Time to read: 5 mins
If you are a small business owner or a self-employed person in Malta, you may be eligible for a tax credit scheme called Micro Invest. This scheme encourages you to invest in your business, innovate, expand, and develop your operations. You can get a tax credit of up to 65% of your eligible costs, such as wage costs, furbishing costs, investment costs, and certification costs. In this article, we will explain how Micro Invest works, who can apply, what are the eligible costs, and how Ewropa can help you submit your application.
What is Micro Invest?
Micro Invest is a tax credit scheme administered by Malta Enterprise. Micro Invest aims to help small businesses grow and improve their competitiveness by providing them with financial incentives to invest in their business.
Who can apply for Micro Invest?
Micro Invest is open to all undertakings that meet the following criteria:
- They do not employ more than 50 full-time employees in their trade or business.
- Their turnover or annual balance sheet total does not exceed €10 million in the previous fiscal year.
- They employ at least one person (on full or part-time basis) at the date of application.
- They are duly registered with the VAT department (unless exempted).
- They are not engaged in activities that are excluded under the de minimis regulation (such as fisheries, agriculture, export-related activities, etc.).
How much tax credit can you get from Micro Invest?
The amount of tax credit you can get from Micro Invest depends on your eligible costs and your location. The basic rate of tax credit is 45% of your eligible costs. However, if you operate from Gozo, or if you are registered as a family business, or if you have more than 50% of ownership attributed to female persons, you can get an additional bonus of 20%, which means a total of 65% tax credit.
The maximum tax credit you can get from Micro Invest is capped at €50,000 over any period of three consecutive fiscal years. This cap is increased by €20,000 (to a total of €70,000) for undertakings that qualify for the additional bonus.
What are the eligible costs for Micro Invest?
The eligible costs for Micro Invest are the costs that you incur for investing in your business between 1st January and 31st December of the year preceding the year in which an application is submitted. The eligible costs must be covered by fiscal invoices or receipts and must be related to your trade or business activity.
The eligible costs for Micro Invest include increase in wage costs; furbishing and refurbishing of business premises; and investment costs. There are some costs that are not eligible for Micro Invest, such as purchase of land and property; operating costs; VAT and other recoverable taxes; vehicle accessories and upgrades; spare parts; maintenance costs; subscription and renewal fees; etc.
Don’t miss this opportunity to boost your business with Micro Invest!
Micro Invest is a great opportunity for small businesses and self-employed persons in Malta to get a tax credit for investing in their business. By applying for Micro Invest, you can improve your business performance, competitiveness, and innovation. You can also sustain more jobs and contribute to the economic development of Malta.
If you want to grow your small business or self-employment in Malta, you should consider applying for Micro Invest. This is a tax credit scheme that rewards you for investing in your business, such as increasing your wage costs, furbishing your premises, buying new equipment, or getting certified. You can get up to 65% of your eligible costs back as a tax credit, up to a maximum of €70,000 over three years.
To find out more about Micro Invest and how to apply, contact Ewropa Consultancy at info@ewropa.com.mt or call us on +356 2122 8888.