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MALTA BUDGET HIGHLIGHTS 2023

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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