L.S. 463.46 Regolamenti dwar l-Investiment

(1)Regulations. The title of these regulations is Invest Citation and scope.

(2)These regulations shall apply with respect to an eligible initial investment in favour of carrying out of a qualifying economic activity.

1. In these regulations, unless the context otherwise requires: Interpretation. "Act" means the Malta Enterprise Act; Cap.
2. "aid intensity" means the gross aid amount expressed as a percentage of the eligible costs, before any deduction of tax or other charge; "Corporation" means the Malta Enterprise established under the Act; "guidelines" means the guidelines as may be published by the Corporation from time to time in terms of the Act; "small and medium sized enterprises (SME)" or "(SMEs)" means small and medium sized enterprises (SME) or (SMEs) as defined in Annex I of Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty; "relocation" means a transfer of the same or similar activity or part thereof from an establishment in one contracting party to the EEA Agreement (initial establishment) to the establishment in which the aided investment takes place in another contracting party to the EEA Agreement (aided establishment). There is a transfer if the product or service in the initial and in the aided establishments serves at least partly the same purposes and meets the demands or needs of the same type of customers and jobs are lost in the same or similar activity in one of the initial establishments of the undertaking in the EEA; "start of works" means the earlier of either the start of construction works relating to the investment, or the first legally binding commitment to order equipment or any other commitment that makes the investment irreversible. Buying land and preparatory works such as obtaining permits and 2 [ S.L. 463.46 INVEST conducting feasibility studies are not considered start of works. For take-overs, "start of works" means the moment of acquiring the assets directly linked to the acquired establishment; "undertaking" shall have the same meaning assigned to it in the Act. Eligible projects. 3.

(1)The initial investment project shall be considered for support if the investment shall result in the setting up of, expansion, diversification or a fundamental change in the carrying out of a qualifying economic activity.

(2)(

1. a)Cash grants, loan guarantees and interest rate subsidies may only be awarded to eligible projects for which an application is submitted and approved before the start of works and during the period of validity of the scheme. (
2. b)Projects having a start of works a f t e r 1 s t M a y 2 0 2 2 b u t prior to the approval of the Corporation may only be awarded aid in the form of tax credits.

(3)Eligible investment projects can only be awarded aid in respect of projects commencing on or after the 1st May 2022 but in no case later than 31st December 2026 or later if the start of works was delayed due to factors outside the control of the undertaking as shall be determined by the Corporation, as long as the undertaking submits an application for aid prior to any deadline established in the guidelines and the aid in respect of such projects is approved by the Corporation by 31st December 2023.

(4)The said investment and the qualifying economic activity shall be retained in Malta for a minimum period of at least five

(5)years or three

(3)years in the case where the undertaking is an SME, after completion of the investment project.

(5)An undertaking intending to avail itself from the benefits of these regulations must provide a financial contribution of at least twenty-five percent (25%) of the eligible costs, either through its own resources or by external financing, in a form, which is free of any public support.

(6)The undertaking must confirm that it has not carried out a relocation to the establishment in which the initial investment for which aid is requested is to take place, in the two

(2)years preceding the application for aid and it must also commit that it will not relocate for a a period of up to two

(2)years after the completion of the initial supported investment. INVEST [ S.L. 463.46 4. A qualifying activity for the purposes of these regulations shall mean an economic activity consisting of a trade or business, the profits or gains from which are chargeable to tax pursuant to article 4

(1)(a) of the Income Tax Act, carried on or intended to be carried out by an undertaking in Malta which consists solely of one or more qualifying activities, as may be prescribed in the guidelines. Qualifying activities. 5.

(1)An undertaking carrying on or intending to carry out a qualifying activity that may contribute to the economic development of Malta, shall be assisted by means of either one or a combination of the following: Form of aid. (

1. a)tax bills); (
2. b)Cap. 123. a tax credit (which may be claimed against future a cash grant; (
3. c)an interest rate subsidy or loan guarantee to facilitate access to debt finance for funding the qualifying expenditure subject to the terms and conditions of the guidelines. 6. The aid intensity may not exceed the percentage established in the guidelines. The value of the aid awarded shall be calculated as a percentage of: Aid intensities. (
4. a)the qualifying eligible expenditure as established in the guidelines incurred by an undertaking in respect of eligible projects for the carrying out of a qualifying activity; or (
5. b)wage costs for jobs directly created as a result of the eligible project as shall be further specified in the guidelines. 7. Any tax credits awarded may only be utilised by the undertaking as long as the supported qualifying activity is still being carried out in the establishment. The undertaking shall give consent in his tax return to the Commissioner for Revenue to extract tax credits data from the Corporation. The Corporation shall annually provide the undertaking with a statement of any tax credit balance until all allocated tax credits are utilised. Utilisation of tax credits. 8. Applications for aid to support eligible undertakings under these regulations shall reach the Corporation by not later than 30 September 2023: Deadline for submission of applications for aid. Provided that no aid shall be granted under these regulations by the Corporation after 31st December, 2023. 3