Last Updated on Thursday, 5 August, 2021 at 3:11 pm by Andre Camilleri
Malta Enterprise CEO Kurt Farrugia together with Energy and Enterprise Minister Miriam Dalli announced that the MicroInvest scheme has been extended to “provide a further support structure for businesses during the pandemic.”
Since the pandemic started, the government has pledged to support businesses across Malta and Gozo. Dalli said that “18 months later we are meeting once again to further our pledge and continue to invest in our businesses.”
This scheme is applicable for the self-employed, micro enterprises and SMEs employing up to 50 people. Through this scheme, businesses are encouraged to invest in their businesses and part of the money invested would be converted into tax credits.
The investment by businesses could include refurbishment of facilities, new equipment, new vehicles used for work, and also salary increases. The new extension tackles the issue of low sales figures which meant that some businesses couldn’t benefit from the tax credit. Businesses will now have three more years to use their MicroInvest tax credit certificates.
“Our main aim is for businesses to get out of the pandemic stronger than when the pandemic started […] we want to see our small businesses and self-employed reach their ambitions regardless of the pandemic”, Dalli said.
Farrugia built on what Dalli said and gave some details on the MicroInvest scheme. “In total there are 7,000 self-employed and small businesses that are eligible to apply for this scheme. So far since January 2019, €84 million has been provided to businesses through this scheme.”
“This shows us that small businesses are still investing”.
Farrugia said that the MicroInvest scheme has been slightly altered after numerous talks with the stakeholders. The updated scheme is more adapted to the economic environment of today and more green incentives have been added to promote green businesses.
The businesses who can apply for the scheme have to fall under a specific category according to their Planning Authority permit. This means that properties listed under; guest houses, palazzini, boutique tourism, hotels, assembly and leisure are eligible.
Other categories are there for retail, financial, food and drink establishments, offices and all industry premises.
With regards to work vehicles, Farrugia said that the amendments to the scheme promote green vehicles. A business that buys an internal combustion engine could benefit from a tax certificate amounting to a maximum of 30% of the value of the vehicle.
Buying a plug in hybrid or an electric vehicle for your business would entitle the business for a minimum of 45% tax certificate on the value of the vehicle.