Malta Enterprise is currently receiving applications from undertakings (including self-employed individuals) qualifying for the Micro Invest Tax Credit, by virtue of which any micro enterprises and self-employed persons may benefit from a tax credit equivalent to 45% of eligible expenditure. An additional bonus of 20% (total 65% tax credit) applies to undertakings operating from Gozo.
The maximum tax credit available is capped to €30,000 for undertakings in Malta and €50,000 for undertakings operating in Gozo.
Expenses that can be covered by this scheme include:
- Capital investment in new (or first time used in Malta) machinery and technology which enhance the operations of the enterprise including ICT solutions and systems which help to save energy or to produce alternative energy.
- Wage costs covering the 12 month period pertaining to new full-time jobs created as from 1st January 2015 as long as this constitutes a net increase in the total number of full-time employees of the applicant when compared to the employment figure of the previous 3 years. Part-time employment is eligible when such employment requires the employee to work in excess of 20 hours per week.
- Costs subcontracted to third parties in relation to furbishing, refurbishing and upgrading of business premises including extensions or modifications to premises.
- Investment in one new motor vehicle (or first time used in Malta) as long as such vehicle is involved in the carrying of goods (category N1, N2 or N3 motor vehicle), and Special Purpose Motor Vehicles (category E) as established in the Motor Vehicle Registration and Licensing Act (Cap. 368).
Kindly note that application forms claiming the tax credit on qualifying expenditure incurred during 2015 have to be received by Malta Enterprise by not later than 31 March 2016.
At KSi Malta, we have a team of experts that can help you in the submission of this application. If you would like to know more please contact our tax team: