By means of Legal Notice 54 of 2024, the Government of Malta has recently published new rules, to relaunch the Skills Development Scheme whose aim is to provide a cash grant or a tax credit to undertakings carrying out or intending to carry out an economic activity that may contribute to the economic development of Malta, which undertakings require aid to increase the skills and knowledge of their employees in relation to the requirements of their employment through training. Such aid is given in accordance with the terms and conditions set out in the Guidelines published by Malta Enterprise. Such rules came into force on the 1st January 2024.
Malta Enterprise may only consider awarding cash grants as follows
- to undertakings engaged in manufacturing and maintenance, repair and overhaul of electromechanical equipment; or
- 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.
Any aid provided in accordance with these regulations shall not exceed:
- 70% of the eligible costs in the case of an undertaking which qualifies as a small undertaking;
- 60% of the eligible costs in the case of an undertaking which qualifies as a medium-sized undertaking;
- 50% of the eligible costs in the case of an undertaking which qualifies as a large undertaking.
The maximum aid for each skills development project shall not exceed €2,000,000. The aid intensity may be increased by 10% when training is provided to workers with disabilities, however the aid intensity shall not exceed 70% of the eligible costs. Any unutilised tax credits shall be carried forward for the subsequent years of assessment.
Applications under this Scheme may be submitted until 30 September 2026.
The Scheme is available to duly registered entities (including self-employed persons) that:
- carry out an economic activity in Malta; and
- are engaged in one or more qualifying activities as identified in the Scheme guidelines; and
- which do not have dues, in relation to VAT, income tax and social security, which exceed Eur1,000, unless there is an existing repayment agreement; for dues less than Eur1,000, applicant should be able to justify position and commit to regularise position, where applicable.
Qualifying training may be provided by employees of the beneficiary or employees of related enterprises or by external experts and shall include training:
- that leads to the acquisition of skills, knowhow or knowledge directly related to the business operations of the applicant undertaking and the development of the current and future function of the trainees within the organisation;
- provided to non-Maltese employees to support them in learning the Maltese language and culture;
- in the use of digital technologies, digital communications, cyber security, and other topics related to digitisation; and/or
- on improving the applicant’s position vis-a-vis environmental, social and corporate governance practices.
Eligible undertakings should submit applications prior to the commencement of training and may only request support for one training programme in any three-month period. The training programme can include multiple training modules which may be delivered to different employees. Changes to approved training programmes must be notified to Malta Enterprise prior to being applied.
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