23rd March 2020

The Commissioner for Revenue has announced further details relative to the Tax Deferral Scheme announced last week (read more HERE) through a News Item entitled: COVID-19 Fiscal Assistance – Postponement of Payment of Certain Taxes, supplemented by a new Guideline and relative application form since uploaded onto the Malta Enterprise website.

Guidelines

Companies and self-employed persons that suffer or have suffered a significant downturn in their turnover as a result of the economic constraints arising from the Covid-19 pandemic can benefit from this tax deferral scheme.

Companies and self-employed persons which have failed to comply with their tax obligations (submission of documents / returns and payments) falling due by the 31st December 2019 are, however, specifically excluded from this beneficial measure.

The taxes which are covered are provisional taxes, employee taxes i.e. those payable through the employer’s Final Settlement System (payroll), maternity fund payments, social security contributions, as well as social security contributions of self-employed persons, and Value Added Tax (hereinafter “eligible taxes”). The eligible taxes are those which fall due in March and April 2020.

Whilst 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, when it comes to their settlement, the eligible taxes (excluding Vat) are to be settled in four equal monthly instalments over the four month period May to August 2020. VAT dues are to be settled in two equal instalments with the two quarterly returns due immediately following the quarter with respect to which dues would have been deferred. Moreover, no interest or penalties to be charged in respect of eligible taxes that would have been deferred in terms of this scheme.

Application Form

One is required to complete and submit an online application form available on the Malta Enterprise website (http://covid19.maltaenterprise.com) and this is to be made by not later than the 15th April 2020.

How can we help?

We understand that other measures are expected to be announced shortly and we are meanwhile monitoring developments in this regard. We will provide updates as more information becomes available. Meanwhile, should you require any assistance relative to how your business may benefit from this Tax Deferral Scheme and Malta’s Financial Aid package generally, please do not hesitate to reach out to us personally.

For more information, please contact Dr. Rosanne Bonnici, Tax Partner, on rosanne.bonnici@fenlex.com.

©Fenech & Fenech Advocates 2020

Disclaimer │ The information provided on this Update does not, and is not intended to, constitute legal advice. All information, content, and materials available are for general informational purposes only.  This Update may not constitute the most up-to-date legal or other information and you are advised to seek updated advice.