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Malta tax alert: Investment tax credits for the hotel industry


30 May 2013

The Investment Aid Incentive takes the form of investment tax credits, which are computed as a percentage of qualifying expenditure undertaken by companies engaged in qualifying activities. 

For an overview of this incentive and of all the qualifying activities that may benefit from it, kindly access the Investment Aid factsheet using the download button above, where this article is also available in PDF format.

One of the new beneficiaries for Investment Tax Credits under the Investment Aid Regulations is the hotel industry, more specifically:

‘Undertakings whose economic activity consists mainly in the operation or management of a licensed hotel or group of licensed hotels, that invests in the development or upgrading of a licensed hotel, apartment hotel or guest house for the purpose of providing short term hospitality.’

The applicable rate for the investment tax credits for this industry shall be 15 percent of the qualifying capital expenditure, irrespective of the size of the entity.

Although the amended Investment Aid Regulations issued in April 2012 (S.L. 463.02) had stipulated that this incentive will apply to hotels as from 1 January 2012, Malta Enterprise has recently confirmed that the incentive will in fact be eligible for all accounting year ends terminating in 2013.

This incentive to the hotel industry is expected to operate on a similar basis as it does to current beneficiaries in other sectors, amongst which, in the event that the beneficiary is not taxable in the year when the investment is made, the unabsorbed tax credits will be carried forward to be availed of in subsequent years.

The application form to benefit from this incentive can be downloaded from the Malta Enterprise website.


For an overview of this incentive, kindly access the Investment Aid factsheet using the download button above, where this article is also available in PDF format.


For more information please contact:

Mark Grech
Deloitte Malta

Louise Micallef
Deloitte Malta



About Deloitte

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Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte has in the region of 200,000 professionals, all committed to becoming the standard of excellence.

This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the “Deloitte Network”) is, by means of this communication, rendering professional advice or services. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this communication.

© 2013. For information, contact Deloitte Malta.



Mark Grech
Deloitte Malta
Job Title:
Leader Indirect Tax
+356 2343 2704

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