Tax Incentive Scheme

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Financing instrument
Name of the instrument in English
Tax Incentive Scheme
Country
Malta
Type of instrument
Tax incentives
Level of operation
National
Part of the country where the instrument applies

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Region(s) in which the instrument applies

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Sector(s) in which the instrument applies

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L.N. 179 of 2014, Income Tax Act, CAP 123., Deduction (Apprentices and Work Placements) Rules, 2014

Objective(s) and target(s)

2014 Budget refers to the tax deduction for employers: 'Government is committed to assist prospective workers in every way to ensure they have the necessary skills required for a future job' pg. 29.

Year of introduction
2014
Year of termination
No foreseen end to the instrument (on-going)
Governance (management, operation, monitoring and evaluation)

Employers include the tax deduction when filling in tax forms which are to be presented to the Inland revenue. Inland revenue is responsible for handling tax returns.

Eligible group(s)

All companies

Education and training eligible

The instrument supports apprenticeship and other types of education and training (the law also refers to work placements but tax deduction value is less). It applies to EQF 3-4 levels.

Source of financing and collection mechanism

State (loss of tax revenue)

Financing formula and allocation mechanisms

The amount that a company may deduct from tax due is EUR 1,200 per apprentice per year.

Eligible costs

Various costs, e.g. tools and working clothes, maintenance of the workplace, etc.

Volumes of funding

na

Beneficiaries/take up

na

Monitoring/evaluation results

It is difficult to trace how many employers applied for the tax incentive. NRP 2016 shows that 0 employers took it on in 2014. Impression is that employers are not aware of this incentive.

Sources

Inland revenue, https://ird.gov.mt/

Related apprenticeship schemes

MCAST Apprenticeships
Malta
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