MicroInvest scheme

The MicroInvest scheme (the “Scheme”) encourages undertakings - including start-ups, family businesses and self-employed individuals - to invest in their business, so as to innovate, expand and develop their operations. This Scheme is administered by the Malta Enterprise Corporation (“Corporation”).

The Scheme is open to undertakings who satisfy the following conditions;

• In the year when these expenses were incurred, the undertaking had no more than fifty full-time employees in its trade or business.
• The annual turnover or total balance sheet value of the undertaking did not surpass €10 million in the fiscal year prior to the submission of the application.
• At the time of application, the company must have at least one (1) employee, either on a full-time or part-time basis.
• Unless exempted, the company should be duly registered with the Maltese VAT department.

Undertakings benefiting from this measure will be supported through a tax credit calculated as a percentage of eligible expenditure. The Corporation may approve a tax credit equivalent to 45% of eligible expenditure - as defined - in favour of each undertaking. In the case of undertakings operating from Gozo the tax credit increases to 65% of qualifying expenditure. 

The amount of tax credit that may be awarded to a single undertaking is capped at €50,000 over a period of any three consecutive years. This capping may be increased to €70,000 (over a period of three consecutive years) in the case of a single undertaking that either: 

• operates from Gozo, 
• is registered as a family business or 
• has more than 50% of the ownership attributed to female persons.

The eligible costs include:

• Increase in wage costs that exceed 3%, calculated by deducting from wage costs incurred in the relevant fiscal year, the highest annual wage cost incurred in the preceding two fiscal years.
  
• Certain costs incurred for furbishing, refurbishing, and upgrading (including extension and modifications) of Business Premises.
  
• New investments in acquiring 
  
  • machinery, technology, apparatus and instruments;
  • systems intended to produce alternative energy or improve energy efficiency unless receiving other state aid support; and
  • tangible and intangible assets required for digitisation of the business operation.
• Cost incurred for obtaining certain certifications relevant to their business.
• Cost incurred for the purchase of any Commercial Vehicle.

Undertakings may only submit one application per calendar year which may only include costs incurred in the previous calendar year. The Scheme is a de minimis scheme.