Enterprise Support Incentives (Amendment) Regulations, 2015
An undertaking may be eligible for a tax credit if the Malta Enterprise Corporation
(“ME”) is satisfied that an undertaking carrying on or intending to carry out an activity
that may contribute to the economic development of Malta and such undertaking requests
support to achieve qualifying certifications awarded by a certifying body to improve
processes, products or services or to achieve growth in international markets.
Undertakings may request support for any certification that is related to processes,
products or services of the undertaking or are required to achieve growth in international
markets. The certification should be awarded to the undertaking prior to the submission
of the application for assistance.
ME has, through a market study, established the value of support that will be awarded for
a number of certifications, as provided in the table below:
Halal Certification (food and drinks)**
|Good Manufacturing Practice (GMP)**||2400||3600|
|Good Clinical Practice**||700||1700|
|ISO 9001:2008: Quality Management Principles*||3800||6400|
|ISO 14001: Environmental Management*||4400||7700|
|ISO 50001: Energy Management**||2200||3700|
|ISO 22000: Food Safety Management**||2100||3200|
|ISO/TS 16949: Automotive Quality Management Standard||2400||3800|
* Level of funding based on 50% of averaged costs as established through a market study
commissioned by ME
** Level of funding based on 25% of averaged costs as market study commissioned by the Corporation
did not provide sufficient assurances to establish an adequate benchmark.
The above list is not exhaustive. ME will also consider supporting the attainment of other
certifications that are related to processes, products or services or are required to achieve
growth in international markets. The aid intensity shall be 30% of the actual eligible costs
incurred. The undertaking should submit a verification request form to ME together with
other necessary details. Such form should be submitted until 30th June 2017.
This incentive is open to all undertakings which satisfy the criteria established in the
guidelines issued by ME
This incentive does not apply to:
a. undertakings active in the fishery and aquaculture sector
b. undertakings active in the primary production of agricultural products
c. undertakings active in the sector of processing and marketing of agricultural
products in the following cases:
i. where the amount of the aid is fixed on the basis of the price or
quantity of such products purchased from primary producers or put on
the market by the undertakings concerned;
ii. where the aid is conditional on being partly or entirely passed on to
d. public entities, such as Ministries, Departments, Entities, Authorities,
Commissions, Foundations and similar organisations that carry out a public or
regulatory function which does not involve the carrying out of an economic
activity, whether or not such commercial undertakings carrying out exclusively an
economic activity in direct competition with third parties and in which
Government has a controlling interest
e. undertakings engaged in any of the following activities:
i. real estate;
iii. financial services and/ or insurance; or
iv. the trading or manufacturing of arms and military equipment and
f. voluntary organisations
g. export related activities
h. persons or undertakings engaged in activities specifically excluded under the de
minimis regulation as outlined in the guidelines issued by ME
- The total amount of tax credits shall not exceed fifty per cent (50%) of the eligible costs as may be prescribed in the Guidelines and as incurred and paid for as from the 1st March 2015 till the 31st December 2017
- The total amount of tax credits may not exceed the amount of twenty-five thousand euro (€25,000) per single undertaking for the duration of the Incentive
- The tax credit shall be due as a deduction from tax payable by an undertaking on its chargeable income derived from its trade or business for that year of assessment commencing on the 1st January of the year immediately following the year in which the eligible costs are incurred
- Where the tax credit, for that year of assessment, exceeds the income tax payable by such an undertaking for that year, the excess in tax credit shall be allowed to be carried forward to the subsequent year of assessment and deemed to be a tax credit for that year
- Unutilised tax credits can only be availed of from the first year of assessment following the date of the Incentive Entitlement Certificate issued by ME and any unutilised tax credit can only be carried forward to the next two years of assessment.
- A tax credit shall not give rise to a right to a refund of tax.
- Where an undertaking has benefited from this Incentive, the tax credit shall be deemed to have relieved from tax so much of that undertaking’s chargeable income which, when multiplied by the rates of tax which it was chargeable in that year, is equal to the tax credit on the investment.
- Where such undertaking or any subsequent company distributes the income which is so deemed to have been relieved from tax such undertaking or undertakings shall state in the dividend warrant pertaining to any such distribution that such income has been relieved from tax by a tax credit in accordance with this regulation; and the tax which has so been relieved shall not be available for refund for any purpose of the Income Tax Act (Cap. 123 of the laws of Malta)
- The chargeable income which is deemed to have been relieved from tax in accordance with the hereinbefore clause shall, for the purposes of the Income Tax Act, be allocated to the Final Taxed Account of the company in question and any dividends, or part thereof, distributed from such income shall be exempted from income tax in the hands of the members of the company on receipt of such distribution.
- Where a dividend referred in the preceding paragraph is distributed to a member which is also a company, (''the second company''), the said dividend shall likewise be distributed by the second company to its members in the form of dividends exempt from income tax in the hands of the recipients, and where a member of the second company is again a company, the preceding paragraph shall apply mutatis mutandis as though references to the first company were references to the second company, and as though references therein to the second company were references to that member, and the principle set out above shall continue to be applied for as long as such income or part thereof to which this regulation applies are distributed by way of dividends.
- Applications for assistance shall reach ME by not later than ten in the morning central European time of the 31st December 2017.
De minimis aid
The total amount of de minimis aid shall be granted to a single undertaking shall not
exceed the amount of €200,000 over any period of three consecutive fiscal years.
A single undertaking shall include all undertakings having at least one of the following
relationships with each other:
a. one undertaking has a majority of the shareholders’ or members’ voting rights in
b. one undertaking has the right to appoint or remove a majority of the members of
the administrative, management or supervisory body of another undertaking;
c. one undertaking has the right to exercise a dominant influence over another
undertaking pursuant to a contract entered into with that undertaking or to a
provision in its memorandum or articles of association;
d. one undertaking, which is a shareholder in or member of another undertaking,
controls alone, pursuant to an agreement with other shareholders, in or members
of that undertaking, a majority of shareholders’ or members’ voting rights in that
Undertakings having any of the relationships referred to in paragraphs (a) to (d) above
through one or more undertakings shall also be considered to be a single undertaking.
Different thresholds and criteria apply to undertakings engaged in the road transport,
agriculture and fisheries sectors.