Malta Enterprise Grant: Investment Aid Tax Credits (2014-2020)

Would you like to grow your business but you are lacking the necessary funds, or are you a start-up looking for incentives to help you set up in the market?

Investment Aid Tax Credits

  • Intended to sustain the regional industrial and economic development of Malta. This measure facilitates initial investments by encouraging the setting up of new establishments as well as, the expansion and development of existing businesses.
  • May take the form of tax credits and/or cash grants
  • The scheme will remain in force until 31st December 2020

 

Eligible undertakings:

Company Category

Staff Headcount

Turnover

or

Balance Sheet Total

Medium- Sized

< 250

≤ € 50 m

≤ € 43 m

Small

< 50

≤ € 10 m

≤ €10 m

Micro

<10

≤ € 2 m

≤ € 2 m

  • 30% of the qualifying expenditure for an undertaking which qualifies as a ‘Small’ undertaking;
  • 20% of the qualifying expenditure for an undertaking which qualifies as a ‘Medium-sized’ undertaking;
  • Hotels are eligible to, 10% of the eligible expenditure in the case large undertakings, and
  • 15% in the case of small and medium undertakings.

 

Eligible Projects

Initial Investment Projects shall be considered for support if:

a) The investment is related to the development of a Qualifying Economic Activity.

b) The underlying Qualifying Economic Activity shall be retained in Malta for the minimum period of at least five (5) years or three (3) years in the case where the beneficiary is an SME, after completion of the investment.

c) The beneficiary provides a financial contribution of at least 25% of the eligible costs, either through its own resources or by external financing, in a form, which is free of any public support.

d) The applicant confirms that it has not carried out a relocation to the establishment in which the initial investment for which aid is requested is to take place, in the two (2) years before aid application and commits that it will not carry out a relocation up to a period of two years after completion of the investment for which aid is requested.

Eligible Initial Investment Projects for SMEs.

Investment Aid Tax Credits shall be awarded to SMEs in respect to ‘initial investment’ meaning:

a) An investment in tangible and intangible assets resulting in;

  1.  The setting-up of a new establishment.
  2.  The extension of the capacity of an existing establishment.
  3. A fundamental change in the overall production process of an existing establishment.
  4. A diversification of the output of an establishment into products not previously produced in the or

 

b) The acquisition of assets belonging to an establishment that has closed or would have closed had it not been purchased, and is bought by an investor unrelated to the seller (nevertheless the sole acquisition of the shares of an undertaking is excluded).

How can Erremme help you?

Erremme can guide you through the application process by completing the relevant application forms, business plans and other documents. The admission process is managed and regulated by the Malta Enterprise and these Incentive Guidelines will remain active until 31st December 2020.

For more information contact us on sfinch@easl.com.mt

 

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