MicroInvest Scheme: Tax credit incentive for small and self-employed businesses

A major setback when setting up and running a company is obtaining the necessary financial funds to ameliorate the current position. For this reason, the Malta Enterprise has introduced the MicroInvest Scheme to act as a tax credit incentive for micro-enterprises and self-employed businesses, with the aim to assist small and medium-sized enterprises to invest, improve, and expand their business.

In brief, the capital investments which will be eligible for this tax credit include:

  • Costs in relation to furbishing, refurbishing and upgrading of business premises
  • Investments in purchasing of machinery, technology, instruments and motor vehicles
  • Investments in purchasing of computer hardware, software and other ICT equipment
  • Recruitment of employees claiming tax credit for the first 12 months of their employment
  • Development and renovation of websites
  • Others.

The eligibility criteria are as follows:

  • Enterprises which did not employ more than 30 employees
  • Enterprises whose turnover did not exceed €10m during the year in which costs were incurred
  • The undertakings should be registered with the VAT department
  • The undertaking should have the applicable regulatory licenses and permits
  • Applicants must not be defaulting in VAT, income tax, social security and rent payments to government
  • Applicants must employ at least one employee at the date of application (this person may be the applicant himself in case of self-employed person)
  • Self-employed persons are also eligible for this scheme as long as they meet the employees and turnover threshold.

The tax credit is equivalent to 45% of eligible expenditure up to a maximum of €30,000.

Late submission applications for Limited Companies are to be accepted until the 15th December 2017.  This incentive is open to all undertakings, which at point of application satisfy all of the criteria enlisted within the Incentive Guidelines.

We will make your application process easier than ever. If you require any assistance for this tax credit incentive, you can contact us directly on csciberras@fairwindsmanagement.net. Apart from helping you with the application process, we will also provide you with advisory services in order to successfully obtain funds for your business investment and other tax benefits.