Thrive X

Micro Invest Scheme 2023

12th April 2023

The Micro Invest Scheme is a government initiative aimed at encouraging self-employed individuals, start-ups, family businesses, and small companies to invest in their businesses. By doing so, they can innovate, expand and develop their operations. The scheme provides tax credits as a percentage of eligible costs incurred in 2022. If you think you are eligible for this scheme, we can help you assess your eligibility and guide you through the application process.

The submission deadlines for the scheme varies according to the type of applicant:

  • Self-employed – 22nd March 2023
  • Companies – 24th May 2023
  • Late submissions – 13th December 2023

The aid Intensity of eligible expenditure also varies based on the type of applicant:

  • General rule–45% tax credit
  • Companies operating from Gozo-65% tax credit
  • Start-up companies operating from Gozo-80% tax credit

The maximum eligible tax credit over a period of 3 Consecutive Yearsare as follows:

  • General rule–€50,000
  • Companies operating from Gozo-€70,000
  • Family business-€70,000
  • Female Owned Business-€70,000

To be eligible for the scheme, the following must be satisfied:

  • Not less than 1 employee and not more than 50 full-tome employees; and
  • Turnover of balances sheet totals not exceeding €10million in the prior year; and
  • Unless exempted, the applicant should be duly registered with the VAT department.

Eligible Costs include the following:

  • Wages
  • Furbishing and refurbishing of business premises
  • Investment costs
  • Motor vehicles
  • Certification costs

Particle Example

ABC Ltd is a startup company that was incorporated in 2022. It has employed 5 new employees in 2022, and the wage costs for the year amounted to €100,000. Furthermore, ABC Ltd has bought 5 laptops costing €7,000. Company ABC Ltd has a tax charge of €60,000 for the year ended 2022.

What is the amount of tax credit available to ABC Ltd?

  • Eligiblecosts: €100,000+€7,000 =€107,000.
  • Tax Credit: €107,000 X 45% = €48,150
  • Tax to pay after tax credit:€60,000-€48,150 =€11,850

The Micro Invest Scheme is a great opportunity for eligible businesses to receive support and funding to grow and innovate. Don’t hesitate to assess your eligibility and apply before the submission deadline.

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