Research and Development (2024) Regulations

By means of Legal Notice 53 of 2024, the Government of Malta has published the above-mentioned rules which came into force on 1st January 2024.   The aim of these rules is for Malta Enterprise to assist undertakings that require assistance to carry out a project for the execution of experimental development and, or industrial research.  […]

Written By Stephen Balzan

On March 20, 2024
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By means of Legal Notice 53 of 2024, the Government of Malta has published the above-mentioned rules which came into force on 1st January 2024.   The aim of these rules is for Malta Enterprise to assist undertakings that require assistance to carry out a project for the execution of experimental development and, or industrial research.  The assistance will take the form of a tax credit or a cash grant or a combination thereof in accordance with the terms and conditions set out in the published Guidelines.

The assistance provided shall not exceed 80% of the eligible costs and any unabsorbed tax credits may be carried forward for the subsequent years of assessment.

The maximum aid that may be awarded is primarily determined according to the size of the enterprise in line with the below table:
 

SizeMaximum Aid for industrial researchMaximum Aid for experimental development
Large Enterprises50% of eligible costs25% of eligible costs
Medium Enterprises60% of eligible costs35% of eligible costs 
Small Enterprises70% of eligible costs45% of eligible costs


Maximum aid entitlement may be increased by 5% – 25% subject to the satisfaction of a number of conditions in relation to the project, as stipulated in the guidelines. 


Eligible costs include:

  • Wages of researchers, technicians and other supporting staff to the extent that they are employed on the project;
  • Costs of instruments and equipment required for the project, to the extent and for the period used for the project. 
  • Costs of contractual research, technical knowledge and patents bought or licensed from outside sources at arm’s length conditions, as well as consultancy and equivalent services used exclusively for the research project. 
  • Costs of buildings and land, to the extent and for the duration period used for the project.
  • Additional overheads and other operating expenses, including costs of materials, supplies and similar products, incurred directly as a result of the project.

No assistance shall be granted by Malta Enterprise after 31st December 2026.

If you need any help or assistance with the above-mentioned, please do not hesitate to contact us on [email protected]

How can we help?  

 

For further information, please contact us on [email protected]. ACT can help you understand the changes to the income tax, accounting, corporate and VAT 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 +356 21378672 or send us an email on [email protected].