Eligibility
The scheme is open to all undertakings.
Applications are accepted if all the below criteria are satisfied:
- In the year when the costs were incurred, the undertaking did not employ more than 50 full time employees. Verifications are done with Jobsplus.
- In the fiscal year preceding the year when the application is submitted, the turnover or annual balance sheet total of the applicant did not exceed €10 million.
- At the date of application, the undertaking must at least employ 1 person on a full time or part time basis. Being registered as self-employed with Jobplus is considered to be sufficient to meet this condition.
- Unless exempted, the undertaking should be registered for VAT.
Incentive
A tax credit of 45% of the eligible expenditure is approved to the undertaking. An additional 20% is approved if the beneficiary operates from Gozo.
The maximum tax credits awarded to each undertaking is capped at €50,000 over a period of 5 consecutive fiscal years. The capping is increased by €20,000 for undertakings that: operate from Gozo; registered as Family Business, having more than 50% of ownership attributed to female persons.
The Micro Invest incentive scheme falls under the de minimis regulations.
Eligible costs
Increase in wage costs
An eligible undertaking may apply for a tax credit on an increase in wage costs that exceed 3%, calculated by deducting from wage costs incurred in the relevant fiscal year, the highest annual wage cost incurred in the preceding two (2) fiscal years.
Furbishing and refurbishing of Business Premises
Costs incurred for material and services procured from a third party to carry out furbishing, refurbishing and upgrading (including extension and modifications) of Business Premises.
When the works are carried out by the undertaking itself or its employees, the undertaking can apply for the purchase of material if it provides photographic evidence of the works carried out.
For works incurred in 2021, Malta Enterprise will only approve costs incurred on business premises covered by one of the following Planning Authority licences:
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
Applications for refurbishment of short-term accommodation facilities is only supported if the premises is covered by a valid permit issued by the Malta Tourism Authority.
Investment costs
- Acquiring new (or first time used in Malta) machinery, technology, apparatus and instruments.
- Systems intended to produce alternative energy or improve energy efficiency unless receiving other state aid support (including non-market based feed in tariffs).
- Tangible and intangible assets required for digitisation of the business operation. Eligible costs may include:
- Computer hardware
- Development costs for new software systems, websites and digital applications. In these cases the undertaking must submit the agreement with the supplier specifying the parameters and functionality of the systems/website/application being developed. Maintenance costs are not eligible.
- Costs incurred in relation to the undertaking’s websites developments, updates and enhancement. In these cases the undertaking must submit documentation specifying the additional functionality being acquired indicating the cost of such development. Applicants must submit an agreement with the supplier specifying the parameters and functionality of the systems/website/application being developed and agreed upon prior the start of the development.
Motor Vehicles costs
Undertakings may claim on purchase of any commercial vehicle which is new or first time registered in Malta, having a European Emission Standard rating of at least Euro 5. If an undertaking had not claimed the cost of commercial vehicles in 2019 and 2020, it may in 2021 claim the cost of 1 commercial vehicle which is new or first registered in Malta even if such vehicle does not comply with the Euro 5 standard.
The commercial vehicle should be:
- involved in the carrying of goods (category N1, N2 or N3 motor vehicle);
or
- Special Purpose Motor Vehicles – any vehicle that is designed specifically to support or enable an economic activity.
or
- any vehicle that is designed specifically for the carriage of ten (10) or more persons.
Certification Costs
An undertaking can claim costs incurred in 2021 to attain certifications relevant to its business. This includes the advisory provided by unrelated parties and the actual certification costs. The certifications shall result in the attainment or the extension (if applicable) 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
Important documentation
Tax invoice OR Fiscal receipt.
Application deadlines for cost incurred in 2021
| Primary deadline | Late submissions deadline | |
| Self-employed | 23rd March 2022 | 14th December 2022 |
| Companies | 25th May 2022 | 14th December 2022 |
Tax certificates validity
Tax credits awarded in 2022 may be utlised up to YA 2025. In all other cases, unless extended through other provisions, the tax credit may be utilised by the third year of assessment commencing from that specified on the Incentive Entitlement Certificate.
With regards to start-ups, unless extended through other provisions, the tax credit must be utilised by the fifth year of assessment commencing from that specified on the Incentive Entitlement Certificate.
Subject to other specific provisions, a start-up is defined as an undertaking that has been established for less than four (4) years as determined from date of registration with the Malta Financial Services Authority (MFSA) or the date the person registered with Jobsplus as self-employed.
Extension of previous years tax credit certificates
Due to COVID implications, those beneficiaries that have unutilised tax credits certificates that expire in YA 2021-2023, can request Malta Enterprise to extend the certificates to YA 2024-2026.
