Investment Aid Tax Credits

Investment Aid Tax Credits

The tax advisors’ team at GCS Malta are highly experienced and professional as they keep up to date with current news in order to offer their clients the best service. This article outlines the purpose of Investment Aid tax credits.

The purpose of Investment Aid tax credits is to sustain the regional industrial and economic development of Malta. It encourages the setting up of new establishments and the expansion and development of existing businesses.

The Investment Aid provided under these guidelines calculated as a percentage of qualifying expenditure incurred may take the form of tax credits and/or cash grants.

The guidelines came into effect on 1st January 2018 and shall remain effective until 31st December 2020 unless reviewed or updated.

In order to be eligible for this incentive, undertakings must be small and medium-sized enterprises who operate in Malta and must be incorporated in the European Union as a partnership en nom collectif, en commondite or a limited liability company, co-operative, family business or a similar setup.

The principal beneficiaries are enterprises engaged in:

•    Manufacturing;

•    Information and communication technology;

•    Call centre activities;

•    Research and development, and Innovation;

•    Eco-Innovation, waste treatment and environmental solutions;

•    Biotechnology;

•    Facilities for filming and audio visual productions;

•    Provision of tertiary education in the fields of science and technology;

•    Provision of private healthcare services;

•    Freeport and logistics operations;

•    Hotels, resort hotels, suite/apartment hotels or guest houses;

•    Restoration of works of art and antiques but, excluding restoration of buildings and structures;

•    Knowledge-intensive business services;

•    Cultural restoration on works of art and antiques, but excluding immovable property;

•    Facilities for large scale cultural, creative and trade events; and

•    Packaging on an industrial scale through automation.

Enterprises engaged in the following activities are disqualified from Investment Aid:

1.    Enterprises engaged in the sale of their products by retail;

2.    Non-value adding processes including dividing, sorting, packaging and mixing without changing the character of the good, drying, labelling, or other similar processes or any combination of such processes to goods which are acquired in bulk merely to prepare those goods for sale or distribution, unless such processes are analogous to a manufacturing activity; and

3.    Preparation of food in the course of catering unless carried out as part of a hotel or guest house activity.

Applicable Aid Intensity

Type of undertaking 1st July 2014 – 31st December 2017 1st January 2014 – 31st December 2020
Small 35% 30%
Medium 25% 20%
Large 15% 10%
Hotels 25% Small 15%
    Medium 15%
    Large 10%

Why choose GCS Malta?

GCS Malta is a corporate service provider that offers all corporate services under one roof for clients both onshore and offshore. With various experience, our tax advisors’ team are highly qualified and reliable to provide you with the best service. Get in touch with our tax advisors by sending us an email on [email protected]

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