MALTA Law and Practice Contributed by: Dr Josef Cachia Fenech Gonzi and Cherise Abela Grech, GTG Legal
enhance competitiveness and broaden mar - ket reach. Eligible projects encompass vari - ous categories, including the establishment, expansion and modernisation of activities such as manufacturing, software develop - ment, waste recycling, research and devel - opment and audiovisual productions. Addi - tionally, the scheme supports environmental initiatives, innovative start-ups, employment of workers with disabilities, collaborative projects, upgrading of industrial sites and hotels, artisanal facility enhancements, busi - ness re-engineering, digital transformation, and market access and certification efforts. Applicants can receive assistance in the form of tax credits, cash grants or a combina - tion of both, covering up to 75% of eligible expenses, with a maximum of EUR300,000 per single undertaking over a rolling three- year period. Eligible costs include wages, rental fees, advisory services, as well as the acquisition of tangible and intangible assets. • Research and Development Scheme: also offered by Malta Enterprise, this scheme aims to support businesses in conducting industrial research and experimental develop - ment projects. This initiative aims to address scientific or technological uncertainties, fostering the creation of innovative products and solutions. Eligible enterprises, including limited liability companies, partnerships and co-operatives, can receive aid in the form of cash grants or tax credits. The assistance covers a percentage of eligible costs, such as personnel wages, equipment, contractual research and other operating expenses, with aid intensities varying based on the project’s nature and the size of the enterprise. • Innovate (Innovation Aid for SMEs) Scheme: the scheme aims to bolster innovation among SMEs in Malta. This initiative provides finan - cial support for projects that lead to prod -
uct, process or organisational innovation. Eligible SMEs can receive funding covering up to 50% of qualifying costs, capped at EUR250,000 per application. For specific innovation advisory and support services, funding can reach 100%, with a cap of EUR220,000 over a three-year period. The scheme supports expenses related to the secondment of highly qualified personnel, innovation advisory services and innovation support services. Applications must be sub - mitted before the project commences, with projects required to start within 12 months of approval and complete within a maximum of 36 months. • Exploring Research Grant: offered by Malta Enterprise, this grant is designed to assist businesses in conducting feasibility studies for prospective R&D projects. These stud - ies aim to evaluate the technical, operational and commercial viability of proposed R&D initiatives, helping enterprises identify poten - tial risks and necessary resources. Eligible applicants include limited liability companies, partnerships and co-operatives that are not defaulting on income tax, VAT and social security payments, and are not classified as undertakings in difficulty. The grant pro - vides up to EUR100,000, covering a varying percentage of eligible costs, being 50% for large enterprises, 60% for medium-sized enterprises, and 70% for small enterprises. Qualifying expenses encompass wage costs for researchers and technical staff, costs for contractual research and technical knowl - edge, and other operating expenses directly related to the feasibility study. 4.2 Tax Treatment In Malta, investments in growth, start-up or VC fund portfolio companies are subject to specific tax treatments designed to encourage such
346 CHAMBERS.COM
Powered by FlippingBook