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MALTA ENTERPRISE
Recent amendments for SMEs and start-ups
by Malta Enterprise
Malta is rapidly gaining international
recognition as a brand denoting
excellence in a number of sectors,
including the pharmaceuticals,
life sciences, advanced manufacturing, fintech,
aviation and ICT amongst others. In order to help
such enterprises, particularly SMEs to improve
their competitive edge further, Malta Enterprise,
as the country’s economic development agency,
tasked with attracting new foreign direct
investment as well as facilitating the growth
of existing operations, has developed various
incentives for the promotion and expansion of
industry and the development of innovative
enterprises. A series of new schemes have been
launched and a number of other schemes were
a work in progress.
Startup Advance
Following the success of the B.Start scheme, through
the Startup Advance scheme, Malta Enterprise will be
now extending its seed funding support to small startup
undertakings that are in the process of consolidating
a business operation that has demonstrated market
potential and is deemed as economically feasible and
innovative. The Corporation may award a maximum
grant of €100,000. Similarly to B.Start, the grant shall
be disbursed at three month intervals. Beneficiaries
are required to submit to the Corporation periodic
reports on the progress achieved highlighting any
changes to the original plan.
In order to be eligible, the applicant must employ a
minimum of two full-time employees at application
stage and must be proposing products and/or services
that have potential to be marketed and distributed
internationally. Moreover, products produced and/
or services offered must be new or substantially
improved compared to the state of the art in the local
industry. The activities of the start-up undertaking
must be linked to the knowledge of the Key Promoters.
It is expected that key persons engaged in the startup
have the academic background required and/
or hands on experience in the relevant sector. The
scheme is open to a number of industries which
include manufacturing, information technology, R&D,
biotechnology, pharmaceuticals, and the creative
industries amongst others.
Deduction for Transportation Cost of Employee
Together with Transport Malta and the Inland
Revenue, Malta Enterprise has collaborated on an
incentive for enterprises providing transport for
their own employees. Any enterprise may claim a
deduction against its income equivalent to 150% of
the employee transportation costs incurred in the
relative year.
In respect of any year of assessment, the deduction
referred to above may only be claimed on the lower
of: (i) €25,000 of the employee transportation costs
incurred by the undertaking in the year preceding
the year of assessment; or (ii) €300 per employee
whose transportation costs have been incurred by the
undertaking in the year preceding the year of assessment.
Amendments to the Micro Invest Scheme
The Micro Invest scheme is still one of the
most popular schemes to be implemented and
administered by Malta Enterprise Corporation. In
2018, only electronic application forms submitted
through the portal are being accepted.
With companies facing numerous challenges to
maximizing their potential and reducing costs,
the Micro Invest Scheme is a perfect aid to
entrepreneurs. Self-employed persons, companies
and partnerships will be supported through a tax
credit amounting to 45% (65% for undertakings
operating from Gozo) on the eligible expenditure.
However, as from 2018 the maximum assistance has
been increased by €20,000. Enterprises based in
Malta may benefit of up to €50,000 over any period
60 Spring 2018