S.L. 463.10 Art. 6Form of assistance.

(1) An undertaking carrying on or intending to carry out a qualifying activity in terms of regulation 3 that may contribute to the economic development of Malta shall, subject to the terms and conditions of the Guidelines, be entitled to an investment tax credit, which tax credit shall, with respect to an initial investment or an initial investment in favour of new economic activity be calculated either -

(a) as a percentage of the qualifying expenditure in tangible or intangible assets incurred by such undertaking in the year preceding the year of assessment in question; or

(b) as a percentage of wage costs for jobs directly created by the initial investment or for an initial investment in favour of a new economic activity in accordance with the provisions of regulation 8.

(2) In the case of an investment project that may make a substantial contribution to the economic development of Malta, the Corporation may approve a cash grant instead of the investment tax credit referred to in sub-regulation (1) as may be prescribed in the Guidelines:

Provided that any such cash grant may only be awarded if an official application form is submitted and approved by the Corporation prior to the start of works.

(3) (a) A micro, small and medium-sized undertaking which qualifies for the benefit provided by this regulation shall be entitled to an investment tax credit with respect to an initial investment.

(b) A large undertaking which qualifies for the benefit provided by this regulation shall be entitled to an investment tax credit with respect to an initial investment in favour of new economic activity.