Malta Enterprise Incentive: Skills Development Scheme

The incentive shall be applicable until 31st December 2020.

The aim of this scheme is to support training and knowledge transfer initiatives that will assist employee’s new skills, knowhow and knowledge. Subsequent to the supported training, it is expected that the assisted undertakings will upgrade skills of employees, address skills shortages, facilitate re-skilling, tackle skill mismatches and work towards developing a knowledge-based workforce.

The aid shall be granted in the form of a tax credit. The Malta Enterprise may consider and approve a cash grant with respect to the training requirements for entities directly related with the below activities:

  • Manufacturing
  • Repair, overhaul or maintenance
  • Software developing, writing, modifying and testing.

Aid Intensity

No undertaking may be awarded aid in excess of One Million Euro. The aid intensity depends on the size of the undertaking as per the following table:

Size of Undertaking %
Small 70
Medium 60
Large 50

Eligible Entities

This incentive is available to registered undertakings including self-employed individuals carrying on an economic activity in Malta and are engaged in one or more qualifying activities.

At point of application, the undertaking or the self-employed individual must employ at least five persons on full-time basis whom are registered with Jobsplus excluding directors and shareholders holding more than 25% shareholding.

Qualifying Training

To be eligible for this incentive, the applicant must be involved in one of the following activities:

  • Manufacturing
  • Repair, overhaul or maintenance
  • Industrial Services
  • Laundry and Dry cleaning
  • Information Technology – Computer Programming / Data Possessing and hosting facilities / Data Processing Services / Electronic and mobile platforms.
  • Call Centre Activities
  • Research and Development, Design and/or Innovation
  • Logistics
  • Waste Treatment
  • Filming and Audiovisual productions
  • Game Development
  • Education
  • Health care service
  • Hospitality
  • Cultural Restoration
  • Retail
  • Transportation
  • Agriculture
  • Fishing and Aquaculture

Qualifying Activity

In addition to the criteria established above, the Corporation shall only support eligible undertakings whose main activity is defines under the following categories:

  • Agriculture, forestry and fishing
  • Manufacturing
  • Water supply, sewerage, waste management and remediation activities
  • Retail trade, except of motor vehicles and motorcycles
  • Transportation and storage
  • Accommodation and food service activities
  • Information and communication
  • Professional, scientific and technical activities
  • Administrative and support service activities
  • Education
  • Human health and social work activities
  • Arts, entertainment and recreation
  • Other Service Activities

Eligible Costs

The eligible costs which can be redeemed by a tax credit or a cash grant are the following:

a) Consultancy costs for developing the training programme;

b) Wage costs of trainees, covering direct contact hours during which the trainee is participating in the training.

c) Wage costs of trainers, covering direct contact hours during which the trainer is delivering the training.

d) Hourly costs covering direct contact hours of training service providers engaged to deliver training.

e) Air Travel expense incurred to send trainees to foreign training locations if the training is not available locally and it is more economically feasible than holding the training locally.

f) Air Travel expense incurred to bring trainers to Malta.

g) Rental of Training rooms, tools and equipment, to the extent that they are used exclusively for the training project.

How can Erremme help you?

Erremme can guide you through the application process by completing the relevant application forms, business plans and other documents. The admission process is managed and regulated by the Malta Enterprise and these Incentive Guidelines will remain active until 31st December 2020.

For more information contact us on sfinch@easl.com.mt

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