Following the COVID19 Pandemic, on 8th June 2020 the Government of Malta announced an additional financial budget for 2020 aimed at the regeneration of the Maltese economy, which will facilitate the next step towards normality through a number of tax cuts and spending stimulus.
Property and Construction
- Property Transfer Tax will be reduced from 8% to 5% for sellers – applies to contracts concluded between 1st June 2020 up to 31st March 2021.
- Transfer duty will be reduced from 5% to 1.5%, applies to contracts concluded between 9th June 2020 up to 31st March 2021.
- Support to upgrade construction machinery and increase sustainability, businesses can receive a cash grant of up to €200,000.
- Business which are directly dependent on the tourism, such as tourist accommodation, language schools, travel agencies, air transport and organizers of mass events, will continue to receive the COVID-19 wage supplement of €800 per month (full timers) and €500 per month (part timers) until the end of September 2020.
- Other business which are listed under Annex A of the COVID wage supplement scheme and are currently receiving €800 a month, will have the supplement reduced to €600 per month for full timers and €375 for part timers. This will be retained until the end of September 2020.
- Annex B businesses will continue to receive the wage supplement until the end of September.
- Pensioners and students who receive other sources of income apart from their pension/stipend will also be entitled to the wage supplement until the end of September.
Support for businesses
- Rent subsidy: Cash grant of up to €2,500 to cover rental costs – applies to businesses listed under Annex A and Annex B of the COVID wage supplement scheme.
- Electricity bill refund: Equivalent to 50% of the electricity consumption costs (capped at €1,500) will paid to businesses for the months of July, August & September – applies to businesses listed under Annex A and Annex B of the COVID wage supplement scheme.
- 30% of MicroInvest Tax Credits available to businesses during 2020 will be converted into cash grants up to a maximum of €2,000 per application. In the case of Gozo, the capping will be increased to that of €2,500 per application.
- Cash grants of up to €5,000 to help businesses in Malta to develop new business plans.
- Trade Licenses payable to the Commerce Department for 2020 will be waived in full.
- From 1 June to 31 December 2020, refund of 33% on port charges and 10% in container discharge fees incurred on the import and export of goods.
- Reimbursement of up to 80% of costs with respect to cancelled international fairs, grants will be capped to a maximum of €10,000.
- Export credit guarantee scheme to encourage investment towards exports to new markets.
- An advertising fund will be created for local businesses.
- Fund to support to local NGOs and nursing homes.
- Support to Media Houses will be retained until the end of September.
Deferral of Tax Payments
- National Insurance, Income Tax and Maternity Contributions will now start to be paid as of 1 July 2020.
- Provisional tax and VAT have been deferred to the end of August.
- Companies can pay the deferred tax by May next year with no interest charged.
Further Social Measures
- A 7-cent reduction in the price of petrol and diesel.
- €100 voucher per person aged 16 and over to be spent on licensed accommodation, restaurant or business that closed by the Superintendent of Public Health.
- Tax refund cheques to all workers who were employed during 2018.
- The in-work benefit threshold will be extended and a one-time grant of €250 will also be given to each family that is already receiving the in-work benefit.
- Cash grant of €2,000 for couples who had to postpone their wedding.
For any further information required, please contact Markita Falzon: email@example.com