Gozo Transport Grant Scheme

Introduction In terms of Article 12 of the Enterprise Support Incentive Regulations, manufacturing undertakings operating from Gozo are assisted in reducing their additional interisland transport cost incurred for transporting materials, goods and finished products between Malta and Gozo.  This assistance serves to reduce the cost-disadvantages for manufacturers based in Gozo, rendering these businesses in a […]

Written By Stephen Balzan

On January 3, 2017
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Introduction

In terms of Article 12 of the Enterprise Support Incentive Regulations, manufacturing undertakings operating from Gozo are assisted in reducing their additional interisland transport cost incurred for transporting materials, goods and finished products between Malta and Gozo.  This assistance serves to reduce the cost-disadvantages for manufacturers based in Gozo, rendering these businesses in a better position to compete effectively within the single market.  

Duration of the incentive

This aid scheme is applicable to transportation costs between Malta and Gozo between 1st January 2016 and 31st December 2020.

Budget 

Malta Enterprise allocates an annual budget to this scheme which shall be allocated on a first come first served basis.       

Eligibility 

Eligible persons must Gozo based undertakings engaged in manufacturing and in possession of an entitlement certificate confirming that Malta Enterprise is satisfied that all or a significant part of the manufacturing activity is being carried out in Gozo. This incentive is available to all undertakings which satisfy all of the following criteria.

  1. The applicant must be either a partnership en nom collectif, a partnership en commandite, a limited liability company registered in Malta or an individual registered as a self-employed with the Employment and Training Corporation (ETC);
  2. The applicant may be constituted outside Malta and is of a similar nature to the above;
  3. The applicant may also be a Maltese Cooperative registered in Malta;
  4. The applicant must be engaged in the manufacturing sector;
  5. At the time of application, the applicant must not be in default on VAT, Income Tax or Social Security contributions.

The Incentive

Malta Enterprise may support an eligible undertaking, in respect of expenses related to the transportation of machinery, plant, materials, goods and products, required for the undertaking’s manufacturing activities in Gozo.   A grant is awarded in relation to:

  • Transport Expenses incurred using owned or leased commercial vehicles

Malta Enterprise will calculate the grant on the basis of the number of trips which shall be established by taking into account the number of ferry tickets submitted.  The grant per trip shall be based on the vehicle utilised which shall be determined from the ticket presented as per details in the table below.

Ticket Presented      Grant per Trip (€)
Car and Driver Gozo Resident  Subsidised Fare 50
Gozo Subsidised Commercial Vehicle Category 2               60
Gozo Subsidised Commercial Vehicle Category 370
Gozo Subsidised Commercial Vehicle Category 4               90
Gozo Subsidised Commercial Vehicle Category 5               100
Gozo Subsidised Commercial Vehicle Category 6               110
Gozo Subsidised Commercial Vehicle Category 7               120

Malta Enterprise shall establish a capping of one (1) trip per day for each commercial vehicle owned by or leased to the beneficiary. 

  • Subcontracted Haulage Expenses

Subcontracted haulage expenses (including ferry costs) are eligible for a refund of 100% of the invoiced value excluding VAT. Invoices shall be deemed as eligible by Malta Enterprise if the service provided is related to haulage and must be accompanied by a bill of lading or a clear description of the items transported.  

  • Courier Services 

Subcontracted courier services are eligible for a refund of 70% of the invoiced value excluding VAT.  Courier services shall be deemed as eligible if the invoice provided clearly indicates the points of collection and drop off and as long as one of these locations is in Malta and the other in Gozo.

Ineligible Expenses

Only the costs mentioned above are eligible. 

How can we help?  

For further information, please contact one of the firm’s tax partners, Stephen Balzan on [email protected] or Elaine Camilleri [email protected]. ACT can help you understand the changes to the tax rules and how these can impact your business.  

Apart from its offices in St. Julian’s Malta, ACT operates from a second office in Gozo, which is situated in the capital city of Victoria.  For an appointment in our Gozo office, please call on 00356 21378672 or send us an email on [email protected]. 

Disclaimer: This article contains general information only and is not intended to address the circumstances of any particular individual or entity. ACT, by means of this article is not rendering any accounting, business, financial, investment, legal, tax, or other professional advice or service. This article is not a substitute for such professional advice, nor should it be used as a basis for any decision or action that may affect your finances or your business. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. Before making any decisions or before taking any action that may affect your finances or your business, you should consult a qualified professional adviser. ACT shall not be responsible for any loss whatsoever sustained by any person who relies on this article.