HOW MALTA’S MICRO INVEST TAX CREDIT CAN BOOST YOUR SMALL BUSINESS
If you are a small business owner or self-employed in Malta, you might be eligible for a beneficial tax credit scheme known as Micro Invest. This scheme, administered by Malta Enterprise, aims to support small businesses by offering substantial financial incentives to invest in various aspects of their operations. In this article, we will delve into the details of how you can benefit from the Micro Invest tax credit scheme, who is eligible, the types of costs that qualify, and the potential tax credit you can receive.
What is Micro Invest?
Micro Invest is a tax credit scheme designed to help small businesses and self-employed individuals in Malta to grow, innovate, and improve their competitiveness. By offering a tax credit, the scheme encourages businesses to reinvest in their operations, thus fostering economic development and job creation. The tax credit can cover up to 65% of eligible costs, making it a highly attractive option for small enterprises looking to expand or enhance their operations.
Eligibility for Micro Invest
To benefit from the Micro Invest tax credit scheme, your business must meet specific criteria. Here are the key eligibility requirements:
1. Employee Count: Your business should not employ more than 50 full-time employees.
2. Turnover: The turnover or annual balance sheet total should not exceed €10 million in the previous fiscal year.
3. Employment Status: You must employ at least one person on a full or part-time basis at the date of application.
4. VAT Registration: Your business must be duly registered with the VAT department unless exempted.
5. Business Activities: Your business should not be engaged in excluded activities under the de minimis regulation, such as fisheries, agriculture, or export-related activities.
By meeting these criteria, your business can qualify for the Micro Invest scheme and start benefiting from the tax credit.
How Much Tax Credit Can You Get?
The tax credit you can receive under the Micro Invest scheme depends on your eligible costs and the nature of your business. The basic rate of tax credit is 45% of your eligible costs. However, certain businesses can receive an additional bonus, increasing the tax credit to 65%. Here are the conditions for the additional bonus:
- Location: If your business operates from Gozo.
- Family Business: If your business is registered as a family business.
- Female Ownership: If more than 50% of the ownership is attributed to female persons.
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The maximum tax credit you can receive is capped at €50,000 over any period of three consecutive fiscal years. For businesses that qualify for the additional bonus, this cap is increased by €20,000, bringing the total to €70,000.
Eligible Costs for Micro Invest
To benefit from the tax credit, your business must incur eligible costs between January 1st and December 31st of the year preceding your application. These costs must be supported by fiscal invoices or receipts and should be related to your business activities. Here are some of the eligible costs under the Micro Invest scheme:
However, not all costs are eligible. The following are examples of non-eligible costs:
By understanding these categories, you can better plan your investments to maximize the tax credit you receive.
How to Apply for Micro Invest
Applying for the Micro Invest tax credit scheme involves several steps. Here’s a brief overview of the process: Read more..
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