After hundreds of companies have benefitted from the myriad of financial and fiscal benefits that Malta offers, the 2013 Malta Budget seeks to build on the success of previous years by further enhancing the fiscal and financial incentives for the conducting of research and investment.
Hailed as having been key for companies conducting Research and Development activities in Malta, the 2013 Budget builds on previous budgets and allocates €42 million in schemes aimed at supporting R&D and innovation as well as other activities such as international competitiveness, innovation, e-Business, R&D, environment and start-ups. Companies that have, in the past, been assisted through such schemes include companies operating in the bio-technology, pharmaceutical, healthcare, automotive, maritime, ICT, software and electronics industry.
Commitment to investment in the National Research and Innovation Fund has been re-affirmed. To date, over €6 million have been invested in the said fund. National funding for research and innovation projects has seen a twofold increase over the past two years with the annual report of the Malta Council for Science and Technology for 2012 describing the commitment to this field as one of Malta’s achievement in the innovation and research area.
Further continuation of investment in the Interactive Science Centre is planned. This Centre is aimed at further attracting more persons, particularly students, to pursue studies in sciences and thus, increase the human capital that Malta offers to companies that set up a new business or relocating existing business to Malta.
The property sector has also been allocated a number of reforms. The choice of paying capital gains tax or a 12 per cent final withholding tax on a sale of property is being extended from seven to 12 years. Furthermore, stamp duty on the transfer of property from parents to children is to be abolished and the 3.5 per cent stamp duty ceiling for first-time buyers has increased to €150,000 from €116,468.
Incentives for businesses were also announced, amongst which the maximum rebate given for international films being produced in Malta being increased from 20 per cent to 23 per cent – or 25 per cent if Malta is featured as Malta.
Another important announcement was that the Micro Invest Scheme has been extended for a further two years and is now available for companies that employ up to 30 personnel, up from the previous threshold of 10. The former shipbuilding site in Marsa is also to be transformed into a maritime park.
