The Prime Minister of Malta, Dr. Robert Abela, together with the Minister for Finance and Financial Services Prof. Scicluna and with Mr. Silvio Schembri, Minister for Economy, Investment and Small Businesses has announced a number of financial measures to protect the liquidity of businesses at a time when business is being adversely affected by the Coronavirus spread.
The 1st measure is the deferral of tax and VAT payments due in March and April of 2020 to a later date for businesses in Malta. Such liabilities would have to be settled in installments at a later date, which is yet to be defined. This incentive applies to businesses operating through a company or on a self-employed basis. The deferral applies to the payment of (1) provisional tax; (2) VAT; (3) Social security contributions; and (4) Final Settlement System.
The 2nd measure’s aim is to provide assistance to those employers who have invested in systems allowing their employees to telework. Through this incentive, refunds of 45% of the costs incurred, capped at EUR500 per employee will be granted.
The 3rd measure is a promise to accelerate the refunds due by the government to the businesses, such as VAT refunds.
Finally, the Finance Minister, Profs Edward Scicluna, stated that a mini-budget is being put together to readjust financial targets and allocations in view of the country’s current situation. He added that measures aiding employees who may be forced to stay away from work might be introduced at a later stage.
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Publication date: 16 March 2020