Government support for businesses extended

Finance Minister Clyde Caruana has announced the extension of a series of measures targeting businesses struggling because of the COVID-19 pandemic, also in view of new restrictions placed on various business activities till the 11th of April.

Minister Caruana stated that the tax deferrals scheme will be reintroduced, and will remain in place until the end of the year. Payments of tax due will start being made as from May 2022.

A one-time concession will also be introduced for business owners who have pending tax balances. These will be exempt from the Capital Gains Tax when selling property to settle the tax owed to the government. This measure expires in March 2022 and will, therefore, apply to those who enter into promise of sale agreements by then.

Other measures include the extension of the moratorium period under the COVID-19 Guarantee Scheme (CGS), which is being extended from 12 to 18 months. The Scheme itself is being extended until the 30th September. Meanwhile, the definition of 'working capital' will be widened to include the financial costs related to the servicing of bank loans of businesses.

Publication date: 25/03/2021