Tax schemes deadlines approaching

Businesses benefiting under Investment Aid Tax Credits or the MicroInvest Scheme 2016 are reminded that submissions to Malta Enterprise Corporation are due by 30 March 2017.

In the case of Investment Aid Tax Credits enterprises that obtained pre-approval from Malta Enterprise Corporation (MEC) for an investment project that started before 31st December 2014 are required to submit the Pre-Approval Claim Form for qualifying expenditure incurred during 2016 by 30 March 2017.

Upon submission and processing of the claim form, MEC will issue an Incentive Entitlement Certificate entitling the enterprise to claim investment tax credits on such qualifying expenditure at more beneficial rates - unless and until such certificate is issued, the enterprise may not be able to claim investment tax credits on the relevant expenditure in its income tax return for year of assessment 2017 (financial year 2016).

Download your Pre-Approval Claim form here.

In the case of MicroInvest Scheme 2016, SMEs which are eligible for this scheme are required to apply for approval of eligible costs incurred during the financial year 2016. The submission deadline for self-employed beneficiaries is 30 March 2017 whereas the deadline for companies is 31 May 2017.

This scheme entitles SMEs to a tax credit amounting to 45% (or 65% for undertakings operating in Gozo) of eligible capital expenditure incurred, which tax credit would then be utilised against the tax incurred on income derived from the qualifying trade or business activity for year of assessment 2017 (financial year 2016).