Regulations, 2008

L.N. 69 of 2008

MALTA ENTERPRISE ACT

(CAP. 463)

Assistance to Small and Medium-Sized Undertakings

Regulations, 2008

IN exercise of the powers conferred upon him by article 5 of the

Malta Enterprise Act, hereinafter referred to as “the Act”, the Prime

Minister and Minister of Finance and the Minister for Investment,

Industry and Information Technology have made the following

regulations

(1) The title of these regulations is Assistance to Small and Title and

commencement.

Medium-Sized Undertakings Regulations, 2008.

(2) These regulations shall come into force on the 1 st January,

2008.

In these regulations, unless the context otherwise requires

Interpretation.

“the Act” means the Malta Enterprise Act;

“the Corporation” means Malta Enterprise established under

the Malta Enterprise Act;

“Guidelines” means such guidelines as may be published by

the Corporation from time to time in terms of the Act;

“intangible assets” means the transfer of technology by the

acquisition of patent rights, licences, know-how or unpatented

technical knowledge;

“organisational innovation” means the implementation of a

new organisational method in the business practices, workplace

organisation or external relations of an undertaking;”

“large undertaking”, “medium-sized undertaking”, “small

undertaking” and “micro undertaking” shall have the meaning

attributed to them by Commission Recommendation 2003/361/

EC as published in the Official Journal of the European Union L

124, p. 36 of 20 May 2003;

“process innovation” means the implementation of a new or

significantly improved production or delivery method (including

significant changes in techniques, equipment and, or software);

“qualifying expenditure” means that expenditure that may

qualify for assistance in terms of these regulations and in

accordance with the Guidelines;

“start-up undertaking” means an undertaking which has been

in operation for a period of less than five years;

“tangible assets” means fixed physical assets in relation to

the creation of an undertaking, or extension of an existing

undertaking, or engagement in activity involving fundamental

product or production process change;

“technological product innovation” means the implementation

or commercialisation of a product with improved performance

characteristics such as to deliver objectively new or improved

services to the consumer;

“undertaking” means any individual or body of persons,

whether registered or not and whether having distinct personality

or not, who or which carries on a qualifying activity and includes

any association or other body of persons which promotes or

supports the goals or objectives of such undertakings.

3 (1) A qualifying activity in terms of these regulations shall

be an economic activity carried on or intended to be carried out by an

undertaking in Malta which consists solely of –

(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 para (i) hereof; or

(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) I.C.T. developmental activities, software development,

IT enabled business services including call centres and IT business

solutions as may be prescribed in the Guidelines, but excluding

telecommunications service providers;

(c) research and development, and innovative start-up

projects as may be prescribed in the Guidelines;

(d) eco-innovations, waste treatment and environmental

solutions as may be prescribed in the Guidelines;

(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,

discovery, application, modification or development of living

organisms or materials derived from them;

(f) the provision of facilities directly required in the

development and production of feature film, television programmes

or commercials as may be prescribed in the Guidelines;

(g) the provision of science and technology private tertiary

education as may be prescribed in the Guidelines;

(h) the provision of private health-care services t h r o u g h

the setting up of new projects carrying out an investment of not

less than 2.5 million Euros in medical equipment, excluding land

or buildings

Provided that an undertaking carrying out the activities set

out in this subregulation shall only qualify for the benefits provided by

these regulations if the project is approved by the Corporation, and, in

giving its approval, the Corporation may impose such conditions as it

deems fit;

Provided further that an undertaking shall not qualify for any

of the benefits provided by these regulations if –

(a) the undertaking sells by retail and, for this purpose, an

undertaking shall be deemed not to sell by retail if its sales of

goods or services are made to -

(i) a person who carries on a trade and the goods or

services so sold to such person are either resold by such person

or are used by such person for the purpose of his trade; or

(ii) a person, other than an individual, who uses those

goods or services for the purpose of trade carried on by such

person;

(iii) a person through e-commerce activities resulting

in online transactions effected through a secure payment system;

(b) the undertaking’s trade or business includes any one of

the following activities

(i) dividing, sorting, packaging, mixing without

changing the character of the good, drying, labelling, or other

similar processes or any combination of such processes to

goods which are acquired in bulk merely to prepare those

goods for sale or distribution, excluding goods in respect of

which the said company carries on any other activity referred

to in sub regulation (1)(a)(i);

(ii) the assembly of any goods where –

(1) the final assembled good is clearly

recognisable from the individual components or parts

from which it is assembled without regard being had to

any exterior casing of the good< and

(2) the components and parts from which the good

is assembled are such that the good is nearly complete

and the assembly work and the supervision of such

assembly work only require the employment of almost

exclusively unskilled workers, such that the assembly

operation is of a spurious nature when considered in the

light of manufacturing activities<

(iii) without prejudice to subregulation (1)(a)(i), the

repair, maintenance, preservation, improvement,

reconditioning, refurbishing or restoration of any good or any

combination of such activities where such activities do not

impose on such goods a change in their character;

(iv) without prejudice to subregulation (1)(a)(ii), the

installation, commissioning or assembly of goods on site,

where the said goods have not been manufactured by the

undertaking which is installing, commissioning or assembling

the goods on site

Provided that the provisions of this paragraph shall not be

applicable to an undertaking which carries on only any one or more

of the activities set out in subregulation (1)(b) to (h).

(c) the trade or business of an undertaking includes the

preparation or production of “food in the course of catering”

including -

(i)

meals or snacks including -

(1) hot and cold dishes including antipasto and

dessert;

(2) sandwiches, toast, potato chips, sausage rolls,

pizza, pastizzi, qassatat and similar snacks;

(3) biscuits, cakes, confectionery and similar

items but excluding those sealed in a package by the

manufacturer and supplied in that original sealed

package, and those items which individually weigh 500

grams or more;

(4) food supplied in restaurants, cafeterias,

canteens, bars and other similar establishments;

(5) food prepared or produced for parties,

functions, weddings and similar events;

(6) food prepared or produced for consumption

by persons pertaining to a particular location or

organisation, including patients in hospitals or homes,

residents of hotels or guest houses, workers in a particular

workplace and the preparation or production of food in

similar circumstances.

(ii) milk, milkshake, tea, coffee and chocolate supplied

in liquid form, excluding milk and milkshake supplied by the

manufacturer thereof in bottles and containers for distribution

to retail outlets but including any form of drink which is

merely produced by adding liquid to powder or substance

and where such drink is produced in order that it may be served

in a bar, restaurant, canteen, cafeteria or other establishment

or place to individuals for consumption.

(2) A small or medium-sized undertaking not carrying

on a qualifying activity in terms of sub regulation (1) of this

regulation may still qualify for assistance in terms of these

regulations if it carries out activities or projects that lead to

process, product or service innovations.

(3) A start-up undertaking not intending to carry out a

qualifying activity in terms of subregulation (1) may still

qualify for assistance in terms of these regulations if it intends

to carry out activities or projects that lead to process, product

or service innovations.

(1) Attività kwalifikanti skond dawn ir-regolamenti tkun

attività ekonomika mwettqa jew ma[subha li ti;i mwettqa minn

intrapri]a f’Malta li tikkonsisti biss –

(a) (i) fil-produzzjoni, il-manifattura, it-titjib, l-

assembla;;, il-preservazzjoni, l-ipproçessar ta’ xi o;;ett, materjal,

prodott, tag[mir, impjant jew makkinarju<

(ii) fil-provvediment ta’ xi servizz industrijali analogu

g[all-attivitajiet imsemmija fil-paragrafu (i) ta’ dan is-

subregolament< jew

(iii) fit-tiswija, miljorament jew manutenzjoni ta’

bastimenti bil-mutur jew jottijiet li ma jkollhomx iktar minn

tletin irmi;;, ajruplani, magni jew tag[mir inkorporat jew

u]at fuq dawk il-bastimenti jew ajruplani<

(b) f’attivitajiet g[al ]vilupp ta’ l-ICT u ]vilupp ta’software,

servizzi tan-negozju abbilitati bl-IT inklu] /entri tas-sej[a, u

soluzzjonijiet g[an-negozju bl-IT kif jistg[u ji;u preskritti fil-Linji

gwida li jin[ar;u mill-Korporazzjoni, imma esklu]i l-provvedituri

ta’ servizzi tat-telekomunikazzjoni<

(c) f’riçerka u ]vilupp, u l-bidu ta’ pro;etti innovattivi kif

jistg[u ji;u preskritti fil-Linji gwida<

(d) f’innovazzjonijiet ekolo;içi, trattament ta’ l-iskart jew

soluzzjonijiet ambjentali kif jistg[u ji;u preskritti fil-Linji gwida<

(e) f’bioteknolo;ija, li tinkludi l-produzzjoni jew l-i]vilupp

ta’ propjetà jew o;;etti intelletwali jew il-provvediment ta’ servizzi

li jirri]ultaw jew li huma relatati ma’ l-istudju, riçerka, skoperta,

applikazzjoni jew ]vilupp ta’ organi]mi [ajjin jew materjali derivati

minnhom<

(f) fil-provvediment ta’ façilitajiet li jkunu direttament

me[tie;a fl-i]vilupp u l-produzzjoni ta’ feature films, programmi

tat-televi]joni jew reklami kif jistg[u ji;u preskritti fil-Linji gwida<

(g) fil-provvediment ta’ edukazzjoni terzjarja privata fix-

xjenza w it-teknolo;ija kif jistg[u ji;u preskritti fil-Linji gwida<

([) fil-provvediment ta’ servizzi privati ta’ kura medika

permezz ta’ l-implimentazzjoni ta’ pro;etti ;odda li jwettqu

investiment ta’ mhux inqas minn 2.5 miljun Ewro f’tag[mir

mediku, eklu]i l-art u l-bini>

I]da intrapri]a li tmexxi l-attivitajiet imsemmija fil-paragrafi

(a) sa (h) tikkwalifika g[all-benefi//ji msemmija f’dawn ir-regolamenti

biss jekk il-pro;ett ikun approvat mill-Korporazzjoni u l-Korproazzjoni

tista’, meta tag[ti dik l-approvazzjoni, timponi dawk il-kundizzjonijiet

li jidhrilha xierqa<

I]da wkoll intrapri]a ma tikkwalifikax g[all-benefiççji

provduti f’dawn ir-regolamenti biss jekk –

(a) l-intrapri]a tkun tbieg[ bl-imnut u g[al dan il-g[an

intrapri]a ma titqiesx li qieg[da tbieg[ bl-imnut jekk il-bejg[ tag[ha

ta’ prodotti jew servizzi isiru lil>

(i) persuna li tmexxi kummer/ u l-prodotti jew servizzi

mibjug[a lil persuna b[al dik jew jer;g[u jinbieg[u minn

dik il-persuna jew ji;u u]ati minn dik il-persuna g[all-

iskopijiet tal-kummer/ tag[ha<

(ii) persuna, li mhux individwu, li tu]a dawk il-prodotti

jew servizzi g[all-iskopijiet ta’ kummer/ li tag[mel dik il-

persuna< jew

(iii) persuna permezz ta’ attivitajiet tal-kummer/

elettroniku li jirri]ultaw fi transazzjonijiet bl-internet li jsiru

b’sistema sigura ta’ [las<

(b) il-kummer/ jew negozju ta’ l-intrapri]a jinkludi xi wa[da

mill-attivitajiet li ;ejjin>

(i) is-separazzjoni, l-g[a]la, l-ippakkjar, it-ta[lit

ming[ajr ma jinbidel il-karattru tal-prodott, it-tnixxif, l-

ittikkettjar, jew proçessi simili o[ra jew kull ta[lita ta’ l-

imsemmija proçessi fuq prodotti li ji;u akkwistati bl-ingrossa

u biss biex jippreparaw dawk il-prodotti g[all-bejg[ jew g[ad-

distribuzzjoni, esklu]i dawk il-prodotti li dwarhom l-intrapri]a

tag[mel xi attività o[ra msemmija fis-subregolament

(1)(a)(i)<

(ii) l-immuntar ta’ xi prodott fejn>

(1) il-prodott finali immuntat huwa rikonoxxibbli

b’mod /ar mill-komponenti individwali jew partijiet li

minnhom ikun ;ie immuntat il-prodott ming[ajr ma ti;i

ikkunsidrata ebda qoxra ta’ barra tal-prodott< u

(2) il-komponenti jew il-partijiet li minnhom ikun

;ie immuntat il-prodott huma tali li l-prodott huwa kwa]i

komplut u x-xog[ol ta’ immuntar u s-supervi]joni ta’

tali xog[ol ta’ mmuntar ikunu jirrikjedu biss l-impieg

ta’ [addiema li jkunu kwa]i kollha mhux tas-seng[a,hekk

li l-operazzjoni ta’ mmuntar tkun ta’ natura fittizja meta

tkun ikkunsidrata fid-dawl ta’ l-attivitajiet ta’

manifattura<

(iii) ming[ajr pre;udizzju g[as-subregolament

(1)(a)(i), it-tiswija, manutenzjoni, ppreservar, miljorament,

kundizzjonar mill-;did, tag[mir mill-;did jew restawr ta’ xi

prodott jew xi ta[lita ta’ dawk l- attivitajiet fejn dawk l-

attivitajiet ma jkunux jimponu fuq dawk il-prodotti tibdil fix-

xorta tag[hom<

(iv) ming[ajr pre;udizzju g[as-subregolament

(1)(a)(ii), l-istallazzjoni, kummissjunar jew immuntar ta’

prodotti fuq il-post, fejn dawk il-prodotti ma kinux

manifatturati mill-intrapri]a li tkun qieg[da tistalla,

tikkummissjona jew timmunta il-prodotti fil-post>

I]da d-dispo]izzjonijiet ta’ dak il-paragrafu ma japplikawx

g[al intrapri]a li twettaq biss xi wa[da jew aktar mill-attivitajiet deskritti

fis-subregolament (1)(b) sa (h)<

(/) il-kummer/ jew negozju ta’ l-intrapri]a jinkludi l-

preparazzjoni jew il-produzzjoni ta’ “ikel fil-kors ta’ catering”

inklu] –

(i) ikliet jew snacks inklu]i

(1) platti s[an u kes[in inklu]i antipasto u di]erta<

(2) sandwiches, toast, chips tal-patata, sausage

rolls, pizza, pastizzi, qassatat u snacks simili<

(3) gallettini, kejkijiet, [elu u o;;etti simili i]da

esklu]i dawk si;illati f’pakketti mill-manifattur u

provduti f’dak il-pakkett ori;inali u dawk l-o;;etti li

individwalment ji]nu 500 gramma jew aktar<

(4) ikel provdut f’ristoranti, kafetteriji, canteens,

bars u stabbilimenti o[ra b[alhom<

(5) ikel preparat jew prodott g[al festi,

funzjonijiet, tie;ijiet u okka]jonijiet simili<

(6) ikel preparat jew prodott g[all-konsum minn

nies li jappartjenu g[al post jew organizazzjoni

partikolari, inklu]i pazjenti fi sptarijiet jew djar, residenti

ta’ lukandi jew guest houses, [addiema f’post tax-xog[ol

partikolari u l-preparazzjoni jew produzzjoni ta’ ikel

f’çirkostanzi simili<

(ii) [alib, milkshake, te, kafè u /ikkulata provduta

f’forma likwida, esklu] [alib u milkshake provdut mill-

manifattur tag[hom fi fliexken u kontenituri g[ad-

distribuzzjoni lil bejjieg[a bl-imnut, inklu]a ukoll kull tip ta’

xarba li hija prodotta sempliçement billi ]]id likwidu mat-

trab jew mas-sustanza, u fejn dik ix- xarba tkun prodotta sabiex

tkun tista’ ti;i servuta f’bar, ristorant, canteen, kafetterija jew

stabbiliment jew post ie[or lil individwi g[all-konsum.

(2) Intrapri]a ta’ daqs ]g[ir jew ta’ daqs medju li ma tkunx

qeg[da twettaq attività kwalifikanti skond is-subregolament (1) ta’ dan

ir-regolament tista’ madanakollu tikkwalifika g[all-assistenza konformi

ma’ dawn ir-regolamenti jekk twettaq attivitajiet jew pro;etti li jwasslu

g[al innovazzjonijiet fil-pro/essi, prodotti jew servizzi.

(3) Intrapri]a fil-bidu li ma jkolliex il-[sieb li twettaq attività

kwalifikanti skond is-subregolament (1) tista’ madanakollu tikkwalifika

g[all-assistenza konformi ma’ dawn ir-regolamenti jekk g[andha l-[sieb

li twettaq attivitajiet jew pro;etti li jwasslu g[al innovazzjonijiet fil-

proçessi, prodotti jew servizzi.

Where the Corporation is satisfied that a small or medium-

sized start-up undertaking carrying on or intending to carry out a

qualifying activity that may contribute to the economic development of

Malta, requires assistance for the development of a new business, the

Corporation may provide such an undertaking with a cash grant for the

acquisition of tangible or intangible assets or for the procurement of

services. This assistance shall not exceed 45% of the qualifying

expenditure in tangible and intangible assets or 50% of the qualifying

expenditure for the acquisition of the services.

Where the Corporation is satisfied that a small sized start-up

undertaking carrying on or intending to carry out a qualifying activity

that may contribute to the economic development of Malta requires

assistance with respect to

(a) legal, advisory, consultancy and administrative costs

directly related to the setting-up of the undertaking;

(b) payment of interests on external finance required in

the acquisition of tangible or intangible assets;

(c) energy and water costs;

(d) depreciation of tangible or intangible assets;

(e) payments for leasing or renting of production

facilities and equipment; or

(f) wage costs including compulsory national insurance

payments.

the Corporation may provide such an undertaking with a cash

grant that shall not exceed 35% of the qualifying expenditure

incurred in the first three years after the creation of the enterprise

and 25% of the qualifying expenditure in the two years thereafter.

Where the Corporation is satisfied that a small or medium-

sized undertaking carrying on or intending to carry out a qualifying

activity that may contribute to the economic development of Malta,

requires assistance to carry out technological, product or service

innovation, process innovation or organisational innovation, the

Corporation may provide such an undertaking with a cash grant that

shall not exceed 45% of the qualifying expenditure in tangible and

intangible assets or 50% of the qualifying expenditure of the services.

Where the Corporation is satisfied that a small or medium- Assistance

experts.

sized undertaking carrying on or intending to carry out a qualifying

activity that may contribute to the economic development of Malta,

requires the assistance of experts in a particular field, the Corporation

may provide such an undertaking with a cash grant that shall not exceed

50% of the qualifying expenditure of the services of such experts

Provided that such cash grant shall not be given in respect of

services which are of a continuous nature or are provided periodically

and relate to the undertaking’s usual operating expenditure such as

routine consultancy services or advertising.

Where the Corporation is satisfied that a small or medium- Assistance to

sized undertaking carrying on or intending to carry out a qualifying participate

and exhibitions.

activity that may contribute to the economic development of Malta,

requires the assistance to participate in fairs and exhibitions, the

Corporation may give such an undertaking a cash grant which shall not

exceed 50% of the qualifying expenditure for renting, setting up and

running the stand

Provided that such cash grant may only be provided in respect of

the first participation of an undertaking in a particular fair or exhibition.

Where the Corporation is satisfied that a small or medium- Assistance in the

sized undertaking carrying on or intending to carry out a qualifying preparation

submission of

activity that may contribute to the economic development of Malta, proposals for

participation in

requires assistance in the preparation and submission of proposals for projects funded by

participation in projects funded through initiatives promoted by the the FP7 or CIP.

European Union such as the Seventh Research Framework Programme

(FP7) or the Competitiveness and Innovation Framework Programme

(CIP), the Corporation may provide a cash grant not exceeding 65% of

the qualifying expenditure related to personnel and other services

required for the preparation and submission of the proposal.

Where the Corporation is satisfied that a small or medium- Assistance for the

use of ICT and

sized start-up undertaking carrying on or intending to carry out a e-business.

qualifying activity that may contribute to the economic development of

Malta, requires assistance in developing and enhancing its business

activities through the use of ICT and e-business, or through the

development of ICT products or services, the Corporation may provide

a cash grant not exceeding 45% of the qualifying expenditure in tangible

and intangible assets and not exceeding 50% for the qualifying

expenditure for the acquisition of services related to the ICT and e-

business project.

A small or medium-sized undertaking to be eligible for any

of the benefits under these regulations, shall not claim or may not

subsequently claim any other benefits with respect to the same costs

under any other legislation such that the total aid would result in an aid

intensity exceeding that fixed by these regulations.

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