Rent Subsidy Scheme

Introduction By means of Legal Notice 118 of 2016, the Enterprise Support Incentive Regulations were amended, by means of which small undertakings engaged in manufacturing activities that require industrial space as a temporary or a permanent solution are assisted.  Such assistance is provided to small undertakings to implement growth plans, to handle an increase in […]

Written By Stephen Balzan

On January 3, 2017
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Introduction

By means of Legal Notice 118 of 2016, the Enterprise Support Incentive Regulations were amended, by means of which small undertakings engaged in manufacturing activities that require industrial space as a temporary or a permanent solution are assisted.  Such assistance is provided to small undertakings to implement growth plans, to handle an increase in orders and to carry out process innovations required to increase efficiency.  

Duration of the incentive

This aid scheme is applicable between 1st March 2016 and 31st December 2019 and applicants must submit a complete application to Malta Enterprise by not later than 31st October 2019.

Budget 

This scheme has a budget of EUR 1,000,000.   

Eligibility 

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 or a limited liability company registered in Malta, a Maltese Cooperative or an individual registered as a self-employed with the Employment and Training Corporation (ETC).
  2. The applicant must be engaged in the manufacturing sector.  
  3. The applicant must be a single undertaking that in the two (2) fiscal years preceding the year in which the application is submitted, employed fifty (50) or less persons on a full-time basis.
  4. The applicant must be a single undertaking whose turnover did not exceed €10 Million in the two (2) fiscal years preceding the year in which the application is submitted.
  5. If the applicant is a registered company, the applicant’s balance sheet total should not have exceed €10 Million in the two (2) fiscal years preceding the year in which the application is submitted.
  6. 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, through partial reimbursement, costs incurred for rental or leasing of premises required for manufacturing activities, storage of works in progress related to manufacturing activities carried out in Malta by the applicant and storage of raw materials required for manufacturing activities carried out in Malta by the applicant.

For the rental agreement to be considered for assistance, all the following conditions must be adhered to:

  1. The property must be rented/leased from a third party in the private sector which is not related to the single undertaking;
  2. The rent/lease agreement must have a commencement date which is not more than one (1) calendar month prior to the application date. 

Maximum support

The total aid which may be granted to a single undertaking is capped at €20,000 over a period of two (2) consecutive years and is further limited to €10,000 over any period of twelve (12) months and €50 per square metre per annum. 

Aid Intensity

The aid intensity is established at 50% of the cost incurred after excluding any taxes. 

Exclusions

Renting or leasing of the following properties is excluded even if such properties are rented or leased to address the objectives of this incentive: 

  1. Any property owned by a legal person or group of legal persons related to the single undertaking receiving the assistance;
  2. Public property; 
  3. Showrooms, display areas and similar properties. 

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.