Malta’s Covid Recovery Budget
The recent Covid pandemic has brought the world’s economy to an unprecedented slowdown, only coming close to the great depression of the 1920s. Due to the push towards social distancing which has led to the reduced operation of some businesses, with many having to adapt.
Therefore, the government has come up with multiple business incentives and grants to lessen the strain on cashflows and to aid businesses in general.
Wage Supplement
The wage supplement which was previously set to expire at the end of June has been extended until the end of September. However, this €800 grant is only available to business which form part of air transport, events organizers, language schools, travel agencies, hotels and other forms of touristic accommodation.
Sectors which were previously eligible for €800 and are not included in the list above are now eligible for €600 grant.
Commercial Utilities
For the period between July and September the government will be paying half of all water and electricity bills. This will be capped at €1,500 per applicant.
Rent
Businesses that fall under Annex A and Annex B are eligible to receive a one time grant up to €2,500.
Fuel
The price of Fuel has been reduced by 7c per litre. The price of petrol now lies at €1.34 per litre, whilst diesel now costs €1.21 per litre.
Commercial licenses
Commercial licenses paid to the Malta Tourism Authority (MTA) and to the Commerce Department are now eligible to be refunded. This includes street hawkers, tourist guides, restaurants, hotels and ironmongers amongst others.
Tax credits
The Malta Enterprise credits under the scheme for micro invest can now be converted into cash grants (up 30%).
Business adaptation fund
Each company is now eligible for a maximum of €5000 to help their business adapt their business model to the new reality.
This scheme is being carried out through Malta Enterprise.
Skills Development Scheme
Malta Enterprise is also distributing funds aimed at aiding companies to provide their training in house. Companies must employ less than 50 employees to be eligible for this scheme.
International fair refunds
Businesses can now recoup 80% of their lost expenses if they were set to participate in an international trade fair.
Advertising
A €5 million fund has been set up to aid Maltese companies to advertise Maltese products both in the local and international markets.
Taxes
The tax deferral scheme has been extended over a period of one year. This applies to all the taxes mentioned in the original deferral except social security and employee taxes (which are to start to be collected as at 1st July 2020).
Property
The income tax on the sale of property will be reduced to 5% whilst stamp duty will now be charged on 1.5% for the first €400,000 on contracts. The cut off point for this is contracts published by the end of March 2021.