On 14 July 2020, the Revenue updated the initial notification published last March to extend the Tax Deferral Scheme for certain taxes until the end of August. The extension had been announced by Government last June during the presentation of Malta’s Economic Recovery Plan.

The extended deferral applies to provisional tax, social security contributions of self-employed persons (i.e. Class 2 contributions) and Value Added Tax which fall due in March up to and including August 2020 (previously June 2020). Eligible taxes are to be settled by the 31 May 2021 (formerly 31 October 2020).

As had been announced, the tax deferral scheme was not extended for employee taxes, maternity fund payments and social security contributions (i.e. Class 1 contributions) which fell due in March up to and including June 2020. The payment of such deferred social security and employee taxes is to be settled as from 1 July 2020.

The Tax Deferral Scheme applies to companies and self-employed businesses which suffered a significant downturn in turnover as defined in the Revenue notification, provided that they had applied for the scheme by 15 May 2020.

Should you have any queries or wish to discuss further, please send an email to covid@kpmg.com.mt.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.