Malta provides an extremely business-friendly environment and this is being backed up by a number of incentive schemes which are being offered by Malta Enterprise – the National development agencies responsible for promoting and facilitating international investment in the Maltese islands.
Below we provide a generic walk-through of some of these incentives with the intension of providing the reader with a general idea of the type of incentives available. Information on other incentives is available on other articles in this series.
Experimental Development Tax Credit.
Here the programme should focus on the acquiring, combining, shaping and using of existing scientific, technological, business and other relevant knowledge and skills for the purpose of producing plans and arrangements or designs for new, altered or improved products, processes or services. These companies receive a tax credit which may vary according to the size of the operation.
Industrial Research and Experimental Development Scheme.
Here the programme focuses on planned research or investigation which is directed at the eventual acquisition of knowledge and relevant skills to develop new products or services or improving the said products and services.
The tax credits may cover the following costs:
1. Wages of researchers and technicians;
2. Depreciation costs of instruments and equipment;
3. Costs of material, supplies and similar products, bought specifically for the research project;
4. Subcontracted research;
5. Costs incurred for the purchase of technical knowledge and patents.
Again as with the previous scheme, the tax credit is dependent on the size of the enterprise.
An SME which is setting up shop in Malta may also benefit from the use of a suitably qualified expert which is identified by Malta Enterprise. This will enable the SME to access specialised expertise as well as improved innovation capabilities at minimal costs.
Other programmes which are of interest to foreign investors include the possibility of undertaking Preparatory Technical Feasibility Studies. These are very useful for those who are investing in Malta and who wish to carry out research on their endeavour.
Research and Development Clusters are also intriguing and provide wider avenues in which to work. The aid will be provided exclusively to the enterprises operating the cluster which must have the sole purpose of promoting Industrial Research and Experimental Development.
Further details and application forms can be obtained by contacting our offices.