Exploring Research Grant incentive guidelines issued

Deloitte Malta Tax Alert

22 March 2021

On 1st March 2021, Malta Enterprise has issued Incentive Guidelines in relation to the Exploring Research Grant (hereinafter, the ‘Scheme’) that is intended to support businesses in planning better their Research and Development (R&D) initiatives. The support provided in terms of the Scheme will assist the beneficiary to:

a) Review the current scientific or technical knowledge in the area of research;
b) Conduct searches to identify research partners, existing Intellectual Property and knowledge that could support the R&D activity; and
c) Establish the resources required, risks and potential return on investment of the R&D project.

For the purpose of the Scheme, the activities carried out by the business are expected to result in a project plan for an R&D project that could form the basis of an application for support through other measures provided by Malta Enterprise, to carry out R&D projects.

Entities eligible to benefit under the Scheme include limited liability companies, partnerships and cooperatives including newly established enterprises. The latter are required to submit a business plan together with the application.

In terms of the Scheme, Malta Enterprise may support the implementation of a feasibility study with a cash grant of up to €50,000 which shall be capped at:

a) 50% of eligible costs if the beneficiary is a Large undertaking;
b) 60% of eligible costs if the beneficiary is a Medium-Sized undertaking; and
c) 70% of eligible costs if the beneficiary is a Small undertaking.

Supported costs incurred for carrying out a feasibility study in relation to a proposed R&D project shall be wage costs, costs related to contractual research, technical knowledge and patents and other operational costs incurred specifically for carrying out the study.

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