Grants and tax credits for research and development

Companies from all sectors can apply for cash grants or tax credits if they invest in research and development under a new set of schemes launched yesterday.

The package includes eight different schemes that together promote industrial research and experimental development in all enterprise.

"Research and development are very important for Malta's economic development. What these schemes aim to achieve is to encourage enterprises, of all sizes, to get more involved in research, in order to come up with new products and make Malta more competitive," Finance Minister Tonio Fenech said during the launch.

The eight-scheme package is funded by the EU and government and managed by Malta Enterprise.

The package includes five schemes based on cash grants, worth €4 million in all, and another three schemes based on tax credits. The cost of the tax credit schemes could not be quantified since anyone eligible would benefit from the credit that ranges between 25 per cent and 80 per cent of costs incurred, depending on the company size, project type and scheme.

The three tax credit schemes help companies in all sectors carry out industrial research, experimental development and register industrial property rights.

The cash grant schemes include an Industrial Research and Experimental Development Scheme, worth €3.5 million.

Through this scheme companies are given grants, up to a maximum of €300,000, to carry out industrial research and experimental development projects.

The Eureka Scheme helps companies undertake cross-border collaborative research with other EU companies and are refunded between 40 and 60 per cent of cost, depending on the size of the enterprise.

The Preparatory Technical Feasibility Studies Scheme provides funds for studies into research feasibility and is capped at €50,000 per project; the Loan of Highly Qualified Personnel Scheme helps companies cover the cost of experts needed for the studies and is capped at €15,000 for every person seconded; while the Innovation Clusters and Collaborations Scheme provides financial help for collaboration between companies.

For more information one may visit http://support.maltaenterprise.com/RD/