Objective of the Scheme
The objective of the scheme is to incentivize undertakings to innovate, expand, develop or implement compliance directives within their organization, through the granting of a tax credit to eligible organisations.
Claim Submission / Duration of incentive
Micro Invest Applications are based on the costs incurred in the preceding year, thus the 2020 Micro Invest applications will cover costs incurred and paid for in 2019. The final call for applications will be in the year 2021, which will be based on costs incurred and paid for in 2020.
The primary deadline for the submission of applications is March of every year for self-employed and May for companies, however as of the year 2015, the Malta Enterprise has introduced an extended deadline for late submissions, being December of every year. If one applies by March or May of every year, the Incentive Entitlement Certificate (IEC) issued would be available for use as of the year of application, whilst if one applies by the extended deadline, the Incentive Entitlement Certificate (IEC) issued would be available for use as of the following year. Undertakings which submit an application in the March or May deadline, may NOT submit another application in the December deadline.
Eligibility
The following criteria must be satisfied by undertakings to be considered as eligible for the scheme:
– For a consecutive three (3) month period during the year in which the costs were incurred, the undertaking did not employ more than fifty (50) full time persons and had a turnover of not more than Eur 10 million;
– The single undertaking must have at least one employee on its payroll records. The person employed may be the applicant himself in the case of a self-employed person. In any case, the employed person must be registered with Jobsplus;
– Unless exempted, applicants should be registered with the VAT department;
– Self-employed persons must be registered with the Jobsplus;
– The undertaking must not be defaulting on statutory obligations in respect of VAT, Income Tax and Social Security Contributions;
– Undertakings excluded under the de minimis regulations are not eligible for this incentive.
Incentive Description
The tax credit which may be approved is equivalent to 45% of the costs incurred if the undertaking is operating in Malta and 65% of the costs incurred if the undertaking is operating in Gozo.
The maximum aid allowed to a SINGLE UNDERTAKING shall not exceed the amount of Eur 50,000 over any three (3) consecutive years.
The maximum aid allowed to UNDERSTAKINGS OPERATING IN GOZO, UNDERTAKINGS REGISTERED AS FAMILY BUSINESSES and FEMALE-OWNED undertakings, shall not exceed the amount of Eur 70,000 over any three (3) consecutive years.
ELIGIBLE COSTS AND DOCUMENTATION REQUIRED
Capital Expenditure
For instance machinery, technology, apparatus, instruments including ICT solutions and systems which help to save energy or produce alternative energy
Required: Tax invoice or fiscal receipt (kindly ensure that document includes both VAT numbers and a clear description of the item being purchased)
Refurbishing/ Furbishing including extensions or modifications to premises
Required: Tax invoice or fiscal receipt (kindly ensure that document includes both VAT numbers and a clear description of the item being purchased)
Photographic evidence
Items such as plastering need to have a breakdown of the labour element and the material purchased to be eligible
Commercial Vehicles
Required: Tax invoice or fiscal receipt (kindly ensure that document includes both VAT numbers and a clear description of the item being purchased)
To be first time registered in Malta, second hand vehicles to be purchased from abroad or new from Malta
Copy of Log Book required
In the case that it has been purchased through hire purchase, copy of agreement including receipts for payment is required
Only one motor vehicle may be claimed over any three (3) year period. However as from 2018 (for costs incurred in 2017), costs for all newly purchased commercial vehicles may be claimed when these have the latest European Emission Standard rating (currently Euro 6 (2014)) procured to replace similar vehicles. Evidence such as scrappage or sale documents of the replaced vehicles, must be provided.
Wage Costs
Required: FS7s for 2019, 2018, 2017
To be eligible there needs to be a 3% increase in 2019, over the year in which the wage costs were the higher between 2018 and 2017
Other considerations
All items to be over Eur 200 Exc. VAT.
Proof of payments are not required, however it is important that you keep record internally, of such payments effected.
All original documents together with the copy of the application should be retained by your good self for a period of ten years.
Utilisation of Tax Credit Certificates
– The tax credit must be utilized by the third year of assessment. That is, for tax credit certificates which will be issued in the year of assessment 2020, these will need to be used by the year of assessment 2022;
– In case of START-UPS the tax credit must be utilized by the fifth year of assessment. That is, for tax credit certificates which will be issued in the year of assessment 2020, these will need to be used by the year of assessment 2024;
– Tax credit certificates are utilized only against tax incurred on income derived from the trade or business activity only.
Deadline
As explained in the above, the primary deadline for the Micro Invest applications 2020 is the 25th March 2020 for self employed and the 27th May 2020 for companies. However we encourage you to contact our office for assistance, by not later than 16th March 2020 for self employed and by not later than 15th May 2020 in the case of companies.
Contact Us
For further information on this scheme, please contact us on:
E: [email protected] or
M: 00356 77650000 or
T: 00356 21654567
