The Micro Invest Scheme has recently been re-launched to encourage undertakings to invest in their business, to innovate, expand and implement compliance directives or to develop their operations. Such undertakings may include self-employed persons. Undertakings will be supported through a tax credit representing a percentage of the eligible expenditure and wages of newly recruited employees and/or apprentices.
This incentive covers eligible costs incurred between 1st January 2013 and 31st December 2013. Applications for assistance under this incentive will be received until the 28th March 2014. A tax credit equivalent to 40% of eligible expenditure may be approved. An additional bonus of 20% (total 60% tax credit) applies to undertakings operating from Gozo. The total amount of tax credits that may be granted in terms of this regulation and any amount of tax credit granted to an undertaking is capped at €25,000.
This incentive is available to all undertakings (i.e. limited liability companies and oversea companies constituted or registered under the Companies Act), which at the point of application satisfy all the following criteria:
a) the undertaking must not employ more than 30 full-time employees, or equivalent, as at 30 November 2012;
b) the undertaking must employ at least 1 person. Start up undertakings set up after this date and employing at least 1 person between the setting-up date and the 31st December 2013 are deemed as eligible;
c) the annual turnover of the undertaking for 2012 must not exceed €10 million;
d) the undertaking should be registered with the VAT department;
e) the undertaking should be in possession of regulatory licenses and permits where applicable;
f) retails outlets should have a valid trading license issued by the Commerce Division;
g) bars, restaurants and hospitality activities should have a valid licence issued by the Malta Tourism Authority;
h) applicants must not be in default on VAT, income tax, social security and rent payments to government.
Additional conditions may apply.