News Share

The Tax Hub

Daily Tax Newsletter

Malta

21 April 2021

Responsive image

Malta Publishes Investment Aid 2021 Regulations Including Tax Credit or Cash Grant

Malta has published Legal Notice 156 of 2021 in the Official Gazette, which contains the Investment Aid 2021 Regulations, 2021.

The regulations provide support for initial investment projects that result in the development, expansion, diversification, or a fundamental change in the carrying out of a qualifying economic activity. An undertaking carrying on or intending to carry out a qualifying activity that may contribute to the economic development of Malta shall be assisted by means of a tax credit (which may be claimed against future tax bills) or a cash grant calculated as a percentage of the qualifying expenditure. A qualifying activity in terms of the regulations is an economic activity consisting of a trade or business the profits or gains from which are chargeable to tax, carried on, or intended to be carried out by an undertaking in Malta which consists solely of one or more qualifying activities as may be prescribed.

The amount of investment aid that may be awarded in terms of the regulation for a specific investment project shall not exceed:

  • 30% of the qualifying expenditure for an undertaking that qualifies as a "Small" undertaking;
  • 20% of the qualifying expenditure for an undertaking that qualifies as a "Medium-sized" undertaking;
  • 15% in respect to initial investment projects carried out by "Small" and "Medium-sized" undertakings in the development of hotels, guest houses, and their amenities as licensed by the Malta Tourism Authority; and
  • 10% of the qualifying expenditure for an undertaking that qualifies as a "Large" undertaking.

The regulations are deemed to have come into force on 1 January 2021.

Applications for assistance under the regulations must be submitted by 31 December 2021. Projects starting before 1 January 2021 or having a start of works prior to the approval of the Malta Enterprise Corporation may only be awarded aid in the form of tax credits. Such projects shall only be considered where the activity was covered by the scheme implemented on the basis of the Investment Aid (July 2014) Regulations.

Powerful Tax Tools

NEW

FX Rates

Global FX Rates including Tax Year Average FX Rates and Spot Rates for all Reporting Currencies.

NEW

Corporate Tax Rates

Corporate tax rates, surtaxes, and effective tax rates for the current year, as well as historical rates and approved future rates.

NEW

Country Analysis

Detailed tax guidance for companies doing business in over 100 countries, including summaries and snapshots of key tax facts and issues.

NEW

Cross Border Tax Calculator

Calculate total tax costs and benefits of a cross border transaction including withholding tax, participation exemption and foreign tax credit rules.

NEW

Cross Border Tax Rates

Provides Domestic, treaty and EU cross border tax rates for over 5,000 country combinations for 9 different payment streams.

NEW

OECD BEPS Project

Complete overview of the OECD BEPS Project, including daily BEPS news, country adoption of BEPS measures, and an overview of the 15 BEPS Actions.

NEW

Tax Calendar

Customizable calendar tool that tracks corporate income tax, value added tax and transfer pricing obligations by country or entity.

NEW

Tax Forms

English translations of key tax forms for over 80 countries, including tax return forms, treaty benefit forms, withholding tax forms, and more.

NEW

Worldwide Tax Treaties

Repository including thousands of tax treaties (in English), OECD, UN and US Models, relevant EU Directives, Technical Explanations, and more.

NEW

Worldwide Tax Planner

Calculates the worldwide tax cost of what-if scenarios based on legal entity structure, taxable income, and cross border transactions.

NEW

Certified Rates Report

Customizable Certified Rates Report providing updated corporate and withholding tax rates at the end of each month for over 100 countries.

NEW

Withholding Tax Minimizer

Enables quick calculation of tax costs and benefits of cross border transactions considering all possible transaction combinations and optimal routes.

NEW

VAT Rates

Provides value added tax (VAT) rates, goods and services tax (GST) rates and other indirect tax rates for over 100 countries.

NEW

NOL Calculator

Country specific calculator to determine how net operating losses can be utilized in carryback and carryforward years.

NEW

Transfer Pricing Calculator

Calculates TP ratios under various TP methods and calculates the difference between target ratios and actual ratios.

NEW

Individual Income Tax Rates

Individual tax rates for over 100 countries.

Play of the Day

Crosss Border Rates

Provides Domestic, treaty and EU cross border tax rates for over 5,000 country combinations for 9 different payment Streams.

We’re here to help

We’re here to answer any questions you have about the Orbitax products and services.

Send us a message

Who’s behind Orbitax?

We’re committed to providing high value, low cost tax research and management solutions.

Learn More