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Malta: Tax developments in response to COVID-19

General Information

This page offers an overview of tax developments being reported globally by KPMG member firms in response to the Novel Coronavirus (COVID-19).

The content will be updated regularly. However, due to the fast-moving pace of change, it may not always reflect the most current developments in a given jurisdiction. Please refer to the date of accuracy and refer to the relevant links, under additional information, for original source information.

Date accurate as of: 24 June 2020

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. 

Deferral of certain taxes due in March, April, May and June 2020

  • Eligible Taxes: Provisional tax, employee taxes, maternity fund payments and social security contributions, social security contributions of self-employed persons and Value Added Tax 
  • Period covered: Eligible taxes which fall due in March, April, May and June 2020
  • Settlement period: 31st October 2020
  • Benefit: No interest or penalties to be charged in respect of eligible taxes that would have been deferred in terms of this scheme
  • Beneficiaries: Companies and self-employed persons that suffer a significant downturn (as defined) in their turnover as a result of the economic constraints arising from the coronavirus pandemic and, as a result, face substantial cash flow difficulties as identified in the online application form. Companies and self-employed persons not adversely hit are advised and encouraged not to avail themselves of this scheme. Ideally, eligible taxes should continue to be paid every month and on time because that would make for good business management. 
  • Specifically excluded: Companies and self-employed persons which have failed to comply with their tax obligations (submission of documents / returns and payments) falling due by 31 December 2019 
  • Forfeiture of benefit: The benefit granted under this scheme shall be forfeited if the beneficiary is found to be in breach of any of its terms and conditions making use of this scheme under false pretenses. In case of forfeiture, beneficiaries will have to settle their dues as demanded by the Commissioner for Revenue and such payments shall be subject to interest or penalties as stipulated by law.
  • Submissions: The benefit granted under this scheme shall not remove the obligation of beneficiaries to submit documents and returns by the due date as required by law. 
  • How to apply: Submission of the online application for the March and April tax deferrals closed on 30th April 2020. The deadline to apply for the May and June tax deferrals closed on 15th May 2020. 

Extension of deadline for FATCA and CRS reporting

On 30 March 2020, the Revenue of Malta issued a deadline extension for FATCA and CRS reporting to 30 June 2020 for the 2019 reporting year. 

Additional Information

Extension by the Revenue of the April Provisional Tax payment deadline

On 27th April, the Maltese Revenue has notified that the deadline for the payment of the Provisional Tax for April 2020 has been extended to 31 May 2020. 

Reduction of the VAT rate on protective face masks and visors

As from 4th May 2020, the VAT rate on protective face masks and visors was reduced to 5%.

Extension of deadline for income tax return filing 

The deadline for submitting the income tax return for year of assessment 2020, has been extended from 30th June to 31 July 2020.