Invest scheme: Support for initial investment projects
Deloitte Malta Gi3 Alert
25 May 2022
Malta Enterprise has launched a new scheme, Invest (the 'Scheme'), intended to support initial investment projects through the setting up of new establishments, expansion of existing facilities and diversification of existing businesses, amongst other activities. The support is intended to facilitate access to funding and accelerating the return on investment, and may be awarded through loan guarantees, interest rate subsidies, cash grants and tax credits. The Scheme shall be applicable from 1 May 2022 and shall remain in force until 31 December 2023.
The Scheme is applicable to investment projects that shall result in an initial investment by a Small or Medium-Sized enterprise (’SME’) or an initial investment in favour of a new economic activity by a Large enterprise. The initial investment must take place in one or more of the qualifying activities as listed in the guidelines issued relating to the Scheme (the ‘Guidelines’).
Qualifying SMEs and Large enterprises operating from Malta and incorporated in the EU as a partnership en nom collectif, en commandite or a limited liability company, co-operative or similar set-up are eligible undertakings for the purposes of the Scheme.
Loan guarantees may only be awarded to SMEs. In order for partnerships to benefit from tax credits, they must be registered to be treated as a company for Malta tax purposes. Support shall not be provided to any undertaking engaged in an activity related to gambling or the provision of financial services.
Support may only be awarded in respect of eligible investment projects commencing on or after 1 May 2022 and by 31 December 2026, which are approved during the validity of the Scheme, which Scheme is valid until 31 December 2023. Projects having start of works after 1 May 2022 but before approval having been obtained from Malta Enterprise, may only be awarded aid in the form of tax credits. Applications for tax credits for which the aid shall be calculated on the cost of procured assets may be submitted within 6 months from Start of Works, during the validity of the Scheme. All other requests, that is for loan guarantees, interest rate subsidies and cash grants, should be submitted prior to Start of Works.
SMEs may be supported in carrying out initial investment projects consisting of an investment in tangible and intangible assets related to:
a. The setting up of a new establishment;
b. Extension of the capacity of an existing establishment;
c. Diversification of output of an establishment or a fundamental change in process;
d. Acquisition of assets of an establishment that has closed/would have closed.
Large enterprises may only be supported in carrying out initial investment projects in tangible and intangible assets in favour of new economic activities related to:
a. The setting up of a new establishment, as long as new activity is not the same as activity previously performed;
b. Extension of the capacity of an existing establishment, as long as new activity is not the same as activity previously performed;
c. Acquisition of assets of an establishment that has closed/would have closed, as long as new activity is not the same as the activity performed in the establishment prior to its acquisition.
Aid may be awarded in the form of tax credits, cash grants, loan interest subsidies, loan guarantees or a combination of any of these forms provided that the aid granted shall not exceed the maximum support limits outlined in the Guidelines, which depend on the size of the applicant, the location of the investment project and the resultant qualifying activity.
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.