The Micro Invest Tax Credit Scheme aims to help startups and female-owned businesses

The Micro Invest Tax Credit Scheme 2016 has been re-launched by Malta Enterprise once again with the aim of supporting the self-employed and Micro Enterprises employing less than 30 full-time equivalent employees and whose turnover does not exceed €10 million.

Eligible undertakings may be approved a tax credit equivalent to 45% of the eligible expenditure, up to a maximum of €30,000, over a period of three consecutive years. In case of startup businesses, the tax credit can be utilised over a maximum period of 5 years. Female-owned businesses including self-employed (but not limited to startups) will be granted a maximum tax credit of up to €50,000 instead of €30,000. Undertakings operating from Gozo will benefit from a higher tax credit of 65% of the eligible expenditure, up to a maximum of €50,000.

Deadlines for submission of applications: 

  • The deadline for self-employed individuals is 30th March 2017.
  • The deadline for Limited Liability Companies is 31st May 2017.
  • Late application submissions deadline is 15th December 2017 – should one avail from this date, the tax credit is to be absorbed against profits from calendar year 2017, 2018 and 2019, as applicable.

Qualifying costs for the Micro Invest Tax Credit 2016

Increase in wage costs that exceed 3% of the highest wage costs of the previous two (2) fiscal years. Part-time employment is eligible when such employment required the employee to work in excess of 20 hours per week; Capital investment in machinery and technology which enhance the operations of the Enterprise; Costs subcontracted to third parties in relation to furbishing, refurbishing and upgrading of business premises including extensions or modifications to premises; An investment in one new motor vehicle (or second hand but first time used in Malta) as long as the vehicle is one of the following:

  • A vehicle involved in the carriage of goods;
  • A special purpose motor vehicle; or
  • Any vehicle that is designed specifically for carrying ten or more people.

 

Antoinette Scerri - Senior Manager, Tax Advisory Services
Nexia BT