Research and Development Incentives

R&D Incentives

Pre R&D

Loan of Highly Qualified Personnel

Technical feasibility studies

Post R&D

Tax Credits for Patent Registration

(SMEs only)

Exemption from Patent Royalty Income

R&D Projects

ERDF Research &Development Grants

Research &Development Tax

Credits

Collaborative Research &Development Grants

General Concepts

• Malta Enterprise supports Industrial Research and Experimental Development projects.

• The aid intensity depends on the type of R&D activity and the size of the enterprise.

• Aid is project based, thus it is limited to the scope and duration of the project.

• All R&D aid should be pre-approved (Applicants should have their project approved before they commencing work on the project)

Pre R&D Support

Loan of Highly Qualified Personnel

Technical feasibility studies

Loan of Highly Qualified Personnel

The scheme is intended to support SMEs that plan to carry out an industrial research and experimental development project by helping them increase their capabilities to innovate through the temporary attachment of qualified personnel.

• The aid is provided in the form of a cash grants financing up to 50% of the wages paid to seconded personnel or the fees charged by the large undertaking from where the personnel was seconded.

• The maximum grant is of €15,000 per annum.

• The secondment must cover a period shorter than 36 months.

Loan of Highly Qualified Personnel

An agreement must exist between the SME receiving the seconded personnel and the research organisation or large enterprise specifying the terms and conditions of the loan or secondment.

Highly qualified personnel are researchers, engineers, and designers with a tertiary education degree and at least five years of relevant professional experience.

The seconded personnel:• must be employed in a newly created function within the SME.

• must have been employed for at least two years in the research organisation or the large enterprise, which is sending the personnel on secondment.

• must work on R&D&I projects within the SME receiving the aid

Technical feasibility studies

Research & Development projects are associated with high risk, hence enterprises may undertake a technical feasibility studies to determine that the key elements of the proposed research project are based on sound principals.

This scheme provides part financing of wage costs and other cost incurred for attaining the required technical knowledge in the preparation of a technical feasibility study.

Technical feasibility studies leading to:

Enterprise Size

Industrial Research

Experimental Development

SMEs 75% 50%

Large 65% 40%

Maximum grant of up to €50,000

R&D Support

ERDF Research &Development Grants

Research &Development Tax Credits

Collaborative Research &Development Grants

R&D Incentives

Tax credits supporting all any Industrial Research and Experimental Development

Projects

To support cross border

collaboration with

undertakings from other EU

member states.

Competitive Cash grants for

Industrial Research and Experimental Development

Project

Tax Credits Collaborative R&DERDF Grants

R&D Incentives

Tax Credits Collaborative R&DERDF Grants

Personnel Costs Personnel Costs Personnel Costs

Equipment (Depreciation costs)

New Equipment(Depreciation costs)

New Equipment(Depreciation costs)

Building(Depreciation costs)

Materials Materials Materials

Subcontractingup to 25% of Project

Subcontractingup to 25% of Project

Subcontractingup to 25% of Project

Overheadsup to 10% of Project

Overheadsup to 10% of Project

Expe

rimen

tal

Dev

elop

men

tIn

dust

rial

Rese

arch

R&D Incentives Aid intensity Industrial Research

Tax Credits

Small 70% +

Medium 60% *

Large 50% *

Small 45% *

Medium 35% *

Large 25% *

+ plus 10% collaboration bonus * plus 15% collaboration bonus

ERDF R&D Grants

Small 70%

Medium 60%

Large 50%

Small 45%

Medium 35%

Large 25%

Collaborative R&D

Small 60%

Medium 50%

Large 40%

Post R&D Support

Patent Registration Tax Credits

SME registering intellectual property (obtaining and validating patents rights) in relation to knowledge gained through Industrial Research and Experimental Development projects are eligible for a tax credit covering (between 35 and 60%) of :• Costs preceding the grant of the right incurred for:

– the preparation, filing and prosecution of the application of the right in the first legal jurisdiction

– renewing the application before the right has been granted

• Translation costs incurred in order to obtain or validate the IP right in other legal jurisdictions

• Costs incurred in defending the validity of the right during the official prosecution of the application and possible opposition proceedings, even if such costs occur after the right is granted.

R&DApplication Process

R&D Pre-Check Application form

DETERMINATION whether project

is R&D

Notification to Potential applicant

Evaluation--------

Approval

Letter of Approval

STARTPROJECT

R&D Application