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.
R&D Support ERDF Research &Development Grants Research &Development Tax Credits Collaborative Research &Development Grants
R&D Incentives • Tax Credits • ERDF Grants Collaborative R&D 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
R&D Incentives • Tax Credits • ERDF Grants Collaborative R&D Personnel Costs Personnel Costs Personnel Costs New Equipment (Depreciation costs) New Equipment (Depreciation costs) Equipment (Depreciation costs) Building (Depreciation costs) Materials Materials Materials Subcontracting up to 25% of Project Subcontracting up to 25% of Project Subcontracting up to 25% of Project Overheads up to 10% of Project Overheads up to 10% of Project
Industrial Research R&D Incentives Aid intensity Industrial Research • Experimental Development • Tax Credits • ERDF R&D Grants • Collaborative R&D + plus 10% collaboration bonus * plus 15% collaboration bonus
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 Notification to Potential applicant R&D Pre-Check Application form DETERMINATION whether project is R&D R&D Application Letter of Approval Evaluation -------- Approval START PROJECT