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LN 194 of 2016 – Enterprise Support Incentives (Amendment) No. 2) Regulations, 2016

• The rule relating to assistance for collaboration with other undertakings has been amended to read as follows:

Where the Corporation is satisfied that an undertaking carrying on or intending to carry out an activity that may contribute to the economic development of Malta, requires assistance to collaborate with other undertakings or to administer interactions between a number of undertakings that are collaborating with it with the aim of achieving common objectives, the Corporation may provide such an undertaking with a cash grant that may not exceed the limits set in regulation 21 in accordance with the terms and conditions set out in the Guidelines.

Where the Corporation is satisfied that an undertaking carrying on or intending to carry out an activity that may contribute to the economic development of Malta, requires assistance to set up business development projects, the Corporation may provide such an undertaking with a cash grant that may not exceed the limits set in regulation 21 in accordance with the terms and conditions set out in the Guidelines.

Provided that applications for assistance under this regulation shall reach the Corporation by not later than the 30th April, 2016.

• A new regulation has been introduced, which shall follow regulation 19 and the present regulation 20 shall be re numbered to read regulation 21. The new regulation 20 shall read as follows:

Where the Corporation is satisfied that a single undertaking carrying on or intending to carry out an activity that may contribute to the economic development of Malta, requires assistance to set up business development projects aimed to expand its business operation or to consolidate its current operations, the Corporation may provide such a single undertaking with a tax credit or a cash grant that may not exceed the limits set in regulation 21 in accordance with the terms and conditions set out in the Guidelines:

Provided that applications for assistance under this regulation may be submitted to the Corporation as from the 1st May 2016 and shall reach the same Corporation by not later than the 31st December 2020.


• Regulation 21 has been amended in order to read as follows:

Any assistance that may be provided under these regulations shall be in conformity with the De Minimis Regulation as defined in Commission Regulation (EC) No. 1998/2006 of 15 December 2006 on the application of Articles 87 and 88 of the Treaty to de minimis aid, or any other regulation that may substitute it. An undertaking may receive a total amount of up to two hundred thousand euro (€200,000) of de minimis aid over a consecutive three fiscal year period. This maximum threshold includes all aid granted as de minimis aid from the Corporation as well as from any other entity: Provided that, as from the 1st January 2014, assistance provided under regulations 4, 5, 6, 7, 12, 17, 18, 19 and 20 shall be in conformity with Commission Regulation (EU) No 1407/2013 of 18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid. A single undertaking may receive a total amount of up to two hundred thousand euro (€200,000) of de minimis aid over a consecutive three fiscal year period. This maximum threshold includes all aid granted as de minimis aid from the Corporation as well as from any other entity:

Provided further that for the purposes of regulations 4, 5, 6, 7, 12, 17, 18, 19 and 20, a ''single undertaking'' shall include all undertakings having at least one of the following relationships with each other:

(a) one undertaking has a majority of the shareholders’ or members’ voting rights in another undertaking;

(b) one undertaking has the right to appoint or remove a majority of the members of the administrative, management or supervisory body of another undertaking;

(c) one undertaking has the right to exercise a dominant influence over another undertaking pursuant to a contract entered into with that undertaking or to a provision in its memorandum or articles of association;

(d) one undertaking, which is a shareholder in or member of another undertaking, controls alone, pursuant to an agreement with other shareholders in or members of that undertaking, a majority of shareholders’ or members’ voting rights in that undertaking. Undertakings having any of the relationships referred to in paragraphs (a) to (d) through one or more other undertakings shall also be considered to be a single undertaking.