Malta Micro Invest Scheme – Introduction
Malta Enterprise has reinvigorated the local business landscape by reintroducing the Micro Invest Scheme, a strategic initiative aimed at fostering growth and investment among small and medium-sized enterprises (SMEs).
This tax credit scheme, designed to support businesses in scaling their operations, opens up opportunities for a wide range of entities, including startups, family-owned businesses, and self-employed individuals, to invest more robustly in their future.
Key Features of the Micro Invest Scheme
Tax Credit Benefits
Central to the Scheme is the provision of a tax credit covering 45% of eligible expenditures for businesses across Malta and an enhanced 60% for those operating within Gozo. This significant financial incentive is designed to lighten the fiscal load on businesses as they seek to expand and innovate.
Eligible Expenditures
The Scheme covers a variety of investment avenues, including:
- Incremental wage costs that exceed 3% compared to the highest wage expenses from the two preceding years.
- Expenses related to refurbishing business premises to bolster operational efficiency or customer experience.
- Investment in cutting-edge machinery, technology, and other pivotal assets that can drive business innovation and productivity.
- Costs associated with acquiring commercial vehicles essential for business operations.
- Expenses incurred in obtaining trade certifications that enhance business credibility and market competitiveness.
Eligibility Criteria
To tap into the Scheme’s benefits, businesses must meet certain criteria, including:
- Employment of no more than 50 full-time individuals during the financial year 2023.
- A turnover or annual balance sheet not exceeding €10 million in 2023, showcasing the Scheme’s focus on supporting SMEs.
- Employment of at least one individual at the time of application, underlining the Scheme’s aim to foster job creation.
- Being VAT registered or VAT exempt within Malta, ensuring the Scheme supports businesses contributing to the local economy.
Application Deadlines
- Eligible businesses looking to leverage the Micro Invest Scheme must be mindful of the application deadlines:
- Self-employed individuals have until 10 April 2024 to submit their applications.
- Companies are provided a deadline until 29 May 2024.
- Recognizing the challenges businesses may face, late submissions will be accepted up until 27 November 2024, offering flexibility and ensuring wider participation.
Malta Micro Invest Scheme – Conclusion
The relaunch of the Micro Invest Scheme by Malta Enterprise signifies a strategic investment in the sustainable growth of the local business ecosystem.
By offsetting a portion of the investment costs through tax credits, the Scheme not only makes it financially feasible for SMEs to pursue growth initiatives but also stimulates economic activity and job creation within Malta and Gozo.
As the application window opens, businesses are encouraged to assess their eligibility and consider how the Scheme can support their growth ambitions in the coming year.
Final th0ughts
If you have any queries about the Malta Micro Invest Scheme, or Maltese tax matters more generally, then please get in touch.