As announced in the budget, from 1st January 2018 (for costs incurred in 2017), the maximum eligible tax credits per single undertaking shall be capped at €50,000 over any period of three (3) consecutive fiscal years, starting from eligible expenses incurred and paid for during the period from 1 January 2017 to 31 December 2017.
The capping shall be increased by €20,000 (to a total of €70,000) for companies:
a) operating from Gozo;
b) registered as Family Business; and
c) having more than 50% of the ownership attributed to female persons.
In case of partnerships the eligible amount will be split according to ownership.
Hence, as an example, in case of a partnership where ownership is split equally between two persons, two Incentive Entitlement Certificates, each equivalent to 50% of the approved tax credits will be issued to the persons forming the partnership. Legal persons forming part of multiple partnerships and that may also be carrying out other activities through self-employment may receive support through the different undertakings in which they are active but may not benefit from a tax credit which exceeds the relevant maximum capping as established above.