Covid-19 presents one of the largest threats to our society and our economy in our lifetime, a threat no business operating in Malta will have planned for.

In the light of this, during a Press Conference held on 14 March 2020, Prime Minister Robert Abela announced a number of measures that have been deployed to support the economy, with particular focus on the most impacted industries including tourism, hospitality, recreation, transport and some manufacturing sectors.

The first package of economic measures are aimed at supporting employers and the self-employed from a cash flow perspective, focusing on the postponement of provisional tax, VAT and social security contributions (national insurance) for March and April 2020. All tax forms, however, are to be submitted in line within normal statutory deadlines. It was also announced that businesses who have invested in teleworking schemes will be granted refunds relative to same and that Government will also accelerate VAT refund payments due to businesses.

Malta Enterprise has launched measures addressing the ‘Postponement of payment of certain taxes’ (details and guidelines to follow) and the ‘Facilitation of Teleworking Activities’. This latter call caters for a cash grant to employers/ self-employed in all sectors investing in teleworking equipment. In a nutshell, support shall be limited to €500 per teleworking agreement and €4,000 per undertaking and the grant shall be awarded against 45% of the eligible cost.

This call covers costs incurred between 1st March and 30th March 2020, covering:

a) purchasing and/or leasing of computer hardware (included operating systems) which are considered portable including installation and setting up of connectivity software.

b) communication solutions (hardware and software) that allows different users to connect to their place of work (VPN, Point-to-point connection etc.)

Support shall be in the form of a cash grant. Calls are to be submitted in the prescribed form, together with supporting documentation such a teleworking agreement by no later than 30 March 2020.

Should you require any assistance with applications for these incentives, or indeed any advice concerning any questions you may have concerning the impact Covid-19 may have on your business from a tax perspective, please don’t hesitate to reach out to us personally.

For more information, please contact Dr. Rosanne Bonnici, Tax Partner and Head of the firm’s Tax & Immigration law team 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.