Objective of the Scheme
The objective of the scheme is to incentivize undertakings to innovate, expand, develop or implement compliance directives within their organization, through the granting of a tax credit to eligible organisations.
Claim Submission / Duration of incentive
Micro Invest Applications are based on the costs incurred in the preceding year, thus the 2017 Micro Invest applications will cover costs incurred and paid for in 2016. The final call for applications will be in the year 2021, which will be based on costs incurred and paid for in 2020.
The primary deadline for the submission of applications is March of every year for self-employed and May for companies, however as of the year 2015, the Malta Enterprise has introduced an extended deadline for late submissions, being November of every year. If one applies by March or May of every year, the Incentive Entitlement Certificate (IEC) issued would be available for use as of the year of application, whilst if one applies by the extended deadline, the Incentive Entitlement Certificate (IEC) issued would be available for use as of the following year. Undertakings which submit an application in the March or May deadline, may NOT submit another application in the November deadline.
The following criteria must be satisfied by undertakings to be considered as eligible for the scheme:
- During the year in which the costs were incurred, the undertaking must not have employed more than thirty (30) full time persons and had a turnover of not more than Eur 10 million;
- The single undertaking must have employed thirty (30) or less employees on full time basis, for at least twelve (12) months of the preceding two (2) fiscal years. The single undertaking must always employ at least one person, where the person employed may be the applicant himself in the case of a self-employed person. In any case, the employed person must be registered with Jobsplus;
- Unless exempted, applicants should be registered with the VAT department;
- Self-employed persons must be registered with the Jobsplus;
- The undertaking must not be defaulting on statutory obligations in respect of VAT, Income Tax and Social Security Contributions;
- Undertakings excluded under the de minimis regulations are not eligible for this incentive.
The tax credit which may be approved is equivalent to 45% of the costs incurred if the undertaking is operating in Malta and 65% of the costs incurred if the undertaking is operating in Gozo.
The maximum aid allowed to a SINGLE UNDERTAKING shall not exceed the amount of Eur 30,000 over any three (3) consecutive years, starting from any tax credits granted in 2017 (for costs incurred in 2016).
The maximum aid allowed to a START-UP ESTABLISHED IN GOZO and FEMAL-OWNED undertakings, shall not exceed the amount of Eur 50,000 over any three (3) consecutive years, starting from any tax credits granted in 2017 (for costs incurred in 2016).
- Increase in wage costs which exceed 3% of the highest wage costs of the previous two (2) fiscal years.
- Furbishing and Refurbishing Costs related to costs subcontracted to third parties in relation to the furbishing, refurbishing and upgrading of a business premises, including extensions or modifications to premises, as long as the installation costs are included in the receipt provided by the supplier. For the costs to be eligible, the premises need to be licensed as business premises.
- Investment Costs in purchasing machinery, technology, apparatus, instruments including ICT solutions and systems which help to save energy or produce alternative energy, which are new or first time used in Malta.
- Motor Vehicles which are commercial and which are new or first time used in Malta, as long as they are engaged in the carriage of goods (category N1, N2 or N3) and Special Purpose Motor Vehicles. Vehicles which may also be used for non-business (pleasure) activities will not be considered as eligible. Only one motor vehicle may be claimed during a time span of three (3) years.
Utilisation of Tax Credit Certificates
- The tax credit must be utilized by the third year of assessment. That is, for tax credit certificates which will be issued in the year of assessment 2017, these will need to be used by the year of assessment 2019;
- In case of START-UPS the tax credit must be utilized by the fourth year of assessment. That is, for tax credit certificates which will be issued in the year of assessment 2017, these will need to be used by the year of assessment 2021;
- Tax credit certificates are utilized only against tax incurred on income derived from the trade or business activity only.
As explained in the above, the primary deadline for the Micro Invest applications 2017 is the 30th March 2017 for self employed and the 31st May 2017 for companies. However we encourage you to contact our office for assistance, by not later than Monday 6th February 2017 in the case of self employed and by Monday 10th April, 2017 in the case of companies.
For further information on this scheme, please contact us on:
E: firstname.lastname@example.org or
M: 00356 77650000 or
T: 00356 21654567