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:
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