A Simple Guide to Malta Economic Regeneration Plan

An easy and straightforward table guide
Post Covid-19 Measures to regenerate Malta's economy

In a Press Conference held on the 08th June 2020, the Prime Minister of Malta Dr. Robert Abela, together with Finance Minister Profs Edward Scicluna and Minister for the Economy, Investment and Small Businesses Mr Silvio Schembri announced a €900 million Malta Economic Regeneration Plan. An array of measures were introduced- all with the primary intention of regenerating Malta’s economy post the Covid-19 pandemic. Following is a simple summary defining the measures and outlining the most pertinent details. Also, links for additional reading and information on the Malta Economic Regeneration Plan, may be found in the References section below.

Measures to support businesses by reducing running costs

Benefit Detail Applicable to Duration
Rent Subsidies One time grant of up to €2,500 Businesses classified as Annex A and Annex B on Malta Enterprise’s website One time grant
Utilities Subsidies Refund of up to 50% of electricity bills (capped at €1,500) Businesses classified as Annex A and Annex B on Malta Enterprise’s website For the period July, August and September 2020
Wage Supplement Extension of previously introduced Wage Supplement. Specific industries have experienced a decrease in benefit whereas pensioners and students who had other streams of income are now eligible to apply. Businesses classified as Annex A and Annex B on Malta Enterprise’s website . Pensioners, and full time students who are in employment Until 30th September 2020
Refund of Commercial Licenses Refund of trade licence/ permits paid to the Commerce Department and Malta Tourism Authority Businesses that were forced to close down during the pandemic For the year 2020
Tax Deferral Scheme Deferral of taxes will be kept until September 2020, with the deferred payments being required to be settled over a period of 12 months Businesses which can prove a ‘significant downturn in turnover’ circa 25%. Certain exclusions apply if business was not in compliance with its tax obligations until December 2019. As from 01st July 2020, no deferral is applicable to the settlement of employees’ Final Settlement System tax and social security contributions withheld from wages. Until 30th September 2020
Logistics costs refund Refund of 33% of port charges 10% on container discharge fees incurred on the import and export of goods Ships that bring cargo to Malta. Transhipment is excluded. For the period 01st June to 31st December 2020
Guarantee Scheme In addition to the existing MDB Covid-19 Guarantee Scheme and the Interest Rate Subsidy Scheme, the government is in discussions with the EU to introduce another scheme through the Malta Development Bank Companies experiencing a sudden acute liquidity shortage due to the pandemic To be advised at a later stage
Bond Underwriting Facility Underwriting of bond issues that are due to roll over by the Malta Development Bank Private enterprise bond issuers The year 2020

Measures to boost business by encouraging improvement and growth

Benefit Detail Applicable to Duration
Business Re-engineering Consultancy Grant of up to €5,000 to embark on a reengineering exercise with approved companies Every local business One time grant
Skills Development Scheme Scheme to be expanded to encourage in-house training by means of sharing of skills between the most experienced and younger employees Small and medium-sized companies (less than 50 employees) To be advised at a later stage
International Fairs Refund of up to 80% of the costs incurred for cancelled fairs due to the pandemic Every local business To be advised at a later stage
Modernisation of equipment Financial support of up to €200,000 for businesses to shift towards modern, more efficient and environment-friendly machinery Construction companies To be advised at a later stage
Export Credit Guarantee Scheme to reimburse half of the costs involved to invest in digital campaigns aimed at foreign markets, capped at a maximum of €10,000 Every local business that seeks to export its products to a new market To be advised at a later stage
Microinvest Cash Conversion 30% of previously approved Microinvest tax credits can be converted to cash. This is capped at €2,000 for businesses operating in Malta and at €2,500 for female run, family-run or Gozo based businesses Every local business which was previously approved for Microinvest To be advised at a later stage
Promotion Assistance A new platform has been built for local businesses to support them with promoting their products To be advised at a later stage To be advised at a later stage

Measure to indirectly support the economy and incentivise domestic consumption

Benefit Detail Applicable to Duration
Property Transfer and Acquisition Benefits Stamp duty rate on acquisition of property will be reduced from 5% to 1.5%. Final Withholding Tax rate on sale of property will be reduced from 8% to 5%. First time buyers scheme will be revised for all contracts taking place from 09th June 2020 as long as the acquirer has not benefitted from the Scheme already Applicable on the first €400,000 of the value of the property Final deeds of sale which are published by end of March 2021. This will also apply to property transfers where a promise of sale agreement has already been concluded.
Fuel Price Cut Reduced by 7c per litre. This translates to the price of petrol at €1.34 per litre while that of diesel will be at €1.21 per litre All local business and individuals From Monday 15th June onwards
Recreation Grant Vouchers for a total of €100 out of which €80 may be used on services provided by MTA licensed businesses (eg hotels, restaurants etc) and €20 in retail shops that were closed during the pandemic All Maltese and Gozitan resident persons over 16 years of age Valid until 30th September 2020
Tax Refund Ranging between €40 and €68, depending on the income of the individual Individuals in the labour force earning less than € 60,000 One time grant
In Work Benefit A special supplement of €250 will be given to every family. Scheme will be extended to include more low-income families Families who are already benefitting from this scheme which is open to families under specified income brackets One time grant
Wedding Costs Refund Refund of up to €2,000 per couple Couples who had to postpone their wedding due to the pandemic and incurred expenses as a result of this One time grant
NGOs & Elderly Homes Special fund NGOs whose income was affected by the pandemic and homes for the elderly To be advised at a later stage

Disclaimer

Whilst we endeavour to provide precise and timely information, there can be no assurance that such article is accurate as of the date it is received. The information provided herein is merely intended for general information purposes and cannot be construed as professional advice without seeking an appropriate consultation.

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