Malta Enterprise has re-launched the Micro Invest Tax Credit Scheme whose objective is to assist small and medium sized enterprises to invest in their business by providing a tax credit equivalent to 45% (or 65% if the undertaking operates from Gozo) of eligible costs incurred during the period 1st January 2014 to 31st December 2020. This scheme is available for businesses operated by self-employed persons or by companies as long as the eligibility criteria are satisfied.
- Enterprises which during the year in which the costs were incurred, did not employ more than 30 employees and whose turnover did not exceed €10m. During the Budget speech for 2018, the Minister for Finance has announced that the employees’ threshold for eligibility under the Micro Invest scheme for applications on expenditure incurred during calendar year 2018 onwards will be increased to 50 employees;
- Applicants should be registered with the VAT Department, unless they are exempt from such registration;
- The undertaking should have the applicable regulatory licenses and permits;
- Applicants must not be defaulting on VAT, income tax, social security and rent payments to the Government;
- Applicants must employ at least one person on the date of application. The person employed may be the applicant him/herself in the case of self-employed persons;
- Self-employed persons must be registered as such with the ETC; and
- Persons or undertakings engaged in activities specifically excluded under the de-minimis regulations are not eligible for this incentive.
- costs in relation to furbishing; refurbishing; and upgrading of business premises, including extensions or modifications to such premises;
- investment in acquiring machinery, technology, apparatus or instruments which enhance the operations, including systems which help to save energy or to produce alternative energy;
- investment made by the undertakings for it to become compliant with regulations, including health and safety, environmental directives and physical access;
- investment in one motor vehicle over a period of 3 years, as long as it is involved in the carrying of goods, or Special Purpose Motor Vehicles as defined, or any vehicle that is designed specifically for the carriage of ten persons or more; and
- increases in wage cost that exceed 3% of the highest annual wage cost incurred in the preceding two fiscal years.
Tax credits under this scheme are granted only upon presentation of invoice or receipt in relation to the above costs and are capped at € 30,000 (or € 50,000 for enterprises established in Gozo and enterprises which are mainly owned by females) over a rolling period of three years. During the Budget speech for 2018, the Minister for Finance has announced that this capping will be increased by €20,000 for applications of expenditure incurred as from 2018 for all applicants.