[ S.L. 463.54 SKILLS DEVELOPMENT
(2024)1 SUBSIDIARY LEGISLATION 463.54 SKILLS DEVELOPMENT
(2024)REGULATIONS 1st January, 2024 LEGAL NOTICE 54 of
- The title of these regulations is the Skills Development
(2024)Regulations. Citation.
- requires: In these regulations, unless the context otherwise Interpretation. "Act" means the Malta Enterprise Act; Cap.
- "Corporation" shall have the same meaning assigned to it in the Act; "Guidelines" means the Guidelines as may be published by the Corporation from time to time in accordance with the Act, establishing the parameters of implementing the aid granted by virtue of these regulations; "large undertaking" means any enterprise that does not qualify as a small undertaking or a medium-sized undertaking; "medium-sized undertaking" shall have the same meaning assigned to it in Annex I 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; "small undertaking" shall have the same meaning assigned to it in Annex I 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; "undertaking" shall have the same meaning assigned to it in the Act. 3.
(1)When the Corporation is satisfied that an undertaking carrying out or intending to carry out an economic activity that may contribute to the economic development of Malta, requires aid to increase the skills and knowledge of its employees in relation to the requirements of their employment through training, the Corporation may provide such an undertaking with a tax credit or a cash grant or a combination of both, in accordance with the terms and conditions set out in the Guidelines. Aid for the development of training programs. 2 [ S.L. 463.54 SKILLS DEVELOPMENT
(2024)
(2)The Corporation shall in principle only consider awarding cash grants: (
- a)to undertakings engaged in manufacturing and maintenance, repair and overhaul of electromechanical equipment; or (
- b)to support training initiatives related to investment projects that result in the creation of a new establishment, significant expansion of the current activities of an establishment or the diversification of an establishment into products or services not provided previously by the undertaking. Maximum aid. 4.
(1)Any aid provided in accordance with these regulations shall not exceed: (
- a)seventy per cent (70%) of the eligible costs in the case of an undertaking which qualifies as a small undertaking; (
- b)sixty per cent (60%) of the eligble costs in the case of an undertaking which qualifies as a medium-sized undertaking; (
- c)fifty per cent (50%) of the eligible costs in the case of an undertaking which qualifies as a large undertaking.
(2)The maximum aid for each skills development project shall not exceed two million euro (€2,000,000).
(3)The aid intensity may be increased by ten percent (10%) when training is provided to workers with disabilities, however the aid intensity shall not exceed seventy per cent (70%). Utilisation of tax credits. 5.
(1)An undertaking benefitting 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 grant of the tax credit, an amount equivalent to the tax credits granted.
(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 credits granted in accordance with the regulations and the respective Guidelines shall not give rise to a right to a refund of tax. SKILLS DEVELOPMENT
(2024)[ S.L. 463.54
(4)Where an undertaking has benefitted a tax credit granted in accordance 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.
(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, for the purposes of the Income Tax Act, be 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; Cap. 123. S.L. 123.101. (
- b)where a dividend referred to in paragraph (
- 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 sub-regulation 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 in accordance with this regulation unless it is claimed in the appropriate section of a tax return submitted by electronic means by not later than the relative tax return. 6.
(1)The Corporation shall establish a deadline for the submission of applications in the Guidelines.
(2)An aid shall not be granted under these regulations by the Corporation after the 31st of December
- In the eventuality that a new scheme is issued, the provisions in respect of which the aid was granted prior to the issuance of the new scheme shall continue to apply thereto. Deadline for submission of applications for aid. Transitory provision. 3