In the dynamic landscape of business innovation and expansion, the Micro Invest Scheme emerges as a cornerstone initiative by Malta Enterprise, aimed at strengthening the growth of a wide array of business entities, including startups, family-run businesses, and self-employed professionals. This scheme has been recently re-launched.

Program Overview and Benefits:

The Micro Invest Incentive Program is meticulously crafted to incentivize investment in business innovation, expansion, and operational enhancement. It offers:

• Tax Credit Incentives: Businesses are eligible for a tax credit, constituting 45% of eligible expenditures. Enterprises based in Gozo receive an additional 20% bonus, culminating in a 65% tax credit.
• Duration: The incentive is in effect until December 31, 2026, covering expenses incurred from January 1, 2023, to December 31, 2024.

Eligibility Criteria:

To be eligible for this scheme in, businesses must:

• Employed no more than 50 individuals during the year in which the expenditure has been incurred.
• Employ at least one employee by the application's submission date (on full-time or part-time basis).
• The annual turnover or balance sheet does not exceed €10 million in the prior fiscal year.
• Be duly registered with the VAT Department, unless exempted.

Eligible Expenditure:

The program delineates a comprehensive array of expenses eligible for the tax credit, notably:

• Wage Cost Increase: Expenses exceeding a 3% increment of the highest wage cost from the previous two fiscal years.
• Business Premises Upgrade: Costs related to the refurbishing and enhancements of business premises, executed by third parties.
• Investment in Equipment and Technology: Expenditures on new machinery, technology, and systems for digitization and energy efficiency.
• Development of Digital Assets: Expenses incurred in developing new software, websites, and digital applications.
• Purchase of Motor Vehicles: Acquisition of commercial vehicles that align with specified set of standards.
• Certification Costs: Costs associated with attaining certifications relevant to the business, such as CE markings, ISO certifications, and HACCP. These may include business advisory services from unrelated parties and the actual certification costs.

Application Deadlines:

• Self-employed Individuals: March 27, 2024, for tax returns submitted in June.
• Companies: May 29, 2024, for tax returns submitted in September.
• Late Submissions: Acceptable until November 27, 2024, with specific conditions affecting the issuance of the Incentive Entitlement Certificate based on the timing.

Advisory Services:

Our advisory unit specializes in navigating the complexities of the Micro Invest Incentive Program, offering services that include:

• Eligibility Assessment: Comprehensive review of your business profile to ascertain eligibility.
• Application Support: Assistance in preparing and submitting applications within stipulated deadlines.
• Strategic Planning: Advice on optimizing eligible expenditures to maximize tax credit benefits.
• Documentation and Compliance: Guidance on maintaining requisite documentation and adhering to program regulations.

Engage Our Expertise:

Leveraging the Micro Invest Scheme can significantly impact your business's growth trajectory. Our advisory unit is here to ensure that your enterprise not only meets the eligibility criteria but also strategically positions itself to benefit optimally from this incentive. Contact us to explore how we can facilitate your business's journey towards innovation and expansion through the Micro Invest Incentive Program.

PKF Malta Business Grant Scheme Brochure: https://pkfmalta.com/media/l4xjfl00/grant-scheme-2023.pdf 

Should you require further information in relation to the above, please get in touch with Andrew Sciberras on andrew.sciberras@pkfmalta.com.