Cap. 325 Art. 3Beneficiariesunder this Act.

(1) Unless otherwise provided by or under this Act, the incentives and benefits contemplated by or under this Act shall be due to and obtained by any enterprise which carries on or intends to carry on, in Malta, a trade or business which consists solely of -

(a) the production, manufacture, improvement, assembly, processing, repair, preservation or maintenance of any goods, materials, commodities (including computer software), equipment, plant or machinery; or

(b) the rendering of services of an industrial nature analogous to the activities referred to in paragraph (a), including the repair, maintenance, commissioning, installation, inspection or testing of plant, machinery or equipment and the recycling or treatment of waste material; or

(c) fisheries or large scale aquaculture; or

(d) agriculture, stock farming large scale horticulture; or

(e) the rendering of a service by a company to non-resident persons or to a company which satisfies the provisions of article 4(1)(b), whether the service is performed or rendered in Malta or from Malta, provided such service is prescribed by the Minister to be a qualifying export service; or

(f) the rendering of a qualifying support service as may be prescribed by the Minister; or

(g) the export of goods or services produced or provided, as the case may be, by other qualifying companies; or

(h) research and development programmes; or

(i) the activities set out in article 11 of the Malta

Freeports Act and carried on mainly in a freeport as defined by that Act, by a company licensed under that Act;

(j) (i) the operation of catering establishments, guesthouses, hostels, hotels and holiday premises as defined in the Malta Travel and Tourism Services Act, and falling within such categories as may be prescribed; or

(ii) the undertaking of any project beneficial to the tourism industry as may be prescribed;

(k) the production of feature films, television films, advertising programmes or commercials, and doc-umentaries; or

(l) the provision of services ancillary to the creative industries, logistics including customs warehousing and order fulfilment, education and training, architectural and engineering design and planning (including planning design and execution for large events), aviation and maritime industries, services to the energy industry, medical and health services and life sciences: Provided that where any provision is made by or under this Act for an incentive or benefit to be obtained by a qualifying company, any such incentive or benefit shall be due and obtained only by a company which carries on or intends to carry on in Malta such trade or business.

(2) Notwithstanding any other provision of this Act, in the case of activities or classes of activities referred to in subarticle (1)(c) to (k), the incentives and benefits contemplated by this Act shall only be due to and obtained by a company subject to the approval of the project by the Corporation, and in granting its approval as aforesaid, the Corporation may impose such conditions as it may deem fit:

Provided that with effect from such date as may be determined by the Minister by order in the Gazette*, the Corporation shall not approve any projects falling under subarticle (1)(e).

(3) Notwithstanding any other provision of this Act, the incentives and benefits granted by article 4 and 5 shall not be due to or obtained by a trade or business qualifying under subarticle (1)(g).

(4) A company qualifying under subarticle (1)(h) shall qualify only for those incentives and benefits contemplated by this Act as the Minister may prescribe. In addition to such incentives the Minister may also prescribe other special incentives and benefits, including cash grants, that may be given to such companies.

(5) A trade or business contemplated in subarticle (1) shall be a trade or business actually and physically carried on or carried out in Malta, so however that where the services referred to in paragraph (b), (f) and (g) thereof are rendered outside Malta, the said services shall, for the purposes of this article, be deemed to have been rendered in Malta if the actual services are wholly or mainly rendered by citizens of Malta.

(6) Subject to the provisions of article 25, the Minister may from time to time upon a resolution of the House of Representatives by notice in the Gazette exclude from any or all of the incentives and benefits contemplated by this Act companies that would otherwise be qualifying companies but whose trade or business comprises activities specified in the said notice.

(7) Any notice published in accordance with the provisions of subarticle (6) may be subsequently revoked or modified by the Minister upon a resolution of the House of Representatives.

(8) The incentives and benefits contemplated by this Act shall only be due in respect of activities happening on or after 1st June, 1987, and in respect of gains or profits earned after that date: Provided that, notwithstanding any other provision of this Act in respect of:

(a) projects approved by the Corporation under subarticle (1)(c), (d), (e), (f), (g) and (h); or

(b) the operation of paragraphs (b) and (d) of the definition of "export sales" in article 2, the incentives and benefits contemplated by this Act shall not be due in respect of activities happening before 1st January, 1992, and in respect of gains or profits earned before that date: Provided further that notwithstanding any other provision of this Act in respect of qualifying companies incorporated outside Malta, the incentives and benefits contemplated by this Act may only be obtained by qualifying companies registered as an oversea company in accordance with the Companies Act in respect of their activities happening on or after 1st January, 1997: Provided further that the incentives and benefits

*1st November, 2000 - see Legal Notice 135 of 2001. contemplated by article 6(1), article 8(7), article 9, article 15 and article 24B may only be obtained by a company constituted under Maltese Law: Provided further that the incentives and benefits contemplated by or under this Act shall only be available to companies which qualify under any of the provisions of article 3(1)(i) to (k) as from such * date as may be determined by the Minister by order in the Gazette .

(9) The Minister shall in January of every year publish in the Gazette a list of companies that have benefited under subarticle (1)(h) together with a general description of the activities of the company and of any cash grants from which the company benefits under this Act.

(10) Notwithstanding the provisions of articles 4(6), 5(7), 5A(6) and 15, with effect from the year of assessment 2004 no company shall be entitled to the incentives provided by articles 4, 5 and 5A: Provided that a company may qualify for such benefits and incentives as may be prescribed by the Minister.