38 tal-1994

L.N. 311 of 1994

INDUSTRIAL DEVELOPM ENT ACT

(C AP. 325)

Quallryina: Companil:ll (Export ~I \ les) Rq ullldont, 1994

IN uerciseof the powerscooferred upon him by$eClion 3(1)(e)of

the Industrial Development Act , the Min ister for Ecorwxnil: Services

has made the following rcgulations;~

l"heK rcgl,ll:uion$ may be cited as the Qualifying Companiell

(Expon Services) Regulations. 1994 .

In these regulations , unless the CORte X! o therwise re<juim _

~ l hc Act H means the Industrial Development Act ;

HCorporalion ~ means Ihe Malta Development Corpora tion;

~group of companies" incl ude$

<al the company oon~rned;

(b) lOOse companies in wllich tile company concerned,

d ircetly o r indirectly

owns more Ihan half the capilli or bU5iness

ilS5ets. or

has Ihe power 10 exe~ more than hal f the

voting rights . or

has the power 10 appoint more than balf the

members of the board of dirwon or other

body legally ",preKnting the said companies. or

has the right to manage the affairs of the g id

oompanin;

(t) those companies which have in tbe company

concerned the ri shl5 or powen listed in paragraph (b) of thi5

definitio n;

(d) those IXlmpanies in which a IXlmpan y as refe rred to

in paragraph (e) has the rights or powen lisled in paragraph

(b) o f Ihis defini tion;

(c) those IXlmpanies in which IWO or more IXlmpanies r.s

referred 10 in paraa raphs C

al 10 (d) o f this definition jointl y

have the right5 or powen listed in paragraph (b) of tbis

definitio n;

~ Minil;terM ·means the Minister responsible for industry;

Mquatifying export Soervia::~ means I. service carried on o r

carried OUI by a qualifying oompany whose sole trade o r businex

consists in one of the activities specified in regulation J of these

regulations.

Without prejudice to the provisions of replation j of these

regulations, the following activities are hereby des.ig11llled as qlUllifying

export services for the purposes of paragraph (c) of wbsection (I) of

section 3 of the Act

(I) the carrying 001 of industrial product design and related

servia:s from an cstablishmen t in Malta for peI'$Oll!l not resident in

Malla;

(b) the provision of acooun ling . ronlrol and administra tion

$(:rvices from an offioe in Malla 10 oompanic$ which are nol

resident in Mall;! which belong 10 the same group of companies as

the q ... alifying company, provided thllthe u id group consists of al

Icas\ foor companies rewgnised 10 belong 10 the same group by the

Corporation;

(c) the rendering of computer bureau, including dala ban k

and computer outsourcing. services to oompanies nOI resident" in

Malta from an establishment in Mal ta ;

(d)

the provision of proje<;! management , planning and

ancillary services in respect of construction work on sites outside

Malta from a w-ordinating offICe in Malta , provided that the

project under coJUtruction is not related to Malta in any manner ;

(e) the provision of marketing, advertising , purchasing,

procurement and related scrvices from an establishment in Mllta

fo r persons not resident in Malta.

Any project proposed by a company carrying out the &c:tivities

mentioned in regulation 3 of thC5C regulatiollli shall IIOt abtain any

benefit o r inoc ntive under ttw: Act unless it is appl"O\led by the

Corporation in advance, and shall the~after only qlLalify for such

benefit or inoc ntive SO long as it complies with all the conditions and

obIiptions ofsucll approval •

.5. Notwi thstanding the provisions of regulations 3 and 4 of these

regulations , the followi ng COfnpilllies shill no. qualify for assi!tlnce

under paragraph (e) of subsection ( 1) of section 3 of the principal Act

(a) those companies which canyout any activity which is IlOl

a q ualifying export ilervta: Or which, nocpt in so far as provided in

the proviso to Il'Iragraph (b) he~under , provide any sc",ice to I ny

person .... ho;, a resident of Malta ;

(b) thok companies which in any manner assign all or part of

their equipment , facilities o r workforce 10 any person resident in

Malla (not being a company rendering a quaiifying upon ilervitc)

in any way dire<:tly o r indirectly connected or associated with such

companies through sliareholding, voting Or other ownership or

controlling righh, irrespective in whom such rights are or may have

been vested

Provided that the Corporation may authorise such assignment

where the assignor h3li invested at least Lm500,OOO in plant ,

machinery or equipment and proves that the aggregate lurnoverof

the assignN: or assignees does not in any particular year e~ceed five

per cent uflne turnover mlllc l\S5igoor;

(c) those companies who make use of equipment, facilities

or employees of any campaor established in Malta unless Ihe

Corporation exempts Ihe use of any specific equipment , facilities or

numbe r of empluyees from the provisions of this paragraph

(d) those companies who, alt hough nOI involved in any

transaction mentioned in paragraph (a) Or (b) hereof, sell Or

purchase any good or sc .... ice \0 or from any perron resident in

Malta unless such sale or purchase is io the opinion of the

Corporation a necessary and integral part of the activities of the

qualifying company and is made at a fair market price:.

".t_"""'. approval,

In these regulations. any reference 10 any authorisation.

exemption or other permiS5ion by or from the Corporation

shall only be valid if given in writing by the Corporation.

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