Micro enterprises and self-employed persons may benefit from Microinvest tax credit equivalent to 45% of eligible expenditure (subject to certain conditions). An additional bonus of 20% (total 65% tax credit) applies to undertakings operating from Gozo, registered as Family Business or having more than 50% of the ownership attributed to female persons.
For an eligible cost to be claimed under Microinvest, the costs must be incurred between 1st January 2017 and 31st December 2017. The deadline of 28 March 2018 applies for any self-employed individuals submitting their tax return in June. On the other hand, the deadline of 30 May 2018 applies for companies that submit their tax return in September.
Late submissions for Microinvest may be accepted by not later than the extended deadline of the following year in which the expenses are incurred – however in such case the tax credit may be availed of only from the year of assessment commencing in the following year. For expenses incurred in 2017, the extended deadline for late applications is 12 December 2018 (for both self-employed individuals and companies) and accordingly any tax credits claimed by virtue of a late application may be available as from year of assessment 2019 onward.
Eligible expenditure under these rules includes:
- Furbishing, refurbishing and upgrading of business premises;
- Investment in acquiring machinery, technology, apparatus or instruments which enhance the operations;
- Capital investment in Information Technology;
- Purchase costs of one commercial vehicle incurred over a period of 3 years.
- Wages costs where an increase over the last 3 years of the gross wages paid by the company exceeds 3% of the highest wage costs in any of the previous two (2) fiscal years (i.e. 2015 and 2016).
Eligibility main conditions to be satisfied (at the point of application) for undertakings to benefit from this Scheme:
- The applicant must be a single undertaking that employed not more than fifty (50) persons on Full Time (FT) contracts for a consecutive three (3) month period during the year in which the costs were incurred;
- The applicant (in the case of a legal person) must employ at least one (1) person (on full or part time basis) on the date of application.
- The applicant must be a single undertaking whose turnover did not exceed €10 Million in 2017;
- For any eligible expenses incurred (except wages costs) a copy of each tax invoice or fiscal receipt (as applicable) must be submitted to Malta Enterprise;
- Start-ups are given 5 years to utilise tax credit;
- Unless exempted, applicants should be registered with the VAT department;
- Self-employed persons should be registered with Jobsplus;
- Applicants must not be defaulting on VAT, Income Tax, and Social Security. No Tax Certificate will be issued by the Corporation prior to regularising the position with the relative departments;
- Persons or undertakings engaged in activities specifically excluded under the de minimis regulations (these include undertakings active in the fishery, aquaculture sectors, the agricultural sectors and certain undertakings involved in the road freight transport sector) are not eligible for this incentive;
- This incentive is not intended for voluntary organisations;
- The application form should be submitted (online) all at once. Undertakings wishing to benefit from this incentive may submit one (1) application per calendar year.
Are you eligible for the Micro Invest Tax Credits Scheme? Camilleri Galea Ltd. can assist you in the submission of the Micro Invest application with the Malta Enterprise.