INCOME TAX

  • There is no change to any tax band. However, for full-time and part-time employees earning less than €60,000, they will be entitled to a refund amounting from €40 to €68, depending on the gross income of the preceding year.
  • Pensioners shall be exempt from tax on their first €13,200.
  • Individuals who are below the age of 40 years enrolling for a post graduate course equivalent to Masters and PHD will be exempt from income tax for a maximum period of two years.

VAT

  • The exemption threshold for Small and Medium Enterprises will be extended from €14,000 to €20,000.
  • VAT will be exempt on motorcycles, scooters and pedal bicycles.
  • There is a 7% reduced VAT on hiring of bicycles. Electric and hybrid cars to be exempt from registration tax.  Certain vehicles may benefit from a 5 year exemption on road tax.
  • VAT Grouping will be introduced to the Gaming and Financial Services industries.
  • Through VAT Grouping companies which form part of the same group may have one VAT number. Supplies of services intra group would fall outside of scope of VAT.

PROPERTY

  • A white paper is expected to be published to discuss changes to the rental market.
  • The exemption on the first €150,000 stamp duty for first time buyer’s is to be extended for another year.
  • Second time buyers may benefit from a maximum stamp duty exemption of €3,000 upon certain conditions being satisfied. Reduction in stamp duty to 2.5% on property purchased in urban conservation area.The reduction of stamp duty from 5% to 2% on property purchased in Gozo, is being extended for another year.
  • The reduction of stamp duty from 5% to 2% on property purchased in Gozo, is being extended for another year.

CORPORATE INCENTIVES

  • MircoInvest Scheme – the value will be increased to €50,000 for the enterprises based in Malta and €70,000 for enterprises based in Gozo.
  • Enterprises employing less than 50 employees on a full-time base will also be entitled to the said scheme.
  • Private Entities in Gozo offering an employment contract of at least 3 years will benefit from a 30% refund of an average wage of an employee up to €6,000 per employee.

CITIZENSHIP

  • Citizenship by Merit to be introduced and granted only to those who excel in science, research, sports, art and culture.

BLOCKCHAIN

  • It is the Government’s vision to make Malta a center for excellence in Blockchain Technology.
  • The Government has already set up a Task Force to evaluate proposals on a national Blockchain strategy.
  • As part of this strategy, there will be the creation of Blockchain Lab for the training of civil servants to become more acquainted with the use of blockchain technology.
  • The Government will also set up a Blockchain Hub to assist startups and investors using this technology.

SOCIAL MEASURES

  • There will be a €10,000 maximum grant to couples to cover adoption expenses in relation to adoption proceedings.
  • There will also be an Increase in foster care allowance to €100 per week.
  • Pensioners aged 75 or over living in their house will be provided with a grant of €300 per annum.

For further information kindly contact:
tax@whpartners.eu