With the global pandemic now reaching Malta, the Maltese businesses are facing a dire situation. In turn, via a press conference held on the 14th of March 2020, Prime Minister Abela, together with Finance Minister Scicluna and Economy Minister Schembri, the introduction of several economic measures were announced, aimed at mitigating the impact Covid-19 may have on the Maltese economy, particularly on tourism, recreation, transport, hospitality and some manufacturing industries.
Although not as yet official, the aforementioned package of economic measures is applicable to both employers and self-employed individuals, and they shall include the following:
- The postponement of March and April tax payment deadlines in relation to Provisional Tax, Social Security Contributions, payments under the FSS and VAT.
- Acceleration of payments to businesses such as VAT refunds.
- Companies which invested in teleworking systems would also be eligible for a 45% refund capped at €500 per employee.
Being in line with the EU Commission's recommendations, these measures shall come into effect shortly following the publication of legal notices.
In fact, the EU Commission's recommendations include initiatives such as wage subsidies, suspensions to corporate and value added taxes of social contributions, and the granting of financial support directly to consumers. These have been declared by the EU Commission to be compliant with existing EU rules.
As declared by the Prime Minister on the 16th of March 2020, the aforementioned economic measures are merely the starting package, and further economic measures by the Government will inevitably follow.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.