Enterprise Support Incentives (Amendment) Regulations, 2013

L.N. 432 of 2013

MALTA ENTERPRISE ACT

(CAP. 463)

Enterprise Support Incentives (Amendment) Regulations, 2013

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

Malta Enterprise Act, the Minister for the Economy, Investment and

Small Business, in consultation with the Malta Enterprise

Corporation, has made the following regulations:-

The title of these regulations is the Enterprise Support Citation.

Incentives (Amendment) Regulations, 2013, and these regulations

shall be read and construed as one with the Enterprise Support S.L. 463.04

Incentives Regulations, hereinafter referred to as "the principal

regulations".

Regulation 2 of the principal regulations shall be amended Amends

regulation 2 of

as follows

the principal

regulations.

(a)

immediately after the definition "Guidelines" there

shall be added the following new definition

" "regulatory licences and permits" shall mean any

licence, permit or authorisation issued by law by a local

authority as a prerequisite for eligibility to assistance as

defined in the respective guidelines regulating the

assistance;"; and

(b) the definition "undertaking" shall be substituted by

the following

" "undertaking" means an undertaking as

defined in the Act, except for the purposes of

regulations 14 and 16 where undertaking shall

mean

(a)

a limited liability company

constituted under the Companies Act; or

(b) a limited liability company

incorporated or registered as an overseas

company in accordance with the

Companies Act.".

In regulation 5 the principal regulations, for the words "in Amends

regulation 16", there shall be substituted the words "in regulation 17". regulation

the principal

regulations.

In regulation 6 the principal regulations, for the words "in

regulation 16", there shall be substituted the words "in regulation 17".

Immediately after sub-regulation (7) of regulation 13 of

the principal regulations, there shall be added the following new sub-

regulation

"(8) Notwithstanding the provisions of sub-regulation

(7), where the Corporation is satisfied that an undertaking that

qualified for the benefit under sub-regulations (1) and (2), has

incurred eligible costs between 1st July 2012 and 31st

December 2012, applied for regulatory licences and permits as

required by the Guidelines before the 31st March 2013 and

attained these regulatory licences and permits after 31st March

2013, the Corporation may provide such an undertaking with a

tax credit under this regulation, provided that applications shall

reach the Corporation by not later than 31st December 2013.".

Regulations 15 and 16 of the principal regulations shall be

re-numbered as regulations 16 and 17 thereof respectively.

Immediately after regulation 14 of the principal

regulations there shall be added the following new regulation

" Tax credits

(1) Where the Corporation is

for

satisfied that an undertaking carrying out a

undertakings

trade or business requires assistance to

and the self-

employed for

expand, innovate or invest in its business in

capital

investment and

Malta, the Corporation may provide such an

job creation.

undertaking with a tax credit. The intensity of

the tax credit shall be in accordance with the

terms and conditions set out in the Guidelines

Provided that this benefit shall be

calculated on the eligible costs incurred as

from 1st January 2013 till the 31st December

2013

Provided further that the total amount of

tax credits that may be granted in terms of this

regulation and any amount of tax credit

granted to an undertaking in terms of

regulation 13 shall not exceed twenty-five

thousand euro (€25,000).

(2) In order to qualify for the benefit

under sub-regulation (1), the undertaking

(a)

shall not have in its employ

more than thirty full-time employees, or

equivalent, in its trade or business as on

the 30th November 2012

Provided that apprentices and

students shall not be treated as

employees for the purpose of this

paragraph; and

(b) shall have a turnover or

annual balance sheet total that does not

exceed ten million euro (€10,000,000).

(3) The tax credit referred into this

regulation 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 undertaken, and, where the

tax credit, for that year of assessment, exceeds

the income tax payable by such an

undertaking for that year, the excess in the 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

Provided that a tax credit shall not give

rise to a right to a refund of tax

Provided further that unutilised tax

credits can only be availed of until year of

assessment 2017.

(4) Sub-regulations (4), (5) and (6) of

regulation 13 shall apply mutatis mutandis to

tax credits under this regulation.

(5) Applications for assistance under

this regulation shall reach the Corporation by

not later than the 31st March 2014.".

8. In regulation 17 of the principal regulations, as re- Amends

numbered, immediately after the words "on the application of Articles regulation

17 of

the principal

87 and 88 of the Treaty to de minimis aid", there shall be added the regulations.

words ", or any other regulation that may substitute it".

€0.36