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L.S. 463.52 Regolamenti dwar l-Investiment (2024)

[ S.L. 463.52 INVEST (2024) SUBSIDIARY LEGISLATION 463.52 INVEST (2024) REGULATIONS 1st January, 2024 LEGAL NOTICE 52 of 2024. 1. (1) Regulations. The title of these regulations is the Invest (2024) C

Article 2

(49)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, as amended from time to time; "initial investment that creates a new economic activity" shall have the

Article 2

(51)of the 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, as amended from time to time; "large undertaking" means any enterprise that does not qualify as a small undertaking or a medium sized undertaking; 1 2 [ S.L. 463.52 INVEST
(2024)"medium-sized undertaking" shall have the

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, as amended from time to time; "small undertaking" shall have the

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, as amended from time to time; "start of works" shall have the

Article 2

(23)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, as amended from time to time; "qualifying activity" means an economic activity as prescribed in the Guidelines; "undertaking" shall have the

the Act. Eligible projects. 3. The Corporation shall support an initial investment: (

  1. a)carried out by a small or medium sized undertaking that results in a qualifying activity related to the setting up of a new establishment, the extension of the capacity of an existing establishment, the diversification of output of an establishment or a fundamental change in the overall production process; (
  2. b)carried out by a large undertaking that results in a new qualifying economic activity consisting of the setting up of a new establishment or the diversification of the activity of an establishment, provided that the new activity is not the same or a similar activity to the activity previously performed in the establishment; (
  3. c)consisting of the acquisition of assets belonging to an establishment that has closed or would have closed had it not been purchased, provided that: (
  4. i)the establishment shall be utilised for carrying out a qualifying activity; (
  5. ii)the activity carried out in the establishment following the acquisition by a large undertaking is not the same or a similar activity than the one caried out in the establishment before the acquisition; INVEST

(2024)[ S.L. 463.52 (iii) the sole acquisition of the shares of an undertaking does not qualify as initial investment; (
  1. d)for which start of works occur within the period established in the Guidelines; (
  2. e)which conforms to all the terms and conditions established in the Guidelines; (
  3. f)an undertaking availing itself from the benefits of these regulations shall provide a financial contribution of at least twenty five per cent (25%) of the eligible costs, through its own resources or by external financing, in a form which is free of any public support; or (
  4. g)any investment supported in terms of these regulations and the qualifying economic activity, shall be retained in Malta after the completion of the investment project for a period of not less than three
(3)years and not more than five
(5)years in the case where the said qualifying economic activity is carried out by a small or medium-sized undertaking. 4. An undertaking that carries out an eligible initial investment as defined in terms of these regulations and the Guidelines shall be assisted by means of either one or a combination of the following: (
  1. a)tax credit; (
  2. b)cash grant; Form of aid. (
  3. c)an interest rate subsidy or loan guarantee to facilitate access to debt finance required for the initial investment. 5. The aid intensity may not exceed the percentage established in the Guidelines and shall be calculated as a percentage of: Aid intensity. (
  4. a)the qualifying eligible expenditure as established in the Guidelines; or (
  5. b)wage costs for jobs directly created as a result of the eligible project as shall be further specified in the Guidelines. 6.
(1)An undertaking benefiting from tax credits in accordance with these regulations and the respective Guidelines shall be entitled to deduct from the amount of income tax, which is due on its chargeable income derived from its trade or business in the year of assessment immediately following the granting of the tax credit, an amount equivalent to the tax credits granted. Utilisation of tax credits. 3 4 [ S.L. 463.52 INVEST
(2024)
(2)An undertaking that in any year of assessment does not utilise any tax credit granted to it or deducts a value from the amount of income tax which is due on its chargeable income derived from its trade or business that is less than the tax credit granted to it, shall carry forward the unutilised tax credit for the subsequent years of assessment.
(3)Tax credit granted in accordance with these regulations and the respective Guidelines shall not give rise to a right to a refund of tax.
(4)Where an undertaking has benefited from a tax credit granted in accordance with these regulations, the tax credit shall be deemed to have relieved from tax that part of the undertaking’s chargeable income which, when multiplied by the rates of tax at which it was chargeable in that year, is equal to the tax credit, and where the undertaking is a company and such undertaking or any subsequent company distributes the income which is so deemed to have been relieved from tax, such undertaking shall state in the dividend warrant pertaining to any such tax distribution that such income has been relieved from tax by a tax credit in accordance with this regulation.      Cap. 123. S.L. 123.101.
(5)(a) In the case of an undertaking which is a company, the chargeable income which is deemed to have been relieved from tax in accordance with sub-regulation
(4)shall be, for the purposes of the Income Tax Act, allocated to the respective tax accounts of the company in question in accordance with the Tax Accounts (Income Tax) Rules and any dividends, or part thereof, distributed from such income shall be exempted from income tax in the hands of the members of the company on receipt of such distribution; (
  1. b)Where a dividend referred to in paragraph (
  2. a)is distributed to a member which is also a company, in this subregulation referred to as "the second company", the said dividend shall likewise be distributed by the second company to its members in the form of dividends exempt from income tax in the hands of the recipients, and where a member of the second company is also a company, the preceding provisions shall apply mutatis mutandis as though references to the first company were references to the second company, and as though references to the second company were references to that member, and the principle set out in this subregulation shall continue to be applied for as long as such income, or part thereof, to which this regulation applies are distributed by way of dividends.
(6)A tax credit shall not be due to an undertaking under this regulation unless it is claimed in the appropriate section of a tax return submitted by not later than the relative tax return date. INVEST
(2024)[ S.L. 463.52 7.
(1)The Corporation shall establish in its Guidelines a deadline for the submission of applications for assistance.
(2)Assistance shall not be granted in accordance with these regulations by the Corporation after the 31st December
  2. In the eventuality that a new scheme is issued, the provisions in respect of which the assistance was granted prior to the issuance of the new scheme shall continue to apply thereto. Deadline for submission of applications for assistance. Transitory provision. 5

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