MICRO INVEST SCHEME – 2016

The Micro Invest Scheme , recently  launched by Malta Enterprise, is intended to encourage enterprises to invest in their own businesses towards:

1. innovation,
2. expansion,
3. improvement and
4. development.

The incentive covers expenditure incurred between 2014 and 2020.

The highlights of the scheme are the following:

• Claims for Costs incurred in a particular year shall be submitted to Malta Enterprise by end of March of the following year.  Last submission will have to be submitted by 26^th March 2021 at the latest
• The applicant must not employ more than 30 persons and has a turnover of less than €10,000,000 during the year in which the costs were incurred.
• The applicant must employ at least one person at the time when the application is made and such employment must be registered with the Employment and  Training Corporation
• The undertaking must be registered with the VAT Department.
• Must not be defaulting on any amounts due under the VAT, Income Tax or Social Security Act.
• The de minimis aid regulations for single undertaking must be met
• Voluntary organisations cannot apply under this scheme as it is intended for commercial enterprises
• A tax credit equivalent to 45% of the costs incurred may be approved for enterprises operating from Malta and a further 20% additional bonus is applicable to those operating from Gozo.
• The maximum eligible tax credit may not exceed €30,000 for Maltese based and €50,000 for Gozo based enterprises respectively over any period exceeding three consecutive years
• Aid granted in 2013 under the previous Micro Invest Scheme shall be taken into consideration in relation to applications submitted in 2014 and 2015.
• A tax invoice or fiscal receipt and proof of payment must be submitted with every application.
• Eligible expenditure may include the following:

a)            Costs associated with improvement or extension of own premises and paid to a subcontractor

b)            Investment in equipment and machinery, including systems aimed at saving energy or producing alternative energy

c)             Health and Safety related investment

d)            Purchase of one motor vehicle intended for the carriage of goods or which may be considered as a special Purpose Motor vehicle under the Motor Vehicle Regulation and Licensing Act (Cap 368)

e)            Wage costs covering a 12 month period as long as this contributes to a net increase in employees over a previous period relating to November 2012 and who must be maintained for a period of 36 months.  In case of resignation the vacancy must be filled within 6 months from resignation date.

• Ineligible costs include purchase of land and property, costs assisted through other schemes, costs not directly related to trade such as works of art and costs having a value of less than €100.

Disclaimer

The above information is being provided as a general guide only and should not be considered as a substitute for professional advice.