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The Hon Prof Edward Scicluna presented Malta’s budget for 2017 on 17 October. Below is a link to our overview of the budget prepared in collaboration with the Malta Chamber of Commerce, Enterprise and Industry.
In brief the 2017 budget has a social dimension offering benefits to pensioners, students and those within low income tax brackets while offering additional benefits to sustain the economic growth that Malta has witnessed in recent years. Malta’s deficit for the current year is expected to reach 0.7% and is forecast to reach 0.5% in 2017. A cost of living increase of €1.75 will be granted from 2017.
Measures to be introduced in the coming year range from reductions in capital transfer duty for property situated in Gozo and an extension to the scheme for first time buyers to increases on construction materials. A reduction in duty on the transfer of business from parents to their children will also be introduced facilitating business succession.
Furthermore, incentives will be introduced to promote private pension schemes in the form of tax credits for employers. Additional benefits will be introduced to promote the Malta Stock Exchange, benefits including fiscal incentives for the raising of capital through a tax exemption on IPOs. Steps to reduce tax avoidance and consolidate tax authorities’ efforts together with the registration of leases for periods exceeding three months are to be registered by either the landlord or tenant.
Malta continues to recognise the importance of its financial services industry and will continue defending its corporate tax system while ensuring that international principles of transparency and exchange of information are adhered to. Measures related to tax consolidations will also be introduced.
The remote gaming regulatory regime will be revised to better suit the industry’s needs while a European Gaming Institute will be setup to ensure that the industry finds the necessary skills in Malta.