Micro Invest

Introduction & Definitions

• • The Micro Invest scheme, managed by Malta Enterprise, supports business investment, innovation, and growth by providing tax credits.
  • The credits are based on eligible expenses such as wages or asset investments for companies, partnerships, or self-employed individuals

2020

• • Primary Deadline (Self-Employed): 24/03/2021
  • Primary Deadline (Companies): 26/05/2021
  • Tax Credit Year: 2021
  • Late Submission (Self-Employed/Companies): 15/12/2021

2021

• • Primary Deadline (Self-Employed): 23/03/2022
  • Primary Deadline (Companies): 25/05/2022
  • Tax Credit Year: 2022
  • Late Submission (Self-Employed/Companies): 14/12/2022

2022

• • Primary Deadline (Self-Employed): 22/03/2023
  • Primary Deadline (Companies): 24/05/2023
  • Tax Credit Year: 2023
  • Late Submission (Self-Employed/Companies): 13/12/2023

Eligibility

• • Fewer than 50 full-time employees during the year the costs are incurred.
  • At least 1 full or part-time employee at the time of application (self-employed individuals qualify automatically).
  • Annual turnover or balance sheet total under €10 million during the year the costs are incurred.
  • Must be VAT-registered, unless exempt.
  • Business activities must align with the de minimis regulation.
  • Cannot apply for other investment aid, such as the investment aid tax credit, in the same year.

Incentive Description

• • Tax credit for Malta: 45% of eligible costs.
  • Tax credit for Gozo: 65% of eligible costs.
  • Tax credit for start-ups in Gozo (2020 & 2021): 80% of eligible costs.
  • Maximum tax credit in Malta: €50,000 over 3 years.
  • Maximum tax credit in Gozo: €70,000 over 3 years.
  • Maximum tax credit for family businesses: €70,000 over 3 years.
  • Maximum tax credit for female-owned businesses: €70,000 over 3 years.

Qualifying & Eligible Expenditure
Costs must be incurred in the year before the application and supported by a tax invoice or fiscal receipt. Eligible costs must be incurred by 31st December 2022.

Wage cost:

• • Wage costs must increase by at least 3% from the highest wage cost in the previous 2 fiscal years.
  • Calculation is based on gross emoluments (excluding fringe benefits and share options).
  • For merged or taken-over entities, the consolidated wage cost of the prior 2 years applies.

Furbishing & Refurbishing of Business Premises

• • • Works must be carried out by an unrelated party.
    • Furbishing and refurbishing for short-term leases is accepted only if the property is properly licensed at the time of application.
    • Up to 2020, a permit was required for home-based offices to apply.
    • From 2021 onwards, only furbishing, refurbishing, and upgrading costs for undertakings with valid Planning Authority licenses and permits will be accepted.
    • Support for short-term accommodation is strictly limited to refurbishment costs.
    • Class 2A: Residential institution (e.g. hospital, nursing home)
    • Class 2B: Non-residential institution (e.g. museum, library)
    • Class 2C: Educational institution (e.g. school, nursery)
    • Class 3A: Guest houses, Palazzini, Boutique tourism
    • Class 3B: Hotels
    • Class 3C: Assembly & Leisure
    • Class 4A: Financial, Professional & Other Offices
    • Class 4B: Retail
    • Class 4C: Food & Drink establishments (no cooking allowed)
    • Class 4D: Food & Drink establishments (cooking allowed)
    • Class 5A: Light industry
    • Class 5B: General industry
    • Class 5C: Specialised industry

Investment costs
Acquisition of new or first-time used investments in Malta
Includes:

• • • Machinery, technology, apparatus, and instruments
    • Systems for alternative energy or energy efficiency
    •  Computer hardware
    • Packaged software solutions
    • Development of new software systems
    • Websites (including updates and enhancements)
    • Digital applications

Motor Vehicle costs

• • • New or first-time registered vehicles in Malta with at least a Euro 5 rating (2020 costs).
    • 1 commercial vehicle from 2019 or 2020 can be claimed in 2021, regardless of Euro 5 rating.
    • Taxi drivers can claim costs for 1 plug-in hybrid or electric car (2021) within a 3-year period.
    • Motorcycles: No claim allowed as they cannot be issued a commercial licence.

Ineligible Expenditure

• • • • Purchase of land/property
      • Works of art, antiques, non-business assets
      • Non-trade/business-related assets
      • Operating costs
      • VAT and recoverable taxes
      • Separate vehicle accessories/upgrades
      • Non-business vehicles
      • Director’s fees (not wages)
      • Spare parts and maintenance
      • Administrative expenses (e.g. subscriptions, rent, advertising)
      • Invoices under €200 (including VAT)

      Additional Provisions

      • No tax refund on credits.
      • Tax credits must be used within 3 years (5 years for start-ups).
      • Credits apply to income tax from trade/business.
      • Incentive Certificate is non-transferable.
      • Data may be shared with government departments.
      • IRD can refuse credits if payments are in default.
      • Malta Enterprise can revoke or reduce aid.
      • One application per year.
      • Malta Enterprise may conduct onsite visits and reviews.