Interest Rate Subsidy Regulations and the Business Promotion (Amendment) Regulations has been saved
Interest Rate Subsidy Regulations and the Business Promotion (Amendment) Regulations
Deloitte Malta Tax Alert
5 November 2019
On the 5 November 2019 the following regulations were published:
- Business Promotion (Amendment) Regulations, 2019 (hereinafter, ‘BPA Regulations’ to be read and construed as one with the Business Promotion Regulations, Subsidiary Legislation 325.06); and
- Interest Rate Subsidy, Regulations, 2019 (Legal Notice 285 of 2019) (hereinafter, the ‘IR Regulations’).
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With effect from 1 July 2019, soft loans, loan interest subsidies or loan guarantees shall not be granted by Malta Enterprise.
In terms of the IR Regulations, Malta Enterprise may approve the granting of aid to an eligible undertaking with respect to an eligible investment project, (i.e. an initial investment in a qualifying economic activity). The aid granted shall take the form of a subsidy on the rate of interest payable by the undertaking on loans taken in order to finance the procurement of qualifying tangible assets.
The subsidy shall not exceed an interest rate equivalent to 3% per annum and, in all cases, 1% of the interest rate charged by the bank must be paid by the eligible undertaking. The loan benefiting from the subsidy must be provided by a bank licensed to operate in Malta.
The IR Regulations shall be deemed to come into force on 1 September 2019.