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Access to Employment Grants

The A2E is a scheme co-financed by the European Social Fund (ESF), the Maltese Government and the Employers. The A2E falls under Malta’s Operational Programme ‘Investing in human capital to create more opportunities and promote the wellbeing of society’ for the 2014-2020 Programming Period. Through this scheme, funds are granted to Undertakings for the recruitment of disadvantaged, severely disadvantaged and disabled persons. The objective of the European Social Fund (ESF) under the European Union’s Cohesion Policy 2014 – 2020 is to contribute to the European Union’s economic and social policy by improving employment and job opportunities, encouraging a high level of employment and more and better jobs.

The A2E Scheme will provide employment aid to enterprises in Malta and Gozo to promote the recruitment of the more challenged amongst job seekers, unemployed and inactive.

The Aid Programme will be:

• Enhancing opportunities to access the labour market and providing work experience to those furthest away from gainful occupation;
• Bridging the gap between labour market supply and demand;
• Increasing social cohesion.

Eligibility Criteria

TARGET GROUPS	DURATION OF ASSISTANCE

1. Any person of age 24 and over who has been unemployed/inactive for the previous 6 months.	26 weeks
2. Any person of age 24 and over who has been unemployed for the previous 12 months during which he/she participated in a traineeship with the applicant Undertaking.	52 weeks
3. Any person who is living as a single adult who has one or more dependants and is not in full-time employment.	52 weeks
4. Any person of age 24 and over who has not attained an upper secondary educational or vocational qualification (ISCED 3), who does not have a job.	52 weeks
5. Any person older than 50 years who does not have a job.	52 weeks
6. Any person who has been unemployed / inactive for the previous 12 months during which he/she has not benefited from a traineeship with the applicant Undertaking and who belongs to one of the categories (3) to (5).	104 weeks
7. Any person of age 24 and over who has been unemployed / inactive for the previous 24 months during which he/she has not benefited from a traineeship with the applicant Undertaking.	104 weeks

DISABLED PERSONS
8. Any person who is a registered disabled person under national law and is not in full-time employment.	156 weeks

Micro Invest (tax credit scheme)

Malta Enterprise Corporation (MEC) issues every year for eligible undertakings when applying for support under the MicroInvest Incentive Scheme for eligible costs incurred during the previous financial year. Deadline is 31st March (unless it falls on a weekend).

1. Who is eligible for the scheme?

This incentive is open to any micro undertaking (by definition, includes individuals and bodies of persons satisfying certain size thresholds) subject to conditions, including:

Self-employed persons may apply under this scheme as long as their self-employment is registered with ETC;
The single undertaking (takes into consideration certain linked/related enterprises) applying for aid should employ between one and thirty full-time employees (or equivalent) and annual turnover or balance sheet total should not exceed €10 million;
Applicants must not be defaulting on VAT, income tax, and social security.

Certain activities are disqualified from eligibility e.g. the fishery and aquaculture sector or undertakings that are engaged in the primary production, processing and marketing of agricultural products.

2. What benefits does it offer?

This scheme entitles eligible undertakings to a tax credit amounting to 45% (or 65% for undertakings operating in Gozo) of eligible expenditure incurred up to 31 December 2020 which should be utilised against the tax incurred on income derived from the qualifying trade or business activity only.

Eligible expenditure under this scheme includes:

Costs subcontracted to third parties relating to furbishing and upgrading of business premises; Investment in acquiring machinery, technology, apparatus or instruments which enhance operations;
Capital investment in I.T.;
Investment in one new motor vehicle (subject to conditions);
Basic wages costs pertaining to new jobs created.

Certain conditions and criteria in this respect are also applicable. The maximum amount of tax credits that a single undertaking is eligible for amounts to €30,000 over any period of three consecutive years. This amount increases to €50,000 in the case of start-ups (as defined) established in Gozo or for female-owned businesses. The tax credit granted can be utilised within a period of three years of assessment (four years in the case of start-ups or female-owned businesses) commencing from the year of assessment in relation to which it has been awarded and any unutilised balance remaining after this period is forfeited.