Certify (Tax Credits)

Introduction Certify is a fiscal measure administered by Malta Enterprise (ME) to encourage eligible undertakings to continuously improve the quality of their products, services and processes through the attainment of industry recognised certifications and quality marks.  The scheme is intended to boost awareness of the added value that may be achieved through certification when competing […]

Written By Stephen Balzan

On January 27, 2017
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Introduction

Certify is a fiscal measure administered by Malta Enterprise (ME) to encourage eligible undertakings to continuously improve the quality of their products, services and processes through the attainment of industry recognised certifications and quality marks. 

The scheme is intended to boost awareness of the added value that may be achieved through certification when competing in international markets.  Though this scheme ME may approve a tax credits of up to €25,000 per undertaking to help recover the costs of achieving qualifying  certifications, quality marks, or licences.

The fiscal support that will be available through this scheme should make it easier for undertakings to carry out investments that lead to superior products, services of higher value and more efficient processes.   

Duration of the incentive

This scheme will remain ongoing until 31st December 2017.

The Incentive

This incentive will award tax credits to single undertakings that achieve qualifying Certifications awarded by a Certifying Body.

The Certifications must be required:

  1. To improve the processes, products or services of the undertaking; or
  2. To achieve growth in international markets.

The value of the tax credit shall be 50% of the eligible consultancy and certification costs.  

Tax credits shall only be utilised against profits derived from the relevant trade or business activity.   The tax credits shall be utilised from the first year of assessment following the date of the Incentive Entitlement Certificate issued by the Corporation and any unutilised tax credits may be carried forward to the next two years of assessment.

Maximum Support

The total aid that may be awarded to any single undertaking through this measure is capped at €25,000 for the duration of the Incentive. 

Maximum Aid Intensity

The maximum the aid intensity shall be capped at 50% of the actual eligible costs incurred.  

Eligible costs

Eligible costs must be incurred and paid for on a date which is after the launch of this incentive and prior to the submission of the application form to ME.  

  1. Consultancy Costs – These refer to costs incurred in obtaining consultancy services leading to qualifying certifications shall be considered eligible. These services must be provided by a consultant holding a degree relevant to the Certification and who has at least five years of work experience in a sector similar to the one for which the consultancy is being provided. 
  2. Certification Costs  – These refer to costs incurred and paid to a Certifying Body as may be required by the undertaking to achieve the Certification.  These costs may include first time audits, due diligence or verification service.

How can we help?  

For further information, please contact one of the firm’s tax partners, Stephen Balzan on [email protected] or Elaine Camilleri [email protected]. ACT can help you understand the changes to the tax rules and how these can impact your business.  

Apart from its offices in St. Julian’s Malta, ACT operates from a second office in Gozo, which is situated in the capital city of Victoria.  For an appointment in our Gozo office, please call on 00356 21378672 or send us an email on [email protected]. 

Disclaimer: This article contains general information only and is not intended to address the circumstances of any particular individual or entity. ACT, by means of this article is not rendering any accounting, business, financial, investment, legal, tax, or other professional advice or service. This article is not a substitute for such professional advice, nor should it be used as a basis for any decision or action that may affect your finances or your business. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. Before making any decisions or before taking any action that may affect your finances or your business, you should consult a qualified professional adviser. ACT shall not be responsible for any loss whatsoever sustained by any person who relies on this article.