Investment Aid Tax Credits Scheme re-launched

The Investment Aid Tax Credits scheme has been re-launched, covering the period 1^st July to 31^st December 2020.

The Investment Aid shall be awarded in relation to expenditure incurred by the 30^th June 2014 in respect to an initial investment project which comprises any of the following:

1. The setting up of a new establishment;
2. The extension of an existing establishment;
3. The diversification of the output of an establishment into new, additional products;
4. A fundamental change in the overall production process of an existing establishment;
5. The acquisition by an independent qualifying company of capital assets directly linked to an establishment which has closed or which would have closed had it not been purchased.

The investment must remain in the region of Malta for at least five years or three years in the case where the beneficiary is an SME. The Investment Aid provided will take the form of tax credits calculated as a percentage of qualifying expenditure incurred.

The total amount of investment aid that may be awarded shall not exceed:

1. 50% of the qualifying expenditure for an undertaking which qualifies as ‘Small’ undertaking;
2. 40% of the qualifying expenditure for an undertaking which qualifies as a ‘Medium-sized’ undertaking;
3. 30% of the qualifying expenditure for an undertaking which qualifies as a ‘Large’ undertaking;
4. 15% of the eligible expenditure in the case of hotels.

For more information about this scheme contact our Tax Advisor, Benjamin Griscti, on bgriscti@ksimalta.com.