Understanding the Micronvest Scheme: A Catalyst for Business Growth in Malta
What Is the Micronvest Scheme?
The Micronvest Scheme is a targeted initiative aimed at empowering small enterprises to invest in their growth. The scheme supports eligible undertakings by offering tax credits calculated as a percentage of eligible expenditures. These expenditures include increases in wage costs, investments in business infrastructure, and other related costs essential for growth and development.
Eligibility Criteria
To benefit from the Micronvest Scheme, businesses must meet the following requirements at the time of application:
Employee Limit: The undertaking must have employed no more than 50 full-time employees during the year in which the eligible costs were incurred.
Turnover Threshold: The turnover or annual balance sheet total must not have exceeded €10 million in the fiscal year preceding the application.
Minimum Employment: At least one person must be employed by the undertaking on a full-time or part-time basis at the date of application.
VAT Registration: Unless exempt, the business must be duly registered with the VAT department.
Excluded Activities: Activities specifically excluded under the de minimis Regulation (Section 6 of the guidelines) are not eligible for the scheme.
Non-Overlap of Incentives: Businesses that have applied for other investment aid measures cannot apply for the Micronvest Scheme for investments made within the same year.
Type of Aid Provided
The primary support offered under the Micronvest Scheme is tax credits. These credits serve as a significant incentive for small businesses to reinvest in their operations and foster long-term growth.
Eligible Costs
The scheme covers a wide range of expenditures, including:
Increase in Wage Costs: Costs associated with hiring additional staff or increasing current employees’ wages.
Furbishing and Refurbishing of Business Premises: Investments in improving or expanding the business’s physical infrastructure.
Investment Costs: Expenditures related to acquiring new equipment or technology essential for business operations.
Motor Vehicles: Costs of purchasing vehicles for business use.
Certification Costs: Expenses related to obtaining certifications required for business operations or expansion.
Why Consider the Micronvest >For small businesses in Malta, the Micronvest Scheme is more than just financial support; it is an opportunity to:
Drive Innovation: Invest in new technologies and processes.
Expand Operations: Scale up and reach new markets.
Enhance Competitiveness: Stay ahead in a dynamic business environment.
The scheme represents Malta’s commitment to fostering a thriving ecosystem for small businesses, recognizing their critical role in driving economic growth and innovation.
The Micronvest Scheme is a valuable resource for small businesses in Malta looking to take their operations to the next level. By offering tax credits on eligible expenditures, the initiative provides businesses with the financial support needed to innovate, expand, and thrive in a competitive market. If your business meets the eligibility criteria, consider leveraging this opportunity to invest in your future.
For more information and guidance on the application process, feel free to reach out to our team on [email protected].
Fairwinds Management Limited is a MFSA licensed firm offering Business Solutions in Malta. As part of our services, we offer Accounting, Administration, Corporate and Legal solutions. Fairwinds Management also manages the brand Accounting Services. More information about us and our key services please visit our website. You may reach Fairwinds Management on +356 2704 0903 or [email protected].
Article written by Ms Charlene Sciberras, B.A. (Hons), guest writer, a marketing and business administration specialist with a special focus on corporate, accounting, and legal matters.
