Government and institution measures in response to COVID-19.
Government and institution measures in response to COVID-19.
The Maltese Government has announced several measures as part of a financial package to help the Maltese economy during the COVID-19 outbreak, mainly aimed at easing pressures on the liquidity of businesses, protecting jobs and helping the most vulnerable during this challenging period.
Following the initial measures, the focus of Government shifted on an Economic Recovery Plan (rolled out on 8th June 2020) aimed at reducing business costs, stimulating domestic consumption and directly supporting businesses.
Click here to see a comprehensive summary of jurisdictional tax measures and government reliefs in response to COVID-19.
Wage Supplement July - September 2020
Quarantine Leve Supplement
Benefit to persons with disabilities
Other measures aimed at Third Country Nationals
Start-ups: All the aforementioned measures apply to start-ups as well.
Voluntary Organisations Emergency Fund
Free e-learning to the tourism workforce
Assistance to Gozo-based enterprises:
Through the Malta Development Bank, the Government is guaranteeing loans granted by commercial banks in Malta to meet new working capital requirements of businesses facing cashflow disruptions due to the COVID-19 pandemic. The Scheme has been approved by the European Commission under the Temporary Framework for State aid measures to support the economy. The Scheme will enable commercial banks, accredited by the MDB, to leverage the €350 million guarantee fund into €777.8 million in new working capital loans.
Interest rate subsidy of up to 2.5% on bank loans
Government is providing an interest rate subsidy of up to 2.5% on bank loans. The subsidy is subject to the payment of a minimum rate of 0.1%. The subsidy is aimed at supporting businesses to keep operating during COVID times and eventually recover. It is not aimed at financing investments like the purchase of property but is aimed at supporting businesses to keep operating during COVID times and eventually recover. Businesses wishing to avail themselves of the subsidized facilities should contact any of the participating banks. Applications close in June 2020 and are subject to the eligibility criteria of the banks.
Six month moratorium on facilities sanctioned prior to 1st March 2020
Credit and financial institutions licensed by the Malta Financial Services Authority have been directed to offer a six-month moratorium on repayment of capital and interest ‘to support economically vulnerable persons who have been materially affected by the COVID-19 outbreak’. The moratorium applies to credit facilities sanctioned prior to 1 March 2020 - whether to individuals, households or businesses - and who can show that they have been negatively affected by the pandemic. Applications by borrowers are to be made with their respective credit or financial institution until 30 June 2020. The borrower will need to apply to the respective credit or financial institution. The moratorium comes into effect once the application has been approved. Credit and financial institutions have the right to refuse the application as long as this is done within the terms of the Directive issued by the Central Bank of Malta. Borrowers who have been in arrears prior to 1 March 2020 are not eligible for the moratorium. Borrowers can apply to forego payments of both capital and interest completely for six months, and can also opt to continue to pay the interest but not the capital.
Same as above. 3-month moratorium can be requested from banks in relation to both personal and business loans
Measures announced on 8th June 2020 as part of the Economy Recovery Plan
Rent subsidies: Businesses classified as Annex A and Annex B on Malta Enterprise’s website will receive a one-time grant of up to €2,500.
Utility bill subsidies: Certain businesses will receive a refund of 50% of their electricity bills for the months of July, August and September, capped at €1,500.
Fuel price cut: Fuel prices to be reduced by 7c per litre to €1.34 per litre of petrol and €1.21 per litre of diesel (although such measure is not limited to businesses).
Refund of commercial licences paid to the Commerce Department and the Malta Tourism Authority to be paid to businesses.
Logistics costs refund: A temporary refund of 33% of port charges for vessels which import goods to Malta and 10% of container discharge fees, excluding transhipment. €200,000.
Vouchers: €100 vouchers, expiring by the end of September 2020, will be sent to each person aged 16 years and over to be spent locally to the extent of 80% on accommodation, restaurant and bar services and 20% in outlets that have reopened following a period of forced closure.
Wedding expenses refund: Couples who had to postpone their wedding due to the disruptions caused by COVID-19 will get reimbursed for their forfeited deposits up to a maximum of €2,000.
Increase in in-work benefits for eligible beneficiaries and a one-time grant of €250 will be given to beneficiary families.
Real estate :
Bond underwriting facility:
Through the Malta Development Bank, Government will act as underwriter for bonds issued by private companies which are due for roll over.
Cash grants in lieu of MicroInvest tax credits:
30% of approved MicroInvest tax credits can be converted into a cash grant, capped at €2,000 for enterprises operating in Malta and at €2,500 for female-run or Gozo-based enterprises.
€5,000 financing for businesses to use on advisory services aimed at identifying new ways of operating such as through the use of innovative technology.
Assistance to homes for the elderly:
€2 million allocated for certain homes for the elderly in recognition of their valuable work during the COVID-19 pandemic.
Skills Development Scheme:
Companies employing less than 50 employees may benefit from skills development training schemes.
Assistance for digital campaigns:
Grants of up to €10,000 to companies undertaking digital campaigns in new foreign markets.
Reimbursement of international fair costs:
A maximum of 80% reimbursement of costs incurred for the participation in international fairs that have been cancelled due to the pandemic.
Export credit guarantee:
Companies which seek to export their products to new markets will benefit from an export credit guarantee scheme to be launched in collaboration with the Malta Development Bank and Malta Enterprise.
€5 million investment in a new platform for local businesses to help them promote their products.
Modernising the construction industry:
Construction enterprises which undertake investment to modernize equipment which is environmentally friendly may benefit from a grant of up to €200,000.
Deferral of excise duty payments due in April and May
Relief from VAT and import duties on the importation of medical supplies to combat COVID-19
Investment Aid for COVID Products
Main sources of information
As from 4th May:
As from 22nd May:
As from 5th June:
As from 30th June:
As from 1st July:
Tax: Andre Zarb – email@example.com
COVID-related - Doreen Fenech – firstname.lastname@example.org
Restructuring: David Caruana – email@example.com
Legal: Juanita Brockdorff – firstname.lastname@example.org