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R&D claims preparation

The government offers a variety of tax and non-tax incentives to encourage and attract investments in innovation, research and development (R&D), infrastructure, employment expansion and sustainability. In addition, grants and incentives helps to advance a broader and more dynamic range of policy priorities.

Research and development (R&D) incentive schemes have been introduced to encourage scientific and technological innovation within Malta. A range of incentives are available to provide tax credits or cash grants, to business of all sizes that are involved in innovation.  

Deloitte’s Gi3 practitioners can assist in the development and execution of an end-to-end government incentives strategy.

Is my business eligible for R&D incentives in Malta?

R&D can take place in any sector. It is not only restricted to activities carried on in a laboratory, but it might consist of work that a company is carrying on in its day to day activities, such as developing a new product, process or service or changing/modifying an existing product, process or service. Generally, qualifying R&D activities must seek to achieve scientific or technological advancement and involve the resolution of scientific or technological uncertainty. Identifying and quantifying eligible activities for the purpose of R&D incentives may be quite complex but with potential savings of 25%- 70% (depending on size of the enterprise) of eligible costs, it is worth assessing whether your business carries on any eligible R&D activities.

Collaborative R&D projects which meet the qualifying criteria are also supported by increased assistance in the form of tax credits and/or cash grants of 40%-80% of eligible costs (depending on the size of the undertaking).

Is your business an SME?

The EU Definition of a Small or Medium Sized Enterprise (SME*) consists of the following:

  • Less than 250 employees; and either
  • Revenues no greater than €50m; or
  • Total assets no greater than €43m

How can we help?

Identifying eligible R&D activities and preparing robust supporting documentation is often unfamiliar territory for businesses who may not have the resources needed to complete the paperwork required to file a claim. Deloitte can assist with the whole process from scoping through document preparation and submission. Deloitte combines deep tax technical expertise with highly experienced scientists and engineers so that the multiple aspects of an incentive claim are understood and considered. We utilise technology based solutions worldwide to create a smooth process with increased transparency and to facilitate compliance with regulatory changes.

To deliver R&D and government incentives services Deloitte has an Incentives Insight methodology. This is powered by I Smart technology, streamlining and accelerating the gathering and processing of data and information needed to make informed business decisions regarding credits and incentives claims.

To take advantage of the grants, credits and incentives available to a business requires time and effort. Deloitte's Gi3 teams are highly experienced in the practicalities of preparing, negotiating and agreeing with such applications from initial feasibility reviews to document submission. Deloitte's knowledge and experience in this specialised area provides clients with the confidence of knowing that the incentives which can impact their cost of business have been considered and evaluated.

Deloitte delivers Gi3 services using the Incentives Insight methodology. It is powered by I Smart technology, streamlining and accelerating the gathering and processing of data and information needed to make informed business decisions.

R&D claims and Government Incentive applications often receive intense regulatory scrutiny. Deloitte provides assistance in resolution of any such audits as well as support related to claims and information requests or objections from relevant government bodies. Our teams include former officials with various regulatory agencies who have an in depth understanding of the regulatory processes.

Deloitte Gi3 understands the global dynamics that affect the funding of your innovation and investment strategy.

Global reach
Gi3 lets you see the broader playing field by identifying incentive opportunities available to your company.

Technology at the centre
Leverage technology for operational efficiency and for a clear vision of relevant opportunities.

Industry experience
Gi3 professionals globally know and understand your industry, your business language and your technology language.

Lifecycle view
Each incentive must be considered in the context of the investment and innovation lifecycle to realise the full financial and commercial benefit.

Leveraging the ecosystem
Innovation does not happen in a vacuum. Connecting with the relevant government bodies and research institutes will propel your innovation capability. The power of our network helps you build winning relationships.

Thought leadership
Governments across the globe seek the insights of Deloitte people to help in the development and design of their own incentive policies.

Deloitte network
Deloitte's broad range of specialised services is available to help you consider the impact of incentives on your wider tax, financial and commercial activities so you can further enhance and accelerate your business opportunities.

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