WORLD TRADE  
ORGANIZATION   
G/SCM/N/220/EEC/Add.18 
16 November 2011 
 (11-5238) 
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/220/EEC/Add.18 
Page 2  
 
  MALTA 
 
TABLE OF CONTENTS 
 
Page  
I.  INVESTMENT AID SCHEME ............................................................................................... 3  
II.  VALUE ADDED INCENTIVE SCHEME ............................................................................. 7  
III. REDUCED RATES OF TAX ON REINVESTED PROFITS .............................................. 8  
IV.  REDUCED RATES OF INCOME TAX ................................................................................. 9  
V.  INVESTMENT ALLOWANCE ............................................................................................ 10  
VI.  SOFT LOANS .................................................................................................................... ..... 11 
VII. LOAN INTEREST RATE SUBSIDIES ................................................................................ 12  
VIII. LOAN GUARANTEES .......................................................................................................... 13  
IX.  INDUSTRY IN GOZO ........................................................................................................... 13  
X.  STRENGTHENING MARKET ENTRY AND INTERNATIONALISATION 
(TRADE FAIR AND TRADE MISSION SUPPORT) ......................................................... 14  
XI.  BUSINESS ADVISORY SERVICES SCHEME .................................................................. 15  
XII. BUSINESS DEVELOPMENT GRANT SCHEME ............................................................. 16  
XIII. NETWORK SUPPORT SCHEME ....................................................................................... 17  
XIV. TAX CREDIT (ELECTRONIC COMMERCE) SCHEME ............................................... 18  
XV. TEMPORARY AID SCHEME FOR GRANTING LIMITED AMOUNTS OF 
COMPATIBLE AID ............................................................................................................... 20 
XVI. ERDF INTERNATIONAL COMPETITI VENESS GRANT SCHEME ........................... 21  
XVII. ERDF ENERGY GRANT SCHEME .................................................................................... 22  
XVIII. ERDF INNOVATION ACTIONS GRAN T SCHEME (ENVIRONMENT) ..................... 23  
XIX. BANK LOANS AT SUBSIDISED INTEREST RATES FOR 
ACCOMMODATION AND RESTAUR ANT IMPROVEMENTS .................................... 25  
XX. SME DEVELOPMENT GRANT SCHEME ........................................................................ 26  
XXI. INNOVATIVE START-UP SCHEME ................................................................................. 28  
XXII. ERDF INNOVATION ACTIONS  (INNOV-ACT) GRANT ............................................... 30  
XXIII. ERDF E-BUSINESS DEVELOPMENT GRANT SCHEME ............................................. 33  
XXIV. SMALL START-UP GRANTS SCHEME ........................................................................... 35  
XXV. EUREKA PROGRAMME ..................................................................................................... 37  
XXVI. ERDF INDUSTRIAL RE SEARCH AND EXPERIMENTAL DEVELOPMENT ........... 38  
XXVII. TRAINING ASSISTANCE .................................................................................................... 40  
XXVIII. AGRICULTURAL CO-FINANCED SUBSIDIES ........................................................ 41  
XXIX. AGRICULTURAL NATIONALLY FULL-FINANCED AID ........................................... 48  
XXX. AGRICULTURAL TEMPORARY STATE AID ................................................................ 50   G/SCM/N/220/EEC/Add.18 
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  INTRODUCTION 
 
 This report covers state aid programmes and schemes that were in operation between 2009 
and 2010.  The amounts stated in this report are in the Euro currency (€).  I. INVESTMENT AID SCHEME 
1. Title of the subsidy 
 
 Investment Aid Scheme.  
2. Period covered by the notification 
 
 The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
 3. Policy objective 
  The aim of the assistance provided by this aid scheme is to encourage investments through a 
tax credit based on a percentage of the invest ment made or on the basis of wage costs. 
 
1. Investment Aid is awarded in respect to an initial investment project. 
 
2. Initial investment is an investment of a capita l nature in material and immaterial assets 
relating to: 
 
- the setting up of a new establishment; 
- extension of an existing establishment; 
- diversification of the output of an estab lishment into new, additional products; 
- a fundamental change in the overall produc tion process of an existing establishment; 
- the acquisition by an independent investor of capital assets directly linked to an 
establishment which has closed or which woul d have closed had it not been purchased. 
 Investment aid is calculated either in reference to material and immaterial investment costs 
resulting from the initial investment project or to wage costs for jobs directly created by the 
investment project.    The total amount of investment aid that may be  approved for a given investment project 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. 
 
In the case of large investment projects, investme nt aid shall never exceed 15% of the eligible 
investment for the part in excess of €50 million and 10.2% of the eligible investment for the part 
exceeding €100 million.  Such large projects need to be approved in writing before work commences on the project. 
 
3. Material assets are assets relating to land,  buildings and plant/machinery. In case of 
acquisition of an establishment, only the costs of buying or acquiring assets from third parties 
is taken into consideration, provided the tr ansaction has taken place under market conditions. 
 G/SCM/N/220/EEC/Add.18 
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  4. Immaterial assets are assets acquired through th e acquisition of patent rights, licences, know-
how or unpatented technical knowledge. 
 
For small and medium-sized enterprises (SMEs) , the full costs of investments in intangible 
assets through the transfer of technology thro ugh the acquisition of patent rights, licences, 
know-how or unpatented technical knowledge is considered eligible for investment. 
 For large companies, such costs are eligible only up to a limit of 50% of the total eligible 
investment expenditure for the project.  
In all cases, eligible tangible and intangible asset s will satisfy the following conditions. They 
must be:  
 used exclusively in Malta; 
 regarded as amortizable assets; 
 purchased from third parties under market conditions; 
 included in the assets of the firm and remain in the establishment receiving the 
investment aid for at least five years or three years in the case SMEs. 
 
5. The acquisition of assets directly linked to an establishment may also be regarded as initial 
investment provided the establishment has clos ed or would have closed had it not been 
purchased and is bought by an independent investor. Only the costs of buying assets from third parties are taken into consideration. The transaction must ta ke place under market 
conditions. The sole acquisition of the shares of  the legal entity of an undertaking does not 
qualify as initial investment. 
 
6. Where the aid is calculated on the basis of materi al or immaterial investment costs, or of 
acquisition costs as described above, the benefici ary must provide a financial contribution of 
at least 25% of the eligible costs, either throug h its own resources or by an external financing, 
in a form which is free of any public support. 
 
7. Investment aid based on job creation is based on a percentage of the wage cost for the first 
twenty-four month period of the employment of an individual in respect of whom the job was created.   
 
When calculating aid on the basis of wage costs, the following conditions apply:  
 (i) Job creation means a net increase in the number of employees directly employed in a 
particular establishment compared with the average over the previous twelve months. Any jobs lost during that twelve month period must therefore be deducted from the 
apparent number of jobs created during the same period. 
 
(ii) A job is deemed to be directly created by an investment project if the job is directly 
connected with the activity to which the inv estment relates and is created within three 
years from the completion of the investment. Jobs created include also additional employment following an increase in the utilisa tion rate of the capacity created by the 
investment.  
 
(iii) Where the aid is calculated on the basis of  wage costs, the posts must be filled within 
three years of the completion of the work s. Each of the jobs created through the 
assisted investment must be maintained in the region of Malta for a period of five 
years from the date the post was first filled.  G/SCM/N/220/EEC/Add.18 
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   In the case of SMEs, the jobs created must be maintained for a minimum period of 
three years. 
 (iv) For the purposes of determining whether j obs have been created, individuals who are 
employed by the undertaking on a part-time b asis shall be deemed to be a number of 
full-time employees as is produced by divi ding the number of hours worked by such 
part-time employees by one thousand and seven hundred and sixty. 
  Where the accounting period ending in the year preceding a year of assessment is 
more or less than twelve months, th e number of hours worked by part-time 
employees shall be divided by an amount wh ich shall be arrived at by dividing the 
amount of one thousand and seven hundred and sixty by three hundred and sixty-five and then multiplying the result by the num ber of days comprised in that accounting 
period. 
 
 The amount of investment aid provided to an  undertaking in the form of a tax credit is 
based on the wage cost incurred by that undertaking in the accounting period ending 
in the year preceding that year of assessment. 
 (v) An undertaking shall be considered to have  created a job as a result of an investment 
project for those individuals who are employ ed by the company not in replacement of 
another individual and provided that such employment is not terminated before the 
lapse of five years from the date on which they were employed. 
 
(vi) For the purpose of determining whether an individual has been employed by an 
establishment for the required period as specifi ed in (iii), it shall be deemed that the 
date of commencement of employment of an individual who has been employed by 
that establishment in replacement of a nother individual whose employment was 
terminated for whatever reason, shall be the date of commencement of employment of the individual whose employment was replaced, provided that any such individual is employed within six months of the da te of termination of employment of the 
individual whose employment is replaced. 
 
Tax credit under this incentive shall not give rise to a right of any refund. The 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 ‘reference rate' which may be revised from time to time. 
 4. Authority of subsidy 
  Malta Enterprise – Malta Enterprise Corpora tion Act (Chapter 463 of the Laws of Malta).
1 
 5. Form of subsidy 
 
 The form of the subsidy of this aid scheme is tax relief in the form of a tax credit. 
 
Assistance under this scheme may be co nverted to other forms including: 
  
                                                      
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  (i) Grants  
(ii) Low-interest loans (iii) Interest rebates (iv) Loan Guarantees (v) Rent rebates. 
 
Any aid granted in any form except tax credits must be pre-approved in writing by the Corporation before work commences on the project. 
 6. To whom and how the subsidy is paid 
 
Undertakings falling under any of the following categories carrying out eligible activities may 
qualify for assistance under this scheme:  
(a)  a partnership constituted under the Comp anies Act (Chapter 386 of the Laws of 
Malta)
2, being a partnership en nom collectif , en nom commandite  or a limited 
liability company; or 
 (b)  a body of persons constituted, incorporat ed 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)
3. 
 Eligible activities that qualify for investment aid are the following: 
 
 (a) (i)  the production, manufacture, improvement, assembly, preservation, 
processing of any goods, materials, commodities, equipment, plant, machinery; 
 
  (ii)  the rendering of any industrial services analogous to the activities mentioned 
in (i) above; 
   (iii)  the repair, overhaul or maintenance of pleasure crafts, yachts not having more 
than thirty berths, aircraft, engines or equipment incorporated or used in such 
vessels or aircraft; 
 
 (b) Information and Communications T echnology (I.C.T.) developmental activities, 
software development, Information Technology (IT) enabled services including call centres and Information Technology  (IT) solutions, but excluding 
telecommunications service providers; 
 
 (c) research and development,  and innovative start-ups; 
  (d) eco-innovations, waste treatment and environmental solutions;   (e) biotechnology, comprising the production or  development of intellectual property or 
goods or the rendering of services resulting from, or related to, the study, research, 
                                                      
2 http://www.mjha.gov.mt/DownloadDocument.aspx?app=lom&itemid=8853&l=1 
3 http://www.mjha.gov.mt/DownloadDocument.aspx?app=lom&itemid=8908&l=1  G/SCM/N/220/EEC/Add.18 
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  discovery, application, modification or deve lopment of living organisms or materials 
derived from them; 
  (f) the provision of facilities directly re quired in the development or production of 
feature films, television programmes or commercials; 
 
 (g) the provision of science and technology private tertiary education;   (h) the provision of private health-care services through the setting up of new projects 
carrying out an investment of not less than €2.5 million in medical equipment, 
excluding land or buildings; 
  (i) the provision of logistics services that include part-transformation that adds value by 
undertakings employing not less than 250 full-time employees or their equivalent; 
 
(j) activities set out in Article 11 of the Malta  Freeports Act, Chapter 334 of the Laws of 
Malta
4, and carried on mainly in a freeport as defined by that Act by an undertaking 
licensed under that Act. 
 7.  Amount of subsidy 
 
 2009 – €21,792,973.10 
 2010 – €36,803,617.66  8. Duration of subsidy 
 
 This aid scheme will run until 31 December 2013. 
 9. Trade effects of the subsidy 
  There are no effects on international trade.  II. VALUE ADDED INCENTIVE SCHEME 
1. Title of subsidy 
 
 Value Added Incentive Scheme.  
2. Period covered by the notification 
 
 The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
 3. Policy objective 
 
 The aim of the assistance provided by this ai d scheme was to support undertakings through 
reduced rates of income tax related to the in crease of value added derived from their activities. 
 4. Authority of subsidy 
 
 Malta Enterprise – Malta Enterprise Corporati on Act (Chapter 463 of the Laws of Malta). 
 
                                                      
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  5. Form of subsidy 
 
 The form of the subsidy of this aid scheme is tax relief. 
 6. To whom and how the subsidy is paid 
  Undertakings which carried out a manufact uring activity which included the production, 
manufacture, improvement, assembly, processing, repair, preservation or maintenance of any goods, materials, commodities, equipment, plant or machin ery, or the rendering of services of an industrial 
nature analogous to these activities were eligib le for assistance under this aid scheme. Such 
undertakings were charged tax at a reduced rate of up to 15 per cent on part of their profits. 
 7. Amount of subsidy 
  2009 – €508,376.80. 
 2010 – €NIL. 
 8. Duration of subsidy 
  In terms of Malta's Accession Treaty to the Eu ropean Union, this aid scheme terminated on 
31 December 2008. 
 
9. Trade effects of the subsidy 
  There were no effects on international trade.  III. REDUCED RATES OF TAX ON REINVESTED PROFITS 
1. Title of Subsidy 
 
 Reduced Rates of Tax on Reinvested Profits.  2. Period covered by the notification 
  The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
 3. Policy objectives 
 
 This aid scheme encouraged the re-investment of profits by charging a lower tax rate. Profits 
set aside and used to finance investments in qualifyi ng projects by Malta Enterprise were charged at a 
lower tax rate than 35 per cent. In the case of ma nufacturing 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 applic able were expected to be retained by the 
company for at least five years or less as approved by the Corporation. If at the end of the fifth year of 
the project, there is still unabsorbed investment, th e 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 equiva lent to the value of the set-aside profits, net 
of tax. Such reserve could not be distributed, or co nverted into share capital, nor could it be reduced to  G/SCM/N/220/EEC/Add.18 
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  take account of losses before the lapse of eight years from the end of the investment period, after 
which the reserve could be distributed in tax free fully paid bonus shares.  
This scheme aimed to increase competitiveness through the acquisition of capital assets for 
more effective and efficient production and supply of service. 
 
4. Authority of subsidy 
  Malta Enterprise – Malta Enterprise Corporati on 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 th e Business Promotion Regulations (subsidiary 
legislation 325.06 to the Business Promoti on Act, Chapter 325 of the Laws of Malta)5, may benefit 
from reduced rates of tax.  7. Amount of subsidy 
  2009 – €285,041.47.  2010 – €203,271.95.  8. Duration of subsidy 
  This scheme terminated on 31 December 2008.  9. Trade effects of the subsidy 
  There were no effects on international trade. 
 
IV. REDUCED RATES OF INCOME TAX 
1. Title of Subsidy 
 
 Reduced Rates of Income Tax. 
 
2. Period covered by the notification 
  The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
 3. Policy objectives 
  The aim of this assistance was to stimulate inv estment through reduced rates of income tax. 
Assistance under this incentive could be obtained by qualifying companies engaged in activities as 
specified under Regulation 4(3) of the Business promotion Regulations. The assistance was granted 
subject to the company undertaking solely any one or more of such activities and did not carry out 
disqualifying activities as listed out under Regulation 4 (4). 
 
                                                      
5 http://www.mjha.gov.mt/DownloadDocument.aspx?app=lom&itemid=9791&l=1 G/SCM/N/220/EEC/Add.18 
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  Taxable profits arising from qualifying activities were charged at a low rate of income tax 
(5%, 10% or 15%) instead of the standard corporate tax rate of 35%.  4. Authority of subsidy 
 
 Malta Enterprise – Malta Enterprise Corporati on 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 
 
This scheme aimed to assist companies carry ing out activities listed in the Business 
Promotion Regulations (subsidiary legislation 325.06 to the Business Promotion Act, Chapter 325 of 
the Laws of Malta), especially start-ups, to set-up or expand their activities. 
 7. Amount of subsidy 
  2009 – €25,184,703.95.  2010 – €NIL. 
 
8. Duration of subsidy 
  This scheme terminated on 31 December 2008.  
9. Trade effects of the subsidy 
 
 There were no effects on international trade.  
V. INVESTMENT ALLOWANCE 
1. Title of subsidy 
 
 Investment Allowance.  2. Period covered by the notification 
 
 The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
 3. Policy objective 
  The aim of the assistance provided by this aid scheme is to encourage investment of a tangible capital nature through a capital allowance based on the investment. 
 
4. Authority of subsidy 
  Malta Enterprise – Malta Enterprise Corporati on Act (Chapter 463 of the Laws of Malta). 
 
5. Form of subsidy 
 
 The form of the subsidy of this aid scheme is tax relief. 
  G/SCM/N/220/EEC/Add.18 
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  6. To whom and how the subsidy is paid 
 
 Undertakings carrying out a manufacturing ac tivity may benefit from a deductible allowance 
equivalent to a percentage (50 per cent on plant and machinery and 20 per cent on land and buildings) 
of their investment from the taxable profits arising during the year in which the investment is made. 
 
7. Amount of subsidy 
  2009 – €1,307,304.24.  2010 – €540,065.02. 
 
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.  
VI. SOFT LOANS 
1. Title of the subsidy 
 
 Soft Loans.  2. Period covered by the notification 
 
 The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
 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 – Malta Enterprise Corporati on 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. The Corporation 
may finance up to 75 per cent of an undertaking's investment in tangible or intangible assets through a 
loan payable over a maximum period of ten years, with  a two year moratorium period at a low interest 
rate.  G/SCM/N/220/EEC/Add.18 
Page 12  
 
  7. Amount of subsidy 
  
 2009 – €288,690.00.  2010 – €121,881.00.  
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.  
VII. LOAN INTEREST RATE SUBSIDIES 
1. Title of the subsidy 
 
 Loan Interest Rate Subsidies.  2. Period covered by the notification 
  The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
 
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 efficient production and supply of service. 
 4. Authority of subsidy 
  Malta Enterprise – Malta Enterprise Corporati on 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 analogous services sectors, research and 
development and biotechnology may receive a subs idy on a loan taken up by an undertaking from a 
licensed financial institution to finance i nvestment in tangible or intangible assets. 
 7. Amount of subsidy 
  2009 – €904,132.31.  2010 – €404,421.00.  8. Duration of subsidy 
  There is no fixed duration for this aid scheme.   G/SCM/N/220/EEC/Add.18 
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  9. Trade effects of the subsidy 
 
 There are no effects on international trade.  
VIII.  LOAN GUARANTEES 
1. Title of the subsidy 
 
 Loan Guarantees: Regulation 10 of the Bu siness Promotion Regulations (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 star ts from 1 January 2009 until 31 December 2010. 
 3. Policy objective 
  The aim of the assistance provided by this ai d scheme is to encourage capital investments by 
providing guarantees to secure up to 75 per cent of th e loans taken up by qualifying undertakings to 
finance the acquisition of assets.  4. Authority of subsidy 
  Malta Enterprise – Malta Enterprise Corporati on 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 per cen t 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 developmen t and biotechnology. 
 7. Amount of subsidy 
  2009 – €174,000.00. 
 2010 – €4,900.00. 
 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.  
IX. INDUSTRY IN GOZO 
1. Title of the subsidy 
 
 Industry in Gozo. G/SCM/N/220/EEC/Add.18 
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  2. Period covered by the notification 
 
 The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
 3. Policy objective 
  The aim of the assistance provided by this ai d scheme is to offset the additional transport 
costs incurred by undertakings based  in Gozo due to double insularity. 
 4. Authority of subsidy 
  Malta Enterprise – Malta Enterprise Corporati on 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  analogous services sector operating from Gozo 
are eligible for assistance under this aid scheme.  The grant covers the actual, additional and necessary 
transport costs incurred in transporting plant, mach inery, equipment, materials and finished goods 
between Malta and Gozo.  7.  Amount of subsidy 
 
 2009 – €232,583.72. 
 2010 – €360,388.33.  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.  X. STRENGTHENING MARKET ENTRY AND INTERNATIONALISATION (TRADE 
FAIR AND TRADE MISSION SUPPORT) 
1. Title of the subsidy 
 
 Strengthening Market Entry and Internationalisation  (Trade Fair and Trade Mission Support). 
 
2. Period covered by the notification 
  The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
  G/SCM/N/220/EEC/Add.18 
 Page 15 
 
 
  3. Policy objective 
 
 This aid scheme provides assistance to undertaki ngs to diversify and penetrate new markets, 
establish business contacts and consolidate the existing market share.  
The assistance provided to any one undertaking shall not exceed €200,000 over any period of 
three consecutive fiscal years.
6 
 4. Authority of subsidy 
 
 Malta Enterprise – Malta Enterprise Corporati on Act (Chapter 463 of the Laws of Malta). 
 5. Form of subsidy 
  The form of the subsidy of this aid scheme is a grant. 
 
6. To whom and how the subsidy is paid 
  The aid is of a horizontal nature.  It is provided to all sectors of the industry, especially to those which demonstrate an international growth po tential in line with local capacity and resources. 
 
7. Amount of subsidy 
 
2009   €326,473.00. 2010  €492,013.97. 
  
8. Duration of subsidy 
 
 This aid scheme will run until 31 December 2013.  9. Trade effects of the subsidy 
 
 There are no effects on international trade. 
 
XI. BUSINESS ADVISORY SERVICES SCHEME 
(Assistance for the engagement of advisors) 
1. Title of the subsidy 
 
 Business Advisory Services Scheme 
(Assistance for the engagement of advisors) . 
 2. Period covered by the notification 
 
 The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
 
                                                      
6 The terms and conditions of th is 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). G/SCM/N/220/EEC/Add.18 
Page 16  
 
  3. Policy objective 
 
This aid scheme provides assistance to 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 undertaki ng in evaluating the projects and embark on business 
development projects. 
 
 The assistance supports undertakings to develo p internal capacities and skills that will 
increase their competitiveness and provide them with "knowledge transfer" to facilitate growth and 
improve performance. The business advisor aims to improve the general competences of the 
undertaking in mainstream business development issu es.  Although the advi sory services will focus 
on a particular task, the ultimate scope is to tr ansfer knowledge to enable the undertaking (and its 
employees) to acquire skills and competences to handle similar tasks in the future. 
 
The assistance provided to any one undertaking shall not exceed €200,000 over any period of 
three consecutive fiscal years.7 
 
4. Authority of subsidy 
  Malta Enterprise – Malta Enterprise Corporati on 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. 
 7. Amount of subsidy 
  2009 – €128,809.95. 
 2010 – €52,139.50. 
 8. Duration of subsidy 
  This aid scheme will run until 31 December 2013. 
 
9. Trade effects of the subsidy 
  There are no effects on international trade.  XII. BUSINESS DEVELOPMENT GRANT SCHEME 
1. Title of the subsidy 
 
 Business Development Grant Scheme.  
                                                      
7 The terms and conditions of this assistance are in line with the de minimis  Regulation.  G/SCM/N/220/EEC/Add.18 
 Page 17 
 
 
  2. Period covered by the notification 
 
 The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
 3. Policy objective 
  The aim of this aid scheme is to provide assist ance to undertakings that intend to establish a 
new project in Malta by reducing the burdens of setting 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 provided to any one undertaking shall not exceed €200,000 over any period of 
three consecutive fiscal years.
8 
 4. Authority of subsidy 
  Malta Enterprise – Malta Enterprise Corporati on 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 medium-sized and large undertakings to address the handicaps and 
to reduce the burdens of setting up new projects that offer a significant contribution to the regional 
development of Malta. 
 7.  Amount of subsidy 
  2009 – €303,714.25.  2010 – €NIL. 
 
8. Duration of subsidy 
  This aid scheme will run until 31 December 2013.  
9. Trade effects of the subsidy 
 
 There are no effects on international trade.  
XIII.  NETWORK SUPPORT SCHEME 
1. Title of the subsidy 
 
 Network Support Scheme.  2. Period covered by the notification 
 
 The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
 
                                                      
8 The terms and conditions of this assistance are in line with the de minimis  Regulation. G/SCM/N/220/EEC/Add.18 
Page 18  
 
  3. Policy objective 
 
 The aim of the assistance provided by this aid scheme is to promote the development of networks for facilitating collaboration between  undertakings with the aim of enhancing 
competitiveness.  The following two types of networks are supported by this aid scheme: 
 
 1. Business Networks – this is a group of undertakings that co-operate in order to 
achieve specific business objectives; 
  2. Development Networks – a group of unde rtakings whose activity/ies may often be 
confined to networking, the exchange of information, or shared services. 
  Assistance is provided to the individual unde rtakings forming the network to facilitate 
network animation.  
The assistance provided to any one undertaking shall not exceed €200,000 over any period of 
three consecutive fiscal years.
9 
 4. Authority of subsidy 
  Malta Enterprise – Malta Enterprise Corporati on 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 undertaki ngs 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 poten tial in line with local capacity and resources. 
 
7. Amount of subsidy 
 
 2009 – €29,360.00.  2010 – €46,250.00.  
8. Duration of subsidy 
 
 This aid scheme will run until 31 December 2013.  9. Trade effects of the subsidy 
 
 There are no effects on international trade. 
 
XIV.  TAX CREDIT (ELECTRONIC COMMERCE) SCHEME 
1. Title of the subsidy 
 
 Tax Credit (Electronic Commerce) Scheme. 
 
                                                      
9 The terms and conditions of this assistance are in line with the de minimis  Regulation.  G/SCM/N/220/EEC/Add.18 
 Page 19 
 
 
  2. Period covered by the notification 
 
 The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
 3. Policy objective 
  A tax credit of up to 100 per cent of the value of  the eligible expenditure could be provided to 
a person/s or an SME carrying on a trade, business profession or vocation that incurred qualifying 
expenditure in the carrying out of an approved proj ect for the acquisition of computer hardware and 
software for or in connection with the developmen t or acquisition of content.  The project had to 
result in the sale of the eligible user's ta ngible goods or services through business transactions 
processed over a publicly accessible electronic medium.   The term "content" referred to the presentation and interlinking of info rmation and data held 
in textual or graphical formats. 
 
 To qualify for assistance the project had to cons ist in the creation, development or acquisition 
of systems of information and content.  
The assistance provided to any one undertaking could not exceed €200,000 over any period of 
three consecutive fiscal years.
10 
 
4. Authority of subsidy 
  Malta Enterprise – Malta Enterprise Corporati on Act (Chapter 463 of the Laws of Malta). 
 
5. Form of subsidy 
 
 The form of the subsidy of this aid scheme was tax relief in the form of a tax credit. 
 6. To whom and how the subsidy is paid 
 
 The aid is of a horizontal nature provided to a person/s or SMEs in all sectors of the industry 
incurring or intending to incur a qualifying expenditure  for or in connection with the development or 
acquisition of content, mainly resulting in the sale of its tangible goods or services through business transactions processed over a publicly accessible electronic medium.  
7.  Amount of subsidy 
 
 2009 – €1,098,384.00.  2010 – €32,595.00.  8. Duration of subsidy 
  This aid scheme terminated on 31 December 2010.  9. Trade effects of the subsidy 
 
 There were no effects on international trade. 
 
                                                      
10 The terms and conditions of this assistance were in line with the de minimis  Regulation. G/SCM/N/220/EEC/Add.18 
Page 20  
 
  XV. TEMPORARY AID SCHEME FOR GRANTING LIMITED AMOUNTS OF 
COMPATIBLE AID 
1. Title of the subsidy 
 
 Temporary Aid Scheme for granting limited amounts of compatible aid. 
 
2. Period covered by the notification 
  The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
 
3. Policy objective 
 
The terms and conditions of this sc heme were in line with Point 4.2  entitled Compatible 
limited amount of aid under Section 4:  Applicability of Article 87 (3)(b) of Communication from the  
Commission – Temporary Community framework for State aid measures to support access to finance 
in the current financial and economic crisis . 
 
Under this scheme a cash grant of up to €500,000 could be approved by the Corporation to an 
undertaking that proved to be affected by lack of  orders and a sudden shor tage or unavailability of 
credit as a result of the international financial cr isis. The aim of the assistance approved under this 
scheme was to help sustain the employment a nd possibly stimulate the creation of new jobs. 
 
Assistance under this scheme was granted to u ndertakings which were not in difficulty on 
1 July 2008; it was granted to undertakings that were  not in difficulty at that date but entered in 
difficulty thereafter as a result of the global financial and economic crisis. 
 
This aid scheme terminated on 31 December 2010. 
 
4. Authority of subsidy 
 
 Malta Enterprise – Malta Enterprise Corporati on Act (Chapter 463 of the Laws of Malta). 
 5. Form of subsidy 
 
 The form of the subsidy of this aid scheme was a grant. 
 6. To whom and how the subsidy is paid 
 
The scheme applied to all sectors. 
 
7.  Amount of subsidy 
  2009 – €1,016,744.00.  2010 – €200,000.00. 
 
8. Duration of subsidy 
  This aid scheme terminated on 31 December 2010.   G/SCM/N/220/EEC/Add.18 
 Page 21 
 
 
  9. Trade effects of the subsidy 
 
 There were no effects on international trade.  
XVI.  ERDF INTERNATIONAL COMPETITIVENESS GRANT SCHEME 
1. Title of subsidy 
 
ERDF International Competitiveness Grant Scheme. 
 2. Period 
  The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
 3. Policy objective 
 
This incentive aims to support undertakings to  establish new markets and / 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.
11 
 
4. Authority of subsidy 
  Malta Enterprise – Malta Enterprise Corporati on 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 invo lved in manufacturing and those involved in 
internationally tradable services related to In formation and Communications Technology (ICT), 
health care, education and training and other expert solutions as may be approved by the Corporation. 
 
7. Amount of subsidy 
  
2009  – €5,015,780.18. 2010  – €4,303,805.35. 
 
The ERDF International Competitiveness Grant Sc heme is mainly financed under the Grant 
Scheme for Enterprises implemented by Malta Ente rprise which operates under Priority Axis I – 
Enhancing Knowledge a nd Innovation of Malta's Operational Programme I Cohesion Policy 2007 – 
2013 (ERDF Funds) with a top up by national funds. The amount of Community funding under this 
scheme is 85%. 
 
There were three competitive calls for th e ERDF International Competitiveness Grant 
Scheme; two during 2009 and one in 2010. Call One cl osed on 25 February 2009, Call Two closed on 
31 July 2009 while Call Three closed on 26 March 2010. 
                                                      
11 The terms and conditions of this assistance are in line with the de minimis  Regulation. G/SCM/N/220/EEC/Add.18 
Page 22  
 
  8. Duration of subsidy 
 
 This aid scheme will run until 31 December 2013.  9. Trade effects of the subsidy 
  There are no effects on international trade.  
XVII.  ERDF ENERGY GRANT SCHEME 
1. Title of subsidy 
 
 ERDF Energy Grant Scheme.  2. Period 
 
 The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
 3. Policy objective 
 
This incentive aims to provide assistance to undert akings in all sectors that invest in solutions 
that enhance energy efficiency by supporting inv estments related to energy saving and renewable non-
fossil energy sources. Projects supported under this in centive must result in lowering the utilisation of 
energy generated from fossil fuels. This may be achieved through a more efficient use of energy 
resources and through investments in  alternative energy solutions. 
 
The assistance provided consists in financi ng 50% of the eligible costs relating to: 
 
1. Energy saving measures: 
Investments for the implementation of energy saving solutions and lighting, such as the 
installation of intelligent systems, solar hea ting, thermal insulation, building management 
systems and energy-saving lighting; 
 
2. Alternative Energy Sources: 
Investments in renewable energy solutions su ch as the installation of energy generating 
solutions based on the use of solar power and wind power. 
 
The assistance provided to any one undertaking shall not exceed €200,000 over any period of 
three consecutive fiscal years.12 
 
4. Authority of subsidy 
 
 Malta Enterprise – Malta Enterprise Corporati on Act (Chapter 463 of the Laws of Malta). 
 5. Form of subsidy 
  The form of the subsidy of this aid scheme is a grant.  
                                                      
12 The terms and conditions of this assistance are in line with the de minimis  Regulation.  G/SCM/N/220/EEC/Add.18 
 Page 23 
 
 
  6. To whom and how the subsidy is paid 
 
The ERDF Energy Grant Scheme applies to all sectors. 
 
7. Amount of subsidy 
 
2009  – €7,649,997.66. 
 
The ERDF Energy Grant Scheme is mainly fi nanced under Priority Axis 4 – Mitigation and 
Adaptation to Climate Change of Malta's Oper ational Programme I Cohesion Policy 2007 – 2013 
(ERDF Funds) with a top up by national funds. Th e amount of Community funding under this scheme 
is 85%.  
There were three competitive calls for the ERDF Energy Grant Scheme; two during 2009 and 
one in 2010. Call One closed on 17 April 2009, Ca ll Two closed on 2 October 2009 while Call Three 
closed on 26 March 2010. The evaluation process under the Third Call is still in progress.  
8. Duration of subsidy 
 
 This aid scheme will run until 31 December 2013.  9. Trade effects of the subsidy 
 
 There are no effects on international trade. 
 
XVIII.  ERDF INNOVATION ACTIONS GRANT SCHEME (ENVIRONMENT) 
1. Title of subsidy 
 
 ERDF Innovation Actions Grant Scheme (Environment). 
 2. Period 
  The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
 
3. Policy objective 
 
The aim of this incentive is to provide grants to SMEs by part-financing costs incurred for the 
acquisition of equipment and services incurred fo r the implementation of eco-innovation projects 
intended to improve environmental sustainability. 
 Assistance is calculated in reference to:  
A. Consultancy 
 
 Costs incurred for the attainment of recogni sed environmental certification such as EMAS, 
ISO, Eco-Label and other standards recognised by the Malta Standards Author ity (MSA). Such costs 
may include: 
 
1. Environmental Audits; and 
2. Environmental Consultancy. 
 G/SCM/N/220/EEC/Add.18 
Page 24  
 
  B. Plant, Machinery and Equipment 
 
 Costs incurred to achieve a be tter environment in relation to: 
 
1. Engineering services required to modify existing plant, machinery and equipment; 
2. Acquisition on new machinery and equipment. 
 
C. Licensing and Certification 
 
 Costs incurred for the acquisition of:  
1. A licence to utilise technology and intellect ual property required to achieve a better 
environmental performance; 
2. Environmental certification such as EMAS, ISO, Eco-Label and other standards 
recognised by the MSA. 
  Consultancy or services must be subcontracted and must not be of a continuous or periodic 
activity nor relate to the usual operating costs of  the undertaking, such as routine tax consultancy 
services, regular legal services, or advertising.  
Assistance under this scheme cannot be granted to projects addressing environmental 
compliance. 
 
Projects benefiting from this assistance must be completed within twenty four months. 
 
The total amount of assistance that may be provi ded under this scheme shall be as follows. It 
shall never exceed:  
- 50% of the eligible costs in the case of a company which qualifies as a small undertaking; 
- 40% of the eligible costs in the case of a company which qualifies as a medium 
undertaking. 
 
The assistance provided to any one undertaking shall not exceed €200,000 over any period of 
three consecutive fiscal years.
13 
 
4. Authority of subsidy 
 
 Malta Enterprise – Malta Enterprise Corporati on Act (Chapter 463 of the Laws of Malta). 
 5. Form of subsidy 
 
 The form of the subsidy of this aid scheme is a grant. 
 6. To whom and how the subsidy is paid 
 
The scheme applies to eligible SMEs in all sectors. 
 
7. Amount of subsidy 
  
2009  – €561,329.11. 2010  – €39,065.00. 
                                                      
13 The terms and conditions of this assistance are in line with the de minimis  Regulation.  G/SCM/N/220/EEC/Add.18 
 Page 25 
 
 
  The ERDF Innovation Actions Grant Scheme (E nvironment) is mainly financed under the 
Grant Scheme for Enterprises implemented by Malta  Enterprise which operates under Priority Axis I 
– Enhancing Knowledge a nd Innovation of Malta's Operationa l Programme I Cohesion Policy 2007 – 
2013 (ERDF Funds) with a top up by national funds. The amount of Community funding under this 
scheme is 85%. 
 
There were three competitive calls for th e ERDF Innovation Actions Grant Scheme 
(Environment); two during 2009 and one in 2010.  Call One closed on 18 March 2009, Call Two 
closed on 31 July 2009 while Call Three closed on 26 March 2010. Although Call Two closed on 
31 July 2009, one ERDF Grant Agreement was si gned in 2010 as a result of the ERDF Appeals 
process. The assistance under Call Three will be approve d by the Corporation in 2011; consequently it 
will be reported in 2011. 
 
8. Duration of subsidy 
 
This aid scheme will run until 31 December 2013. 
  
9. Trade effects of the subsidy 
  There are no effects on international trade.  
XIX.  BANK LOANS AT SUBSIDISED INTEREST RATES FOR ACCOMMODATION 
AND RESTAURANT IMPROVEMENTS 
1. Title of the subsidy 
 
The scheme is entitled Bank Loans at Subsidi sed Interest Rates for Accommodation and 
Restaurant Improvements and is known as National Subsidy Scheme for Accommodation 
Establishments and Restaurants . 
  2. Period covered by the notification 
  The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
 
3. Policy objective 
 
 The primary aim of the scheme is to upgr ade Malta's accommodation and restaurant 
establishments. Assistance provided under this scheme will:  
- Encourage the accommodation sector, primarily the lower accommodation establishments as 
well as restaurants to upgrade their product thr ough refurbishments and basic extensions in 
order to meet today's changing travellers' needs. 
- Raise the overall standards of the accommodation sector and restaurant establishments thus 
meeting the expectations of the modern traveller. 
- Widen the variety of the product on offer, reaching a wider target audience.   
- Stimulates the economy through the multiplier effect. 
- Attract satisfied visitors, hence encouragi ng repeat visitors and good word of mouth 
promotion. 
- Increase competitiveness with other countries through better value for money and higher 
standards. 
- Create economies of scale for hotels and restaura nts through the extensions of establishments. 
 G/SCM/N/220/EEC/Add.18 
Page 26  
 
  The subsidy is from 1% to 1.5% points of th e rate of interest agreed between the lending 
commercial banks and the owners/operators of Malta's accommodation and restaurant sector. The 
amount borrowed is capped at €500,000 for owners/ operators of licensed properties who intend to 
undertake refurbishment projects, while €600,000 for those wishing to add facilities and small 
extensions. The subsidy is of 1.5% points for re furbishment projects and 1% on extension projects. 
The reason for this allocation is that primarily the sector requires for the urgent upgrade of the current 
tourism offer, thus encouraging the sector to invest  in this area. The scheme is being envisaged over a 
ten year repayment period.   
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 
  The National Subsidy Scheme for Accommoda tion Establishments and Restaurants was 
initially administered by the Malta Tourism Author ity. Only four beneficiaries had their projects 
approved under this scheme. The administration of th e scheme was then passed on to Malta Enterprise 
in March 2010. No further assistance was approved u nder this scheme besides these four projects. The 
Corporation started processing claims of the four beneficiaries in March 2011.  The four Agreements 
issued are all dated 2009.  
5. Form of subsidy 
 
 The form of the subsidy of this aid scheme is  a subsidy on loans granted by commercial banks 
in Malta.  
6. To whom and how the subsidy is paid 
 
The scheme is intended for hotels, guesthouses, ho stels and restaurants, irrespective of the 
size of the undertaking. It is targeted to all hot el categories with a special focus on the three star 
category, as well as restaurant establishments.  
7. Amount of subsidy 
 
 2009 – €99,650.08.  2010 – NIL  
8. Duration of subsidy 
 
 This aid scheme will run until 31 December 2019.  9. Trade effects of the subsidy 
 
 There are no effects on international trade. 
 
XX. SME DEVELOPMENT GRANT SCHEME 
1. Title of the subsidy 
 
 SME Development Grant Scheme. 
 
                                                      
14 The terms and conditions of this assistance are in line with the de minimis  Regulation.  G/SCM/N/220/EEC/Add.18 
 Page 27 
 
 
  2. Period covered by the notification 
 
 The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
 3. Policy objective 
  The assistance provided by this aid scheme consis ts in financing up to 50 per cent of the costs 
relating to:  
1. Consultancy in favour of SMEs: 
The services shall not be of a continuous or pe riodic activity nor relate to the undertaking's 
usual operating costs, such as routine tax c onsultancy services, regular legal services or 
advertising
15; 
2. First time participation in fairs and exhibitions: 
The eligible costs shall be th e costs incurred for renting, setting up and running the stand for 
the first participation of an undertaking in any particular fair or exhibition.16 
  SMEs participating at such trade events are e xpected to broaden their international exposure, 
generate / 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 – Malta Enterprise Corporati on 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 enterprises under this scheme are micro and SMEs in the manufacturing industry, 
ICT, waste treatment, environmental solutions and eco-innovations, research  and development and 
innovation, and biotechnology.  7. Amount of subsidy 
  2009 – €94,945.00.  2010 – €22,763.78.  8. Duration of subsidy 
 
 This aid scheme will run until 31 December 2013. 
 
                                                      
15 The terms and conditions of this assistance are in line with Article 26: Aid for consultancy in favour 
of SMEs under Section 5 – Aid for consultancy in favour of SMEs and SME participation in fairs 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). 
16 The terms and conditions of this assistance are in line with Article 27 of Section 5 – Aid for SME 
participation in fairs under Section 5 – Aid for consultanc y in favour of SMEs and SME participation in fairs of 
the General block exemption Regulation. G/SCM/N/220/EEC/Add.18 
Page 28  
 
  9. Trade effects of the subsidy 
 
 There are no effects on international trade.  
XXI.  INNOVATIVE START-UP SCHEME 
1. Title of the subsidy 
 
 Innovative Start-Up Scheme.  2. Period covered by the notification 
  The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
 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 creati on and economic growth by  part-financing costs 
incurred during their setting-up phase. A start-up undertak ing is an undertaking in its initial five years. 
In order to benefit from this incentive the undertaki ng 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 th at are significantly innovative or that have 
a potential to trade their products or services internationally.  
Undertakings falling under this level wi ll 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 knowle dge-based or highly innovative; 
2. the proposed product and / or services has a good potential of being 
traded internationally; 
3. the undertaking has a potential of collaborating with larger 
undertakings (as partners within their value chain). 
 
Undertakings supported thr ough KBIC will be eligible for a cash grant of 
up to €15,000. 
 
Assistance under this scheme consists in pa rt-financing eligible costs relating to: 
 A. Investment in: 
 
(a) Tangible Assets  - investment costs relating to land , buildings, plant, machinery and 
equipment.  G/SCM/N/220/EEC/Add.18 
 Page 29 
 
 
   (b) 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 provi ded shall be as follows. It shall never exceed: 
 
 50% of the eligible costs in the case of  a  company which qualifies as a small 
undertaking; 
 40% of the eligible costs in the case of a company which qualifies as 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 become out-dated due to rapid technological 
change, provided that the economic activity is  retained in Malta for the minimum period. 
 
Where the aid is calculated on the basis of tangible and intangible investment costs, or of acquisition costs in the case of takeovers, the beneficiary must provide a financial 
contribution of at least 25% of the eligible co sts, 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 establishmen t, only the costs of buying assets from third 
parties shall be taken into consideration, pr ovided 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 th e term of the 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, th e full costs of investments in intangible assets 
may also be taken into consideration.
17 
 B. Consultancy costs of services provided by outside consultants: 
 
The services concerned shall not be of a contin uous or periodic activity nor relate to the 
undertaking's usual operating costs, such as r outine tax consultancy services, regular legal 
services, or advertising. 
 
In the case of consultancy costs of services provi ded by outside consultants, the aid intensity 
shall not exceed 50% of the eligible costs.
18 
 
4. Authority of subsidy 
 
 Malta Enterprise – Malta Enterprise Corporati on Act (Chapter 463 of the Laws of Malta). 
 
                                                      
17 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. 
18 The terms and conditions of this a ssistance are in line with Consultanc y costs of services provided by 
outside consultants in terms of Article 26 of Section 5 of the General block exemption Regulation. G/SCM/N/220/EEC/Add.18 
Page 30  
 
  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 pr oducts, services and process development, 
which are typically more advanced in te rms of technology, know-how and skills than 
those prevailing in their respective industry. 
 
7.  Amount of subsidy 
  2009 – €8,550.00.  2010 – €44,750.00. 
 
8. Duration of subsidy 
  The aid scheme will run until 31 December 2013.  
9. Trade effects of the subsidy 
 
 There are no effects on international trade.  
XXII.  ERDF INNOVATION ACTIONS (INNOV-ACT) GRANT  
1. Title of subsidy 
 
 ERDF Innovation Actions (Innov-Act) Grant.  2. Period 
 
 The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
 3. Policy objective 
 
The aim of this scheme is to provide grants to SMEs by part-financing costs incurred for 
investment projects leading to: 
 
1. Product or Service Innovation – the development of a new or significantly improved product 
or service which provides customers with an improved product or service; 
  G/SCM/N/220/EEC/Add.18 
 Page 31 
 
 
  2. Process Innovation – the implementation / adoption of new or significantly improved 
production or delivery methods; 
 
3. Organisational Innovation – the implementati on of new organisational methods in the 
undertaking's business practices, workplace organisation or external relations. 
 
The assistance consists in part-financing eligible costs relating to: 
 A. Investment in: 
 
1. Tangible Assets  - investment costs shall include plant, machinery and equipment. 
 
2. Intangible Assets - costs related to the transfer of t echnology by the acquisition of patent 
rights, licences, know-how or unpatented technical knowledge. 
 
Such investment costs should result in: 
1. The diversification of output of the enterprises; 
2. A fundamental change in the overall production process. 
 
The total amount of assistance that may be provi ded shall be as follows. It shall never exceed: 
 
 50% of the eligible investment in the case of  a  company which qualifies as a small 
undertaking; 
 40% of the eligible investment in the case of a company which qualifies as 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 become out-dated due to rapid technological 
change, provided that the economic activity is  retained in Malta for the minimum period. 
 
Where the aid is calculated on the basis of ta ngible and intangible investment costs, the 
beneficiary must provide a financial contribution of  at least 25% of the eligible costs, either 
through its own resources or by an external fina ncing, in a form which is free of any public 
support. 
 
In the case of acquisition of an establishmen t, only the costs of buying assets from third 
parties shall be taken into consideration, pr ovided 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 contains an 
obligation to purchase the asset at the expiry of th e term of the lease. For the lease of land and 
buildings, the lease must continue for at least three years after the anticipated date of the 
completion of the investment project.  For SMEs, the full costs of investments in  intangible assets may also be taken into 
consideration.
19 
 
                                                      
19 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. G/SCM/N/220/EEC/Add.18 
Page 32  
 
  B. Consultancy costs of services provided by outside consultants  required: 
 
(a) for the implementation of Innovation Management Techniques (IMTs): 
 
Innovation Management Techniques provide  a framework for supporting the process 
of innovation in firms. These include:  
(i) Lean Management Techniques; 
(ii) Quality Management; (iii) Technology watch and audits; 
(iv) Technology transfer; 
(v) Business process re-engineering; and (vi) Benchmarking. 
 
(b) in relation to the process, product or organisational innovation: 
 
The services concerned shall not be of a c ontinuous or periodic activity nor relate to 
the undertaking's usual operating costs, such as routine tax consultancy services, regular legal services, or advertising. 
 
In the case of consultancy costs of services provided by outside consultants, the aid intensity shall not exceed 50 % of the eligible costs.
20 
 
 The scheme addresses innovation actions and do es not cover other activities aimed at 
achieving compliance to national or European regulations. 
 4. Authority of subsidy 
  Malta Enterprise – Malta Enterprise Corporati on Act (Chapter 463 of the Laws of Malta). 
 
5. Form of subsidy 
  The form of the subsidy of this aid scheme is a grant.  
6. To whom and how the subsidy is paid 
 
The scheme applies to eligible SMEs in all sectors. 
 7. Amount of subsidy 
  
2009  – €2,533,327.56. 
2010 – €80,732.00. 
 
The ERDF Innovation Actions (Innov-Act) Grant is mainly financed under the Grant Scheme 
for Enterprises implemented by Malta Enterprise wh ich operates under Priority Axis I – Enhancing 
Knowledge and Innovation of Malta 's Operational Programme I Cohesion Policy 2007 – 2013 (ERDF 
Funds) with a top up by national funds. The amount of Community funding under this scheme is 85%.  
There were three competitive calls for the ER DF Innovation Actions (Innov-Act) Grant; two 
during 2009 and one in 2010. Call One closed on 11 March 2009, Call Two closed on 31 July 2009 
                                                      
20 The terms and conditions of this a ssistance are in line with Consultanc y costs of services provided by 
outside consultants in terms of Article 26 of Section 5 of the General block exemption Regulation.    G/SCM/N/220/EEC/Add.18 
 Page 33 
 
 
  while Call Three closed on 26 March 2010. Althou gh Call Two closed on 31 July 2009, one ERDF 
Grant Agreement was signed in 2010 as a result of the ERDF Appeals process. The evaluation process 
under the Third Call is still in progress. 
 
8. Duration of subsidy 
  This aid scheme will run until 31 December 2013. 
 
9. Trade effects of the subsidy 
  There are no effects on international trade.  
XXIII.  ERDF 
E-BUSINESS DEVELOPMENT GRANT SCHEME 
1. Title of subsidy 
 
 ERDF e-Business Development Grant Scheme.  2. Period 
  The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
 3. Policy objective 
 
The aim of this support measure is to provide grants to SMEs that are willing to innovate 
through ICT solutions. This incentive will facilitate the realisation of ICT investments that will 
support growth through: 
 
1. The diversification of the undert aking's products and services; and 
2. Significant changes to the undertaking's production process. 
 
The assistance consists in part-financing eligible costs relating to:  A. Investment in: 
 
(a) Tangible Assets: investment in ICT Hardware. 
 
Such costs include: 
(i) Hardware for the optimal functioning of the ICT Solution; (ii) Plant and machinery essential for th e optimal operation of the ICT solution 
[such as equipment required for Co mputer Aided Manufacturing (CAM)]. 
 (b) Intangible Assets  - costs related to the transfer of  technology by the acquisition of 
patent rights, licences, know-how or unpa tented technical knowledge related to 
software; 
 
and other Tangible Assets  related to investment in ICT Software which include: 
 
 Readily available generic software tool s and licences required for ICT solutions 
such as: a. Database Management Systems 
b. Enterprise Resource Planning Solutions 
c. Computer Aid Design and Manufacturing Software G/SCM/N/220/EEC/Add.18 
Page 34  
 
  d. Content Management Solutions 
e. Client Relationship Management Systems. 
 Software developed for the enterprise as part of the ICT solution (includes 
technical knowledge acquired for the in stallation and operation of the ICT 
solution). 
 
The total amount of assistance that may be provi ded shall be as follows. It shall never exceed: 
 50% of the eligible investment in the case of a company which qualifies as a small 
undertaking; 
 40% of the eligible investment in the case  of a company which qualifies as a medium 
undertaking. 
 
Since the beneficiaries of this scheme are SMEs, the investment must be maintained in Malta 
for three years after the whole investment has been completed. This shall not prevent the 
replacement of plant or equipment which has become out-dated due to rapid technological change, provided that the economic activity is  retained in Malta for the minimum period. 
 
Where the aid is calculated on the basis of ta ngible and intangible investment costs, the 
beneficiary must provide a financial contribution of  at least 25% of the eligible costs, either 
through its own resources or by an external fina ncing, in a form which is free of any public 
support. 
 
Costs related to the acquisition of assets under lease,  shall be taken into consideration only if 
the lease takes the form of financial leasing and contains an obligation to purchase the asset at 
the expiry of the term of the lease.  For SMEs, the full costs of investments in  intangible assets may also be taken into 
consideration.
21 
 
B. Consultancy costs of services provided by outside consultants  required for designing, 
customising, implementing and t esting the approved ICT solution. 
 
The services concerned shall not be of a contin uous or periodic activity nor relate to the 
undertaking's usual operating costs, such as r outine tax consultancy services, regular legal 
services, or advertising.  
In the case of consultancy costs of services provi ded by outside consultants, the aid intensity 
shall not exceed 50% of the eligible costs.
22 
 
4. Authority of subsidy 
 
 Malta Enterprise – Malta Enterprise Corporati on Act (Chapter 463 of the Laws of Malta). 
 5. Form of subsidy 
  The form of the subsidy of this aid scheme is a grant.  
                                                      
21 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. 
22 The terms and conditions of this a ssistance are in line with Consultanc y costs of services provided by 
outside consultants in terms of Article 26 of Section 5 of the General block exemption Regulation.    G/SCM/N/220/EEC/Add.18 
 Page 35 
 
 
  6. To whom and how the subsidy is paid 
 
The scheme applies to eligible SMEs in all sectors. 
 7. Amount of subsidy 
  
2009 (Total) – €2,457,377.68. 
 The ERDF e-Business Development Grant Sche me is mainly financed under the Grant 
Scheme for Enterprises implemented by Malta Ente rprise which operates under Priority Axis I – 
Enhancing Knowledge a nd Innovation of Malta's Operational Programme I Cohesion Policy 2007 – 
2013 (ERDF Funds) with a top up by national funds. The amount of Community funding under this 
scheme is 85%.  
There were three competitive calls for the ER DF e-Business Development Grant Scheme; two 
during 2009 and one in 2010. Call One closed on 25 March 2009, Call Two closed on 31 July 2009 
while Call Three closed on 26 March 2010. The ER DF Grant Agreements under the Third Call were 
issued in 2011. 
 
8. Duration of subsidy 
  This aid scheme will run until 31 December 2013.  9. Trade effects of the subsidy 
 
There are no effects on international trade. 
 
XXIV.  SMALL START-UP GRANTS SCHEME 
1. Title of subsidy 
 
 Small Start-Up Grants Scheme.  2. Period 
 
 The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
 3. Policy objective 
 
The aim of this incentive is to support business st art-ups at their early stage of development. 
Grants may be approved to newly created small undert akings 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 co sts directly related to the creation of the 
small undertaking; 
2. Interests on external finance; 
3. Fees for renting production facilities / equipment; 
4. Energy and water; 
5. Fees for leasing production facilities / equipment; and 
6. Wage costs including compulsory social charges. 
  Written assurance must be provided that the undertaking did not benefit from aid under any 
other support measure for underlying investments of job creation and recruitment measures in respect G/SCM/N/220/EEC/Add.18 
Page 36  
 
  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 th e Guidelines on National Regional Aid for 2007-2013 
(2006/C 54/08). 
 4. Authority of subsidy 
  Malta Enterprise – Malta Enterprise Corporati on 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 undertakings23 which have 
been created less than five years a go engaged in the following activities: 
 
1. Manufacturing: 
Including repair, preservation, improvement  or maintenance of goods, materials, 
commodities, equipment, engines, plant and ma chinery, pleasure crafts and yachts, heavy 
equipment, aircraft; and The rendering of industrial servi ces directly related to above; 
2. Information and Communication Technology development activiti es, 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, ser vices and process development, which are 
typically more advanced than those prevaili ng in their respective in dustry, in terms of 
technology, know-how and skills. 
 In order to benefit from assistance under this sch eme, undertakings engaged in the above mentioned 
activities have to promote innovative or high value-added projects.  
7. Amount of subsidy 
  
2009 – €1,576,140.45. 2010 (Total) – €387,654.53. 
 
The Small Start-Up Grants Scheme is main ly financed under the Grant Scheme for 
Enterprises implemented by Malta Enterprise whic h 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 three competitive calls under the Sm all Start-Up Grants Scheme; two during 2009 
and one in 2010. Call One closed on 4 March 2009,  Call Two closed on 31 July 2009 while Call 
                                                      
23 The small and autonomous undertakings must fall within the meaning of Articles 2 and 3 of Annex I 
of the General block exemption Regulation.   G/SCM/N/220/EEC/Add.18 
 Page 37 
 
 
  Three closed on 26 March 2010. The Grant Agreements  were signed under Call 2 in 2010 as a result 
of the ERDF Appeals process.  
8. Duration of subsidy 
 
 This aid scheme will run until 31 December 2013.  9. Trade effects of the subsidy 
 
There are no effects on international trade. 
 
XXV.  EUREKA PROGRAMME 
1. Title of subsidy 
 
 EUREKA Programme 
 2. Period 
  The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
 
3. Policy objective 
  EUREKA is a pan-European network for market-oriented collaborative research and 
development which brings together  industry and research institutes from over thirty five countries and 
the European Union.  It aims primarily to stimul ate the research efforts of enterprises and to develop 
their innovation capacity.  It assists enterprises in  unifying their resources and to collaborate with 
research institutes for the development of advan ced technologies and market oriented products. 
 4. Authority of subsidy 
 
 Malta Enterprise – Malta Enterprise Corporati on 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 was provided to all sectors of the industry related to advanced technology 
development, mainly to innovativ e undertakings.  The latter must demonstrate that the research 
project would lead to the development of inn ovative products, processes and services based on such 
advanced technologies with a world-wide market potential. 
 7. Amount of subsidy 
  2009 – €NIL. 
 2010 – €147,301.30. 
 8. Duration of subsidy 
  The aid scheme terminated on 31 December 2010.  G/SCM/N/220/EEC/Add.18 
Page 38  
 
  9. Trade effects of the subsidy 
 
There were no effects on international trade. 
 
XXVI.  ERDF INDUSTRIAL RESEARCH AND EXPERIMENTAL DEVELOPMENT 
1. Title of subsidy 
 
 ERDF Industrial Research and Experimental Development.  2. Period 
  The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
 3. Policy objective 
 
Assistance under the ERDF – Industrial Research  and Experimental Development Scheme is 
provided to stimulate industrial research and experi mental development projects to 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 unde rtakings participating in the research and 
development and innovation (R&D& I). This scheme provides cash gran ts based on competitive basis. 
During the period starting from 1 January 2009 and terminating on 31 December 2010, there were two 
competitive calls: one during 2009 and the other in  2010. Call One closed on 2 October 2009 while 
Call Two closed on 26 March 2010.  
The scheme forms part of a group of si x support measures relating to R&D&I under 
Assistance for Research and Development and Innovation Regulations.
24  
 
The objective is to assist undertakings to enga ge and to invest in R&D&I activities in line 
with the Lisbon agenda. Aid for R&D&I actions will  help undertakings improve  profits and grow by 
creating new high value-added products, processes and services.  
The eligible costs for the ERDF – Industria l Research and Experimental Development 
Scheme are the following:  
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 for the research project; 
                                                      
 24 (State aid No N 604/2007). 
 
The six support measures under this group are the following: 
1. Industrial Research and Expe rimental Development Scheme 
2. Industrial Property Rights Costs for SMEs Scheme 
3. ERDF – Industrial Research and Experimental Development Scheme 
4. Innovation Clusters and Collaborations Scheme 
5. Preparatory Technical Feasibility Studies Scheme 
6. Loan of Highly Qualified Personnel Scheme. 
 
The aim of the above schemes is to provide assistance to undertakings to carry out R&D&I activities in 
line with the Community Framework for State Aid for Research and Development and Innovation (OJ C 323 of 
30.12.2006, p. 1).  G/SCM/N/220/EEC/Add.18 
 Page 39 
 
 
  3. Cost of contractual research, technical knowle dge and patents bought or licensed from outside 
sources at market prices: where the transaction h as been carried out at arm's length and there 
is no element of collusion involved, as well as costs of consultancy a nd equivalent services 
used exclusively for the researc h activity. Only up to 20% of the total project costs are 
covered;  
4. Other operating expenses: costs of materials bought specifically for the project and for the 
duration of the research project, incurred direc tly as a result of the research activity and as 
long as these are justified. 
 
The maximum aid intensities for th e above schemes are as follows: 
 
Maximum aid intensities for Industrial Research:  
Small Enterprise: 70% Medium Enterprise: 60% 
Large Enterprise: 50% 
 Maximum aid intensities if the Industria l 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 Experime ntal 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%
25 
 
Where the project involves effective collaboratio n 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 collabor ation between an undertaking and a research 
organisation, the following conditions must be fulfilled: 
 
                                                      
 25 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).  G/SCM/N/220/EEC/Add.18 
Page 40  
 
  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 – Malta Enterprise Corporati on 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 undertak ings in all sectors of the industry related to 
advanced technology development mainly to undertak ings that have opted for innovation to improve 
their competitiveness. The latter must demonstrat e that the research project will lead to the 
development of innovative products, processes and services.  7. Amount of subsidy 
  
2009 – €1,818,688.51. 2010 – €NIL. 
 
The ERDF Industrial Research and Experimental  Development is mainly financed under the 
Grant Scheme for Enterprises implemented by Malta  Enterprise which operates under Priority Axis I 
– Enhancing Knowledge a nd Innovation of Malta's Operationa l 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 two competitive calls under the ERDF Industrial Research and Experimental 
Development; one during 2009 and the other in 2010 . Call One closed on 2 October 2009 while Call 
Two closed on 26 March 2010. The evaluation pr ocess under the Call Two is still in progress. 
 8. Duration of subsidy 
 
This aid scheme will run until 31 December 2013. 
 9. Trade effects of the subsidy 
 
 There are no effects on international trade. 
 
XXVII.  TRAINING ASSISTANCE 
1. Title of the subsidy 
 
 Training Assistance – Regulation 14 of the Business Promotion Regulations 
  
2. Period covered by the notification 
  G/SCM/N/220/EEC/Add.18 
 Page 41 
 
 
   The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
 3. Policy objective 
  The objective of this scheme is the improvement of workers' skills. 
 
4. Authority of subsidy 
  Employment and Training Corporation – Employment 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 undertaki ngs engaged in the manufacturing or analogous 
services sectors, research and development and biot echnology.  In this case, Malta Enterprise 
confirms to the Employment and Training Corpor ation (ETC) the eligibility or otherwise of the 
applicant and confirms whether the said enterprise is  large, small or medium-sized.  ETC will approve 
a grant in favour of the enterprise depending on it s 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 
  2009 – €639,120.  2010 – €23,468.  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.  
XXVIII.  AGRICULTURAL CO-FINANCED SUBSIDIES 
 Special Marketing Policy Programme for Maltese Agriculture (SMPPMA) – Aid in the 
Tomatoes for Processing Sector 
 
1. Title of Subsidy 
  Special Marketing Policy Programme for Ma ltese Agriculture (SMPPMA) – Aid in the 
Tomatoes for Processing Sector 
 G/SCM/N/220/EEC/Add.18 
Page 42  
 
  2. Period covered by the notification 
 
 The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
 3. Policy objectives 
  Income supplements to producers plus marketing aid to compensate the loss of revenue deriving from Maltese processed tomato products resu lting from the fall of prices after accession, due 
to the dismantling of import levies on agricultural products in the crops sector (vide Accession Treaty 
Annex XI/en p3271 et. seq.). 
 
4. Authority of subsidy 
  Ministry for Resources and Rural Affairs  
5. Form of subsidy 
 
 The form of the subsidy of this aid scheme is fiscal.  6. To whom and how the subsidy is paid 
 
 Producers of tomatoes production for processing.  Income supplement provided directly to 
producers.  7. Amount of subsidy 
 
 2009 – €2,612,000. 
 2010 – €1,172,703.  8. Duration of subsidy 
  The aid scheme will run until 31 December 2014. 
 
9. Trade effects of the subsidy 
  There are no effects on international trade.  
Special Marketing Policy Programme for 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. 
 2. Period covered by the notification 
  The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
  G/SCM/N/220/EEC/Add.18 
 Page 43 
 
 
  3. Policy objectives 
 
 Income supplements to compensate the loss of revenue of Maltese fruit producers resulting 
from the fall of local prices after accession, due  to the dismantling of import levies on fruit 
(vide Accession Treaty Annex XI/en p3271 et. seq.). 
 
4. Authority of subsidy 
  Ministry for Resources and Rural Affairs  
5. Form of subsidy 
 
 The form of the subsidy of this aid scheme is fiscal.  6. To whom and how the subsidy is paid 
  Producers of fresh fruit.  Income supplement provided directly to producers.  7. Amount of subsidy 
  2009 – € 347,667. 
 2010 – €1,581,675. 
 8. Duration of subsidy 
  The aid scheme will run until 31 December 2014. 
 
9. Trade effects of the subsidy 
  There are no effects on international trade.  
Special Marketing Policy Programme for 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 star ts from 1 January 2009 until 31 December 2010. 
 
3. Policy objectives 
 
 Income support to compensate the loss of re venue of Maltese vegetable producers resulting 
from the fall of local prices after accession, due  to the dismantling of import levies on fresh 
vegetables (vide Accession Treaty Annex XI/en p3271 et. seq.). 
 
4. Authority of subsidy 
  Ministry for Resources and Rural Affairs  G/SCM/N/220/EEC/Add.18 
Page 44  
 
  5. Form of subsidy 
 
 The form of the subsidy of this aid scheme is fiscal.  6. To whom and how the subsidy is paid 
  Producers of fresh vegetables.  Income supplement provided directly to producers.  7. Amount of subsidy 
 
 2009 – € 648,728. 
 2010 – € 835,255.  8. Duration of subsidy 
 
 The aid scheme will run until 31 December 2014. 
 9. Trade effects of the subsidy 
  There are no effects on international trade.  
Special Marketing Policy Programme for Maltese Agriculture (SMPPMA) – Aid in the 
Wine Secto r 
 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 star ts from 1 January 2009 until 31 December 2010. 
 
3. Policy objectives 
  Subsidies to compensate the loss of revenue of Maltese wine producers resulting from the fall of local prices after accession, due to the disman tling of import levies on wine (vide Accession Treaty 
Annex XI/en p3271 et. seq.). 
 4. Authority of subsidy 
  Ministry for Resources and Rural Affairs  
5. Form of subsidy 
 
 The form of the subsidy of this aid scheme is fiscal.  6. To whom and how the subsidy is paid 
  Producers of grapes for wine.  Aid goes directly to producers.   G/SCM/N/220/EEC/Add.18 
 Page 45 
 
 
  7. Amount of subsidy 
 
 2009 – €874,270.  2010 – €404,000.  
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.  
Special Marketing Policy Programme for Maltese Agriculture (SMPPMA) – Aid in the 
Pig Husbandry Sector 
 
1. Title of Subsidy 
  Special Marketing Policy Programme for Maltese Agriculture (SMPPMA) – Aid in the Pig Husbandry Sector  
2. Period covered by the notification 
 
 The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
 3. Policy objectives 
  Subsidies to compensate the loss of revenue of Maltese pig breeders resulting from the fall of 
local prices after accession, due to the dismantling of import levies on fresh and processed pig meat (vide Accession Treaty Annex XI/en p3271 et. seq.).  4. Authority of subsidy 
  Ministry for Resources and Rural Affairs  5. Form of subsidy 
 
 The form of the subsidy of this aid scheme is fiscal. 
 6. To whom and how the subsidy is paid 
  Aid paid to pig husbandry.  Assistance provided directly to producers.  
7. Amount of subsidy 
 
 2009 – €1,634,714  2010 – €2,635,647  
8. Duration of subsidy 
 
 The aid scheme will run until 31 December 2010.  G/SCM/N/220/EEC/Add.18 
Page 46  
 
  9. Trade effects of the subsidy 
 
 There are no effects on international trade.  
Special Marketing Policy Programme for Maltese Agriculture (SMPPMA) – Aid in the 
Dairy Sector 
 
1. Title of Subsidy 
  Special Marketing Policy Programme for Malt ese Agriculture (SMPPMA) – Aid in the Dairy 
Sector 
 2. Period covered by the notification 
  The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
 
3. Policy objectives 
  Subsidies to compensate the loss of revenue of Maltese milk producers resulting from increased competition after accession, due to the dismantling of import levies on milk and milk products (vide Accession Treaty Annex XI/en p3271 et. seq.). 
 
4. Authority of subsidy 
  Ministry for Resources and Rural Affairs  
5. Form of subsidy 
 
 The form of the subsidy of this aid scheme is fiscal.  6. To whom and how the subsidy is paid 
 
 Dairy sector producers.  Assistance is provided directly to producers. 
 7. Amount of subsidy 
  2009 – €3,173,314. 
 2010 – €1,943,915. 
 8. Duration of subsidy 
  The aid scheme will run until 31 December 2010.  
9. Trade effects of the subsidy 
 
 There are no effects on international trade.   G/SCM/N/220/EEC/Add.18 
 Page 47 
 
 
  Special Marketing Policy Programme for Maltese Agriculture (SMPPMA) – Aid in the 
Egg Production Sector 
 
1. Title of Subsidy 
 
 Special Marketing Policy Programme for Malt ese Agriculture (SMPPMA) – Aid in the Egg 
Production Sector  2. Period covered by the notification 
 
 The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
 3. Policy objectives 
  Subsidies to compensate the loss of revenue of Maltese egg producers resulting from the fall 
of local prices after accession, due to  the dismantling of import levies on eggs ( vide Accession Treaty 
Annex XI/en p3271 et. seq.)  4. Authority of subsidy 
  Ministry for Resources and Rural Affairs 
 
5. Form of subsidy 
  The form of the subsidy of this aid scheme is fiscal.  
6. To whom and how the subsidy is paid 
 
 Egg production sector.  Aid prov ided directly to producers. 
 7. Amount of subsidy 
 
 2009 – € 780,945. 
 2010 – € 528,642.  8. Duration of subsidy 
 
 The aid scheme will run until 31 December 2010. 
 9. Trade effects of the subsidy 
  There are no effects on international trade.  
Special Marketing Policy Programme for Maltese Agriculture (SMPPMA) – Aid in the Poultry meat Sector 
 
1. Title of Subsidy 
 
 Special Marketing Policy Programme for Ma ltese Agriculture (SMPPMA) – Aid in the 
Poultry Meat Sector  G/SCM/N/220/EEC/Add.18 
Page 48  
 
  2. Period covered by the notification 
 
 The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
 3. Policy objectives 
  Subsidies to compensate the loss of revenue of Maltese broiler producers resulting from the fall of local prices after accession, due to the dismantling of import levies on fresh and processed poultry meat ( vide Accession Treaty Annex XI/en p3271 et. seq.). 
 
4. Authority of subsidy 
 
 Ministry for Resources and Rural Affairs  5. Form of subsidy 
  The form of the subsidy of this aid scheme is fiscal.  6. To whom and how the subsidy is paid 
  Producers in the poultry meat sector.  Assistance is provided directly to producers. 
 
7. Amount of subsidy 
  2009 – €1,144,000.  2010 – €  625,227. 
 
8. Duration of subsidy 
  The aid scheme will run until 31 December 2010.  9. Trade effects of the subsidy 
  There are no effects on international trade.  
XXIX.  AGRICULTURAL NATIONALLY FULL-FINANCED AID 
 Special Aid Programme for Potato Producers 
 
1. Title of Subsidy 
  Special Aid Programme for Potato Producers  2. Period covered by the notification 
  The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
  G/SCM/N/220/EEC/Add.18 
 Page 49 
 
 
  3. Policy objectives 
 
 Aid to further encourage potato production in Malta and to compensate the loss of revenue of 
potato producers resulting from the fall of local pr ices after accession, due to the dismantling of 
import levies on agricultural products in the crop sector. 
 
4. Authority of subsidy 
  Ministry for Resources and Rural Affairs  
5. Form of subsidy 
 
 The form of the subsidy of this aid scheme is fiscal.  6. To whom and how the subsidy is paid 
  Potato producers.  Assistance provided directly to producers.  7. Amount of subsidy 
  2009 – €308,000. 
 2010 – €104,000. 
 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.  
State aid for the transport of produce from Gozo 
 
1. Title of Subsidy 
  Neutralisation of Additional Costs for the Tran sportation of Gozitan Agriculture produce to 
Malta 
 
2. Period covered by the notification 
  The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
 3. Policy objectives 
  Ferry transport costs reimbursement to neutrali se the additional cost for the transportation of 
Gozitan Agriculture and Fisheries produce to Malta.  4. Authority of subsidy 
  Ministry for Resources and Rural Affairs  G/SCM/N/220/EEC/Add.18 
Page 50  
 
  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 be neficiaries making use of transport to Malta. 
 7. Amount of subsidy 
 
 2009 – €26,600. 
 2010 – €12,985.  8. Duration of subsidy 
 
 This aid scheme terminated on 31 December 2010. 
 9. Trade effects of the subsidy 
  There are no effects on international trade.  XXX.  AGRICULTURAL TEMPORARY STATE AID 
 Temporary State Aid for the importation of Tomato Products 
 
1. Title of Subsidy 
 
 Temporary State Aid for the importation of Tomato Products 
 2. Period covered by the notification 
  The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
 
3. Policy objectives 
 
 The aim of the scheme is primarily to mitigate the effects of the termination of duty-free importation of food products from third countries w ith the adoption of the Common External Tariff 
and the removal of the export refunds on food products hitherto imported from EU countries 
following Malta's accession to the EU. 
 4. Authority of subsidy 
  Ministry for Resources and Rural Affairs  
5. Form of subsidy 
 
 The form of the subsidy of this aid scheme is fiscal.   G/SCM/N/220/EEC/Add.18 
 Page 51 
 
 
  6. To whom and how the subsidy is paid 
 
 Assistance provided for in the EC Treaty and paid directly to traditional importation of 
tomato products.  
7. Amount of subsidy 
 
 2009 – €51,576.  2010 – €84,785.  
8. Duration of subsidy 
 
 The aid scheme will run until 31 December 2010.  9. Trade effects of the subsidy 
  There are no effects on international trade.  
Temporary State Aid for the importation of Dairy products 
 
1. Title of Subsidy 
  Temporary State Aid for the importation of Dairy products.  2. Period covered by the notification 
 
 The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
 3. Policy objectives 
  The aim is primarily to mitigate the effects of  the termination of duty -free importation of food 
products from third countries with the adoption of th e Common External Tariff and the removal of the 
export refunds on food products hitherto importe d from EU countries following Malta's accession to 
the EU.  4. Authority of subsidy 
 
 Ministry for Resources and Rural Affairs 
 5. Form of subsidy 
  The form of the subsidy of this aid scheme is fiscal.  
6. To whom and how the subsidy is paid 
 
 Assistance provided for in the EC Treaty and paid  directly to traditional importation of dairy 
products.  
7. Amount of subsidy 
 
 2009 – € NIL.  2010 – € NIL.  G/SCM/N/220/EEC/Add.18 
Page 52  
 
  8. Duration of subsidy 
 
 The aid scheme will run until 31 December 2010.  9. Trade effects of the subsidy 
  There are no effects on international trade.  
Temporary State Aid for the importation of Meat products 
 1. Title of Subsidy 
 
 Temporary State Aid for the importation of Meat products  2. Period covered by the notification 
  The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
 3. Policy objectives 
  The aim is primarily to mitigate the effects of  the termination of duty -free importation of food 
products from third countries with the adoption of th e Common External Tariff and the removal of the 
export refunds on food products hitherto importe d from EU countries following Malta's accession to 
the EU.  4. Authority of subsidy 
  Ministry for Resources and Rural Affairs  5. Form of subsidy 
  The form of the subsidy of this aid scheme is fiscal. 
 
6. To whom and how the subsidy is paid 
  Assistance provided for in the EC Treaty and paid directly to traditional importation of meat products. 
 
7. Amount of subsidy 
  2009 – €299,000.  2010 – € 73,835.  
8. Duration of subsidy 
 
 The aid scheme will run until 31 December 2010.  9. Trade effects of the subsidy 
  There are no effects on international trade.   G/SCM/N/220/EEC/Add.18 
 Page 53 
 
 
   Temporary State Aid for the importation of Cereal products 
 
1. Title of Subsidy 
  Temporary State Aid for the importation of cereal products 
 
2. Period covered by the notification 
  The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
 
3. Policy objectives 
 
 The aim is primarily to mitigate the effects of  the termination of duty -free importation of food 
products from third countries with the adoption of th e Common External Tariff and the removal of the 
export refunds on food products hitherto importe d from EU countries following Malta's accession to 
the EU. 
 4. Authority of subsidy 
  Ministry for Resources and Rural Affairs  
5. Form of subsidy 
 
 The form of the subsidy of this aid scheme is fiscal.  6. To whom and how the subsidy is paid 
  Assistance provided for in the EC Treaty and paid  directly to traditional importation of cereal 
products.  7. Amount of subsidy 
 
 2009 – € NIL. 
 2010 – € NIL.  8. Duration of subsidy 
 
 The aid scheme will run until 31 December 2010. 
 9. Trade effects of the subsidy 
  There are no effects on international trade.   Special Temporary State Aid on Sugar imports 
 
1. Title of Subsidy 
  Special Temporary State Aid on Sugar imports 
 
2. Period covered by the notification 
  The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
 G/SCM/N/220/EEC/Add.18 
Page 54  
 
  3. Policy objectives 
 
 The aim of the scheme is primarily to mitigate the effects of the termination of duty-free importation of food products from third countries w ith the adoption of the Common External Tariff 
and the removal of the export refunds on food products hitherto imported from EU countries 
following Malta's accession to the EU. 
 4. Authority of subsidy 
  Ministry for Resources and Rural Affairs 
 
5. Form of subsidy 
  The form of the subsidy of this aid scheme is fiscal.  
6. To whom and how the subsidy is paid 
 
 Paid directly to traditional importation of sugar.  7. Amount of subsidy 
 
 2009 – €85,100. 
 2010 – €12,315.  8. Duration of subsidy 
 
 The aid scheme will run until 31 December 2010. 
 9. Trade effects of the subsidy 
  There are no effects on international trade. 
 
 Agriculture Insurance Premium (Subsidy) Scheme  
1. Title of Subsidy 
  Agriculture Insurance Premium (Subsidy) Scheme 
 
2. Period covered by the notification 
  The period covered by this notification star ts from 1 January 2009 until 31 December 2010. 
 3. Policy objectives 
  The objective is to encourage farmers to  obtain insurance cover against exceptional 
occurrences, natural disasters and adverse weathe r conditions assimilated to natural disasters. 
 4. Authority of subsidy 
  Ministry for Resources and Rural Affairs  G/SCM/N/220/EEC/Add.18 
 Page 55 
 
 
  5. Form of subsidy 
 
 The form of the subsidy of this aid scheme is fiscal.  6. To whom and how the subsidy is paid 
  Paid directly to farmers on insurance premiums.  7. Amount of subsidy 
 
 2009 – €NIL. 
 2010 – €NIL.  8. Duration of subsidy 
 
 The aid scheme will run until 31 December 2012. 
 9. Trade effects of the subsidy 
  There are no effects on international trade.  
 
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