 25% of the following 
costs which have to be incurred during the first five years of their creation: 
 
1. Legal advisory, consultancy and administrative costs directly related to the creation of 
the small undertaking; 
2. Interests on external finance; 
3. Fees for renting production facilities or equipment; 
4. Energy and water; 
5. Fees for leasing production facilities or equipment; and 
6. Wage costs including compulsory social charges. 
 
Written assurance must be provided that the undertaking did not benefit from aid under any other 
support measures for underlying investments of job creation and recruitment measures in respect of No. 6 (wage costs) above. The Corporation k eeps updated records of all aid awarded to newly 
created small undertakings. 
 The terms and conditions of the scheme are in line with par. 84 et seq. of Section 6 entitled Aid 
for Newly Created Small Enterprises  of the Guidelines on National Regional Aid for 2007-2013 
(2006/C 54/08).
33 
 4. Authority of subsidy 
 Malta Enterprise Corporation – Malta Enterprise Act (Chapter 463 of the Laws of Malta).  
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is a grant. 
 
6. To whom and how the subsidy is paid 
 
Eligible undertakings under this scheme are small and autonomous undertakings34 which have 
been created less than five years ago engaged in the following activities: 
 
1. Manufacturing: 
Including repair, preservation, improvement or maintenance of goods, materials, 
commodities, equipment, engines, plant and machinery, pleasure crafts and yachts, 
heavy equipment, aircraft; and The rendering of industrial services directly related to above; 
2. Information and Communication Technology development activities, software 
development and ICT enabled services; 
3. Research and Development and Innovation; 
4. Waste treatment and environmental solutions;  
5. Biotechnology; 
6. Start-ups proposing innovative products, services and process development, which are 
typically more advanced than those prevailing in their respective industry, in terms of 
technology, know-how and skills. 
 In order to benefit from assistance under this scheme, undertakings engaged in the above 
mentioned activities have to promote innovative or high value-added projects. 
 Applicants must submit three comparable quotes from three independent suppliers for each cost 
item. Part financing and grant values will be calculated on the lowest value quoted. Quotes 
submitted for the same cost item must be from suppliers which are related neither to each other nor to the applicant. Suppliers shall not be related to the applicants. 
                                               
33 http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2006:054:0013:0044:EN:PDF . 
34 The small and autonomous undertakin gs must fall within the meaning of  Articles 2 and 3 of Annex I of 
Commission Regulation (EC) No 800/2008 of 6 August 2008 de claring certain categories of aid compatible with 
the common market in application of  Articles 87 and 88 of the Treaty (General block exemption Regulation): 
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:214:0003:0047:EN:PDF . G/SCM/N/284/EU/Add.19 
 
- 48 - 
 
  The approved project shall be based and operationa l in Malta since the objective of the European 
Regional Development Funds is to support projects that contribute to the development of the Maltese economy.  
Costs incurred for replacing or reconditioning existing equipment are considered as ineligible. 
 This aid scheme is exclusively for newly created small undertakings and shall not apply to existing 
small undertakings that close down and re-open. The rule concerning restriction of undertakings 
controlled by owners of previously closed-down bu sinesses, preventing them from benefiting from 
this incentive if the new undertaking is operative in the related sector as that of the closed-down firm, will be applied for a definite period only. The restriction will apply for owners of companies 
that have previously closed-down for a period of  twelve months only following such closures. 
 Interested undertakings must submit a formal ap plication. Final approval will be based on the 
presentation of a business plan which will be ev aluated on the viability and development potential 
of the proposed start-up. Once approved the be neficiary may claim a refund of up to 25% on 
eligible expenses. 
 
7. Amount of subsidy 
 2013 – €214,463.03. 
2014 – Nil assistance. 
 The Small Start-Up Grants Scheme  is mainly financed under the Grant Scheme for Enterprises 
implemented by Malta Enterprise which operates under Priority Axis I – Enhancing Knowledge and 
Innovation of Malta's Operational Programme I Cohesion Policy 2007 – 2013 (ERDF Funds) with a top up by national funds. The amount of Community funding under this scheme is 85%. 
 
There were four competitive calls under the Small Start-Up Grants Scheme ; two during 2009, 
one in 2010 and one in 2012. Call One closed on 4 March 2009, Call Two closed on 31 July 2009, Call Three closed on 26 March 2010 while Call Four closed on 3 April 2012. Assistance approved by 
the Corporation for Call One and Call Two was reported in 2009. Two ERDF Grant Agreements for 
Call Two were reported in 2010 as a result of the ERDF Appeals process. All the assistance approved for Call Three was withdrawn by the applicants; in other words, there are no 
beneficiaries for assistance for Call Three for this  aid scheme. Assistance approved for the fourth 
competitive call is partly reported in 2012 and partly reported in 2013 to reflect the date of the countersigned Grant Agreements. Assistance approved by the Corporation for the Call Four was 
reported partly in 2012 and partly in 2013 to reflect the date of the ERDF Grant Agreements. 
 8. Duration of subsidy 
 
The duration of this aid scheme terminated on 31 December 2013. 
 9. Trade effects of the subsidy 
 There are no effects on international trade.  
20  SME DEVELOPMENT GRANT SCHEME 
1. Title of the subsidy 
 
SME Development Grant Scheme. 
 
(Regulations 7 and 8  of the Assistance to Small and Medium-Sized Undertakings 
Regulations  as subsidiary legislation 463.03 to the Malta Enterprise Act, Chapter 463 of the Laws 
of Malta) 
 2. Period covered by the notification 
 The period covered by this notification starts from 1 January 2013 until 31 December 2014.  G/SCM/N/284/EU/Add.19 
 
- 49 - 
 
  3. Policy objective 
 
The assistance provided by this aid scheme consists  in financing up to 50% of the costs relating 
to: 
 
1. Consultancy in favour of SMEs: the services shall not be of a continuous or periodic 
activity nor relate to the undertaking's usual operating costs, such as routine tax 
consultancy services, regular legal services or advertising;35 
2. First time participation in fairs and exhibitions: the eligible costs shall be the costs 
incurred for renting, setting up and running the stand for the first participation of an undertaking in any particular fair or exhibition
36. 
 
SMEs participating at such trade events are ex pected to broaden their international exposure, 
generate or establish contacts with trade partners, develop business networks with international 
partners, acquire knowledge about new markets and possibly carry out business in targeted 
markets.  
4. Authority of subsidy 
 
Malta Enterprise Corporation – Malta Enterprise Act (Chapter 463 of the Laws of Malta).  
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is a grant. 
 
6. To whom and how the subsidy is paid 
 
Eligible undertakings for assistance under this support measure are micro and SMEs in the 
manufacturing industry, ICT, waste treatment, environmental solutions and eco-innovations, 
research and development and innovation, and biotechnology. They must be engaged in the 
following activities: 
 
1. Manufacturing;  
2. Repair, preservation, improvement or maintenance of goods, materials, commodities, 
equipment, engines, plant and machinery, pleasure crafts and yachts, heavy 
equipment and aircraft;  
3. Rendering of services directly related to (2) above; 
4. Information and Communications Technology (ICT) development activities, software 
development and ICT enabled services;  
5. Research and development and innovation (RDI);  
6. Waste treatment, environmental solutions and eco-innovations; 
7. Biotechnology; 
8. Start-up undertakings proposing innovative products, services and process 
development, which are typically more ad vanced than those prevailing in their 
respective industry, in terms of technology, know-how and skills. 
 Interested SMEs will submit a formal application that describes the project or task for which they 
would like the support of the consultant. Such a pplications will be evaluated and reimbursement 
will be made upon submission of the relevant invoices.  In the case of participation of event, approved applications will benefit from reduced charges or 
grants for participation in the particular overseas event. After participation in the event, the 
undertaking must submit all invoices pertaining to stand space and stand construction, shipping 
                                               
35 The terms and conditions of this assistance are in li ne with Article 26: Aid for consultancy in favour of 
SMEs under Section 5 – Aid for consultancy in favo ur of SMEs and SME participation in fairs of Commission 
Regulation (EC) No 800/2008 of 6 August 2008 declaring cert ain categories of aid compatible with the common 
market in application of Ar ticles 87 and 88 of the Treaty  (General block exemption Regulation): 
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:214:0003:0047:EN:PDF . 
36 The terms and conditions of this  assistance are in line with Ar ticle 27 of Section 5 – Aid for SME 
participation in fairs under Section 5 – Aid for consultanc y in favour of SMEs and SME participation in fairs of 
the General block exemption Regulation: 
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:214:0003:0047:EN:PDF . G/SCM/N/284/EU/Add.19 
 
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  costs of exhibits, flight expenses, and other re lated expenditure. The value of aid (support 
provided) depends on the event and the market targeted.  7. Amount of subsidy 
 2013 – €20,577.50. 2014 – €100,682.50. 
 
8. Duration of subsidy 
 The duration of this aid scheme terminated on 31 December 2013. 
 
This termination date coincided with the termination of the validity of the following State Aid Regulation which was the State Aid regime of the SME Development Grant Scheme : 
 
Commission Regulation (EC) No 800/2008 of 6 August 2008 declaring certain categories of aid compatible with the common market in application of Articles 87 and 88 of the Treaty  (General 
block exemption Regulation). 
 In December 2013, the Commission prolonged the duration of the General block exemption Regulation by six months, and that is, till 30 June 2014. Malta Enterprise Corporation requested an 
extension of the duration of validity of the SME Development Grant Scheme  so that it could 
continue to approve assistance under this scheme till 30 June 2014. The State Aid Monitoring Board approved this request. 
 
Consequently, the duration of the SME Development Grant Scheme  terminated on the 
30 June 2014. 
 
9. Trade effects of the subsidy 
 There are no effects on international trade. 
 
21  QUALITY+ TAX DEDUCTIONS FOR ENTERPRISES THAT IMPROVE THE QUALITY OF THE PRODUCTS, SERVICES AND PROCESSES 
1. Title of subsidy 
 
Quality +. 
Tax Deductions for Enterprises that Improve the Quality of the products, services and processes. 
 (Regulation 10 of the Assistance to Small and Medium-S ized Undertakings Regulations  as 
subsidiary legislation 463.03 to the Malta Enterprise Act, Chapter 463 of the Laws of Malta) 
 
2. Period covered by the notification 
 
The period covered by this notification starts from 1 January 2013 until 31 December 2014. 
 3. Policy objective 
 The scope for Quality + Tax Deductions for Enterprises that Improve the Quality of the 
products, services and processes  is mainly to encourage SMEs to engage in the continuous 
improvement of the quality of their products, serv ices and processes. Under this support measure, 
the Corporation may approve tax deductions representing one hundred and fifty percent (150%) of 
the eligible expenditure incurred for achieving th e required improvement. The fiscal support that 
will be available through this support measure will make it easier for undertakings to carry out 
investments that lead to superior products, services of higher value or more efficient processes. 
Under this scheme an undertaking may benefit up to a maximum of €20,000.  
The tax deduction due to the eligible undertaking  in respect of an approved project shall not 
exceed in the aggregate €200,000 over any period of three consecutive fiscal years.
37 
                                               
37 The terms and conditions of this assistance are in line with the de minimis  Regulation: G/SCM/N/284/EU/Add.19 
 
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  4. Authority of subsidy 
 
Malta Enterprise Corporation – Malta Enterprise Act (Chapter 463 of the Laws of Malta).  
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is tax relief (tax deduction). 
 
6. To whom and how the subsidy is paid 
 Eligible enterprises under this support measure are SMEs in terms of Annex I  of Commission 
Regulation (EC) No 800/2008 of 6 August 2008 declaring certain categories of aid compatible with 
the common market in application of Articles 87 and 88 of the Treaty  (General block exemption 
Regulation). 
 
An entity qualifying under this support measure includes self-employed persons.  
Undertakings engaged in any of the following activities are ineligible for assistance under this 
support measure:  
i. Real estate; 
ii. Gambling; 
iii. Financial services or insurance; 
iv. The trading or manufacturing of arms and military equipment and related services. 
 
Voluntary organisations are also ineligible under this support measure.  
Assistance under this support measure will be in  the form of tax deductions equivalent to 150% 
over any statutory tax deductions; that is, the form of assistance is a subtraction from the taxable income generated from the eligible activity.  
Since tax deductions are subtracted from the eligible income before tax, the value of aid is 
calculated by multiplying the deducted value by applicable tax rate. However, since tax rates may vary depending on the applicant's income and status, the applicable aid intensity will be estimated 
by using the highest applicable tax rate under the Income Tax Act, Chapter 123 of the Laws of 
Malta.
38 This means that the aid intensity granted through this support measure will be equivalent 
to 52.5% of the eligible cost. 
 
Example: 
 If the eligible project costs are €100 then the value of aid will be equal to 150% (€100 x 150%) 
multiplied by the maximum tax rate (35%) which equals to €52.50. 
 In order to be eligible for assistance under this support measure costs must be incurred in the 
process of: 
 
1. Achieving a recognised quality certification related to processes, products or services; 
2. Achieving a recognised environmental certification; 
3. Adopting an operations manual and the acquisition of a franchise licence; 
4. A due diligence exercise leading to the acquisition of a licence required for 
participation in a value chain; 
5. Acquiring a quality mark. 
 The following costs are also eligible under this support measure: 
 
 Consultancy 
Consultancy services leading to an approved certification, quality mark or licence provided 
by a consultant or consultancy firm recognised by the respective certification body. 
 
                                                                                                                                               
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2006:379:0005:0010:EN:PDF . 
38 http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8658&l=1 . G/SCM/N/284/EU/Add.19 
 
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   Training and Training Materials 
Training and training materials required to achieve the certification, quality mark or licence 
 
 Audit, Due Diligence or  Verification Costs 
Costs incurred for first time audits, due diligence or verification service conducted by a 
certified body required for achieving an approved certification or licence as well as costs incurred from the institution granting the certification, quality mark or licence in relation to 
the issuing of the relevant documentation. 
 The following costs are ineligible:  
- Wages, salaries and other forms of employee remuneration; 
- Tax; 
- Costs related to maintain a certification, quality mark or licence; 
- Services of a continuous or periodic nature or related to the applicants' operating costs 
(such as recurring fee and re-certification audits). 
 
Prior to submission of an application: 
 
Advisory services provided by the Corporation will assist potential applicants formulate as well as verification of plans of the application to be subm itted. Such services may be available through the 
Business Advisory Services Scheme  (Assistance for the engagement of advisors ) administered by 
the Corporation.  
Verification of certification, quality mark or licence: 
 
Prior to commencing works, applicants should make sure with the relevant authorities that the 
sought certifications, licence or quality mark are identified as eligible. If the certification, quality 
mark or licence is not listed, the undertaking should verify eligibility by submitting the following information to the Corporation:  
1. Details of the certification, quality mark or licence and its applicability to economic 
development; 
2. Details of the organisation granting the qualification or licence; 
3. Details of any organisation assigned to conducted audits or similar actions required for 
achieving an approved certification or licence; 
4. A breakdown of the expected costs. 
 
Application: 
 After achieving an approved certification, quality mark or licence the applicant may submit the 
official application form which has to include the following: 
 
1. A detailed curriculum vitae  of any consultants that were contracted; 
2. A copy of the documentation showing th at the applicant has been granted an 
approved certification, quality mark or licence applicable; 
3. Original tax invoices of all claimed expenses  (in terms of the Twelfth Schedule of the 
Value Added Tax Act, Chapter 406 of the Laws of Malta
39) and an original receipt, or 
an original fiscal receipt (in terms of the Thirteenth Schedule of the same Chapter 406 quoted previously) together with a copy of  the invoice. When foreign expenditure is 
incurred, the invoice and the original receipt are required. Other proof of payment 
such as the original bank statement/s or any other relevant original banking 
documentation may be requested particularly in cases when the currency of the transactions is different than the Euro currency. 
 
The Corporation will publish a list of approved certifications and quality marks on its website. Undertakings seeking a certification, quality mark or licence which is not listed may send the 
applicable details to the Corporation for consideration. 
 
                                               
39 http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8872&l=1 . G/SCM/N/284/EU/Add.19 
 
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  Approval: 
 
Once the application is deemed eligible, the Corporation will evaluate the application and will determine whether: 
 
1. The licence, quality mark or certificate attained will provide the applicant with better 
opportunities for business development and growth; 
2. Consultations or services were provided by technically competent professionals; and 
3. The claimed costs are justifiable. 
 After verifying the documents submitted, the Co rporation will issue an Incentive Entitlement 
Certificate that will enable the applicant to claim the applicable fiscal benefits. 
 The project must be completed and all the releva nt documentation submitted to the Corporation 
by not later than three months before the relative  tax return date of the year of assessment in 
which the applicant intends to start benefitting from the approved deductions.  
The Corporation and the Inland Revenue Department reserve the right to revoke the Incentive 
Entitlement Certificate and recover any tax incentive the applicant may have benefitted from under this support measure in the case of:  
1. Double funding of the same eligible costs from the Corporation or other public 
entities; 
2. Any breach of the conditions set out in the applicable Incentive Guidelines covering 
this support measure; 
3. Any breach of the terms and conditions set out in the Letter of Approval or in the 
Incentive Entitlement Certificate. 
 
Additional Provisions: 
 
- Applicants should be in possession of the applicable regulatory licences and permits. 
 
- All eligible costs should have been paid for by the applicant between 1 January 2011 and 
31 December 2013. 
 
- All services should have been rendered between 1 January 2011 and 31 December 2013. 
 
- The tax deduction may not be converted into any other form of aid and may not be used 
against any tax due. 
 
- Any tax deductions approved by the Corporation under this support measure shall not give 
rise to a right of any tax refund. 
 
- The tax deduction shall be utilised against profit derived from the applicant's relevant trade 
or business activity only. 
 
- If the approved value of the tax deduction ex ceeds the profit derived from the trade or 
business activity the balance may be carried forward as a tax deduction to subsequent years 
but must be utilised by the year of assessment 2014. 
 In case where the financial statements are in a currency other than Euro the relevant amounts 
should be converted to Euro using the middle rate  of exchange as determined by the European 
Central Bank.  
7. Amount of subsidy 
 
2013 – €17,566.00. 
2014 – €72,082.00. 
 8. Duration of subsidy 
 
The duration of this aid scheme terminated on 31 December 2013. G/SCM/N/284/EU/Add.19 
 
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  The assistance that is reported for 2014 covers applications submitted in 2013, but evaluated and 
processed in 2014; the applicable documents awarding assistance were issued in 2014 and dated 2014.  
9. Trade effects of the subsidy 
 
There are no effects on international trade. 
 
22  EUREKA R&D GRANT 
1. Title of the subsidy 
 
EUREKA R&D Grant. 
 (Assistance for Research and Development and Innovation Regulations as subsidiary legislation 
463.05
40 to the Malta Enterprise Act, Chapter 463 of the Laws of Malta) 
 2. Period covered by the notification 
 The period covered by this notification starts from 1 January 2013 until 31 December 2014.  3. Policy objective 
 The aim of the EUREKA R&D Grant  is to assist SMEs and large undertakings by providing them 
with financial support to carry out collaborative research and development projects referred to as 
Eureka Projects
41 with partners from the Eureka network, with an objective to create products, 
processes and services in areas of advanced technology as well as projects of innovation, research and technological development.
42 
 
In order to benefit from assistance under this  scheme, EUREKA Projects have to be either: 
 Innovative Projects : such projects have ready-to-market results, representing a significant 
advance in their particular sector; or 
 Cluster Projects : such projects are long-term, strategically significant industrial initiatives. They 
usually have a large number of participants and aim to develop generic technologies of key 
importance for European competitiveness, such as in Information and Communication Technologies (ICT), energy and biotechnology. 
 
SMEs and large undertakings may benefit from assistance under the EUREKA R&D Grant  for 
costs incurred during the industrial research an d experimental development phase of the EUREKA 
Project. Only costs incurred by undertakings established in Malta may be part-financed. 
 
The aided part of the research project must fall within the following research categories:
43 
 
1. Industrial Research 
 
Industrial Research means planned research or critical investigation aimed at the 
acquisition of new knowledge and skills for developing new products, processes or services 
or for bringing about a significant improvement in existing products, processes or services. It comprises the creation of components parts to complex systems, which is necessary for 
                                               
40 http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=11610&l=1 . 
41 EUREKA is a pan-European network for market-o riented collaborative research and development 
which brings together industry and re search institutes from over thirty nine countries including the European 
Union. It aims primarily to stimul ate the research efforts of undertakings and to develop their innovation 
capacity. It assists undertakings in unifying their resour ces and to collaborate with research instit utes for the 
development of advanced technologies and market oriented products. 
42 This project is in line with the pan European EUREKA initiative (vide www.eureka.be ). 
43 The definitions of ‘industrial research’ and ‘experimental development’ are in line with those provided 
under Article 30 Definitions - Section 7 Aid for research and development and innovation of the 
General block exemption Regulation:  
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:214:0003:0047:EN:PDF . G/SCM/N/284/EU/Add.19 
 
- 55 - 
 
  the industrial research, notably for generic technology validation, to the exclusion of 
prototypes; 
 
2. Experimental Development 
 
Experimental Development means the acquirin g, combining, shaping and using existing 
scientific, technological, business and other relevant knowledge and skills for the purpose 
of producing plans and arrangements or designs for new, altered or improved products, 
processes or services. These may also include, for instance, other activities aiming at the conceptual definition, planning and documentat ion of new products, processes or services. 
Those activities may comprise producing drafts, drawings, plans and other documentation, 
provided that they are not intended for commercial use. 
 
The development of commercially usable prototypes and pilot projects is also included 
where the prototype is necessarily the fina l commercial product and where it is too 
expensive to produce for it to be used only for demonstration and validation purposes. In case of a subsequent commercial use of demonstration or pilot projects, any revenue 
generated from such use must be deducted from the eligible costs. 
 
The experimental production and testing of pr oducts, processes and services shall also be 
eligible, provided that these cannot be used or transformed to be used in industrial 
applications or commercially. 
 
Experimental Development shall not include routine or periodic changes made to products, 
production lines, manufacturing processes, existing services and other operations in 
progress even if such changes may represent improvements. 
 
To be eligible for assistance under the EUREKA R&D Grant : 
 
1. The project consortium must be made up of a minimum of two undertakings which must 
be: 
 
a. Independent from each other; and 
b. Established in the EUREKA member states. 
c. One of the undertakings must be established in Malta. 
 The following conditions must be fulfilled: 
 
A. If the project involves effective collaboration  between at least two undertakings which are 
independent of each other: 
 
a. No single undertaking must bear more than 70% of the eligible costs of the collaboration 
project, 
d. The project involves collaboration with at least one SME or is carried out in at least two 
different Member States; 
 
Or 
 
B. If the project involves effective collaboration between an undertaking and a research 
organisation: 
 
a. The research organisation must bear at least 10% of the eligible project costs, and 
b. The research organisation has the right to publish the results of the research projects 
insofar as they stem from research carried out by that organisation, 
 
Subcontracting is not considered as effective collaboration under (A) and (B) above. 
 
Or 
 
C. In the case of industrial research, the resu lts of the projects are widely disseminated 
through technical and scientific conferences or through publication in scientific or technical G/SCM/N/284/EU/Add.19 
 
- 56 - 
 
  journals or in open access repositories (databases where raw research data can be 
accessed by anyone), or through free or open source software. 
 
2. The project must attain EUREKA status. 
 
The total amount of assistance that may be provided under the EUREKA R&D Grant  shall be as 
follows: 
 
Industrial research and experimental development projects approved under the EUREKA R&D Grant may be supported with a grant of up to €200,000, which may be used to cover:  
a. 60% of the eligible costs in the case of a small undertaking; 
b. 50% of the eligible costs in the case of a medium sized undertaking; 
c. 40% of the eligible costs in the case of a large undertaking. 
 
This support measure is in line with Aid for research and development projects under 
Article 31  of Section 7  of the General block exemption Regulation . 
 
4. Authority of subsidy 
 Malta Enterprise Corporation – Malta Enterprise Act (Chapter 463 of the Laws of Malta). 
 
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is a cash grant. 
 6. To whom and how the subsidy is paid 
 SMEs as well as large undertakings that intend to carry out an industrial research or an experimental development project in collaborati on with members from the EUREKA network are 
eligible for assistance under this scheme. 
 
Assistance under the EUREKA R&D Grant  is provided to all sectors of the industry related to 
advanced technology development that have opted for innovation to improve their 
competitiveness. The latter must demonstrate that the research project will lead to the 
development of:  
1. New innovative products, processes and services, or 
2. The substantial improvement of any existing products, processes or services. 
 Interested undertakings must submit a formal application containing a detailed description of the 
kind of research or development project for whic h they request the support. The enterprise must 
provide a clear explanation of the objectives and capabilities of the end product. The application 
will then be competitively evaluated. 
 
Approved proposals will be periodically fina nced against expenditure incurred during the 
implementation of the project. Approval will be based on the st rategic, commercial and technical 
feasibility of the projects as well as the capabili ty of the company to financially support its own 
share of the project.  Once the application is approved, the Corporation will support accordingly in terms of the project 
planning agreement. 
 7.  Amount of subsidy 
 2013 – €62,505.55. 2014 – Nil assistance. 
 
8. Duration of subsidy 
 The duration of this aid scheme terminated on 31 December 2013. 
 G/SCM/N/284/EU/Add.19 
 
- 57 - 
 
  This termination date coincided with the termination of the validity of the following State Aid 
Regulation which was the State Aid regime of the EUREKA R&D Grant : 
 Commission Regulation (EC) No 800/2008 of 6 August 2008 declaring certain categories of aid 
compatible with the common market in application of Articles 87 and 88 of the Treaty  (General 
block exemption Regulation).  
In December 2013, the Commission prolonged the duration of the General block exemption 
Regulation by six months, and that is, till 30 June 2014. Malta Enterprise Corporation requested an extension of the duration of validity of the EUREKA R&D Grant  so that it could continue to 
approve assistance under this scheme till 30 June  2014. The State Aid Monitoring Board approved 
this request. 
 Consequently, the duration of the EUREKA R&D Grant  terminated on 30 June 2014. 
 
9. Trade effects of the subsidy 
 
There were no effects on international trade. 
 23  EUROSTARS R&D GRANT 
1. Title of the subsidy 
 
Eurostars R&D Grant.  
(Assistance for Research and Development and Innovation Regulations as subsidiary legislation 
463.05 to the Malta Enterprise Act, Chapter 463 of the Laws of Malta)  
2. Period covered by the notification 
 
The period covered by this notification starts from 1 January 2013 until 31 December 2014.  
3. Policy objective 
 
Under the Eurostars R&D Grant , the Corporation may approve assistance to undertakings 
established in Malta to participate in the Eurostars Joint Programme.44 The purpose of this 
Programme is to provide funding for market-oriented research and development with the active participation of research and development (R&D ) performing SMEs. In terms of the Eurostars 
Programme, an R&D performing SME is an SME that dedicates at least 10% of its turnover or full 
time equivalent (FTE) to research activities.  The Eurostars R&D Grant  is in line with Aid for research and development projects  under 
Article 31 of Section 7 of the Ge neral block exemption Regulation . 
 The aided part of the research project must fall within the following research categories
45: 
 
1. Industrial Research  
Industrial Research means planned research or critical investigation aimed at the 
acquisition of new knowledge and skills for developing new products, processes or services 
                                               
44 The Eurostars Programme is a European innovati on programme managed by EUREKA. Its purpose is 
to provide funding for market-oriented research and development with the active participation of R&D 
performing SMEs. Eurostars is a join t initiative between EUREKA and the EU Seventh Framework Programme 
for Research and Technological Develo pment (FP7). Further information on  the Eurostars Joint Programme may 
be accessed on www.eurostars-eureka.eu . When Malta joined as a member of the Eurostars Programme, Malta 
Enterprise Corporation was entruste d with the programme promotion and administration of the Eurostars 
Programme. The official announcement took place on 27 October 2010, during the EUREKA meeting held in Israel. 
45 The definitions of ‘industrial research’ and ‘experimental development’ are in line with those provided 
under Article 30 Definitions - Section 7 Aid for research and development and innovation of 
Commission Regulation (EC) No 800/2008 of 6 August 2008 de claring certain categories of aid compatible with 
the common market in application of Articles 87 and 88 of the Treaty  (General block exemption Regulation): 
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:214:0003:0047:EN:PDF . G/SCM/N/284/EU/Add.19 
 
- 58 - 
 
  or for bringing about a significant improvement in existing products, processes or services. 
It comprises the creation of components parts to complex systems, which is necessary for the industrial research, notably for generic technology validation, to the exclusion of prototypes; 
 
2. Experimental Development  
Experimental Development means the acquirin g, combining, shaping and using existing 
scientific, technological, business and other relevant knowledge and skills for the purpose 
of producing plans and arrangements or designs for new, altered or improved products, processes or services. These may also include, for instance, other activities aiming at the conceptual definition, planning and documentat ion of new products, processes or services. 
Those activities may comprise producing drafts, drawings, plans and other documentation, 
provided that they are not intended for co mmercial use. The development of commercially 
usable prototypes and pilot projects is also included where the prototype is necessarily the 
final commercial product and where it is too expensive to produce for it to be used only for 
demonstration and validation purposes. In case of a subsequent commercial use of demonstration or pilot projects, any revenue generated from such use must be deducted 
from the eligible costs. The experimental production and testing of products, processes 
and services shall also be eligible, provided that these cannot be used or transformed to be used in industrial applications or commercially. Experimental Development shall not include routine or periodic changes made to products, production lines, manufacturing 
processes, existing services and other operations in progress even if such changes may 
represent improvements. 
 
Only undertakings carrying out an economic activity in Malta may be part-financed. 
 Industrial research and experimental developmen t projects approved under the Eurostars Joint 
Programme may be supported with a grant of up  to €200,000, which may be used to cover: 
 
 60% of the eligible costs in the case of a small undertaking; 
 50% of the eligible costs in the case of a medium sized undertaking; 
 40% of the eligible costs in the case of a large undertaking. 
 
1. The main project participant must be an R&D-performing SME; 
2. At least 50% of the project's core activity should be carried out by SMEs; 
3. The project should be market driven, that is: 
 
a. The project duration should not exceed three years; 
b. The product of the research should be ready for launch on to the market within two 
years of project completion. 
 
Projects must: 
 
a. Be completed within thirty six months; 
b. Provide technological novelty; 
c. Be market oriented, that is, the project should lead to a marketable product, process or 
service having a civilian (non-military) purpose. 
 
4. Authority of subsidy 
 Malta Enterprise Corporation – Malta Enterprise Act (Chapter 463 of the Laws of Malta). 
 
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is a cash grant. 
 6. To whom and how the subsidy is paid 
 Under the Eurostars R&D Grant , SMEs and large undertakings may be assisted to carry out cross 
border collaborative research and development projects that lead to the development of innovative products, services and processes. 
 G/SCM/N/284/EU/Add.19 
 
- 59 - 
 
  Pre-Proposal Check 
Interested undertakings are recommended to submit a Pre-Proposal Check prior to submitting their full R&D Application. This will assist applicants to complete and submit a full application.  
Application Process 
Undertakings applying under the Eurostars Joint Programme are to follow the application process described on the programme's website www.eurostars-eureka.eu . Once the project is approved, 
the applicant would be required to submit the proj ect costs and project details in order to request 
funding the Corporation.  Eligibility Checks 
Each project should comply with the foll owing eligibly checks. The project must: 
 
a. Have a civilian purpose; 
b. Result in a new product, process or service; 
c. Fall under the definition of industrial research and experimental development; 
d. Be in line with the eligibility criteria set in the official Incentive Guidelines. 
 
The project may not be undertaken by the applican t without the additional resources of one or 
more collaborating partners.  
Evaluation Process 
Projects will be evaluated on the following criteria:  
1. Crucial Criteria: 
The applicant shows the financial capacity  to implement the project and that a 
comprehensive formal agreement has been established between the project partners. 
 
2. Basic Assessment:  
The applicant provides a clear project method ology and proves that the project partners 
bring together the competences, experiences, skills and resources required for the project. 
The applicant also shows there is synergy and clarity in respect of the shared of risks, 
costs, know-how, benefits within the project timeframe and beyond. 
 
3. Technology and Innovation: 
The project should result in a significant development that will have an impact on industry resulting in new products, processes or services. 
 
4. Market and Competitiveness: 
The resulting products, processes or services are to provide a competitive advantage that 
may be exploited by one or more of the partners to establish or achieve a significant 
market presence. 
 
5. National Priorities: 
Through participation the applicant will envisage an increase in employment, investment 
and industrial activity in Malta. 
 
A positive evaluation must be achieved in each of  the above criteria. Each project should attain a 
minimum score of 50% of the total score from each criterion.  Claims should be submitted according to the terms and conditions set out in the Letter of Approval 
issued by Malta Enterprise. 
 Undertakings benefiting from this incentive will be required to maintain separate accounting 
information in relation to all costs incurred for the project. Claims for co-funding must be based on 
the reimbursement of eligible costs and may be su bmitted every six months and at the end of the 
research project. 
 
Claims Claims must be submitted on the claim fo rm made available by the Corporation. 
 
Some of the requirements at claim stage: G/SCM/N/284/EU/Add.19 
 
- 60 - 
 
  1. Personnel costs: the beneficiary must submit the official Final Settlement System FSS 
forms and time sheets showing the time the person(s) spent directly engaged on the 
research project; 
 
2. Overhead costs: the beneficiary should provide a summary of the costs claimed and their 
relation to the project. Although the beneficiary is not expected to submit invoices or receipts of these costs, the undertaking is obliged to keep this documentation available for 
any audit checks that may be carried out by the Corporation. 
 
3. All costs claimed, excluding personnel and overhead costs: the beneficiary should submit: 
 
a. Original VAT invoices and receipts (an original fiscal receipt is required unless a VAT 
invoice is submitted together with a copy of the invoice); 
b. Proof of payment. Copies of the encashed cheques or original bank advice documents 
showing all payments effected in relation to the claimed costs. 
 
4. An Auditor's Report (Certified Public Accountant and Auditor) will be required to: 
 
a. Provide an explanation of how the depreciation costs corresponding to claimed 
instruments and equipment were calculated; 
b. Confirm that any technical and patented knowledge was acquired at its market value 
and followed arm's length principles; 
c. Overheads and material costs claimed have been incurred in the carrying out of the 
approved project. 
 
5. A progress report, based on the template made available by the Corporation. This will 
provide a summary of the technical progress achieved with respect to the original 
milestones set, and highlight any potential setbacks being foreseen to the running of the 
project as planned. 
 7.  Amount of subsidy 
 2013 – Nil assistance. 2014 – €48,142.38. 
 
8. Duration of subsidy 
 
The duration of this aid scheme terminated on 31 December 2013. 
 This termination date coincided with the termination of the validity of the following State Aid Regulation which was the State Aid regime of the EUREKA R&D Grant : 
 
Commission Regulation (EC) No 800/2008 of 6 August 2008 declaring certain categories of aid compatible with the common market in application of Articles 87 and 88 of the Treaty  (General 
block exemption Regulation). 
 In December 2013, the Commission prolonged the duration of the General block exemption 
Regulation by six months, and that is, till 30 June 2014. Malta Enterprise Corporation requested an 
extension of the duration of validity of the EUREKA R&D Grant  so that it could continue to 
approve assistance under this scheme till 30 June  2014. The State Aid Monitoring Board approved 
this request. 
 
Consequently, the duration of the EUREKA R&D Grant  terminated on 30 June 2014. 
 
9. Trade effects of the subsidy 
 
 There were no effects on international trade. 
 G/SCM/N/284/EU/Add.19 
 
- 61 - 
 
  24  INDUSTRIAL RESEACH AND EXPERIMENTAL DEVELOPMENT SCHEME 
1. Title of subsidy 
 
Industrial Research and Experimental Development Scheme. 
 
(Regulation 4 of the Assistance for Research and Development and Innovation Regulations as subsidiary legislation 463.05 to the Malta Enterprise Act, Chapter 463 of the Laws of Malta) 
 
2. Period covered by the notification 
 The period covered by this notification starts from 1 January 2013 until 31 December 2014. 
 
3. Policy objective 
 
Aid will be provided to stimulate industrial resear ch and experimental development in all types of 
undertakings from micro up to large. This performance measurement is designed to reflect an increase in research and development (R&D) activity and the number of undertakings participating 
in research and development and innovation (R&D&I) activities. The measure will provide a much 
needed incentive to increase RDI in Malta where such activities are still relatively low.  The aid scheme forms part of a group of six support  measures relating to RDI under Assistance for 
Research and Development and Innovation Regulations.
46  
 4. Authority of subsidy 
 Malta Enterprise Corporation – Malta Enterprise Act (Chapter 463 of the Laws of Malta).  
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is tax relief (tax credits).  
6. To whom and how the subsidy is paid 
 
In order to benefit from assistance under the Industrial Research and Experimental 
Development Scheme , undertakings carrying out R&D&I activities must comply with the 
following conditions. They must be:  
 Duly incorporated under the Companies' Act, Chapter 386 of the Laws of Malta, being a 
partnership en nom collectif , en commandite  or a limited liability company
47; or 
 Any body of persons constituted, incorporated or  registered or registered outside Malta, and 
of a nature similar to the above; or 
 Duly registered as a Co-operative under the Co-operatives Societies Act, Chapter 442 of the 
Laws of Malta48. 
 
Industrial Research and Expe rimental Development Scheme 
Tax credits will be provided as aid to stimulate industrial research and experimental development in all types of undertakings from micro up to large. 
 
                                               
46 (State aid No N 604/2007). 
The six support measures under this group are the following: Industrial Research and Expe rimental Development Scheme 
Industrial Property Rights  Costs for SMEs Scheme 
ERDF – Industrial Research and Experimental Development Scheme 
Innovation Clusters an d Collaborations Scheme 
Preparatory Technical Feasibility Studies Scheme Loan of Highly Qualified Personnel Scheme. The aim of the above support measures is to prov ide assistance to undertakings to carry out RDI 
activities in line with the Community Framework for State Aid for Re search and Development and Innovation  
(OJ C 323 of 30.12.2006, p. 1): 
http://eur-lex.europa.eu/legal-content/E N/TXT/PDF/?uri=CELEX:52006XC1230(01)&from=EN . 
47 http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8853&l=1 . 
48 http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8908&l=1 . G/SCM/N/284/EU/Add.19 
 
- 62 - 
 
  Applicants must submit an application with clear information on the size of the undertaking as well 
as a detailed description of the research and development project for which support is requested. The applications will be evaluated and the applican t will be duly notified with the decision. Malta 
Enterprise will verify that the content of the project is in line with the definition of R&D&I as 
stipulated in the Community Framework for State Aid for Research and Development and 
Innovation (OJ C 323 of 30.12.2006, p. 1) . 
 
Approved proposals will be periodically fina nced against expenditure incurred during the 
implementation of the project. Approval will be based on the st rategic, commercial and technical 
feasibility of the projects. The applicant must be able to support financially its share of the project. Once the application is approved, Malta Enterprise Corporation will support accordingly in terms of 
the project planning agreement. 
 Fiscal support is distributed according to the eligib le expenses declared within the claimed period 
once the project is approved and commences. Approv al for funding will be based on the claims and 
on the costing submitted in the project proposal originally approved by Malta Enterprise.  
Assistance provided by the above support measures is not available to firms in difficulty in terms 
of Community Guidelines on State Aid for Rescuing and Restructuring Firms in Difficulty, Official 
Journal C244, 01.10.2004, pages 2-17 . 
 
Subcontracting is not considered to be effective collaboration. 
 7. Amount of subsidy 
 2013 – €239,142.00. 2014 – €2,899.00. 
 
In terms of Regulation 20 of the Business Prom otion Regulations (subsidiary legislation 325.06), 
beneficiaries of assistance under the Business Promotion Act must submit a copy of their income tax returns to the Corporation within three months  of filing such returns at the Inland Revenue 
Department. Most undertakings have a financ ial year which ends on 31 December. Such 
undertakings have up to the 30
th October of the following year to submit their return to the Inland 
Revenue Department as well as a further three months to submit it to Malta Enterprise 
Corporation. 
 Consequently, the values found in this report relate to fiscal incentives utilised by undertakings as 
follows: 
 2013: the values are for year of assessment 2013 (financial year 2012); 2014: the values are for year of assessment 2014 (financial year 2013). 
 
The Corporation is not yet in a position to report the values of the aid applicable to fiscal incentives for the year 2014. 
 
8. Duration of subsidy 
 
The duration of this aid scheme terminated on 31 December 2013. 
 This termination date coincided with the termination of the validity of the following State Aid Regulation which was the State Aid regime of the Industrial Research and Experimental 
Development Scheme : 
 Community Framework for State Aid for Research and Development and Innovation (2006/C 
323/01)  (RDI Community Framework). 
 In December 2013, the Commission prolonged the duration of the RDI Community Framework by 
six months, and that is, till 30 June 2014. Malta Enterprise Corporation requested an extension of 
the duration of validity of the Industrial Research and Expe rimental Development Scheme  
so that it could continue to approve assistance  under this scheme till 30 June 2014. The State Aid 
Monitoring Board approved this request. 
 G/SCM/N/284/EU/Add.19 
 
- 63 - 
 
  Consequently, the duration of the Industrial Research and Experimental Development 
Scheme  terminated on 30 June 2014. 
 9. Trade effects of the subsidy 
 There are no effects on international trade.  
25  ERDF INDUSTRIAL RESEARCH AND EXPERIMENTAL DEVELOPMENT 
1. Title of subsidy 
 
ERDF Industrial Research an d Experimental Development 
 
Regulation 4 of the Assistance for Research and Development and Innovation Regulations as subsidiary legislation 463.05 to the Malta Enterprise Act, Chapter 463 of the Laws of Malta). 
 
2. Period 
 
The period covered by this notification starts from 1 January 2013 until 31 December 2014. 
 3. Policy objective 
 
Assistance under the ERDF – Industrial Research and Experimental Development Scheme  is 
provided to stimulate industrial research and experimental development projects to undertakings from micro up to large. This performance measurem ent is designed to reflect an increase in R&D 
activity and the number of undertakings partic ipating in the research and development and 
innovation (R&D&I). This scheme provides ca sh grants based on competitive basis.  
 
The aid scheme forms part of a group of six support measures relating to R&D&I under Assistance 
for Research and Development and Innovation Regulations.   The objective is to assist undertakings to engage and to invest in R&D&I activities in line with the 
Lisbon agenda. Aid for RDI actions will help undertakings improve profits and grow by creating 
new high value-added products, processes and services.  
The eligible costs for this aid scheme: 
 
1. Personnel costs: researchers, technicians approved by the Corporation to the extent that 
they are directly employed on the research project; 
2. Costs of instruments and equipment: to the extent and for the direct use of the research 
project at depreciation cost if these are not used  for their full life fo r the research project; 
3. Cost of contractual research, technical knowledge and patents bought or licensed from 
outside sources at market prices: where the transaction has been carried out at arm's 
length and there is no element of collusion involved, as well as costs of consultancy and equivalent services used exclusively for the research activity. Only up to 20% of the total 
project costs are covered;  
4. Other operating expenses: costs of materials bo ught specifically for the project and for the 
duration of the research projec t, incurred directly as a result of the research activity and 
as long as these are justified. 
 The maximum aid intensities for the above schemes are as follows:  
Maximum aid intensities for Industrial Research: 
  Small Enterprise:  70%. 
 Medium Enterprise  60%. 
 Large Enterprise  50%.  G/SCM/N/284/EU/Add.19 
 
- 64 - 
 
  Maximum aid intensities if the Industrial Research Project is subject to: 
 
1. Collaboration between undertakings; 
o For large undertakings: cross border  or with at least one SME; or 
 
2. Collaboration of an undertaking with a research organisation. 
 
Small Enterprise: 80% 
Medium Enterprise: 75% Large Enterprise: 65% 
 
Maximum aid intensities if the Experimental Development Project subject to: 
 
1. Collaboration between undertakings; 
o For large undertakings: cross border  or with at least one SME; or 
 
2. Collaboration of an undertaking with a research organisation. 
 
Small Enterprise: 60% Medium Enterprise: 50% Large Enterprise: 40%
 49 
 
Where the project involves effective collaboration  between at least two undertakings which are 
independent of each other, the following conditions must be fulfilled: 
 
o No single undertaking must bear more than 70% of the eligible costs of the collaboration 
project; 
o The project must involve collaboration with at least one SME or be cross border, that is to 
say, the research and development activities are carried out in at least two different Member States. 
 
Where the project involves effective collaboration between an undertaking and a research 
organisation, the following conditions must be fulfilled:  
o The research organisation must bear at least 10% of the eligible project costs; 
o The research organisation has the right to publish the results of the research project 
insofar as they stem from research  implemented by the organisation. 
 
Undertakings benefiting from this aid will e nhance their economic efficiency and constitute 
sustainable growth and jobs. Economic efficiency is increased by shifting market demand towards 
new and improved products, processes or services. 
 
4. Authority of subsidy 
 
Malta Enterprise Corporation – Malta Enterprise Act (Chapter 463 of the Laws of Malta). 
 5. Form of subsidy 
 The form of the subsidy of this aid scheme is a grant. 
 6. To whom and how the subsidy is paid 
 The aid is provided to micro up to large undertakings in all sectors of the industry related to advanced technology development mainly to undertakings that have opted for innovation to 
improve their competitiveness. The latter must demonstrate that the research project will lead to 
the development of innovative products, processes and services. 
                                               
49 The aid intensities mentioned above are in line with those provided by the table illustrating aid 
intensities under par. 5.1.3 of the Community Framework for State Aid for Research and Development and 
Innovation  (OJ C 323 of 30.12.2006, p. 1): 
http://eur-lex.europa.eu/legal-content/E N/TXT/PDF/?uri=CELEX:52006XC1230(01)&from=EN . G/SCM/N/284/EU/Add.19 
 
- 65 - 
 
  Assistance under this aid scheme is based on competitive basis. 
 Applicants must submit an application with clear information on the size of the company as well as a detailed description of the research and develo pment project for which they request the support 
and the methodologies to be adopted. The applications will be evaluated and the applicant will be 
duly notified with the decision.  
Approved proposals need to be innovative, nove l and above the current state of the art. The 
applicant must be able to support financially its share of the project.  Applicants must submit three comparable quotes from three independent suppliers for each cost 
item. Part financing and grant values will be calculated on the lowest value quoted. Quotes 
submitted for the same cost item must be from suppliers which are related neither to each other nor to the applicant. Suppliers shall not be related to the applicants. 
 
The approved project shall be based and operationa l in Malta since the objective of the European 
Regional Development Funds is to support projects that contribute to the development of the 
Maltese economy. 
 Once the application is approved, Malta Enterprise Corporation will support up to the established intensity levels. 
 
Approval for funding will be based on the claims  and on the costing submitted in the project 
proposal originally approved by Malta Enterprise. 
 
Costs incurred for replacing or reconditioning existing equipment are considered ineligible.  
For the purposes of the above scheme, subcontracting is not considered to be effective 
collaboration.  7. Amount of subsidy 
 2013 – €57,087.00. 2014 – Nil assistance. 
 
The ERDF Industrial Research and Experimental Development is mainly financed under the Grant Scheme for Enterprises implemented by Malta Ente rprise which operates under Priority Axis I – 
Enhancing Knowledge and Innovation of Malta's Operational Programme I Cohesion Policy 2007 – 
2013 (ERDF Funds) with a top up by national fund s. The amount of Community funding under this 
scheme is 85%.  
There were three competitive calls under the ERDF Industrial Research and Experimental 
Development ; one in 2009, one in 2010 and another one in 2012. Call One closed on 
2 October 2009, Call Two closed on 26 March 2010 while Call Three closed on 3 April 2012. The 
assistance approved by the Corporation for Call One was reported in 2009, that approved for Call 
Two is reported in 2011 while that approved for Call Three is reported in 2012. An ERDF Grant Agreement was issued in the last quarter of 2013 as  a result of the ERDF Appeals process for Call 
Three. This data is reported in 2013. 
 8. Duration of subsidy 
 
The duration of this aid scheme terminated on 31 December 2013. 
 This termination date coincided with the termination of the validity of the following State Aid 
Regulation which was the State Aid regime of the ERDF – Industrial Research and 
Experimental Development Scheme . 
 
Community Framework for State Aid for Research and Development and Innovation 
(2006/C 323/01)  (RDI Community Framework). 
 In December 2013, the Commission prolonged the duration of the RDI Community Framework by 
six months, and that is, till 30 June 2014. Malta Enterprise Corporation requested an extension of G/SCM/N/284/EU/Add.19 
 
- 66 - 
 
  the duration of validity of the ERDF – Industrial Research and Experimental Development 
Scheme  so that it could continue to approve assistance under this scheme till 30 June 2014. The 
State Aid Monitoring Board approved this request.  
Consequently, the duration of the ERDF – Industrial Research and Experimental 
Development Scheme  terminated on 30 June 2014. 
 
9. Trade effects of the subsidy 
 
There are no effects on international trade.  
26  PREPARATORY TECHNICAL FE ASIBILITY STUDIES SCHEME 
1. Title of subsidy 
 
Preparatory Technical Feasibility Studies Scheme. 	
(Regulation 6 of the Assistance for Research and Development and Innovation Regulations as subsidiary legislation 463.05 to the Malta Enterprise Act, Chapter 463 of the Laws of Malta) 
 
2. Period 
 The period covered by this notification starts from 1 January 2013 until 31 December 2014. 
 
3. Policy objective 
 
Assistance under the Preparatory Technical Feasibility Studies Scheme  will support 
undertakings to engage in pre-R&D activities such as technical feasibility studies in preparation to carry out industrial research or experimental development. 
 
The scheme forms part of a group of six support measures relating to RDI under Assistance for 
Research and Development and Innovation Regulations.
50  
 
4. Authority of subsidy 
 
Malta Enterprise Corporation – Malta Enterprise Act (Chapter 463 of the Laws of Malta). 
 
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is a grant. 
 6. To whom and how the subsidy is paid 
 
Micro, SMEs as well as large undertakings may submit applications for assistance under this 
scheme.  
The aid is provided to all sectors of the industry related to advanced technology development 
mainly to undertakings that have opted for innovation to improve their competitiveness. The latter must demonstrate that the research project will lead to the development of innovative products, 
processes and services. 
 
                                               
50 (State aid No N 604/2007) 
The six support measures under this group are the following: Industrial Research and Expe rimental Development Scheme 
Industrial Property Rights  Costs for SMEs Scheme 
ERDF – Industrial Research and Experimental Development Scheme 
Innovation Clusters an d Collaborations Scheme 
Preparatory Technical Feasibility Studies Scheme Loan of Highly Qualified Personnel Scheme. The aim of the above support measures is to prov ide assistance to undertakings to carry out RDI 
activities in line with the Community Framework for State Aid for Re search and Development and Innovation  
(OJ C 323 of 30.12.2006, p. 1): 
http://eur-lex.europa.eu/legal-content/E N/TXT/PDF/?uri=CELEX:52006XC1230(01)&from=EN . G/SCM/N/284/EU/Add.19 
 
- 67 - 
 
  Prior to commencement of the project interested undertakings must submit a formal application 
with clear information on the size of the company as well as a detailed description of the kind of research and development project for which they re quest the support. The application will then be 
evaluated. Applicants will be duly notified by the decision. Projects that commence before such 
application and before formal approval will not be assisted. 
 Approved proposals will be periodically fina nced against expenditure incurred during the 
implementation of the project. Approval will be based on the st rategic, commercial and technical 
feasibility of the projects. The applicant must be ab le to support financially its share of the project. 
 Once the application is approved, the Corporation will support accordingly in terms of the project 
planning agreement. 
 Financial support is distributed according to the eligible expenses declared within the claimed 
period once the project is approved and commenc es. Approval for funding will be based on the 
claims and on the costing submitted in the project proposal originally approved by the Corporation.  
7. Amount of subsidy 
 
2013 – Nil assistance. 2014 – €79,678.00. 
 
8. Duration of subsidy 
 
The duration of this aid scheme terminated on 31 December 2013. 
 This termination date coincided with the termination of the validity of the following State Aid 
Regulation which was the State Aid regime of the Preparatory Technical Feasibility Studies 
Scheme . 
 Community Framework for State Aid for Research and Development and Innovation (2006/C 
323/01)  (RDI Community Framework). 
 In December 2013, the Commission prolonged the duration of the RDI Community Framework by 
six months, and that is, till 30 June 2014. Malta Enterprise Corporation requested an extension of 
the duration of validity of the Preparatory Technical Fe asibility Studies Scheme  s o  t h a t  i t  
could continue to approve assistance under this scheme till 30 June 2014. The State Aid 
Monitoring Board approved this request. 
 Consequently, the duration of the Preparatory Technical Fe asibility Studies Scheme  
terminated on 30 June 2014. 
 
9. Trade effects of the subsidy 
 
There are no effects on international trade. 
 27  INTEREST RATE SUBSIDY SCHEME FOR THE REFURBISHMENT OF HOTELS, 
ACCOMMODATION FACILITIES AND RESTAURANTS 
1. Title of subsidy 
 
Interest Rate Subsidy Scheme for the Refurbishment of Hotels, Accommodation 
Facilities and Restaurants). 
 Loan Interest Rate Subsidy (Guest Houses, Hostels, Hotels, Farmhouses and Restaurants) 
Regulations as subsidiary legislation 463.06
51 to the Malta Enterprise Act, Chapter 463 of the Laws 
of Malta).  
                                               
51 http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=11585&l=1 . G/SCM/N/284/EU/Add.19 
 
- 68 - 
 
  2. Period 
 
The period covered by this notification starts from 1 January 2013 until 31 December 2014.  
3. Policy objective 
 
This scheme provides assistance to guest houses, hostels, hotels, farmhouses and restaurants, in 
the form of an interest rate subsidy between 1% and 3% on interest payable to a Bank during the 
first five years of a loan period. The maximum subsidy is calculated on a straight line reducing balance of the initial loan amount over a period of five years:  
a. Undertakings investing in an eligible project on property licensed by the Malta Tourism 
Authority as a hotel, guest house or hostel may qualify for an interest rate subsidy on a loan of a maximum value of €7 million; 
b. Undertakings investing in an eligible project on property licensed by the Malta Tourism 
Authority as a farmhouse, snack bar or restaurant may qualify for an interest rate subsidy on a loan of a maximum value of €0.5 million. 
Assistance under this scheme is regional investment for tangible assets in terms of Article 13 of 
Section 1 of Commission Regulation (EC) No 800/2008 of 6 August 2008 declaring certain 
categories of aid compatible with the common mark et in application of Articles 87 and 88 of the 
Treaty  (General block exemption Regulation) [GBER].
52 
 
Assistance may be provided for investments relating to:  
1. Furbishing and upgrading of premises  including extensions, modifications and 
extension to premises. Investments relating to extension of premises will only be considered in relation to hotel facilities; 
2. The acquisition of plant, machinery, apparatus and instruments. 
 The total amount of assistance that may be provided shall never exceed:  
- 50% of the eligible investment in the case of a small undertaking; 
- 40% of the eligible investment in the case of a medium undertaking; 
- 30% of the eligible investment in the case of a large undertaking. 
 
The loan on which the interest rate subsidy is granted must be taken in relation to refurbishment, product upgrade or expansion projects undertaken between 1 June 2010 and 31 December 2013. 
The loan must be utilised only to fund tangible assets acquired in the implementation of a planned 
investment project that should result in the provision of additional services or fundamental changes of the business process. The project must ai m at the diversification of the existing market 
position through the introduction of new services or fundamental changes in business processes. 
 
4. Authority of subsidy 
 
Malta Enterprise Corporation – Malta Enterprise Act (Chapter 463 of the Laws of Malta). 
 5. Form of subsidy 
 The form of the subsidy of this aid scheme is a grant. 
 6. To whom and how the subsidy is paid 
 Eligible undertakings under the Interest Rate Subsidy Scheme for the Refurbishment of 
Hotels, Accommodation Facilities and Restaurants  must be guest houses, hostels, hotels, 
farmhouses and restaurants, licensed under the Malta Travel and Tourism Services Act, Chapter 
409 of the Laws of Malta
53. Such undertakings may be micro, small and medium-sized or large. 
 
                                               
52 http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:214:0003:0047:EN:PDF . 
53 http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8875&l=1 . G/SCM/N/284/EU/Add.19 
 
- 69 - 
 
  Voluntary organisations are ineligible for assistance under this scheme. 
 Interested undertakings are to contact Malta Enterprise to request a business and operations review which will be conducted by an advisor appointed by the Corporation. The role of the advisor 
is to recommend possible improvements and enhancements to the business. The project has to fall 
in line with the recommendations of the business and operations review undertaken.  
Applicants must submit a formal application together with a copy of the sanction letter issued by 
the commercial bank which has accepted the loan request.  The application will be evaluated on the following parameters: 
 
1. The applicant's ability to implement: 
 
Evaluators will consider: 
 
a. An analysis of the applicant's performance in recent years; 
b. The sources of finance being utilised for the proposed project; 
c. The applicant's resources and previous experience in similar projects. 
 
2. The projects forecasted results: 
 
Evaluators will consider:  
a. The expected increase in turnover; 
b. Any envisaged increase in staff competencies; 
c. The applicant's knowledge and the ability to link to any existing process and value 
chains. 
 
3. The project's alignment to national strategies and priorities. 
 
All costs financed through the loan must be in relation to acquired assets or subcontracted services 
and must be incurred after the aid is granted.  
Applicants will be notified in writing of the outcome of the application and will receive a Letter of 
Intent with the terms and conditions of the assistance approved.  
The interest rate subsidy will be reimbursed on interest paid to the bank in six month intervals. 
 The assets acquired must be new except in the case of SMEs and takeovers. In the case of 
takeovers, assets for the acquisition of which ai d has already been granted prior to the purchase 
shall be deducted. 
 The following costs are ineligible: 
 
1. Purchase of land or property; 2. Wages; 
3. Operating expenditure. 
 Large investment projects in terms of par. 12 und er Article 2 – Definitions of the General block 
exemption Regulation
54 are ineligible under this scheme. 
 
7. Amount of subsidy 
  
2013 – €796,736.00 
2014 – €622,291.00  
8. Duration of subsidy 
 
The duration of this aid scheme terminated on 31 December 2013. 
                                               
54 http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:214:0003:0047:EN:PDF . G/SCM/N/284/EU/Add.19 
 
- 70 - 
 
  This termination date coincided with the termination of the validity of the following State Aid 
Regulation which was the State Aid regime of the Interest Rate Subsidy Scheme for the 
Refurbishment of Hotels, Accommodation Facilities and Restaurants . 
 
Commission Regulation (EC) No 800/2008 of 6 August 2008 declaring certain categories of aid 
compatible with the common market in application of Articles 87 and 88 of the Treaty  (General 
block exemption Regulation). 
 
In December 2013, the Commission prolonged the duration of the General block exemption Regulation by six months, and that is, till 30 June 2014. Malta Enterprise Corporation requested an extension of the duration of validity of the Interest Rate Subsidy Scheme for the 
Refurbishment of Hotels, Accommod ation Facilities and Restaurants  s o  t h a t  i t  c o u l d  
continue to approve assistance under this scheme till 30 June 2014. The State Aid Monitoring Board approved this request. 
 
Consequently, the duration of the Interest Rate Subsidy Scheme for the Refurbishment of 
Hotels, Accommodation Facilities and Restaurants  terminated on the 30 June 2014. 
 
9. Trade effects of the subsidy 
 There are no effects on international trade. 
 
28  MICRO GUARANTEE SCHEME 
1. Title of subsidy 
 
Micro Guarantee Scheme.  
(Micro Loan Guarantee Regulations as subsidiary legislation 463.08 to the Malta Enterprise 
Act, Chapter 463 of the Laws of Malta).
55 
 2. Period 
 The period covered by this notification starts from 1 January 2013 until 31 December 2014.  
3. Policy objective 
 
The Micro Guarantee Scheme  shall provide eligible undertakings with access to loans of up to 
€100,000 which may be used to finance projects leading to business enhancement, growth and 
development.  Undertakings eligible for assistance under this support measure are small and medium-sized 
undertakings in terms of Annex I  of Commission Regulation (EC) No 800/2008 of 6 August 2008 
declaring certain categories of aid compatible with the common market in application of Articles 87 and 88 of the Treaty  (General block exemption Regulation). Self-employed persons may also be 
eligible under this scheme. 
 The assistance provided to any one undertaking shall not exceed €200,000 over any period of 
three consecutive fiscal years.
56 
 4. Authority of subsidy 
 
Malta Enterprise Corporation – Malta Enterprise Act (Chapter 463 of the Laws of Malta). 
 5. Form of subsidy 
 The form of the subsidy of this aid scheme is a loan guarantee. 
 
                                               
55 http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=12002&l=1 . 
56 The terms and conditions of this assistance are in line with the de minimis  Regulation: 
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2006:379:0005:0010:EN:PDF . G/SCM/N/284/EU/Add.19 
 
- 71 - 
 
  6. To whom and how the subsidy is paid 
 
Undertakings eligible for assistance under this support measure are SMEs in terms of Annex I  of 
Commission Regulation (EC) No 800/2008 of 6 August 2008 declaring certain categories of aid 
compatible with the common market in application of Articles 87 and 88 of the Treaty  (General 
block exemption Regulation). The term 'undertaking' includes 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 undertakings as defined in Annex I of the same General block 
exemption Regulation. Self-employed persons may also be eligible under this scheme.  
The micro guarantee may only be used to support a new loan, required to finance eligible costs 
approved by the Corporation, which in total do not exceed €100,000. Irrespective to the size of the 
guaranteed loan the incentive is available only once to each eligible undertaking. 
 
Eligible loans between €2,500 and €100,000 may be supported through the Micro Guarantee 
Scheme . The maximum guarantee is capped at 65% or 80% of the total loan amount and the 
value of aid shall be calculated at 20% of the guaranteed amount. 
 
The guarantee provided by the Corporation shall rela te only to new banking facilities (that is, re-
financing of existing loans is not eligible), which are required by the undertaking to carry out the 
approved investment project. The guarantee may not be used to support overdrafts or other 
revolving credit facilities. 
 
In order to be eligible for assistance under this support measure, the applicant must have: 
 
1. A turnover for the fiscal year preceding the application which does not exceed ten 
(€10) million Euros; 
2. A balance sheet total for the fiscal year preceding the application which does not 
exceed ten (€10) million Euros; 
3. A minimum of one employee, who may be self -employed, but less than fifty full time 
equivalent at any instance during the period of twelve months preceding the 
application. 
 
The applicant should be: 
 
1. Registered with the VAT Department; and be 
2. In possession of applicable regulatory licences and permits. 
 
Start-ups are also eligible for assistance under this support measure.  
Eligible expenses under the Micro Guarantee Scheme  shall relate to: 
 
a. Investments in acquiring tangible assets defined as machinery, equipment or 
instruments required to commence or enhance business operations; 
b. Fittings, fixtures, refurbishment and restoration of commercial properties; 
c. The acquisition of intellectual property from third parties which are neither linked nor 
partners to the applicant; 
d. The funding of stock material not to exceed 30% of the total loan amount; 
e. Short term working capital linked to the above investments – 
 
Provided that: 
 
i. The total value of working capital shall not exceed 30% of the total loan for start-up 
undertakings established during the three year period prior to the date of 
application; 
ii. The total working capital shall be capped at 10% of the turnover of the previous 
fiscal year for applications from other established undertakings; 
iii. Such costs are incurred within a period of six months from the date of the first 
drawdown. 
 
Financial and insurance activities as well as i mmovable property linked to a business development 
project are considered as an eligible cost. G/SCM/N/284/EU/Add.19 
 
- 72 - 
 
  The following costs are ineligible: 
 
a. Purchase of immovable property; 
b. Acquisition of works of art, antiques and any assets that are not directly related to the 
trade and business of applicant; 
c. The acquisition of road freight transport ve hicles granted to undertakings performing 
road freight transport for hire or reward; 
d. Costs that are assisted, even partly, through other support measures. 
 Applications for assistance may be downloaded from the Corporation's website and may reach the Corporation until the 1
st December, 2013. The applications submitted will be evaluated and a 
Letter of Intent will be issued if the project is accepted for funding. If the applicant is granted a 
loan from a Bank, the applicant will submit a sanc tion letter to the Corporation. Malta Enterprise 
may then consider issuing a guarantee. 
 
The guaranteed loan should have a distinct term with a predetermined fixed repayment schedule. 
The term of any loan guaranteed under the Micro Guarantee Scheme  shall be specified in the 
Letter of Intent issued by the Corporation but may in no case exceed ten years. Interest rates on 
all facilities shall be in accordance with the policies of the bank issuing the loan. The Corporation 
will not require security directly from the applican t in respect of the guarantee that will be issued 
to the Bank. Any financing must be in relation to investments procured at market prices and rates. 
 
The Corporation shall also require that beneficiaries cover the guaranteed loan with a life insurance policy that covers the key persons engaged in the business venture. 
 
The implementation period may be up to twelve months during which the beneficiary may draw down amounts to cover approved costs from the guaranteed loan. This period shall commence on 
the date the sanction letter is issued in favour of the beneficiary or after six months from the date 
of the Letter of Intent issued by the Corporation, whichever is the earliest. The Corporation may allow for an extension of a further twelve months. Unless otherwise indicated in the Letter of Intent, any draw down from the loan account shall be pre-approved by the Corporation. 
 
Assistance under the Micro Guarantee Scheme  will be approved to secure only loan accounts. 
This support measure will not support overdraft or other revolving facilities. 
 
Beneficiaries should inform the Corporation immediately if at any time they are unable to honour the repayments stipulated in the sanction letter issued by the Bank. The Corporation shall keep 
track of the performance of undertakings being supported under the Micro Guarantee Scheme . 
 
The beneficiary will be required to submit an annual  review report on the template provided by the 
Corporation. The report shall: 
 
a. Specify and explain major variations from the original business objectives. 
b. Provide basic business performance parameters such as turnover, employment, and the 
return on capital employed. 
 
If the report raises serious doubts on the commitment of the beneficiary to implement the 
approved project and repay the guaranteed loan, the Corporation may seek remedial action 
through advisory services and other interactions wi th the beneficiary so as to realign the project. 
 
All facilities extended under the Micro Guarantee scheme  shall be monitored regularly and 
effectively controlled to strive for a repayment as originally intended. 
 
It is expected that the Banks shall review loan  facilities supported by the micro guarantee on a 
regular basis. The Bank is expected to alert the Corporation of any situation that might lead to a 
call-in of the approved guarantee or of any instance where the loan beneficiary has not adhered to 
the conditions set by the same Corporation. In this respect, the beneficiary will be asked to 
provide its written consent to enable both Corporation and the Bank to freely exchange and 
divulge information pertaining to the customer an d to exempt the Corporation and the Bank from 
the effects of the Professional Secrecy Act (Chapter 377 of the Laws of Malta)57, the Data 
                                               
57 http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8844&l=1 . G/SCM/N/284/EU/Add.19 
 
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  Protection Act (Chapter 440 of the Laws of Malta)58 and any other law regulating professional 
secrecy. 
 
In cases of default where the Bank shall opt to immediately call in the Malta Enterprise guarantee 
and not proceed against the beneficiary for the recovery of funds, the Corporation shall, 
simultaneously with the honouring of the guarante e be subrogated into the Bank's security and 
other rights such that the Corporation will be in a position to claim the dues and exercise the 
remedies previously pertinent to the Bank. The Corporation will also have the benefit of the 
security interest previously available to the Bank to secure the original debt. The Corporation 
reserves the right to take any and all remedial action  available to it in terms of the Laws of Malta, 
to recover the sum of the guarantee paid following call in of same as a result of beneficiary 
default. In this respect, the Corporation reserves the right to: 
 
i. Exclude the beneficiary and any linked or related entity from receiving any form of 
aid administered by the Corporation; 
ii. Withhold any incentive (including tax credits) which may be due to the beneficiary or 
to any entity linked or related to the applicant. 
 
7. Amount of subsidy 
 2013 – €80,000.00. 
2014 – Nil assistance. 
 8. Duration of subsidy 
 The duration of this aid scheme terminated on 31 December 2013.   
9. Trade effects of the subsidy 
 
There are no effects on international trade.  
29  TRAINING ASSISTANCE 
1. Title of the subsidy 
 
Training Assistance – Regulation 14 of the Business Promotion Regulations. 
 2. Period covered by the notification 
 The period covered by this notification starts from 1 January 2013 until 31 December 2014.  3. Policy objective 
 The objective of this scheme is th e improvement of workers' skills. 
 
4. Authority of subsidy 
 
Employment and Training Corporation – Employme nt and Training Services Act (Chapter 343 of 
the Laws of Malta). 
 5. Form of subsidy 
 
The form of the subsidy of this aid scheme is a grant. 
 6. To whom and how the subsidy is paid 
 Beneficiaries from this incentive are undertakings engaged in the manufacturing or analogous services sectors, research and development and biotechnology. In this case, Malta Enterprise 
confirms to the Employment and Training Corporation (ETC) the eligibility or otherwise of the 
applicant and confirms whether the said enterpri se is large, small or medium-sized. ETC will 
                                               
58 http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8906&l=1 . G/SCM/N/284/EU/Add.19 
 
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  approve a grant in favour of the enterprise depending on its size and on whether the training 
provided is general or specific.  The grant is calculated on the basis of eligible costs (specified in the law) incurred by the company in providing training to its employees.  
7. Amount of subsidy 
 
2013 – €45,301.13.  
2014 – €16,654.19.  
 8. Duration of subsidy 
 
The Training Assistance scheme has now been superseded with the Training Aid Framework co 
funded through The European Social Fund (ESF) under Malta's Operational Programme 
'Empowering People for More Jobs and a Better Quality of Life' for the 2007-2013 Programming 
Period.  
 9. Trade effects of the subsidy 
 There are no effects on international trade.   30  TRAINING AID FRAMEWORK 
1. Title of the subsidy 
 
Training Aid Framework- ESF 2.65, Operational Programme II, and Cohesion Policy 2007 – 2013 
(and extended to end 2014). 
 2. Period covered by the notification 
 The period covered by this notification starts from 1 January 2013 until 31 December 2014.  3. Policy objective 
 The objective of this scheme is to help the private sectors invest in the knowledge and skills of the people which are actively participating in the labour market, in line with the objectives of OP II 
"Empowering People for More Jobs and a better quality of Life". 
 4. Authority of subsidy 
 Employment and Training Corporation – Acting as the Intermediate Body to the Managing Authority.  
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is a grant which covers a percentage of the costs 
incurred according to the aid intensity under which the beneficiary falls. 
 6. To whom and how the subsidy is paid 
 Beneficiaries from this incentive are undertakings carrying out an economic activity irrespective of its legal form excluding public sector entities but inclusive of self-employed persons, non-government organisations and professional bodies.   
 
As the IB, the Corporation approves the reimburs ement of the costs incurred after conducting its 
checks at application, evaluation and reimbursement stage. The aid intensity of the amount 
reimbursed depends on the type of training categorized as general or specific, and the size of the 
undertaking as stipulated in the General block exemption regulation Commission Regulation (EC) No 800/2008.  
 G/SCM/N/284/EU/Add.19 
 
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  7. Amount of subsidy 
 
2013 - €1,943,711.20.  
2014 - €2,271,223.58.  
 
8. Duration of subsidy 
 
The potential Beneficiaries are to conclude all training programmes by end June 2013 however the 
scheme will continue to reimburse funds till end December 2014.  9. Trade effects of the subsidy 
 There are no effects on international trade.  
31   EMPLOYMENT AID PROGRAMME 
1. Title of the subsidy 
 
Employment Aid Programme (EAP) - ESF 2.64, Operational Programme II, Cohesion 
Policy 2007 – 2013  
 2. Period covered by the notification 
 The period covered by this notification starts from 1 January 2013 until 31 December 2014.  
3. Policy objective 
 
The objective of this scheme is to increase the participation of disadvantaged groups in the labour 
market, in line with the objectives of OP II "Empowering People for More Jobs and a better quality 
of Life".  4. Authority of subsidy 
 Employment and Training Corporation – Acting as the Intermediate Body to the Managing Authority. 
 
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is a grant which covers a percentage that varies from 
50%-75% of the wage costs including the National Insurance Contribution paid by the beneficiary. The percentage varies according to which target group the participant was found eligible.  
6. To whom and how the subsidy is paid 
 
Beneficiaries from this incentive are undertakings carrying out an economic activity irrespective of 
its legal form excluding public sector entities but inclusive of self-employed persons. 
 As the IB, the Corporation approves the reimburs ement of the costs incurred after conducting its 
checks at application, evaluation and reimbursement stage. The aid intensity of the amount 
reimbursed depends on the target group under which the participant was found eligible.   7. Amount of subsidy 
 As of 6 May 2015, the amounts reimbursed are as follows:  
2013 - €5,467,931.07.  
2014 - €4,329,990.45.  
 
8. Duration of subsidy 
 
The potential Beneficiaries are to conclude the operation by end September 2013 however the scheme will continue to reimburse funds till end December 2015. However, during 2013 additional G/SCM/N/284/EU/Add.19 
 
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  funds were allocated to the scheme which amo unted to €1,962,500. The grant Agreement period 
for this allocated budget was issued between January till December 2014 and reimbursements of funds have to be concluded till December 2015.   
9. Trade effects of the subsidy 
 
There are no effects on international trade. 
 
32  AGRICULTURAL NATIONALLY FULL-FINANCED AID 
32.1  Special Marketing Policy Programme for Maltese Agriculture (SMPPMA) – Aid in the 
Tomatoes for Processing Sector 
1. Title of Subsidy 
 
Special Marketing Policy Programme for Maltese Agriculture (SMPPMA) – Aid in the Tomatoes for 
Processing Sector. 
 2. Period covered by the notification 
 The period covered by this notification starts from 1 January 2013 until 31 December 2014.  3. Policy objectives 
 Income supplements to producers plus marketing aid to compensate the loss of revenue deriving 
from Maltese processed tomato products resulting from the fall of prices after accession, due to 
the dismantling of import levies on agricultural pr oducts in the crops sector (vide Accession Treaty 
Annex XI/en p3271 et. seq.).  
4. Authority of subsidy 
 
Ministry for Sustainable Development, the Environment and Climate Change.  
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is a cash grant. 
 
6. To whom and how the subsidy is paid 
 
Producers of tomatoes production for processing. Income supplement provided directly to 
producers.  7. Amount of subsidy 
 2013 – €573,400. 2014 – €558,000. 
 
8. Duration of subsidy 
 
The aid scheme will run until 31 December 2014. 
 9. Trade effects of the subsidy 
 
There are no effects on international trade. 
 32.2  Special Marketing Policy Programme for Maltese Agriculture (SMPPMA) – Aid in the 
Fresh Fruit Sector 
1. Title of Subsidy 
 
Special Marketing Policy Programme for Maltese Agriculture (SMPPMA) – Aid in the Fresh Fruit 
Sector. G/SCM/N/284/EU/Add.19 
 
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  2. Period covered by the notification 
 
The period covered by this notification starts from 1 January 2013 until 31 December 2014.  
3. Policy objectives 
 
Income supplements to compensate the loss of revenue of Maltese fruit producers resulting from 
the fall of local prices after accession, due to the dismantling of import levies on fruit 
(vide Accession Treaty Annex XI/en p3271 et. seq.).  4. Authority of subsidy 
 Ministry for Sustainable Development, the Environment and Climate Change.  
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is a cash grant. 
 
6. To whom and how the subsidy is paid 
 Producers of fresh fruit. Income supplement provided directly to producers. 
 
7. Amount of subsidy 
 
2013 – €197,421. 
2014 – €135,130.  
8. Duration of subsidy 
 
The aid scheme ended on 31 December 2014.  
9. Trade effects of the subsidy 
 
There are no effects on international trade. 
 
32.3  Special Marketing Policy Programme for Maltese Agriculture (SMPPMA) – Aid in the 
Fresh Vegetables Sector 
1. Title of Subsidy 
 
Special Marketing Policy Programme for Maltese Agriculture (SMPPMA) – Aid in the Fresh Vegetables Sector 
 
2. Period covered by the notification 
 
The period covered by this notification starts from 1 January 2013 until 31 December 2014. 
 3. Policy objectives 
 Income support to compensate the loss of revenue  of Maltese vegetable producers resulting from 
the fall of local prices after accession, due to the dismantling of import levies on fresh vegetables 
(vide Accession Treaty Annex XI/en p3271 et. seq.). 
 
4. Authority of subsidy 
 
Ministry for Sustainable Development, the Environment and Climate Change 
 5. Form of subsidy 
 The form of the subsidy of this aid scheme is a cash grant.  G/SCM/N/284/EU/Add.19 
 
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  6. To whom and how the subsidy is paid 
 
Producers of fresh vegetables. Income supplement provided directly to producers.  
7. Amount of subsidy 
 
2013 – €80,637. 
2014 – € 55,194. 
 8. Duration of subsidy 
 
The aid scheme ended on 31 December 2014. 
 9. Trade effects of the subsidy 
 There are no effects on international trade.  
32.4  Special Marketing Policy Programme for Maltese Agriculture (SMPPMA) – Aid in the 
Wine Sector 
1. Title of Subsidy 
 
Special Marketing Policy Programme for Maltese Agriculture (SMPPMA) – Aid in the Wine Sector. 
 2. Period covered by the notification 
 The period covered by this notification starts from 1 January 2013 until 31 December 2014.  
3. Policy objectives 
 
Income support to compensate the loss of revenue of Maltese vine growers resulting from the fall 
of local prices after accession, due to the dismantling of import levies on imported wines and grape 
must (vide Accession Treaty Annex XI/en p3271 et. seq.). 
 4. Authority of subsidy 
 Ministry for Sustainable Development, the Environment and Climate Change.  
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is a cash grant.  
6. To whom and how the subsidy is paid 
 
Vine growers. Income supplement provided directly to farmers growing grapes for processing into 
wine. 
 7. Amount of subsidy 
 2013 – €229,109. 2014 – €161,500.  
8. Duration of subsidy 
 
The aid scheme ended on 31 December 2014. 
 
9. Trade effects of the subsidy 
 
There are no effects on international trade. 
 G/SCM/N/284/EU/Add.19 
 
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  32.5  State aid for the transport of produce from Gozo – Agriculture and Fisheries 2013 
1. Title of Subsidy 
 
Promoting Economic Cohesion in Gozo (Agriculture and Fisheries Sector). 
 
2. Period covered by the notification 
 
The period covered by this notification starts from 1 January 2013 until 31 December 2014. 
 3. Policy objectives 
 
Ferry transport costs reimbursement to neutralise the additional cost for the transportation of 
Gozitan Agriculture and Fisheries produce to Malta.  
4. Authority of subsidy 
 
Ministry for Gozo. 
 
5. Form of subsidy 
 The form of the subsidy of this aid scheme is fiscal. 
 
6. To whom and how the subsidy is paid 
 
Re-imbursement of costs is provided to bene ficiaries making use of transport to Malta. 
 7. Amount of subsidy 
 2013 – €44,286.95. 2014 – Nil.  
8. Duration of subsidy 
 
This aid scheme terminated on 31 December 2013. 
 
9. Trade effects of the subsidy 
 
There are no effects on international trade. 
 32.6  State aid for the transport of pr oduce from Gozo – Agriculture 2014 
1. Title of Subsidy 
 
Promoting Economic Cohesion in Gozo (Agriculture and Fisheries Sector).  
2. Period covered by the notification 
 
The period covered by this notification starts from 1 January 2014 until 31 December 2014. 
 
3. Policy objectives 
 Ferry transport costs reimbursement to neutralise the additional cost for the transportation of 
Gozitan Agriculture produce to Malta. 
 4. Authority of subsidy 
 Ministry for Gozo.  
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is fiscal. G/SCM/N/284/EU/Add.19 
 
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  6. To whom and how the subsidy is paid 
 
Re-imbursement of costs is provided to bene ficiaries making use of transport to Malta. 
 
7. Amount of subsidy 
 
2014 – €42,669.45. 
 
8. Duration of subsidy 
 This scheme covers the period 2014 to 2020. 
 
9. Trade effects of the subsidy 
 
There are no effects on international trade. 
 32.7  State aid for the transport of produce from Gozo – Fisheries 2014 
1. Title of Subsidy 
 
Promoting Economic Cohesion in Gozo (Agriculture and Fisheries Sector).  
2. Period covered by the notification 
 
The period covered by this notification starts from 1 January 2014 until 31 December 2014. 
 
3. Policy objectives 
 
Ferry transport costs reimbursement to neutralise the additional cost for the transportation of 
Gozitan Fisheries produce to Malta.  4. Authority of subsidy 
 Ministry for Gozo.  
5. Form of subsidy 
 
The form of the subsidy of this aid scheme is fiscal. 
 
6. To whom and how the subsidy is paid 
 Re-imbursement of costs is provided to bene ficiaries making use of transport to Malta. 
 
7. Amount of subsidy 
 
2014 – €268.95. 
 8. Duration of subsidy 
 This scheme covers the period 2014 to 2020.  9. Trade effects of the subsidy 
 There are no effects on international trade.  
 
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