An undertaking shall qualify for this assistance when it is carrying out an activity that may contribute to the economic development of Malta and it requires assistance to support the provision of training of its employees. The assistance can take the form of a tax credit or a cash grant. The undertaking shall only qualify for the assistance if it employs at least 5 persons on a full time basis.
The assistance shall be calculated as a percentage of the eligible costs. Eligible costs comprise consultancy costs for developing training programme, wage costs of trainees, wage costs of trainers, air travel expenses incurred to send trainees to foreign training locations and to bring trainers to Malta, and costs associated with training rooms, tools and equipment.
Any assistance provided shall not exceed:
- 70% in the case of “Small Undertakings”;
- 60% in the case of “Medium Undertakings”; and
- 50% in the case of “Large Undertakings”.
The total assistance that may be granted shall not exceed € 1 million.
This Scheme is targeted towards certain undertakings which are engaged in specific activities and the training must lead to the acquisition of knowledge which is relevant to the same activity. These activities include manufacturing, industrial services, information technology (including Computer Programming, Data processing, hosting facilities, electronic and mobile platforms), Research and Development, Design, Innovation, Logistics, Game Development, Education, Hospitality and Waste Treatment.
The tax credit shall be taken as a deduction from the tax payable by the undertaking on its chargeable income. Where the tax credit for that year of assessment exceeds the income tax payable, the excess in the tax credit shall be allowed to be carried forward to the subsequent year and deemed to be a tax credit for that year. A tax credit shall not give rise to a refund.
All applications for assistance in relation to such Scheme shall be submitted by not later than 31 December 2020.
Should you need more information with regards to this scheme, please do not hesitate to contact us!