Investment Aid Tax Credits 2014 - 2020
The Investment Aid Tax Credits 2014 - 2020 scheme grants tax credits to qualifying companies to encourage:
the setting up of a new establishment,
the expansion of an existing establishment,
a fundamental transformation in the overall production process of an existing establishment, and
a diversification of the output of an establishment into products not previously produced in the establishment.
Investment aid shall only be granted to companies which are involved in a specific trade or business - such as manufacturing and pharmaceutical companies - and aid shall only be granted in respect of specific expenditure incurred on an initial investment project. In the case of large enterprises, the initial investment should be made in favour of a new economic activity.
The tax credits awarded under this scheme are calculated on the basis of qualifying expenditure, being either the value of:
Qualifying tangible / intangible assets acquired in relation to an initial investment project; or
First two years’ qualifying wage costs relating to new jobs created as a result of the investment project.
The amount of Investment Aid that an undertaking can avail of depends on the size of such companies and on the date of the “start of works”.
% Aid intensity (Jan 2018 - Dec 2020)
10% (Large) 15% (SME)
This scheme is administered by Malta Enterprise Corporation and shall remain in force until 31 December 2020.
Skills Development scheme
This scheme aims to support training and knowledge transfer initiatives helping employees acquire new skills, knowhow and knowledge. It is meant to deliver training when such training is not legally mandatory for the operation of a business.
At application stage, the company is required to employ at least five full-time employees and the training must bring knowledge that is relevant to the company’s activity.
The scheme has a budget of €10 million and in principle the aid shall be granted in the form of tax credits, which may be carried forward to subsequent years of assessment for a period of up to 10 years. However, for certain activities, the Malta Enterprise Corporation may consider awarding the aid in the form of a cash grant. Aid granted to any one undertaking shall not exceed €1 million.
The aid intensity shall be established according to the size of the undertaking and shall not exceed the following percentages of the eligible costs:
This scheme came into force on 1 September 2018 and applies until 31 December 2020.
Certify (Tax Credits) 2018 - 2020
Certify (Tax Credits) is a fiscal measure administered by Malta Enterprise Corporation which aims to encourage eligible companies to improve the quality of their products, services and processes by getting industry recognised certifications and quality marks.
Aid consists of tax credits of up to €25,000 per certification, subject to conditions and criteria as prescribed in the applicable guidelines issued by Malta Enterprise.
The deadline for submission of applications under this scheme is 30 November 2020.
Research & Development schemes
The Malta Enterprise Corporation provides a number of incentive schemes relating to Research & Development.
The objective of these incentives is to support Industrial Research and Experimental Development projects within companies that aim to develop innovative products and solutions.
Some R&D incentives also encourage cooperation between companies by providing assistance for collaborative Industrial Research or Experimental Development projects.
The type of assistance granted under these schemes can take the form of:
tax credits; and/or
cash grants (subject to conditions)
The amount of tax credit depends on the size of the company and the type of project.
In some cases, R&D tax credits may be used together with investment tax credits claimed under the Investment Aid Tax Credits (2014 - 2020) scheme.
Business Enhance ERDF Grant schemes
€51 million have been earmarked for ERDF Grant Schemes in aid of companies under Operational Programme I for Malta’s EU Cohesion Policy programme (2014-2020) .
There are seven ERDF Grant Schemes which aim to support investments made by SMEs as well as various initiatives to enhance SMEs competitiveness. These Grant Schemes provide assistance in the following areas:
1. Research, Development and Innovation
3. Start up investment
4. SME growth
5. SME diversification and innovation
6. SME internationalisation
7. SME consultancy services
The aid provided depends on the Scheme that an organisation considers applying for. However, in all cases, the company should not incur expenditure before receiving approval of the project to be undertaken from the relevant intermediary body.
The Measures and Support Division of the Ministry for European Affairs and Equality is the authority managing these schemes. They are administered through an open rolling call with scheduled cut-off dates and are currently available till 31 December 2019.