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Micro Invest

Application Process and Tax Credits

The deadline for submission of applications is as follows:

Costs incurred in 2023:

  • Primary Deadline for self-employed individuals submitting their tax return in June: 27th March 2024 at noon
  • Primary Deadline for companies submitting their tax return in September: 29th May 2024 at noon
  • Late Submissions will be accepted by 27th November 2024 at noon

Costs incurred in 2024:

  • Primary Deadline for self-employed individuals submitting their tax return in June: 26th March 2025 at noon
  • Primary Deadline for companies submitting their tax return in September: 28th May 2025 at noon
  • Late Submissions will be accepted by 26th November 2025 at noon

No, Section 1.3 of the Incentive Guidelines states that an undertaking that submits a claim by the March deadline may not submit another claim in the same year.

The 45% (or 65% for Gozo based undertakings) rate is used for calculating the value of the tax credit. If your eligible costs amount to €10,000 your tax credit would be €4,500 (that is 45% of €10,000). This tax credit may then be applied on your final tax bill after any other regulatory deductions.

The tax credit must be utilised by the third year of assessment, while for start-ups, the tax credit must be utilised by the fifth year of assessment (i.e. for certificates issued in respect of Year of Assessment 2023, the tax credit must be utilised until year of assessment 2026).

No, VAT is not an eligible cost under this scheme. Tax credits will be granted on the net value of a cost item (excluding VAT). 

Applicants who have applied for an investment aid measure (such as the Investment Aid Tax Credits 2014 – 2020) may not apply for this incentive within the same year.

Eligible Undertakings

Business activities that are not required to register with the VAT department can apply for this tax credit as long as their application is related to the carrying out trade or business activity which is exempt from registering with the VAT department.

Yes, a Maltese company operating mainly outside Malta is eligible. However, tax credits will only be granted on costs which can be verified in Malta. (For verification and control purposes, you may be requested to transport back to Malta any equipment assisted.)

No. Applicants must employ at least one person at application stage in order to be eligible for this incentive. A company with no employees cannot benefit from this incentive as per Section 3 of the Incentive Guidelines.

No. Voluntary organisations are not eligible as per Section 6.2 of the Incentive Guidelines.

A ‘start-up’ can be defined as an undertaking that has been established for less than four years as determined from date of registration with the Malta Business Registry (MBR) or the date the person registered as a self-employed with Jobsplus.

As per Section 2.3 of the Incentive Guidelines, a female-owned undertaking is an undertaking in which more than 50% of the stock is owned by one or more women or a female self-employed person.

With regards to Motor Vehicles, if an applicant is working within the car rental sector, the applicant may claim the costs related to an investment on new motor vehicles (or first time registered/used in Malta) as long as such vehicle is involved in the carrying of goods (category N1, N2, or N3 motor vehicle), Special Purpose Motor Vehicles (as defined in the Incentive Guidelines Section 2.5.) and vehicles designed specifically for the carriage of seven or more persons.

If the undertaking has a relation as described in Section 2.1 of the Incentive Guidelines it is considered to be a single undertaking.
The definition should be taken in the context of the de minimis regulation. The notion of linked and partner enterprise is relevant to determining the size of an undertaking.

Eligible Costs

Cost for the purchase of computers, software and other ICT equipment required to operate or improve the business are eligible.

No. Operating costs such as rent, electricity bills, and telephony and internet costs cannot be supported through this incentive.

Vehicles that may be used for recreational activities such as Isuzu Trooper, Mitsubishi Pajero, Mitsubishi Shogun, Land Rover Defender, Land Rover Discovery, Land Rover Freelander and Toyota Landcruiser or other similar vehicles, will not be considered eligible due to their recreational attributes.

No, all costs claimed must related to items purchased for the business.

PV systems are eligible if connected to a commercial meter located at the applicants licensed business premises. For details about other energy saving systems, please contact [email protected]. Applicants must present the Malta Resources Authority (MRA) permit to generate electricity and their last electricity bill (on which the system is connected). Systems which help to save energy or produce alternative energy are eligible but must be related to a licensed business premises as specified in the trade licence issued by the commerce division or the permit issued by the Planning Authority (PA).

No, vehicle registration tax paid on second hand vehicles is not eligible.

Individual invoices having a value of less than €200 are not eligible.

Furbishing of a property which is intended to be rented or leased cannot be supported. However, refurbishment projects of a property covered by a valid and updated MTA licence (for providing short-term accommodation) may be considered.

The Corporation shall require permits/licences identifying the premises as a business premises for carrying out the current economic activity. Such permits/licences would have been issued prior to the commencement of the current economic activity, and do not refer to a licence to undertake any works being claimed.

All Invoices / Fiscal Receipts must be in line with the requirements established in Section 4.3, or transactions section verified and signed by certified CPA in Malta. In the case of wage costs, FS7s together with a declaration by the CPA stating that the cost being claimed for are the actual costs incurred by the applicant and information provided in relation to the FS7s is correct are required.

Yes, you can claim these costs if the receipts presented contain the following information:

  • Date of supply
  • Name, address and ID number of supplier
  • Name, address and VAT registration number (if applicable) of customer
  • Details of the supply made
  • The price before and after any discount (clearly showing final price)
  • A note indicating that the issuer of the receipt is not registered under VAT in line with LN500 of 2010.

Employment and Linked Enterprises

Yes, you may apply for a tax credit through this incentive. You may claim a tax credit received through this incentive as any other self-employed but you will not be able to submit Tax form TA22 and hence shall not be able to benefit from the 15% tax rate. To utilise these tax credits you will have to declare any income in your Income Tax Return.

The tax credit is redeemable against income generated from your business activity or trade only.

Yes, as long as you are registered as a part-time self-employed person with Jobsplus.

During the year in which the costs were incurred, the number of employees should not be more than fifty (50) persons on Full Time (FT) contracts (as verified through Jobsplus).

Yes, yet the partners will be considered as forming part of a ‘single undertaking’ as defined in the Incentive Guidelines and hence will contribute to a shared capping of €50,000.

The eligible amount will be split according to ownership. Hence, in case of a partnership, where an ownership is split equally between two persons, two Incentive Entitlement Certificates, each equivalent to 50% of the approved tax credits will be issued to the persons forming the partnership.

Yes a family business which is duly registered as a family business (as defined in section 2.4 of the Incentive Guidelines) can qualify from the scheme as of year 2018.

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