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[FISCAL INCENTIVES] FURTHER SUPPORT MEASURES FOR BUSINESSES AND EMPLOYEES IN RESPONSE TO COVID-19

We have already reported that the Maltese Government has announced incentives for teleworking activities. Further details on these incentives can be found on this link:

Fiscal Incentives – Teleworking activities

On the 18th of March, the Government of Malta has announced further support measures to assist both businesses and employees in response to the Covid-19 outbreak. These measures are aimed to improve liquidity for companies and support worker wages in order to assist companies retain people in employment.

The key measures include:

DEFERRAL OF TAX PAYMENTS

  • Deadlines for payments due by employers (including self-employed) for Income Tax, VAT and Social Security Contributions for the months of March and April 2020 shall be postponed / deferred.

DIRECT CAPITAL INJECTION OF FUNDS INTO THE MALTESE ECONOMY

  • A direct injection of 210 million euro into the Maltese economy to cover expenditure relating to COVID-19.

PROVISION OF LOAN GUARNATEES

  • Provision of guarantees by the Government up to 900million euro. These bank guarantees are aimed to support the provision of soft loans or temporary moratoriums on personal and business loans.

INTRODUCTION OF QUARANTINE LEAVE

  • The introduction of Quarantine Leave. Quarantine leave has been defined as ” leave to  be  granted  to  the employee  without  loss  of  wages  in  such  cases  where  the employee  is  legally  obliged  to  abide  by  a  quarantine  order confining the employee to a certain area or to certain premises as determined by the Superintendent of Public Health under the Public Health Act or by any public authority under any other law“. Wages paid to employees during the quarantine leave shall be partially paid by the Maltese Government. The amount of 350euro shall be contributed to employers for each employee under quarantine leave.

INCREASE IN TEMPORARY UNEMPLOYMENT BENEFIT

  • Individuals whose their employment has been terminated shall benefit from a temporary unemployment benefit increase of EUR 800.00 per month.

WAGE COVERAGE TO ASSIST EMPLOYERS AND SELF-EMPLOYED INDIVIDUALS

  • Two (2) days cover of employees’ wages per week applicable to employers and self-employed individuals who are subject to a complete suspension of their operations (max. 800euro per month);
  • Three (3) days cover of employees’ wages per week applicable to self-employed who employ other employees;
  • One (1) day cover of employees’ wages per week applicable to both employers and self-employed individuals whose operations have decreased by at least 25% (max. 800euro per month). In case of self-employed individuals who employ other employees and whose operations have decreased by at least 25%, these shall be entitled to two (2) days of employee’s wages.
  • Employers who terminate the employment of any employee shall not be allowed to offer the job to a Third Country National (TCN). The Maltese government has announced that it shall cease accepting work permit applications from unskilled third country nationals. The Maltese government has also announced its intention to assist TCNs who have been dismissed to find alternative employment in Malta.

The Maltese government has also announced the intention to assist families who have both parents working in the private sector and which are unable to work as well as the provision of certain housing subsidies.

For further information on the application of these support measures and  / or how to apply kindly contact:

Franco Falzon C.P.A. LL.M
(Managing Partner)

E: franco@ffinternational.com.mt

T: +356 2010 7771 (office)

M: +356 9989 5679 (mobile)

Profile: Franco Falzon


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