Objective of the Scheme
Certify (Tax Credit) is a fiscal measure administered by the Malta Enterprise to encourage eligible undertakings to improve the quality of their products, services and processes. The aim of the scheme is to raise awareness on the added value that undertakings may achieve through attaining certification, especially when competing internationally.The fiscal support that will be available through this incentive aims at assisting undertakings to invest in mechanisms which would result in a superior product, a higher value service and more efficient processes.
Through this scheme the Corporation may approve a tax credit of up to €25,000 per undertaking. This tax credit will be based on 50% of the eligible Consultancy and Certification Body’s costs incurred in relation to the attainment of certifications, quality marks, or licences.
This incentive is designed to award tax credits to undertakings that achieve qualifying Certifications awarded by a Certifying Body. The Certifications must be achieved in order to:
- improve the processes, products or services of the undertaking;
- have the undertaking grow in international markets.
Maximum Support and Intensity
The total aid that may be awarded to any single undertaking through this measure is capped at €25,000 for the duration of the Incentive. This aid will be allocated in the form of a tax credit equivalent to 50% of the eligible consultancy and certification costs.
The maximum aid intensity shall be capped at 50% of the actual eligible costs incurred. The Corporation may establish a tax credit capping based on the size of the single undertaking for any qualifying Certification.
The following is a list of the eligible costs falling under the scheme. These costs must be rendered and paid for after the launch of this incentive but prior to the submission of the application form to Malta Enterprise.
(A) Consultancy Costs
Consultancy services leading to qualifying certifications shall be considered eligible. These services must be provided by a consultant holding a degree relevant to the Certification and who has at least five years work experience in a sector similar to the one for which consultancy is provided. In respect of any consultancy costs the Corporation:
- Would require the applicant to submit a service contract specifying:
the services required;
the activities and related deliverables resulting from the consultancy service and the anticipated outcomes;
the commencement date and the termination date of the service requested;
the names and CVs of the individuals providing the services;
the applicable hourly rate together with the estimated number of hours required or a fixed value not linked to an hourly rate.
- Shall limit any tax credit awarded to €20 per hour and in establishing the total tax credit shall take into consideration:
a 40 hour week;
the parameters established in the service contract;
any other contract the same consultant may have with other applicants/beneficiaries.
(B) Certification Costs
Costs incurred from a Certifying Body as may be required by the undertaking to achieve the Certification. These costs may include:
first time audits;
The following costs will not be considered as eligible for the scheme:
- wages, salaries, and another forms of remuneration of employees;
- any costs paid for in cash;
- costs related to maintain a certification, quality mark or licence;
- services that are of a continuous or periodic nature or related the applicants operating costs (such as recurring fee and re-certification audits);
- costs that are assisted (even partly) through other support measures administered by the Corporation or any entity other than the Corporation;
- costs that are directly linked to the quantities exported, to the establishment and operation of a distribution network or to other current expenditure linked to the export activity.
The Corporation shall publish a list of qualifying Certifications on the Corporation’s website. The list will include any capping that may have been established by the Corporation in relation to a Certification. In the case that the undertakings seek to obtain a certification which does not fall part of this list, should first determine whether the certification qualifies for the scheme. This may be done by submitting the necessary form to the Malta Enterprise.
This incentive is open to all undertakings, which at point of application satisfy the criteria established. Undertakings shall be disqualified if:
- the undertaking is defaulting on VAT, Income Tax, and Social Security payments;
- the undertaking (at group level) is subject to an outstanding recovery order following a previous Commission decision declaring an aid illegal and incompatible with the internal market;
- the undertaking (at group level) is subject to an outstanding recovery in respect to any other incentive awarded by the Corporation.
An Undertaking claiming a tax credit for the attainment of a qualifying certification, is to submit the relative documentation within three months from the attainment of the Certification and by not later than 31st December 2017.
Tax credits shall only be utilised against profit derived from the applicant’s relevant trade or business activity.
The tax credit shall be utilised from the first year of assessment following the date of the Incentive Entitlement Certificate issued by the Corporation. Any unutilised tax credits may be carried forward to the next two years of assessment.
Applications for assistance may be submitted and will be accepted until the 31st December 2017.
For further information on this scheme, please contact us on:
E: firstname.lastname@example.org or
M: 00356 77650000 or
T: 00356 21654567