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Maltese Laws |
MALTA ENTERPRISE ACT
To make provision for the establishment of a corporation in Malta, to determine the functions and powers of the Corporation in order to promote enterprise and related business undertakings in Malta, to encourage the establishment of new business undertakings and the expansion of existing business undertakings in Malta, to provide for the development and administration of incentives, schemes and other forms of support for such ventures and to provide for matters ancillary or in relation thereto and to provide for powers to rationalise and update the relevant legislation in the sector.
11th August, 2003
ACT VIII of 2003, as amended by Act XXIII of 2007 and Legal Notice
427 of 2007.
PART I
Preliminary
"beneficiary" means any person who is entitled to benefit under an incentive scheme or arrangement in terms of this Act;
"the Board" means the Board of Directors of the Corporation established under article 10;
"the Chairman" means the Chairman of the Board of Directors appointed under article 11;
"the chief executive officer" means the chief executive officer of the Corporation appointed under article 13;
"committee" means a committee of the Corporation established under articles 16 and 17;
"the Corporation" means Malta Enterprise, a corporation established under article 7 and where any other authority or person
is designated by regulations prescribed by the Minister to be the competent authority to exercise any of th e fu nc ti on s o f
th e Corporation under this Act, includes such other authority or person to the exclusion of the Corporation;
"dir ectors" means th e members app o int e d to t h e Board of
Directors of the Corporation under article 10;
"effective date" means the date, established by the Minister, for the coming into force of this Act;
"enterprise" means the carrying on of any economic activity in
Malta;
Substituted by: XXIII. 2007.2.
Short title. Substituted by: XXIII. 2007.2.
Interpretation. Amended by: XXIII. 2007.3.
Cap. 325.
Cap. 325. S.L. 325.06
"existing projects" means any project already approved by the Corpo r ati on and entitled t o or benefiting from an y grants
or incentives under the Business Promotion Act;
"financial year" means any period of twelve months ending on the 31st day of December of each year or such other date as
may be determined by the Board with the concurrence of the Minister:
Provided that the first financial year of the Corporation shall commence on the coming into force of this article and shall end
on the 31st day of December of the next following year;
"guidelines" means the set of rules issued by the Corporation from time to time for the further implementation of the provisions
of this Act, and any regulations issued hereunder, including the d efi nit io n, ap pli cati on , adm in istrati on, grant and
revoca tio n of schemes, incentives and other arrangements for the promotion of enterprise in Malta;
"Incentive Entitlement Certificate" means a certificate issued in terms of Part VI of this Act;
"Malta" has the same meaning as is assigned to it by article 124 of the Constitution of Malta;
"t he Mini ster" mean s th e Mi nist er resp on si bl e for Malt a Enterprise and includes, to the extent of the authority
given, any person authorised in that behalf for any purpose of this Act;
"relevant legislation" means -
(i) the Business Promotion Act, and regulations made thereunder, and in particular the Business Promotion Regulations;
Cap. 202. (ii) the Malta Development Corporation Act, and any regulations made thereunder;
Cap. 397. (iii) the Small Enterprises (Loan Guarantee) Act, and any regulations made thereunder;
Cap. 159. (iv) the Aids to Industry Ordinance, and any regulations made thereunder; and
Cap. 53. (v) the Encouragement of New Industries Act, and any regulations made thereunder;
"secretary" means the secretary of the Board;
"State Aid Monitoring Board" means the State Aid Monitoring
Cap. 325.
Board constituted under article 57 of the Business Promotion Act;
"tax" shall have the same meaning as assigned to it in the Income
Tax Acts;
"undertaking" means any individual or body of persons, whether having a distinct legal personality or not, who or which
carries on any form of enterprise including the exercise of an y trade or business, profession or vocation and includes any association
or other body of persons which promotes or supports the goals and objectives of such undertakings.
PART II
Guiding Principles underlying the Act
(2) The Government shall endeavour to achieve such economic objectives and policies through:
(a) increased investment; (b) increased employment;
(c) increased entrepreneurship;
(d) improved international competitiveness; (e) diversification of the local industry base;
(f) the development of enterprise networking and inter sector linkages;
(g) the development of human resources; and
(h) the promotion of industrial research, technology development and innovation, and such other strategies as may from
time to time be conducive to the achievement of such objectives and policies.
(3) In order to better achieve the goals set out above, the Government shall establish all such support measures as
may be necessary and, without prejudice to the generality of the foregoing, shall in particular establish support measures in one
or more of the following areas:
(a) access to all forms of finance; (b) employment generation;
(c) environment protection and renewable energy initiatives;
(d) regional development;
(e) research and development and innovation;
(f) information technology, e-business and e-commerce; (g) the development of small and medium sized
undertakings ("SMEs");
(h) the promotion of clustering, networking and internationalisation;
(i) the optimal use of property to cater for the physical and infrastructural requirements for the development of enterprise;
(j) the regeneration of the island of Gozo and addressing handicaps associated with its double insularity; and
Added by: XXIII. 2007.5.
Co-operation in the promotion of enterprise.
Added by: XXIII. 2007.5.
Establishment of key economic objectives.
Added by: XXIII. 2007.5.
(k) generally, the introduction of such other enterprise development measures, methodologies, schemes, policies and
goals which are conducive to the above and related and similar objectives.
(4) Where the Minister, on the recommendation of the Co rpo r atio n, is sati sfied th at a p r oj ect to b e un
dertaken by an u ndertakin g m a y m a ke a su bstant ial co ntribu tion to the development of the economy as is consistent
with the aims and objectives of the Government and this Act, the Minister may, after consultation with the Corporation as may be
necessary, approve
that support, in any form as may be approved, be given by the
Corporation to such an enterprise subject to such conditions as the Mini ster or the Corpo r atio n may impose; provid e d that no
assistance shall be granted to the extent that it is inconsistent with
applicable law on state aid.
Power to make regulations. Added by: XXIII. 2007.5.
(a) the establishment of policies for implementation by the Corporation as to the undertakings eligible to receive
the benefit of incentives and other arrangements, the types of incentives, the range of support and other
related matters;
(b) the introduction of measures of a fiscal nature whereby the tax payable by any undertaking may be absorbed by tax credits or
otherwise reduced;
(c) the introduction of such other support measures as are considered appropriate and subject to such conditions as the Minister
may deem fit, which measures may include, but shall not be limited to, the measures provided for in article 4(3);
(d) the designation of any authority or person to exercise any of the functions of the Corporation under this Act;
(e) the definition and interpretation of terms and concepts to be used in regulations and guidelines;
(f) the deletion or the transposition of any provisions in the relevant legislation into regulations with such modifications
as the Minister may consider appropriate or necessary:
Provided that in so far as existing projects are concerned, nothing in any regulations made pursuant to this power
shall affect any right, benefit or incentive currently in force in favour of any undertaking or beneficiary nor impose any
more onerous conditions or obligations than currently in force and in case of conflict between the regulations and the relevant
legislation, the provisions of the relevant legislation shall prevail.
(2) Where the Minister proposes to make or modify regulations
in accordance with the provisions of this Act and those regulations provide that an undertaking may be wholly or partly exempted from
b e in g li ab le to any t a x wh ich, b u t fo r th e pr ov isi o n s o f su ch regulations, would have been payable, the power
of the Minister to make such regulations shall only be exercised with the concurrence of the Minister of Finance.
(3) Where the Minister proposes to make or modify regulations which provide for the granting of any assistance, a copy of such
p r o posed regu lation s shall be forwarded t o the S t ate A i d Monitoring Board which shall com municate its opinions on the
proposed assistance in accordance with applicable law.
6. (1) Notwithstanding any provisions of the Income Tax Act or of any other applicable fiscal law, incentives, benefits and grants in terms of schemes that may be developed by the Corporation
to give effect to this Act, shall be exempt from tax in the hands of the relevant beneficiary, provided that such grants do not take
the form of income substitution.
(2) The Minister may make regulations to lay down the conditions relating to accounting, record keeping and reporting to
the Corporation for the enjoyment of the exemption stated in the preceding subarticle.
(3) Where any benefit provided by these regulations or by the Act is due to a partnership or other undertaking and, in accordance
with the Income Tax Acts, the partners or members thereof and not the partnership or undertaking itself are assessable to tax on
any income of such partnership or undertaking, any benefit provided in terms of this Act to a partnership or undertaking shall be
due to the partners or members of any such partnership or undertaking.
PART III
Establishment and Functions of the Corporation
Enterprise, to perform the functions assigned to it under this Act.
(2) The Corporation shall be a body corporate having a distinct legal personality and be capable, subject to the provisions of
this Act, of entering into contracts, of acquiring, holding and disposing of any property for the purpose of its functions, of suing
and being su ed , and of d o in g all such thi ngs and enterin g i n to all such t r ansacti ons as are incidental o r co nducive
to the ex ercise or performance of its functions under this Act.
Rules on tax treatment of benefits and certain undertakings. Added by:
XXIII. 2007.5.
Cap. 123.
Establishment of the Corporation. Amended by: XXIII 2007.4.
(a) to originate, lead and further initiatives relating to the economic and social development of Malta in line with the objectives,
policies and goals set out by Government in terms of article 4;
(b) to lead Malta’s strategy as relates to all forms of enterprise, ensuring the implementation of such activity
through a co-ordinated and coherent approach
Functions of Corporation. Amended by: XXIII 2007.4, 6.
developed and implemented with other Government bodies, national constituted bodies and the private sector;
(c) to develop, and to provide the required assistance and support services to enterprise in Malta;
(d) to promote Malta as a location for enterprise, to assist and co-ordinate its promotion as such a location;
(e) to promote, assist and develop the establishment, competitiveness and internationalisation of enterprise in Malta;
(f) to develop the technological, human resource, and skills bases, and to strengthen the capacity of undertakings,
to undertake strategic assessment and formulation, to innovate, and to undertake research, development and design activities;
(g) to provide and manage land, sites, premises, services, and facilities for business enterprises;
(h) to administer schemes, grants and other financial facilities requiring the disbursement of funds, including
funds originating from foreign sources;
(i) to advise the Minister on any matter relating to the operations and purposes of this Act; and
(j) to carry out such other functions as may be assigned to it by the Minister from time to time.
(2) In the exercise of the above functions, the Corporation shall have power to:
(a) make all forms of investment, including direct ownership of undertakings in its own right or in partnership
with other persons, grant loans and advances to undertakings, subscribe, underwrite or deal in shares and debentures
of companies, guarantee loans and advances to other persons, make grants to undertakings, and manage and control undertakings:
provided that in any such transaction as aforesaid the investment or liability of the Corporation shall be made or assumed
at fair risk;
(b) acquire, sell or otherwise dispose of or lease land, plant, machinery and equipment, and other property, and to otherwise
make available property for use by other persons;
(c) manage land, and to develop land, and to carry out works on land, and to maintain works or assist in their maintenance;
(d) provide advisory or other services or facilities in relation to any of its functions, or to assist in their provision;
and
(e) generally do all such things as may be incidental or conducive to the performance of its functions.
(3) For the better carrying out of the provisions of this Act, the Corporation may, in furtherance of any of its functions and
powers, from time to time:
(a) issue and publish guidelines to establish inter alia:
(i) the terms and conditions of any arrangements, incentives or schemes including the determination of
rules for the eligibility of undertakings to any benefits and incentives under any such schemes and all matters related
and ancillary thereto;
(ii) the applicability of such schemes to particular projects or undertakings; and
(iii) any additional requirements and conditions in relation to activities of undertakings, the conduct of their
business, their responsibilities to the Corporation, reporting requirements to the Corporation, financial resources and
related requirements, and any other matters as the Corporation may consider appropriate;
(b) pursuant to the delegation by the Minister by means of a relevant regulation, transpose any provisions in the relevant legislation
into guidelines with such modifications as the Minister or the Corporation, as the case may be, may consider
appropriate or necessary:
Provided that in so far as existing projects are concerned, nothing in any guidelines issued pursuant to this power
shall affect any right, benefit or incentive currently in force in favour of any undertaking or beneficiary, nor impose any
more onerous conditions or obligations than currently in force, and in case of conflict between the guidelines and the
relevant legislation, the provisions of the relevant legislation shall prevail;
(c) pursuant to the delegation by the Minister by means of a relevant regulation, reflect directives of the European
Union which may be relevant or necessary in relation to the functions and areas of responsibility of the Corporation and pursuant
to article 4(2) of the European Union Act, to designate the Minister as the relevant Minister and the Corporation as the relevant authority for the purposes as may be prescribed.
(4) Guidelines shall be binding on all undertakings in possession of an Incentive Entitlement Certificate and on
other persons as may be specified therein in accordance with their terms.
(5) Guidelines shall be issued by the Board only after having obtained the written opinion of the Minister:
Provided that where the guidelines deal with measures of a fiscal nature, the concurrence of the Minister of Finance shall also be
required.
Cap. 460.
(6) Except for amendments to the guidelines which are purely administrative in nature, and are expressly declared to be so by the
Corporation, which come into force immediately upon the posting th ereof on the of ficial website of the Corpo r ation, any new guidelines
or amendments to guidelines shall come into force on the lapse of fifteen days after they are posted on the official website or on
such later date as may be stated therein:
Provided that an amendment to the guidelines may not reduce, withdraw or cancel any benefit previously granted except in accordance
with the terms of this Act or a regulation in terms of which it is issued.
(7) Where, after the coming into force of the provisions of subarticles (3), (4), (5) and (6), the Corporation proposes
to issue guidelines which provide for the granting of any new or increased assistance, a copy of such proposed guidelines shall be
forwarded to the State Aid Monitoring Board which shall communicate its opinions on the proposed assistance in accordance with applicable
law.
Corporation may function through an agency. Amended by: XXIII 2007.4.
Amended by: XXIII 2007.7.
Board of Directors of Corporation. Amended by:
XXIII 2007.7.
PART IV
Functions and Powers of the Board
(2) (a) The Board shall consist of not less than six and not mor e than ten voting member s as the Minister may from time to time, appoint.
(b) One of the voting members shall be designated by the Mi nist er t o b e Ch airm an of th e Board and anot her voting member may
be designated as deputy Chairman.
(3) (a) The members appointed by the Minister shall be persons, except as indicated in paragraph (b), not being public officers or staff of the Corporation, who appear to the Minister to have experience of and show ability in matters
relating to i ndu st ry, trade, finance, education, science, the professions, or organisations of employers or of workers.
(b) The Minister may appoint not more than two public of ficers one o f whom to represent the Ministry responsible for industry and
the other representing the Ministry responsible for finance.
(4) Two members appointed by the Minister from a list of five persons that are submitted by constituted bodies which in the op
inion o f the Mini ster better repr esent t h e interests of the commercial sector, which constituted bodies will be declared in
a separate legal notice.
(5) There shall be paid to the voting members of the Board such remuneration, if any, as the Minister may from time to time determine.
(6) Each voting member shall hold office for such term and on such terms and conditions as the Minister may deem proper; members
of the Board shall be eligible for re-appointment.
(7) A person shall not be qualified to be appointed, or to remain, a member of the Board if he -
(a) is a member of the House of Representatives; (b) is a judge or magistrate;
(c) is adjudged bankrupt or has entered into any arrangement with his creditors;
(d) is interdicted or incapacitated;
(e) is convicted of an offence affecting public trust, theft, or fraud or of knowingly receiving property obtained by theft or fraud;
(f) is subject to a disqualification under article 320 of the
Companies Act.
(8) A voting member of the Board may at any time resign his office by letter addressed to the Minister and the resignation shall
take effect from the date specified therein, being a date that does not precede the date of the letter of resignation.
(9) A voting member of the Board may at any time, be removed from membership of the Board by the Minister if, in the Minister ’s
opinion to be stated in the instrument effecting the removal, the memb er has becom e incapabl e, th roug h ill -health , o r any
other reasons of performing his functions, or his removal appears to the Minis t e r to be neces sary for the effective performa
nce by the Corporation of its functions.
(10) If a voting member of the Board dies, resigns, retires, becomes disqualified or is removed from office, the Minister
may appoint a person to be a member of the Board to fill the vacancy so occasioned and the person so appointed shall hold office
for the remainder of the period for which the person who occasioned the vacancy was appointed.
Cap. 386.
(2) Where the Chairman ceases to hold office as a member of the Board he shall also cease to hold the office of Chairman.
(3) The Chairman may, at any time, resign from his office as Chairman by letter sent to the Minister and the resignation shall,
unless p reviously w ithdr awn in wr iting , take eff ect on th e date specified therein, being a date that does not precede the
date of the letter of resignation.
Chairman. Amended by: XXIII 2007.7.
Deputy Chairman.
Amended by:
XXIII 2007.7.
Chief Executive Officer. Amended by: XXIII 2007.7.
Deputy Chairman, if appointed, shall act instead of the Chairman and sha ll exercise the powers and perform th e functions of the Chairman during such period.
Board.
(2) The Chief Executive Officer shall be appointed to hold office for a term not exceeding three years: provided that a
Chief Executive Officer shall be eligible for re-appointment for further periods each of not more than three years: provided further
that in aggregate no person shall hold the post of Chief Executive Officer for more than nine consecutive years.
(3) The Chief Executive Officer shall, subject to the direction of the Board, carry on and manage and control the operations and
business of the Corporation and shall perform such other functions as may be determined by the Board.
(4) The Chief Executive Officer shall not hold any other office or position or carry on any business activity without the consent
in writing of the Board.
(5) The Chief Executive Officer may from time to time be invited to attend meetings of the Board; however, he shall not
have a right to vote.
Meetings of the
Board.
Amended by:
XXIII 2007.7.
(2) (a) The quorum at all meetings of the Board shall be half th e numb e r of vo ti ng dir e cto r s fo r t h e t ime bei n g constituting
the Board and shall in no case be less than three voting members.
(b) In the absence of the Chairman at any meeting of the Board the Deputy Chairman, if appointed, shall act as Chairman, in the absence
of both the Chairman and of the Deputy Chairman the directors present may select from amongst themselves a person to act as Chairman
at the meeting.
(3) The decisions of the Board shall be taken by a majority of t he vo tes of t he mem b ers presen t a nd vo ti ng . The Cha
irma n o r other person presiding at the meeting shall have a second or casting vote.
(4) The Board shall hold such number of meetings as may be necessary for the performance of its functions, and shall meet not l
ess th an twi c e in every six mon t hs. Th e Chairm an o f hi s own motion or at the request of any two of the voting directors
may at any time convene a meeting of the Board.
(5) The Board shall cause minutes of each meeting to be kept and such minutes shall be c o nf irmed at the next suc cessive meeting.
Certified copies of the minutes of any meeting of the Board shall be forwarded to the Minister on his request.
(6) The Board may make standing orders regulating its own
procedure generally, and, in particular, regarding the holding of meetings of the Board, the notice to be given of such meetings,
the proceedings thereat, the kee p ing of minute s , the cus t ody, produ cti o n and i n spe c tio n of such m i n u t e s, and
t h e open i n g , keeping, closing and audit of accounts: provided that subject to the preceding provisions of this article and
of any standing orders made thereunder the Board may regulate its own procedure.
(2) Any document purporting to be an instrument made or issued by the Corporation and signed by the Chairman or by the Chief Executive Officer and by the Secretary, if any, on behalf of the Corporation shall be received in evidence and shall, until the contrary is proven, be deemed to an instrument made or issued by the Corporation.
Representation. Amended by: XXIII 2007.7.
(2) The members of the committees shall be appointed and removed by the Board and shall consist of such number of members
as the Board may deem proper. A committee may include persons who are not members of the Board or officers or employees of the Corporation.
Members of a comm ittee m ay be remo ved by t h e Board.
(3) A committee may, at any time, be dissolved by the Board:
Provided that this subarticle shall not apply to the Audit
Committee established under article 17.
(4) The Board may regulate the procedure of any committee.
(5) The acts of a committee shall be subject to confirmation by the Board save where the Board dispenses with the necessity for
such confirmation.
(6) There shall be paid out of the income of the Corporation to members of a committee such allowances for expenses incurred by
them in the discharge of their functions as the Board may determine with the consent of the Minister.
Committees. Amended by: XXIII 2007.7.
(2) (a) The Audit Committee shall meet at least four times a year.
(b) Meetings of the Audit Committee shall be chaired by a voting director of the Corporation.
(c) The members of the Audit Committee shall be
Audit Committee. Amended by: XXIII 2007.7.
determined by the Board.
(3) Without prejudice to the generality of the provisions of subarticle (1 ), t h e Audit Com mittee shall have the fol
l owing functions:
(a) oversight of the systems of internal control and risk management of the Corporation and to assist and support the Board
in discharging its responsibilities in relation thereto;
(b) to provide the communication link with external auditors and to evaluate and co-ordinate the audit and financial reporting
process of the Corporation; and
(c) to review and assess the effectiveness of management of the Corporation in its compliance with policies and in the discharge
of its regulatory and compliance functions.
(4) The Audit Committee shall report to the Board annually and at such other times as may be directed by the Board.
Staff of Corporation. Amended by: XXIII 2007.7, 8.
(2) The grades of the staff of the Corporation, the numbers of staff in each grade and the appropriate level of remuneration for each grade shall be determined by the Board, with the concurrence of the Minister who shall consul t the M i nister responsible for finance.
Disclosure of interests. Amended by: XXIII 2007.7.
(a) disclose to the Board or committee, as the case may be, the nature of his interest at the first meeting of the Board or committee
after such interest is acquired or in advance of any consideration of the matter, whichever is the earlier,
(b) neither influence nor seek to influence a decision in relation to such matter,
(c) take no part in any consideration of such matter,
(d) if he is the Chief Executive Officer, a member of the Board, a member of the staff of the Corporation or a member of a committee
established under articles 16 or 17, withdraw from the meeting for so long as the matter is being discussed or considered and shall
not vote or otherwise act in such capacity in relation to the
matter.
(2) Where a question arises as to whether or not a course of conduct, if pursu ed by a person, wou l d be a fail ure by h i m to
comply with the requirements of subarticle (1), the question shall be determined by the Board and the decision and its motivation
shall be recorded in the minutes of the meeting where it was taken.
(3) Where a disclosure is made to the Board or to a committee pursuant to subarticle (1), particulars of the disclosure shall be
recorded in the minutes of the relative meeting.
(4) Where a person referred to in this article fails to make the required disclosure, the Board shall decide the appropriate action
(including removal from office or termination of contract) to be taken:
Provided that where such person is a voting director of the
Corporation the matter shall be reported to the Minister.
(a) a member of the Board;
(b) the Chief Executive Officer;
(c) a member of the staff of the Corporation;
(d) a member of a committee established under articles 16 or 17; or
(e) an advisor or consultant to the Corporation or an employee of such person whilst performing duties relating to
such advice or consultation.
(2) Nothing in subarticle (1) shall prevent disclosure to the Minister of information in a report made to the Corporation
or on behalf of the Corporation.
(3) Saving any disciplinary action which the Board may deem appropriate to take, any person who violates the provisions of this
article shall be guilty of an offence and shall, on conviction, be liable to a fine ( multa ) of not less than one thousand and one hundred and sixty-four euro and sixty-nine cents (1,164.69) and not more than eleven thousand
and six hundred and forty-six euro and eighty-seven cents (11, 646.87) or to imprisonment for a period not exceeding six months,
or to both such fine and imprisonment.
Disclosure of information. Amended by: XXIII 2007.7; L.N. 427 of 2007.
(2) The Board shall give effect to the directions received from the Minister under this article.
(3) The Corporation shall provide to the Minister all such
Reports to the Minister. Amended by: XXIII 2007.7, 9.
Cap. 377.
functions of the Corporation, and shall furnish him with returns, accounts and other documents with respect thereto, and shall afford
hi m all requir e d facilit ies f o r t h e verif i cation o f inf o rm ation furnished in such manner and at such times as he may
reasonably require.
(4) Save as may be otherwise required or permitted for the purposes of this Act, or in the course of a prosecution of an
offence committed in relation to this Act, in carrying out its functions, the Corporation and its staff shall be bound by the provisions
of the Professional Secrecy Act and shall not divulge any information ab out any ap pli c ant or any bene fits g r anted to an y app licant without the prior written
consent of such applicant or as otherwise permitted by law.
(5) Every person having an official duty or being employed in th e adm i n i s t r a ti o n of th is Act shall regard and deal
with all documents and information relating to matters contemplated by or pursuant to the provisions of this Act as secret and confidential
and shall m a ke and subscribe befo re a Com missioner for Oaths a declaration to this effect in the form prescribed which sh all
be deposited with the Attorney General. Such persons shall not, unless the Prim e Mini ster otherwise directs in writing, be requ
ired to p r od uce to or before any co urt, tribun al, board, com m i ttee of enquiry or other authority, or to divulge to any
such court, tribunal, board, committee of enquiry or other authority any matter or thing com i ng to thei r not ice or b e i ng
in their possession i n the performance of their duties under this Act.
(6) No thing i n this art icle shall hinder the Corp oration or it s staff:
Cap. 123.
(a) from providing full access to the auditor of the Corporation to all information which is required for him to perform
his duties;
(b) from providing full access to such other persons or authorities as are entitled to receive such information under provisions
of applicable law for the carrying out of their functions;
(c) from providing full information to the Commissioner of Inland Revenue for the purposes of the Income Tax Act;
(d) from preparing and publishing reports and statistical reviews which include information about benefits granted to applicants
and beneficiaries of benefits which do not divulge specific names or other specific information which will permit the identification
of individual applicants.
PART V
Financial Provisions
Provided that the capital of the Corporation shall be held entirely by the Government.
(2) The Corporation shall, in return for any moneys and any property, rights or interests from time to time, paid or transferred
to the Corporation by the Government by way of subscription to the capital of the Corporation, issue to the Minister responsible
for finance on behalf of the Government capital stock in the amounts of any moneys so paid and receiv ed and in an amou nt equal
in nominal value to the amount agreed between the Corporation and the Government as representing the value of any property, rights
and interests so transferred.
Amended by: XXIII. 2007.10.
Capital of the Corporation. Amended by: XXIII. 2007.10; L.N. 427 of 2007.
(2) Notwithstanding the provisions of subarticle (1), the Corporation may without further authority exercise its borrowing
p o wers for t h e purpo se o f borro wing temporarily, b y way of overdraft or otherwise, sums not exceeding in the aggregate two
million and three hundred and twenty-nine thousand and three hundred and seventy-three euro and forty cents (2,329,373.40) at any
one time outstanding or exceeding such sum established by the Minister responsible for finance by order published in the Gazette.
(3) For the purpose of securing any sums borrowed by the Cor por atio n o r any liab ili ty assu med by th e Co rpo rat
ion in th e exercise of its functions, the Corporation may hypothecate or charge its property, or any part thereof, and may issue
debentures, debenture stock, bonds or other securities, whether outright or as security for any debt, liability or obligation of
the Corporation or of any third party.
Borrowing powers.
Amended by:
XXIII. 2007.10;
L.N. 427 of 2007.
(2) Such funds shall be managed by the Corporation in such manner as i t m ay determ ine; b ut no part of such funds shall be applied otherwise than for the purposes of the Corporation.
Funds. Amended by: XXIII. 2007.10.
Income to cover expenditure. Amended by: XXIII. 2007.10.
Annual estimates and accounts of the Corporation. Amended by:
XXIII. 2007.10.
(2) The Corporation shall cause to be kept proper accounts and other records in respect of its operations and transactions, and
shall cause to be prepared a statement of accounts in respect of each financial year.
(3) The accounts of the Corporation shall be audited by an auditor or auditors appointed by the Corporation from year to
year.
(4) The Corporation shall, not later than four months after the en d o f e a c h fin a n c i a l ye a r, c a u s e a co py of a
s t at eme n t of its audited accounts to be sent to the Mini ster and to the Mini ster responsible for finance together with a
copy of the report of the auditor or auditors with respect to such statement.
Annual report. Amended by: XXIII. 2007.10.
(2) The Minister shall cause a copy of every such report and accounts to be laid on the Table of the House of Representatives within two weeks, or, if at any time the House is not in session, within two weeks from the beginning of the next following session.
Added by: XXIII. 2007.13.
Administration of support to enterprise.
Added by: XXIII. 2007.13.
PART VI
Administration of Incentive Entitlements
(a) determine upon request in writing the eligibility or otherwise of the enterprise being carried out or intended
to be carried out by an undertaking;
(b) receive applications for support of the enterprise and approve or otherwise any form of support; and
(c) issue an Incentive Entitlement Certificate to any beneficiary, as stipulated in article 29, outlining the support
granted and its terms and conditions. Such certificate shall be conclusive evidence of such matters for all purposes of law.
(2) The Corporation shall determine applications in terms of this Act and any regulations and guidelines made thereunder and when
imposing terms and conditions it shall apply the principles of good practice and accountability.
Rules on Incentive Entitlement Certificates.
Added by: XXIII. 2007.13.
provisions of this Act, any regulations and any guidelines.
(2) No incentive or benefit contemplated by this Act shall be enjoyed by any beneficiary for any year or year of assessment if
the President of Malta by order in writing declares that the grant or acquisition or continued grant and acquisition of such incentive
or benefit is or would be against public policy (ordre public ), and where such an order is made it shall have effect as from the date therein specified but in no case shall an order have retrospective
effect.
(3) Subject to the powers of the Corporation relating to rev o cati o n of b e nef its in ter m s of Part VI I of t h is
Act and th e powers of the President in the preceding subarticle, the guarantee given by subarticle (1) shall not be nullified by
any retrospective action, whether by legislation or otherwise.
(4) Subject to any other provision of this Act or of any regulations or guidelines issued pursuant to this Act, in releasing
a certificate in accordance with the provisions of article 28(1)(c), the Corporation may impose any conditions it may deem fit for the enjoyment of any particular benefit.
(5) A certificate shall not imply any exemption of such beneficiary from any procedure, duty, obligation, liability, fees
or dues unless expressly stated in t h e certificate or in an express p r ovision of a law, regul ati on or g u ideline whi c h is
exp r essl y referred to in the certificate.
(6) Any person dealing with an undertaking in possession of an Incentive Entitlem e nt Certificat e shall act u pon an In centi
v e Entitlement Certificate issued in terms of this article without the need for any further evidence of its eligibility, existence
or status or otherwise, and shall not require any proof of the authenticity of the certificate other than that which appears on the
face of it. Such certificates shall, until the contrary is proved, be evidence of their contents:
Provided that in so far as the Incentive Entitlement Certificate refers to fiscal incentives to which an undertaking
may be eligible, nothing in this subarticle shall limit the powers of the Commissioner of Inland Revenue under the relevant legislation
to monitor compliance with the re l e vant co ndi tio ns, and th e said Commissioner may make such enquiries and verification as
he may deem fit.
(7) The application for support shall identify the undertaking involved in the relevant enterprise (the "relevant undertaking")
and it shall be deemed to be the main beneficiary, all other possible beneficiaries being conside r ed to be ancillary to it,
and consequently:
(a) an application may only be made by the relevant undertaking which shall be deemed to be authorised to act on behalf of
all other beneficiaries relative to the application;
(b) all notices and other communications of whatsoever nature by or to the Corporation, shall be made to and
by the relevant undertaking and a notice to the relevant undertaking shall be deemed proper notice to all other beneficiaries;
(c) the relevant undertaking shall be solely responsible for possession and surrender of any certificate issued by the Corporation;
(d) the revocation of a benefit from a relevant undertaking shall imply the revocation of all related or connected benefits for
other beneficiaries; and
(e) notwithstanding the provisions of any other law, the refund of the benefits granted which may be due in terms of article 32(4)
shall be the primary liability of the relevant undertaking, any other beneficiary being liable to account only in case of failure
by the relevant undertaking to do so within one year and in any case only for the actual benefit received by it:
Provided that when a relevant undertaking meets such liability, it shall have a right to demand a contribution from another beneficiary
equal to the amount of benefit actually received by such beneficiary.
(8) Reference to an "Incentive Entitlement Certificate" in this Act shall include all terms and conditions which may
be applicable in virtue of this Act or any regulation or guideline made thereunder as well as those of other documents which may
be attached to the certificate or which may be expressly referred to in the certificate.
(9) Insofar as an Incentive Entitlement Certificate refers to any in cen tiv e relat i ng t o an y tax, a cop y sh all be
sen t t o th e Commissioner of Inland Revenue.
Nature of Incentive Entitlement Certificates.
Added by: XXIII. 2007.13. Amended by:
L.N. 427 of 2007.
(2) In the event of a request in terms of subarticle (1), the beneficiary shall surrender, to th e Co rpo r at ion , the relev a nt Certificate within seven days of the demand being communicated to him and any person failing to surrender such Certificate within such time shall be guilty of an offence against this Act and shall be liable, on conviction, to a fine (multa) of two hundred and thirty- two eu ro and nin e ty -four cents (232.9 4 ) and a fine ( mu lta ) o f eleven euro and sixty-five cents (11.65) for every day the default continues.
Forgery, alteration or misuse of certificates.
Added by: XXIII. 2007.13. Cap. 9.
31. Any person who, in any manner, forges or alters an Incentive Entitlement Certificate or purports to use it for a purpose
not authorised by this Act or seeks to use it after its revocation in terms of this Act, shall be guilty of an offence and shall
be liable to the same punishment as provided for in article 183 of the Criminal Code.
PART VII
Revocation and Modification of Benefits
(a) to comply with such conditions; or
(b) to establish to the satisfaction of the Corporation that failure to comply with such conditions was due to some cause
beyond its control and that there are prospects of complying with such condition within such time as the Corporation
may consider reasonable.
(2) Where a beneficiary complies with the condition in subarti c le (1)( b ), the Co rporation may au thorise reasonable postponement for the purpose of compliance with such conditions, as it thinks fit.
(3) Where a beneficiary fails to comply with the condition in subarticle (1)(b) or, having been allowed a postponement under subarticle (2), fails within th e period of such postponem ent to comply with such
terms or conditions, the Corporation may revoke any incenti v e o r benefit granted to t h e b e neficiary and t h at revocation
shall be operative from such date as may be determined by the Corporation.
(4) Where an Incentive Entitlement Certificate is revoked, in full or in part, in accordance with the provisions of this article,
the ben e ficiary shall pay or repay to the Governm e nt or to the Corporation, as the case may be, any sums which it would have
paid to the Government or the Corporation but for the provisions of th is Act, any regul ation or gui d e line or which it had received
thereunder, and any sums which the beneficiary is so liable to pay or repay may be set off against any sums which may be due from
the Government or the Corpo r ation to t h e ben e fici ary for any reason whatsoever, including in the event of insolvency of the
said beneficiary, without prejudice to any right of the Government or the Corporation for the recovery of any balance remaining due.
(5) In the circumstances contemplated in this article, the Corp orati on m a y, in its sol e discret i on, in lieu of revok
ing a certificate, in fu ll o r in part, agree t o mod i fy the terms an d conditions of an Incentive Entitlement Certificate so
as to reflect th e conditions which are more a ppropriat e on th e basis of the circumstances then known to it. The Corporation shall
so proceed o n ly if th e relevant un dertaking h a s agreed in writi ng to such modifications as may be proposed by the Corporation
and to any conditions under which they are offered.
Added by: XXIII. 2007.13.
Revocation of incentives or benefits. Added by:
XXIII. 2007.13.
Added by: XXIII. 2007.13.
Penalty for making incorrect statements, etc. Added by:
XXIII. 2007.13. Amended by:
L.N. 427 of 2007.
Provisions relating to fraud, etc.
Added by:
XXIII. 2007.13.
Amended by:
L.N. 427 of 2007.
PART VIII
Offences and Penalties
33. Any person who without reasonable excuse prepares any incorrect statement or gives any incorrect information in relation to any matter
or thing falling under this Act, shall be guilty of an offence and shall, on conviction, be liable to a fine (multa) of not less than six hundred and ninety-eight euro and eighty-one cents (698 .81 ) an d n ot ex ceed ing fo ur thou san d an d six
hun dred and fifty-eight euro and seventy-five cents (4658.75).
(a) omits from a return or any other document or statement made, prepared or submitted for the purposes
of or under this Act, any matter which should be included therein; or
(b) makes any false statement or entry in any return or other document or statement prepared or submitted for the purposes of or under
this Act; or
(c) gives any false answer, whether verbally or in writing, to any question or request for information asked or made in accordance
with the provisions of this Act; or
(d) prepares or maintains or authorises the preparation or maintenance of any false books of account or other records or falsifies
or authorises the falsification of any books of account or records; or
(e) makes use of any fraud, art or contrivance whatever or authorises the use of any such fraud, art or contrivance,
shall be guilty of an offence, and shall for each such offence be liable on conviction to a fine (multa) of not less than one thousand and on e hundred and sixty - fou r euro and six t y-nine cents (1,164.69) and not exceeding eleven
thousand and six hundred and forty-six euro an d ei ght y-seven cents (1 1 , 6 46.87 ) o r to imprisonment for any term not
exceeding six months, or to both such fine and imprisonment.
(2) Upon any person admitting to or being found guilty of any of the above offences, the Corporation may revoke any Incentive Entitlement
Certificate issued by it by notice in writing without following the procedures outlined in article 32.
General penalty.
Added by:
XXIII. 2007.13.
Amended by:
L.N. 427 of 2007.
35. If any person contravenes or fails to comply with any of the requirements of this Act or of any regulations made thereunder, in respect of which no special punishment is provided, he shall be guilty of an of fenc e and shall for each of fe nce be liable, on co nv icti on , to a f i n e ( mu lta ) of n o t less t h an tw o hun dred and thirty-two euro and ninety-four cents (232.94) and not more than one thousand and one hundred and sixty-four euro and sixty-nine cents (1,164.69).
PART IX
Transitory Provisions
(2) (a) The Minister may by order from time to time direct that any undertaking held by any organisation or entity referred to in th e
order shall by vi rtu e of th e order, sub j ect to the provisions o f art i cle 41 vest in t h e Corporation in th e same manner
as they were held immediately before the effective date of the order by such organisation or entity.
(b) The provisions of paragraph (a) shall apply with regard to an organisation or entity which is wholly owned, d i rectly or in directl y, by th e G overnment
or a corporation established by law.
(c) The provisions of articles 39 and 40 shall mutatis mutandis apply to any undertaking in respect of which an order is made by the Minister in virtue of paragraph (a).
(3) For the purposes of this Part of the Act, "undertakings" shall include all stocks and other property movable
or immovable, assets, powers, rights, privileges held or enjoyed in connection therew ith or ap pertai ning ther eto, as well as
all l i abil ities and o b li gat i on s af fectin g or rel a t i ng to an y of the aforesai d undertakings or other thing
included therein as aforesaid.
Provision with respect to offences. Added by:
XXIII. 2007.13.
Prescription of proceedings for offences.
Added by: XXIII. 2007.13.
Amended by: XXIII. 2007.11.
Transfer of undertakings. Amended by: XXIII. 2007.11.
Construction of existing laws, contracts, etc. Amended by: XXIII. 2007.11.
Transitory provisions. Amended by: XXIII. 2007.11.
instead of the said entities, the Corporation had been named therein or had been a party thereto.
(2) Where immediately before the effective date any legal proceeding is pending to which the M a lta Development Corporation
or the Malta External Trade Company Limited or the Institute for the Promotion of Small Enterprise Ltd is or is entitled to be a
party, and such proceeding refers to any of the transferred undertakings, the Corporation shall, with effect from the effective date,
be substituted in such proceeding for the relative entity, as the case may require, or shall be made a party thereto in like manner
as any of the said entities, as the case may be, would have become, and such proceeding shall not abate by reason of the substitution.
(3) The Minister may by order make such incidental, consequential and supplemental provisions as may be necessary
or expedient for the purpose of securing and giving full effect to the transfer of any undertaking to the Corporation by or under
this Act and may make such orders as may be necessary to make any powers and duties exercised by the Malta Development Corporation,
the Malta External Trade Company Limited or by the Institute for the Promotion of Sm all Enterprise Ltd, in relation to any of the
transf er red u ndert akin gs, ex er ci sab l e b y an d o n behalf of th e Corporation.
Exclusions. Amended by: XXIII. 2007.11.
(a) title to the premises from which the Malta Development Corporation, was operating prior to the effective
date;
(b) all court proceedings and pending litigation commenced, prior to the effective date, between any one of Malta
Development Corporation, the Malta External Trade Company Limited, or the Institute for the Promotion of Small Enterprise Ltd,
and any of the employees of any one of the said entities, whether former or then current;
(c) obligations arising out of:
(i) all contracts of employment with any employees, and
(ii) all contracts for service with any agents, advisors or any service providers entered into and effective prior
to the effective date, between any of the persons mentioned in subparagraphs (i) and (ii) and any one of the Malta
Development Corporation, the Malta External Trade Company Limited or the Institute for the Promotion of Small Enterprise Ltd.
(2) All rights and proceedings relative to any of the matters referred to in subarticle (1) hereof shall upon the effective date
be exercised by, instituted or continued by or against the Attorney Genera1 or such other public officer in the name of the Government
or t he Minister may f rom tim e to t ime b y noti ce in th e Gazet te determine.
PART X
Miscellaneous
43.* (1) The Malta Development Corporation Act is hereby repealed an d subject to t h e provision s of articles 38 to 41 any reference in any law to the Malta Development Corporation
shall be deemed to be a reference to the Corporation established under this Act.
(2) The Malta External Trade Company Limited, the Institute for the Promotion of Small Enterprise Ltd and the Malta Enterprise
Ltd. are without the requirement of any further formality required by any other law wound up and dissolved.
Amended by: XXIII. 2007.12.
Winding up of Corporation. Amended by: XXIII. 2007.12.
Repeal, etc. Amended by: XXIII. 2007.12. Cap. 202.
Transitory provision. Amended by: XXIII. 2007.12.
Effect on other laws.
Added by:
XXIII. 2007.14.
*Not yet in force.
†Deemed to have come into force on 1st May, 2003.
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