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COVID-19: Financial Incentives announced by Maltese Government

Due to recent developments in relation to the COVID-19 outbreak and its effects on the general economy, the Maltese Government has announced a number of initiatives.

COVID-19 Financial Aid Package

The Maltese Government announced a one point eight billion (€ 1.8 billion) financial aid package intended on alleviating some of the struggles to be faced both by individuals and employers due to the disruption COVID-19 is bringing about:

  • Tax deferrals;
  • Bank guarantees;
  • A health budget increase of thirty-five million (€ 35 million); and
  • Subsidies relating to special leave, rent, loss of employment and disability.

Tax Deferral

The Maltese Government announced a tax deferral scheme intended on postponing the payment of:

  • Social security contributions;
  • FSS Tax;
  • VAT; and
  • Provisional Tax.

Effectively, enterprises and self-employed individuals operating in the tourism, hospitality, transport and manufacturing industries have been granted a two-month extension for the payment of such taxes.                

Remote Working Grant

The Malta Enterprise has also announced a call for applications designed to assist employers in providing teleworking arrangements to their employees. The grant intends to support employers investing in technology for the purpose of enabling teleworking and in cases when: (i) a formal teleworking agreement is in place and (ii) when an employee can connect to the workplace via a VPN or other similar solution.

The total value of the available grant is of two million Euros (€2,000,000), limited to up to five hundred Euros (€500) per teleworking agreement and four thousand Euros (€4,000) per undertaking.  

The deadline to apply for such grant is the 30th of March.

This update was written by Dr Bernice Saliba.

For more information on Tax and related areas please contact Dr Ian Gauci on igauci@gtgadvocates.com or Dr Bernice Saliba on bsaliba@gtgadvocates.com.

Disclaimer: This article is not intended to impart legal advice and readers are asked to seek verification of statements made before acting on them.