COVID-19 Tax and Fiscal Incentives

On 15 March 2020, Malta Enterprise (ME) announced the issue of two incentives to help businesses by minimising any disruption that may be caused by COVID-19.

1. Postponement of payment of certain taxes
The first incentive included in ME’s announcement comprises the postponement of payment of certain taxes. Enterprises, including self-employed persons operating in certain industries, will be provided with a two-month extension for the payment of provisional taxes, VAT, social security contributions on salaries and taxes owed till end of April. The incentive is primarily aimed, but is not exclusive to, the tourism and hospitality, entertainment, transport and manufacturing sectors affected by COVID-19. The announcement explains that irrespective of the postponement in payment, tax forms should be submitted according to normal deadlines. Further details regarding applications and guidelines are yet to be made available.

2. Cash grant for the facilitation of teleworking activities
The second incentive included in ME’s announcement supports employers and the self-employed to invest in technology that enables teleworking by partially covering the cost of teleworking solutions. The support will be granted by way of a cash grant and is limited to up to €500 per teleworking agreement and €4,000 per undertaking. The cash grant shall be awarded against 45% of the eligible cost incurred between 1st March and 30th March 2020. For this purpose, the eligible costs comprise the following:

Cost of purchasing and/or leasing of computer hardware (including operating systems) which are considered portable including installation and setting up of connectivity software;
Cost of communication solutions (hardware and software) that allows different users to connect to their place of work (VPN, point-to-point connection, etc.)
The scheme is open to all undertakings irrespective of size and sector. The incentive comprises de minimis State Aid in line with Commission Regulation (EU) 1407/2013 and is subject to its limitations. The total support under this call shall be capped at €2 million. This support is being granted in terms of the Business Development and Continuity Scheme.

Apart from the above, we are here to assist you with any queries or guidance you might need as regards to financial planning during these difficult times. We will keep you updated with further developments, register with us for the latest news!

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