Malta Enterprise Grants: Aid for Research and Development Projects

This incentive measure allows companies to claim tax credits on costs incurred directly or indirectly in carrying out a research and development project or projects relevant to the company’s trade. Eligible projects should seek to achieve an advance in a field of science or technology through the resolution of scientific or technological uncertainty.

This incentive will be applicable till the 31st of December 2020 and the grant is in the form of tax credits.

Even if the advancement in science or technology sought by a project is not achieved or not fully realised, research and development still takes place. It is understandable that an R&D project carried out with the intention to achieve an advance in science or technology may fail to achieve its aims.

A ‘competent professional’ is a person working in his field of expertise that is expected to:

a) be knowledgeable about relevant scientific and technological principles;

b) be aware of the current state of technology and knowledge;

c) have experience in the relevant field of science and technology.

Eligible Undertakings

This measure is available to limited liability companies registered under the Companies Act.
Undertakings whose line of business is that of conducting research and development activates under contractual agreement to third parties are not eligible for this incentive. This exclusion does not include instances where a group of companies has a reached arm (company) that carries out research on behalf of other linked companies with the group.

Aid Intensities

Beneficiaries that carry out an eligible research and development activity will receive a tax credit calculated at twenty five percent (25%) of the eligible expenditure.

The percentage shall be increased by 10% when the applicant is a medium sized enterprise and by 20% when the applicant is a small enterprise.

The total support shall be limited to EUR 15 million for any project cover by the research and development  activity.

Qualifying Costs

  1. Qualifying Employee costs
  2. Contracted R&D expenditure which may not exceed 20% of total cost claimed
  3. Materials and Utilities
  4. Software – when directly related to the research and development activity

 

Claims

You must claim the Research and Development tax credits within two years of the end of the relevant fiscal year in which the activities were carried out.

Get in touch with us

📧  sfinch@easl.com.mt

Share this post?

Get in
Touch

+356 2166 1273