The Malta Budget 2023 was delivered by the Minister of Finance on the 24th of October 2022.
The main highlights of the 2023 Budget as follows:
Cost of Living Allowance (COLA)
The cost-of-living adjustments will be Eur9.90 per week.
Low-income earners that amount to around 80,000 people will receive an average of Eur300 as a grant to reflect the price increase.
Pensioners
COLA for pensioners will be Eur12.50 per week.
The new ceiling for non-taxable income will be Eur14,968.
Fifty-six thousand pensioners will receive cost-of-living bonuses of up to Eur1.50 per week.
Service pensions are to get €200 added to their social security exemption capping. It will now stand at €3,266 a year.
Increases for pensions for widows and widowers will increase up to Eur3.54 per week.
Social security payments for mental health issues
Anyone aged 18-30 who misses up to two years of work due to mental health issues will get those two years of social security payments covered by the state.
Non-contributory pensions
An increase of Eur50 will be given to those who do not qualify for a contributory pension. Those with fewer than five years of contributions will receive €450 a year and those between five and ten years will get €550.
Children Allowance
This will increase by Eur90 per child.
Carers’ grant increases
Carers’ will now receive €4,500 a year, divided into four payments.
Disability Allowance
The government will grant a €200 credit each year to parents for every child with a disability. The government will also introduce subsidies for cars equipped for wheelchair users.
Property incentives
First-time buyers will be given €10,000 grant provided their property costs under €500,000 and will be backdated to January 1 of this year.
A scheme intended to help buyers pay for their mortgage deposit is to be broadened to properties valued up to €225,000, up from €175,000.
Last year proposals for buying property in UCA and stamp duty for the first- and second-time buyers will be extended.
Tax Refund Cheques
The tax refund cheques will range from €60 and €140.
Working pensioners
There will be an increase from 20% to 40% for the income earned, which will not be taxed for those pensioners still working.
Tax benefits for writers
Tax on book royalties will be reduced to authors from 15% to 7.5%.
Research and Development
A €5 million investment in a ‘Technology Extension Support’ scheme will be launched to rope in private investors.
A start-up initiative
A one-stop shop will be set up to attract more start-ups.
Digitisation of businesses
A scheme entitled ‘Business Enhance’ will offer SMEs €40 million worth of cash grants. Local businesses that invest in digital projects will get up to 50% of their investment back, up to €100,000.
A company set up in Gozo will also get an additional 10% as a tax credit, which can rise to 20% if the investment reduces its carbon footprint.
Rent Subsidy
A rent subsidy offered to local businesses will increase to €50,000 for the first three years of assistance.
For households there will be increase in rent subsidy from €400 to €500 per month for one-bedroom, from €500 to €600 per month for two-bedroom, and from €600 to €700 per month for three-bedroom.
For further information, please contact:
Franco Falzon C.P.A. LL.M (Managing Director)
E: info@ffinternational.com.mt
T: +356 2010 7771 (office)
M: +356 9989 5679 (mobile)
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