27th August 2020
The COVID-19 Temporary Support Measures Regulations, 2020 were published on 25 August 2020 in virtue of LN 345 of 2020, with with retrospective effect from 1 April 2020.
The Regulations authorise the Malta Enterprise Corporation to provide assistance to eligible undertakings which require support to sustain, preserve and regenerate their economic activity.
Such assistance shall be established in Guidelines published by Malta Enterprise and shall be in any form allowed by the Malta Enterprise Act and in accordance with the Temporary Framework for State Aid measures to support the economy in the current COVID-19 outbreak published by the European Commission.
The application deadline for assistance under these Regulations is 31 December 2020.
The Regulations clarify that, where assistance is granted in the form of a tax credit:
- an amount equivalent to the tax credit awarded shall be deducted from the amount of income tax which is due on chargeable income derived from trade or business in the years of assessment following the award of the benefit;
- unutilised tax credits can be carried forward;
- tax credits do not give rise to a right to a tax refund.
How can we help?
We are monitoring developments on an ongoing basis and will provide further updates as more information becomes available. Meanwhile, should you require any assistance relative to how your business may benefit from these Temporary Support Measures, the Economic Stimulus Package, Malta’s Financial Aid package and the various Malta Enterprise support measures 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.