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New Business Schemes 2021

Deloitte Malta News Alert

30 April 2021

The Government of Malta has announced new regeneration initiatives intended to minimise the negative impact of COVID-19 on businesses. Below is an overview of the initiatives, with more details to follow as and when they are published.

Change to Grow 2021

The Business Re-engineering and Transformation Scheme provides support to small and medium-sized enterprises (now widened in scope to also include self-employed and micro enterprises) to restructure their business, optimise the use of technology and embrace green technology and practices. Eligible enterprises may seek support from registered external advisors in order to carry out the necessary changes to their business and shall be awarded a cash grant covering 50% of the costs incurred. The capping of the grant has been increased from €5,000 to €10,000 for implemented projects.

Micro-Invest Tax Credit Extension 2021

Tax credits that have already been awarded under this scheme, and which are due to expire in 2021, 2022 and 2023, shall be extended by 3 years, such that they may be utilised by 2024, 2025 and 2026 respectively.

One-time Grant 2021

A cash grant of €1,000 shall be granted to those businesses that will remain closed beyond 10 May 2021.

Rent and Electricity Scheme 2021

Top-up of Rent Support Scheme: The rent scheme shall be extended by a further 50% over and above the rent assistance offered in 2020. This scheme shall be available to businesses closed in March 2021 and new applications for businesses approved under the Wage Supplement Scheme in 2021 shall also be eligible to benefit from the scheme.

Top-up of Electricity Support Scheme: The electricity support scheme will be re-issued, covering the months of June, July and August 2021, with the subsidy covering 50% of the total electricity bill. This scheme shall be available to businesses closed in March 2021.

Restart Incentive Scheme 2021

This scheme is intended to provide financial support to business facing going concern issues. The scheme will finance advisory costs up to €5,000 (may be extended to €10,000) to support the implementation phase of a new business initiative. In addition, the scheme contemplates the funding of a specialised programme intended to provide psychological support to entrepreneurs.

Skills Development Scheme

The Skills Development Scheme supports businesses in the provision of training that develops and updates the skills and knowledge of their workforce. In order to reach more businesses the budget allocation for this scheme has been increased by €5 million with a view to assisting businesses that employ less than 50 persons. The objective shall be to focus on in-house training, particularly the sharing of skills between the most experienced employees and younger employees to safeguard against future loss of skills.

Smart and Sustainable Investment Scheme 2021

This scheme is intended to focus on new economic niches which Malta intends to develop in line with the European Green Deal. The scheme is intended to assist companies kick-start the investment cycle after the pandemic and shall award cash grants of up to €50,000 with an additional 20% support in the form of tax credits. The cash grant shall be increased for investments made in Gozo, investments by start-up companies and investments which directly create new green jobs.

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