Micro Invest Tax Credits 2017 for Self-Employed Individuals

Individuals carrying on business on a self-employed basis are invited to apply for a tax credit calculated at a percentage of the investments carried out in 2017.

The new deadline for submission of applications for investment carried out in 2017 is 28th March 2018 at 16:00hrs.

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.
  3. New (or first time used in Malta) machinery, technology apparatus and instruments.
  4. Systems intended to produce alternative energy.
  5. Tangible and intangible assets required for digitisation of the business operation such as computer hardware, packaged software solutions and development costs for new software systems, websites and digital applications.
  6. Over a period of three years, investment in one new motor vehicle (or first time registered in Malta) 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 ten of more persons.

As from 2018 (for costs incurred in 2017), an eligible undertaking may also claim cost for the purchase of all new commercial vehicles having the latest European Emission Standard rating (currently Euro 6 (2014)) procured to replace similar vehicles shall be considered as eligible.

The Microinvest Tax Credit is also applicable to companies which are considered micro (did not employ more than 50 employees and whose turnover did not exceed €10 Million in the fiscal year preceding the year in which the application is submitted) and the deadline for such companies is 30th May 2018.

Are you eligible to apply for the Micro Invest Tax Credits? Contact us and we will be able to assist you!