The deadline of late submissions for the Micro Invest application (for capital investments made in 2021) is 14th December 2022.

Do you run a start-up? Are you self-employed? You could benefit from fantastic tax credits with the Micro Invest scheme!

Micro Invest encourages small to medium enterprises (including start-ups and self-employed) to invest in their business, so as 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.

Malta Enterprise will approve a tax credit equivalent to 45% of eligible expenditure. An additional bonus of 20% (total 65% tax credit) applies to undertakings operating from Gozo.

The maximum eligible tax credits per single undertaking is capped at €50,000 over any period of three (3) consecutive fiscal years except for start-ups established in Gozo and female-owned undertakings (i.e. at least 51% shares held by females), where the capping is set at €70,000. Once issued, the MICRO INVEST TAX CREDIT certificate is valid for up to three years for SMEs, and five years for start-ups.

So as to be eligible for this scheme one must employ at least one person (full/part time) but not more than 50 people, and company turnover must not exceed €10 million.

One can apply for a tax credit on the below costs:

  • Wage Costs (Eligible undertakings may apply for a tax credit on an increase in wage costs that exceeds 3%)
  • Furnishing & Refurbishing (requires photographic evidence)
  • Investment Costs (includes machinery, technology (devices, hardware & software), apparatus and instruments)
  • Commercial Vehicle Costs
  • PV System Costs

The following are the required Documents to apply for Micro Invest:

  • Proper invoices of capital investment and receipts.

Please note that a proper invoice / VAT receipt should include the following:

– Date of issue.

– Invoice number.

– Name and address of supplier & VAT number of supplier.

– Name and address of customer (company) and customer’s VAT number.

– The quantity and the nature of the goods supplied.

  • Proof of payment which include either:
  1. A tax invoice and the associated receipts, or
  2. A tax invoice marked as paid by the supplier, or
  3. A fiscal receipt, or
  4. A fiscal invoice and/or a hire purchase agreement
  • If one is claiming a tax credit on the increase in wage costs, one has to provide a signed FS7 form of the previous three years
  • A copy of the vehicle log book if costs of a vehicle are being claimed. (The vehicle must be a commercial vehicle and cannot have been bought locally as a second-hand vehicle.)
  • The partnership agreement in the case of non-registered partnerships.
  • In the case of a start-up company (an undertaking which has been established for less than 4 years), a copy of the MFSA registration certificate and a copy of the ETC employment history of the director is required.
  • In the case of self-employed, a copy of the ETC registration certificate or the employment history of the applicant identifying them as self-employed, are required.
  • The tax credit costs can be claimed back on PV systems that are connected to a commercial meter located at the applicants licensed business premises. Applicants must present the Malta Resources Authority (MRA) permit to generate electricity and their last electricity bill (on which the system is connected).

The full list of requirements and rules can be found here.

Over the years we have successfully assisted many of our clients to obtain such tax credits. Have you benefited from this scheme? Contact us on [email protected] for more information.