On the 8th of June the Maltese Government announced a plan implementing measures aimed at regenerating the economy following the COVID-19 pandemic. The measures are largely intended to increase public spending and to decrease costs of businesses. The following are some of the most important measures adopted.
Reduction of tax on property
For transfers of residential properties the Final Withholding Tax on sale of property will be reduced from 8% to 5% and Stamp Duty will be reduced from 5% to 1.5%. The reduction will apply to on the first €400,000 of the value of the residential property and for promise of sales which have been signed up to March 2021.
Rent & utilities subsidies
Grants of up to €2,500 will be available for businesses to cover rental expenses for the months of July, August and September.
A reduction of excise duty equivalent to 50% of the electricity consumption costs and up to a maximum of €1,500 will be available to businesses for the months of July, August and September.
Deferral of tax payments
Deferral of tax payments have been extended until September except for deferrals of social security and income tax deductions made by employers from workers’ pay which have only been extended until July.
Wage supplements
The wage supplement of €800 per month will be retained for tourism dependent businesses until September of this year. For businesses and professionals not directly dependent on tourism the wage supplement will be reduced to €600 per month beginning July.
Other measures to reduce business costs or losses
Other measures targeting businesses are intended to reduce their costs or to soften losses that they may incur: export grants intended to set-off the risk of unpaid goods which have been exported; grants of up to €200,000 allocating to the construction industry for modernising machinery; grants of up to €5,000 for businesses to update their business models; a skills scheme to help businesses to provide in-house training to their employees; etc.
Other measures to induce spending
Other measures are targeted at individuals. Some of these aimed either at directly increasing public spending, for example individuals over the age of 16 will be given €100 vouchers, while some measures are intending to reduce cost, for example, reduction of fuel prices and schemes to help first-time property buyers.
