Micro Invest Tax Credits for Self-Employed Individuals 2024

The deadline for submission of applications for investment carried out by self employed individuals in 2023 has been extended to Wednesday 10 April 2024.

The scheme encourages undertakings (including Start-ups, family businesses and self-employed) to invest in their business, so as to innovate, expand and develop their operations. Undertakings benefitting from this measure will be supported through a tax credit calculated as a percentage of eligible expenditure, which also covers increased in wage costs.

Who is eligible for this scheme?

Applications shall be accepted from individuals who at point of application satisfy all of the following criteria:

not employ more than 50 persons; and
The turnover or annual balance sheet total of the undertaking did not exceed €10 Million in the fiscal year preceding the year in which the application is submitted.
At the date of application, the individual must employ at least 1 person (on full or part time basis)* - In the case of self-employed persons this condition is considered to be met if such self-employment is duly registered with the Jobsplus.
Unless exempted, the individual should be duly registered with the VAT department

What costs are covered by this aid?

Eligible expenditure includes:

1. Wage cost increases that exceed 3% of the highest wage costs of the previous two fiscal years. The eligible value shall be calculated by deducting from wage costs incurred in the relevant fiscal year, the highest annual wage cost incurred in the preceding two fiscal years.

2. Costs incurred for services rendered for the furbishing, refurbishing, and upgrading of business premises by third parties, including costs of materials and other items required for furbishing, refurbishing, and upgrading of the business premises that are endorsed as to have been utilised by the third party providing the services in the works carried out.

The Corporation shall only support costs incurred for the furbishing, refurbishing and upgrading of business premises covered by one of the following Planning Authority licences:
CLASS 2A – Residential Institution - Residence for people in need of care on a temporary or permanent basis, such as a hospital or nursing home.
CLASS 2B – Non-residential institution, such as a museum, library or public hall.
CLASS 2C – Educational institution - school, nursery, day centre, etc.
CLASS 3A – Guest Houses, Palazzini, Boutique Tourism
CLASS 3B – Hotels
CLASS 3C – Assembly and Leisure
CLASS 4A – Financial, Professional and Other Offices
CLASS 4B – Retail
CLASS 4C – Food and Drink Establishments where no cooking is allowed
CLASS 4D – Food and Drink Establishments where cooking is allowed
CLASS 5A – Light Industry
CLASS 5B – General Industry
CLASS 5C – Specialised Industry

CLASS 6A – Storage and Distribution

When Planning Authority documentation is not available (as is the case with establishments that have been operating for several years) Malta Enterprise, at its discretion, may accept any other information to determine eligibility, such as electricity and water bills. The Corporation shall only support costs for the refurbishment of short-term accommodation facilities which must be licenced by a Malta Tourism Authority permit.

3. Investment Costs including:

New (or first time used in Malta) machinery, technology apparatus, and instruments.
New (or first time used in Malta) sea going vessels covered by a commercial vessel licence operator
Systems intended to produce alternative energy or improve energy efficiency unless receiving other state aid support.
Tangible and intangible assets required for the digitisation of the business operation such as computer hardware, packaged software solutions, and development costs for new software systems, websites, and digital applications.
Costs incurred in relation to the undertaking’s websites developments, updates and enhancement, including modifications to existing computer systems and websites to increase accessibility for disadvantaged persons.

4. Costs incurred for the purchase of any Commercial Vehicle procured as new or first time registered in Malta having a European Emission Standard rating of at least Euro 5, as long as such vehicle is:

involved in the carrying of goods (category N1, N2 or N3 motor vehicle); or
special purpose Motor Vehicles; or
any vehicle that is designed specifically for the carriage of 7 or more persons.

Operators licenced to provide passenger transport services holding a licence (Taxi Driver Permit and Tag) from Transport Malta may claim in any rolling three year period the costs incurred for the purchase of a (one) plug-in hybrid (PHEV) or electric passenger vehicle purchased for the provision of passenger transport services. The maximum support for the procurement of motor vehicles powered by a fossil fuel engine shall be capped at 30%. This limitation shall not apply to plug-in hybrid and electric vehicles.

5. Certification Costs - business advisory provided by unrelated parties and the actual certification costs resulting in the attainment or the extension (if applicable) of any of the following certification

i. CE Markings

ii. ISO 9001 Quality Management Systems

iii. ISO 14001 Environmental Management System

iv. ISO 50001 Energy Management

v. ISO 22000 Food Safety Management

vi. HACCP