Micro Invest 2024
Companies and self-employed are eligible to apply for a tax credit.
Deadlines
Micro Invest incentivizes enterprises (including startups, family businesses, and self-employed individuals) to invest in their ventures, fostering innovation, expansion, and operational development. Businesses eligible for this initiative will receive assistance in the form of a tax credit, calculated based on a percentage of qualifying expenses, which includes rises in wage expenditures.
Who is eligible for the tax credit?
Applications shall be accepted from undertakings which at point of application satisfy all of the following criteria:
- The undertaking did not employ more than 50 full time employees in its trade or business
- The turnover or annual balance sheet total of the undertaking did not exceed €10 Million in the fiscal year preceding the year in which the application is submitted.
- At the date of application, the undertaking must employ at least 1 person (on full or part time basis)
- Unless exempted, the undertaking should be duly registered with the VAT department.
How much is the tax credit?
Malta Enterprise may approve a tax credit equivalent to 45% of eligible expenditure in favour of each undertaking. An additional bonus of 20% (that is a total of 65% tax credit) applies to undertakings operating from Gozo.
What is the maximum tax credit?
The maximum eligible tax credits per single undertaking shall be capped at €50,000 over any period of three (3) consecutive fiscal years, starting from eligible expenses incurred and paid for during the year preceding the year in which the claim is submitted.
This capping specified above shall be increased by €20,000 (to a total of €70,000) for single undertakings:
a. Operating from Gozo; or
b. Registered as a Family Business; or
c. Having more than 50% of the ownership attributed to female persons.
Which costs are covered under this scheme?
- Increase in Wage Costs
A qualifying enterprise can request a tax credit for any increase in wage expenses exceeding 3%, determined by subtracting the highest annual wage costs incurred in the previous two fiscal years from the wage costs incurred in the relevant fiscal year.
- Furbishing and refurbishing of Business Premises
Expenses related to furnishing, refurbishing, and upgrading business premises (including extensions and modifications) must be incurred from unrelated parties and supported by fiscal invoices or receipts. Photographic documentation of the work should be obtained and submitted to the Corporation.
Furnishing and refurbishing of properties intended for short-term rentals will only be considered if the property is appropriately licensed at the time of application.
The Corporation shall only support costs incurred for the furbishing, refurbishing and upgrading of business premises covered by one of the below Planning Authority licenced or by equivalent permits:
- CLASS 2A – Residential Institution – Residence for people in need of care on a temporary or permanent basis, such as a hospital or nursing home.
- CLASS 2B – Non-residential institution, such as a museum, library or public hall.
- CLASS 2C – Educational institution – school, nursery, day centre, etc.
- CLASS 3A – Guest Houses, Palazzini, Boutique Tourism
- CLASS 3B – Hotels • CLASS 3C – Assembly and Leisure
- CLASS 4A – Financial, Professional and Other Offices
- CLASS 4B – Retail
- CLASS 4C – Food and Drink Establishments where no cooking is allowed
- CLASS 4D – Food and Drink Establishments where cooking is allowed
- CLASS 5A – Light Industry
- CLASS 5B – General Industry
- CLASS 5C – Specialised Industry
- CLASS 6A – Storage and Distribution
The Corporation shall only support costs for the refurbishment of short-term accommodation facilities which must be licenced by a Malta Tourism Authority permit.
- Investment Costs
An undertaking may apply for investments in:
a. Acquiring new (or first time used in Malta) machinery, technology, apparatus and instruments.
b. Acquiring new (or first time used in Malta) sea going vessels covered by a commercial vessel licence operator (excluding the carrying out of fishery and aquaculture activities).
c. Systems intended to produce alternative energy or improve energy efficiency unless receiving other state aid support (including non-market based feed in tariffs).
d. Tangible and intangible assets required for digitisation of the business operation. Eligible costs may include:
- Computer hardware.
- Packaged software solutions. Micro Invest
- Development costs for new software systems, websites and digital applications.
- Costs incurred in relation to the undertaking’s websites developments, updates and enhancement, including modifications to existing computer systems and websites to increase accessibility for disadvantaged persons.
- Motor Vehicle Costs
Qualified enterprises are entitled to recoup expenses for the acquisition of any Commercial Vehicle obtained as new or initially registered in Malta, provided it meets a European Emission Standard rating of at least Euro 5 as long as the vehicle is:
- Involved in the carrying of goods; or
- Special purpose Motor Vehicles; or
- Any vehicle that is designed specifically for the carriage of 7 or more persons.
Operators licensed to offer passenger transport services, possessing a valid license (Taxi Driver Permit and Tag) from Transport Malta, are eligible to request reimbursement for the expenses incurred in purchasing one plug-in hybrid (PHEV) or electric passenger vehicle within any rolling three-year period for providing passenger transport services.
For vehicles powered by a fossil fuel engine, the maximum support for procurement is limited to 30%, regardless of the aid intensities outlined in section 4.1. However, this restriction does not apply to plug-in hybrid (PHEV) and electric vehicles.
- Certification Costs
Qualified businesses have the opportunity to request reimbursement for expenses related to obtaining certifications pertinent to their operations. Eligible costs encompass business advisory services rendered by unrelated entities, as well as the actual certification expenses. These certifications must lead to the attainment or, if applicable, the extension of any of the following certifications:
i. CE Markings
ii. ISO 9001 Quality Management Systems
iii. ISO 14001 Environmental Management System
iv. ISO 50001 Energy Management
v. ISO 22000 Food Safety Management
vi. HACCP
Get in Touch
Should you need additional guidance or further details regarding this process, please feel free to reach out to us on leanne.barry@finanzi.com.mt or jessica@finanzi.com.mt
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