Grants & Schemes
Through the years, our firm has aided numerous organisations to benefit from grants and schemes available locally from various government entities, including amongst others Malta Enterprise, Business First, Malta Tourism Authority, Malta Resource Authority, MCESD and the Employment & Training Corporation, amongst others. This has given organisations the opportunity to avail from assistance in terms of funding and financing, which opportunities would have otherwise been left untapped.
Our research department carries out continuous research to identify opportunities which our clients may avail themselves from. Upon subscribing to our monthly newsletter, one would automatically receive updates on, not only funding and financing opportunities, but also on updates in statutory obligations or legislations which would effect the organisation in general.
Grants and schemes which are provided through local authorities generally focus on the following pillars:
- Capital Expenditure;
- Employment;
- Training of employees;
- Assistance on financing and security of loans;
- Business Start-ups;
- Tourism projects;
- Research and Development;
- E-Commerce;
- International Competitiveness;
- Innovation;
- Energy Saving projects;
- Assistance to the manufacturing industry.
Several grants and schemes in relation to the above areas are periodically launched by the local authorities to stimulate the economy in terms of investment, employability and the general attractiveness of the country. These are launched through funds which are nowadays known by the business community, including, Micro Invest, Employment Aid Programme, Work Trial Scheme, Training Aid Framework, European Regional Development Funds (ERDFs), benefits of the Business Promotion Act, Soft loans, the BOV Jeremie scheme and other funds.
This section of our website aims to ongoingly update interested parties, of the grants and schemes which would currently be available.
Our research department also carries out ad hoc research for clients who would have specific projects in mind and who would like to explore the possibility of presenting the said project to the respective local authorities for funding or finance assistance. This research is carried out both at a national and an international level depending on the clients’ needs. Through our network and representation of Parker Russell International we are able to cater for all our clients’ needs.
We encourage interested parties to contact our marketing department for further information on how one may avail from these opportunities.
1) Micro Invest Scheme
Eligibility
This incentive is open to undertakings which at the point of application satisfy the following criteria:
- The undertaking must employ between one and thirty employees full time equivalent and have an annual turnover which does not exceed € 10 Million;
- The undertaking must employ at least one person and in case of self employed applicants, they may register themselves, and therefore they would have themselves as an Employee;
- Undertakings should be registered with the VAT Department and should be in possession of regulatory licenses and permits, where applicable. The applicants must not be defaulting on VAT, Income Tax and Social Security, to be able to avail themselves from the scheme.
Incentive Description
Malta Enterprise may approve a tax credit equivalent to 45% of eligible costs. Enterprises operating in Gozo have an additional 20% bonus (total of a 65% tax credit).The maximum tax credit for the duration of this incentive shall be €30,000. For applicants who have already benefited from the previous Micro Invest Scheme (for eligible expenses incurred and paid during 2013), the applicable capping shall be reduced by the amount of any assistance already approved.
Qualifying costs must have been incurred and paid for between 1st January and 31st December of every preceding year.
Eligible Expenses include the following:
- Costs in relation to furbishing, refurbishing and upgrading of business premises. These must include the cost for the labour element to carry out such works, for these expenses to be eligible;
- Investment in acquiring new (or first time used in Malta) machinery, technology and apparatus which will enhance the operations;
- Capital Investment in Information Technology;
- Investment in one commercial motor vehicle (over a three year period);
Costs incurred in relation to the following items will not be considered as qualifying:
- Purchase of land and property;
- Acquisitions of work of art, antiques and any assets that are not directly related to the trade;
- Costs that are assisted through other incentive measures;
- Spare parts and maintenance costs;
- Personal devices such as mobile phones;
- Investment in acquiring machinery, technology and apparatus which will enhance the operations and which have been already used in Malta;
- Investment in more than one motor vehicle which has already been used in Malta;
- Any individual invoice having a value of less than €200 Exc. VAT;
- Payment in cash for expenditure incurred after September 2014 is not eligible. Cash payments shall only be accepted for expenditure incurred between 1st January 2014 and 31st August 2014.
Other provisions
- The tax credit must be utilized by year of assessment 2017, whilst the tax credit awarded to start ups must be utilized by year of assessment 2018.
- The applicant consents that data and information may be acquired from or forwarded to Government Departments, entities and/or Agencies for the scope of assessing and implementing this incentive and ensuring adherence to any applicable regulation including State Aid.
Documentation required
The documentation required to be submitted together with the application, shall be as follows:
1) For capital expenditure
- An original Tax Invoice (as specified in the 12th Schedule of the VAT Act Chapter 406 of the Laws of Malta) and an original receipt;
OR
- An original Fiscal Receipt (as specified in the 13th Schedule of Chapter 406 of the VAT Act) together with a copy of the invoice;
AND
- Proof of payment/s which may include certified true copies of bank statements or cheque encashment images.
2) For wage costs
- Signed FS3 and FS4 forms for each employee on which wages are claimed together with a confirmation of NI and FSS payments. This may include copies of the receipts received from the Inland Revenue Department.
3) For commercial vehicles
- Copy and original vehicle log book
4) Other documentation
- Copy of the trading license of the premises where the costs have been carried out together with a copy of the receipt for last payment effected.
2) BOV Start Plus
Through the European Union’s ‘Competitiveness Innovation Framework Programme’ (CIP, 2007-2013), Bank of Valletta has launched the BOV Start Plus scheme. This scheme, which consists of a business loan, aims to facilitate the accessibility to financing for micro enterprises and start ups. The purpose of this business loan is to aid businesses by allowing access to financing at very competitive interest rates and with reduced collateral.
Benefits of the BOV Start Plus
The benefits of this scheme focus on the advantageous interest rates and collateral requirements which are being offered to the micro enterprise and the start up. Moreover, an additional benefit within this scheme is that bank processing fees are being waived off. Through these benefits, the accessibility to financing for these entities is being enhanced.
Criteria of the BOV Start Plus
Micro enterprises and start ups eligible for this scheme may benefit from a principal of up to Eur 25,000 per project. Eligible projects include the investment in intangible and tangible assets together with investment in the working capital of the entity. The term of the business loan may be between 1 to 5 years. The decision related to the term of the loan, will be based on the assets being financed. The term of the loan cannot exceed the useful life of the asset.
Target sector of the BOV Start Plus
This scheme is specifically targeted to aid the following sectors:
- Self-employed professionals and graduate or post graduate students who would like to start their new business activity;
- Individuals who would like to re-enter the market workplace through a new business activity;
- Full-time employees who would like to start their own part-time business activity.
3) Strengthening Market Entry and Internalisation 2014 - 2020
SCOPE
The scope of this scheme is to assist organisations which want to access foreign markets through providing part-financing to businesses that participate in international trade events, fairs and trade missions. This scheme shall be available until 31st December 2017.ELIGIBILE UNDERTAKINGS
To be eligible for this scheme, organisations shall be engaged in an economic activity being carried out in Malta. Only undertakings registered with the VAT Department and exceeding a predicted turnover of Eur 7,000 per year, shall be eligible.ELIGILBE ACTIVITIES
The following activities are eligible for the scheme:- The participation of business to business international trade events, whereby the applicant participates as an exhibitor and holds a promotional stand, promoting his or her products and services;
- In the case of small start ups or organisations which activity is engaged within the local market shall also be assisted to visit trade events or fairs, as long as they are part of a contingent organised by Malta Enterprise or whilst being mentored by an established exporter participating in the event, as approved by Malta Enterprise;
- Events organised specifically by international organisations in relation to a business opportunity whereby the aim is to identify project partners, venture capital and financing;
- Trade missions organised or approved by Malta Enterprise.
ELIGIBLE COSTS
In the case of participation in trade fairs the costs that shall be eligible for the scheme, shall be as follows:- Rental of exhibition space and/or stand;
- Subcontracted stand construction services;
- Rental of display aids;
- Freight expenses incurred for shipping the materials required to set up and operate the exhibition space and/or stand;
- Travel costs covering a representative of the organisation required to manage the exhibition space and /or stand. This shall apply at an established rate per day.
In the case of participation in networking and business development meetings the costs that shall be eligible for the scheme, shall be as follows:
- Travel costs covering a representative of the organisation required to manage the exhibition space and /or stand;
- Cost of registration for the event incurred by one representative of the organisation who would be participating in the meeting.
A daily rate not exceeding a maximum of three days may also be granted in terms of financial assistance to representatives engaged directly in meetings with potential business partners.
In the case of participation in trade missions the costs that shall be eligible for the scheme, shall be as follows:
Part financing may also be granted on travel costs incurred by one representative of the organisation, attending trade missions organised by Malta Enterprise. Similarly to the above a rate per day shall be granted for the days covered by the trade mission.
In the case of support in relation to Market preparedness and development actions shall be eligible as follows:
These shall be eligible if they are clearly set up in a holistic market development plan covering at least a period of 12 months. In such cases, the following cost may be eligible:- Translation of publicity material and product information;
- Design and development of marketing material;
- Participation fees in a trade fair or a similar event;
- Travel costs incurred by an organisation representative attending a trade fair, similar event or a predetermined business meeting;
- Travel costs and hotel accommodation costs for a maximum of three days, incurred in financing potential business partners to visit an organisation’s premises in Malta or participates in an event organised by an organisation in Malta.
INCENTIVE DESCRIPTION
Size of Undertaking % aid intensity- Small Undertakings 50%
- Medium Undertakings 50%
- Large Undertakings 40%
Maximum aid that may be received by an undertaking in any one year is that of Eur 30,000. Any travel costs should be Economy Class and shall be capped at Eur 250 per trip per person in case of trips to or from Europe and the Mediterranean and at Eur 500 per tripe per person in case of trips to or from other regions. Travel modes which shall be supported relate to air, rail and ferry. For trips to be eligible shall need to commence and end here in Malta. The daily rates referred to in this report, are those as stated in Appendix A of the guidelines issued by Malta Enterprise. These differ according to the country that the trade fair, networking event or meeting shall take place.