Micro Invest is a scheme launched by the Malta Enterprise, made effective from 1st January 2014 to 31st December 2020. The scheme unanimously encourages small to medium-sized enterprises to invest in their business, in order to grow, develop, and innovate their operations.
All eligible entities benefiting from this scheme will be comprehensively supported through a tax credit calculated as a percentage of eligible expenditure and wage costs. The maximum eligible credit stands at €50,000, which is to be used over a period of three years (€70,000 for start-ups established in Gozo and female-owned undertakings).
Under this scheme, Malta Enterprise will approve a tax credit equalling to 45% of eligible expenditure. There will be an added bonus of 20% for female-owned undertakings and start-ups operating from Gozo.
With effect from 1st January 2018, family businesses are also eligible to benefit from the increased capping. However, there are pre-requisite eligibility criteria which must be satisfied by the parties seeking this benefit:
• Company turnover must not exceed €10 million
• At the date of application, the entity must employ at least one person either on a full or part-time basis
• The entity does not employ more than 50 people either on a full or part-time basis
• All applicants must be registered with the VAT department
Interested applicants can apply for a tax credit on the following costs:
• Investment Costs that includes machinery, technology, and infrastructure
• Motor Vehicle Costs
• PV System Costs
• Furnishing and Refurbishing
• Wage Costs – applicants may apply for a tax credit on an increase in wage costs over 3%
To apply for Micro Invest, the following documents are required:
• Detailed Invoices of Capital Investment: A proper invoice should include the date of issue; invoice number; name, address and VAT number of the customer and the supplier; quantity of goods supplied.
• Proof of Payment: It must include – a tax invoice and receipts, a fiscal invoice, and a hire purchase agreement.
• FS7 form – if you’re claiming a tax credit on the increase in wage costs
• Copy of the Vehicle Log Book – if the costs of a motor vehicle are being claimed
• Partnership Agreement – only for non-registered partnerships
• A copy of MFSA registration certificate and ETC employment history – for start-ups
• A copy of ETC registration certificate and employment history – for self-employed applicants
As Certified Public Accountants, we can help you with such applications. Contact us if you need help applying for such credit!