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The Government Financial Packages

On 24th March 2020, the Government of Malta unveiled further economic measures to aid companies and self-employed:

The Government is giving  EUR 61 million per month to finance wages in sectors that were hard hit by Covid-19.

A further EUR  10.5 million will also be forked out to sustain workers forced to take leave.

The Wage Supplement – What are the latest benefits?

Who is affected?

Benefits

Employers and self-employed   in the following sectors: Hotels, Restaurants, Certain Retail Outlets, Travel Agencies, Entertainment, Transport Operators, Barbers, Beauticians, Hairdressers

  • The improved package will mean that the government will  finance a five-day work week capped at EUR 800 per month for all workers and self-employed in the mentioned sectors.
  • Part-time employees also benefit at a reduced  EUR 500 per month.

Enterprises in other adversely affected sectors, including wholesale, manufacturing and warehousing

Entitled to one day’s salary per week, equivalent to  €160 per month. Part-time employees will be eligible to one day’s salary per week, equivalent to  €100 per month.

Gozo-based enterprises  in other adversely affected sectors

Entitled to two days’ salary per week equivalent to  €320 per month for full-time employees, whilst for part-time employees, the entitlement will be  €200 monthly

Self-employed operating their own business  pertaining to adversely affected sectors

Entitled to 2 days’ salary per week, equivalent to  €320 per month

Self-employed individuals based in Gozo and operating in adversely affected sectors

Entitled to 2 days’ salary per week equivalent to  €320 per month. This will increase to 3 days salary, equivalent to  €480, for those self-employed who employ staff, and the employees will be entitled to two days’ salary per week

All applications for the above measures have been issued.

On 18th March 2020, the Government of Malta announced a rescue package of EUR 1.8 billion to mitigate the coronavirus crisis in Malta. The main pointers of the package are the following:

Liquidity

  • The package includes  EUR 1.6 billion in liquidity for companies:
    • EUR 900 million in Loan Guarantees
    • EUR 700 million in Tax Deferrals
    • EUR 210 million will be injected to assist the economy

Quarantine Leave and Parental Leave

  • The Government will pay EUR 350 per employee on quarantine leave
  • One parent from each family who is forced to stay at home as a result of school closures, and is unable to telework, will benefit from EUR 800 per month leave (for the coming two months). For this to apply:
  • Both parents need to be employed within the private sector, and
  • Both shall not be able to work from home

Aid for Companies and Self-Employed Persons

The Government intends to:

  • Cover 2 days of employee wages per week (based on a maximum wage of €800 per month) for enterprises suffering from a complete suspension of operations
  • Cover 2 days of income per week (based on maximum income of €800 per month) for the self-employed suffering a complete suspension of operations. Government coverage will increase to 3 days in the case of self-employed individuals who employ others
  • Cover 1 day of employee wages per week (based on a maximum wage of €800 per month) for enterprises whose operations decreased at least by 25%
  • Cover 1 day of income per week (based on maximum income of €800 per month) for the self-employed whose operations decreased by at least 25%. Government coverage will increase to 2 days in the case of self-employed individuals who employ others

Aid for Employees

  • Employees (Maltese or EU citizens) who are made redundant will get EUR 800 per month as an unemployment benefit.
  • Third-country nationals who become unemployed won’t get financial assistance, yet JobsPlus will help them find alternative work.
  • People who lose their job and live in a rental property will qualify for rent subsidy (if not already benefiting from this scheme)

Health Aid

  • EUR 35 million will be allocated to health authorities for use in their combat against Covid-19

Foreign Workers Update (Third-country nationals)

  • New work permits for unskilled third-country nationals will not be accepted. Therefore, companies which make anybody redundant cannot apply for a work permit for third-country nationals.
  • Live-in carers and healthcare professionals whose single permit is about to expire can have their permit automatically extended for a period of three (3) month. These include Nurses, Nurse Assistants, Staff Nurses, Doctors, Professors, Health Carers, Assistant Carers, Carer Supervisors, Health Specialists and Locum Medical Officers (Anaesthesia).

Deferral of Tax Payments

Tax and social security payments due for March and April for businesses hit by the coronavirus pandemic have been postponed by two months.

Who can apply?

Enterprises and self-employed are eligible to this incentive which gives a two-month extension to pay Provisional Tax, VAT and National Insurance Contribution on Salaries. This will apply for taxes owed till end of April.

All tax forms should be submitted according to normal deadlines. The incentive is primarily aimed, but not limited to, the tourism and hospitality, entertainment, transport and manufacturing sectors that are being affected by COVID-19.

Who is excluded?

Companies and self-employed that have not complied with their tax obligations falling due by 31st December 2019

Contact us for further assistance

If you need further assistance with regards to this incentive kindly get in touch with our experienced tax team by contacting our Tax Director, Kristine Attard, on kattard@ksimalta.com for further details.

Teleworking Scheme

The Government of Malta has introduced a new scheme to support businesses (including partnerships and self-employed individuals) to invest in technology that enables teleworking.

How much is the grant?

The cash grant covers up to 45% of the eligible cost and shall be limited to €500 per teleworking agreement and €4,000 per undertaking.

Who is eligible?

This call is eligible for costs incurred between 15th of February and 8th May 2020.

To be eligible, the employee shouldn’t have had an active teleworking agreement before 15th February 2020. All costs have to be incurred after this date.

 

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