Small Enterprises (Threshold Levels) Regulations, 1997 (thresholdlevels)

I..N. IIOufI997

INDUSTRIAL DEVELOPMENT A.CT

(C AP. 325)

Small Enterprises (Threshold Levels) Regulations, 1997

IN exercise of the powers conferred upon him by stttion 24(2)(b)

of the Industrial Development Act. the Minister for Economic Affairs

and Industry has made the following regulations: -

I . These regulations may be cited as the Small Enterprises

(Threshold Levels) Regulations, 1997"

In these regulations, unless the eonte)(t otherwise requires -

"the Act"" means the Industrial Development Act;

"balance sheet total" shall consist of the fi)(ed assets, the

current assets, prepayments and accrued income;

"Corporation" mcans the Malta Development Corporation;

"employee'" means a person who has entered into, or works

under, a contract of service. or who ha~ undenaken personally to

c)(ecute any work or labour for another pe~on, and includes a

pan-time worker or an out-worker;

"Minister" means the Minister responsible for industry;

" number of employees" means the average number of

employees during the last preceding three years;

"total investment"" means the capital expenditure for plant

and machinery incurred during the last preceding three years;

"turnover" sha!! comprise th e amounts derived from the sale

of products and the provision of services falling within th e

ordinary activities of the small enterprise. after deduction of sales

rebates and taxes directl y linked to the turnover"

The threshold levels in tenns of the provisions of paragraph

(b) of subsection (2) of section 24 of the Aet are being detennined by

the Minister as follows

(a) an annual turnover not exceedi ng Lm2SO.ooo;

(b) a number of employees not exceeding ten;

(e) a balance sheet total not exceeding Lm 130,000;

(d) a total investment not exceeding Lm80.ooo.

A small enterprise qualifying in terms of the provisions of

paragraph (b) o f sub~tion (2) of section 24 of the Act, and of

regulation 3 of these regulations, shall not obtain any benefit or

incentive under tOe Act unless its request for assistance is approved

in ad vance by the Corporation , and shall thereafter only qualify for

such benefit or assistance insofar as it complies with all cond itions

and obligations of such approval .

S. G roups of companie s. partnerships, co-operatives or

businesses. with the same oWnership or control, shall be deemed to

be one entity for the purposes of these regu lations.

A small enterprise wh ich is more than 25 per u mum owned

by one or more enterprise which does not qualify in terms of the

provisions of paragraph (b) o f subsection (2) of section 24 of tOe Act,

shall be disqualified from acquiring any incentive or benefit under

the Act as a small enterprise.

In these regu lations . any reference to any authorisation or

approval by or from the Corporation shall only be valid if given in

writing by the Corpor.llion.

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