Seed Investment Tax Credit Scheme Launched

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The Seed Investment Tax Credit Scheme was officially launched on Friday July 22nd, 2016. The applications for such scheme became available on August 1st, 2016. This scheme will grant tax credits to natural persons resident, or operating in, Malta of a maximum tax credit of €250,000 per year when investing in start-ups, who bear the full risk in respect of the investment made, being either Malta resident persons or EU/EEA non-resident persons. These must have at least 90% of their worldwide income derived from Malta, and who invest in start-up businesses between January 1st 2016 and December 31st 2018.

Thus, a company will be recognised as a once satisfying the following cumulative conditions:

  • It must be incorporated in Malta or controlled and managed from Malta, or has a place of business in Malta;
  • It has been in existence and engaged in carrying out qualifying activities for a period not exceeding three years following its first commercial sale;
  • It is not listed on any recognised stock exchange;
  • It has a maximum of ten employees;
  • It has gross assets of not more than €250,000 immediately preceding the issue of equity shares to the qualifying investor; and
  • It has been duly issued with the relative compliance certificate by the competent entity in terms of these rules.

Companies wishing to obtain financing must submit an application for determination of eligibility with MIMCOL.