Micro Invest 2021

Deloitte Malta Gi3 Alert

10 September 2021

The Micro Invest Scheme supports undertakings (including start-ups, family businesses and self-employed) to invest in their business, in order to innovate, expand and develop their operations. Undertakings benefiting from this measure will be supported through a tax credit calculated as a percentage of eligible expenditure and wages costs.

One application per year may be submitted in relation to costs incurred in the previous year, including all requested supporting documentation. The upcoming secondary deadline in relation to financial year 2020 costs is 15 December 2021.

Aid Intensity

Malta Enterprise may approve a tax credit equivalent to 45% of eligible expenditure in favour of each undertaking (with an additional 20% for companies operating from Gozo). The maximum tax credits shall be capped at €50,000 (€70,000 for companies operating from Gozo, or which are registered as family businesses or which have more than 50% female ownership) over any period of three consecutive fiscal years, starting from eligible expenses incurred and paid for during the year preceding the year in which the claim is submitted.

Eligible undertakings and costs

At point of application, undertakings must satisfy all of the following criteria:

a) During the year in which the costs were incurred, not more than fifty full time employees were employed in the business;

b) The turnover or annual balance sheet total of the undertaking did not exceed €10 million in the fiscal year preceding the year in which the application is submitted;

c) At the date of application, undertaking employed at least one person (on a full-time or part-time basis);

d) Unless exempted, the applicant is registered with the VAT department.

Eligible costs include:

a) Wage cost increases exceeding 3% of the highest wage costs of the previous two fiscal years.

b) Costs incurred for services rendered for the furbishing, refurbishing, and upgrading of business premises by third parties.

c) Investment Costs, including:

  • New (or first time used in Malta) machinery, technology apparatus, and instruments;
  • Systems intended to produce alternative energy or improve energy efficiency;
  • Tangible and intangible assets required for the digitisation of the business operation such as computer hardware, packaged software solutions, and development costs for new software systems, websites, and digital applications.

d) Costs incurred for the purchase of any commercial vehicle procured as new or first time registered in Malta, with a European Emission Standard of at least Euro 5.

e) Certification costs

How can we help?

Deloitte Malta is able to assist in answering your queries, so please do not hesitate to reach out to us for any further guidance you may require.

In addition, Deloitte Malta is able to assist with the preparation of the required applications and any supporting documentation, as well as document submission and any required follow-ups.

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