Following the press conference by The Prime Minister, the Minister of Finance and the Minister for Economy, Investment and Small Businesses on the 18th March 2020, a number of measures have been announced to counteract the negative economic impact of the COVID-19 pandemic. These include deferrals of taxes, initiatives to protect employment and targeted assistance to those sectors that have been negatively affected. The economic package is valued at Euro 1.81 billion – this is equal to 12.9% of Malta’s GDP in 2019.
Measures for businesses
- Tax deferrals up to Euro 700 million deferral of income tax, VAT and NI payments for March and April for both employers and self-employed.
- Loan guarantees for businesses up to Euro 900 million – expected to release up to Euro 4.5 billion in additional liquidity in the market.
- Three-month moratorium for personal and business loans.
- Euro 350 for employers per employee on mandatory quarantine.
- Assistance to businesses and self-employed persons forced to stop operations of 2 days per week based on Euro 800 per month salary focussed on those operations such as accommodation, food and beverages, language schools and entertainment amongst others. Self-employed persons who employ others shall benefit from an additional day (3 days per week).
- Businesses and self-employed persons who suffered a decrease in business of at least 25% will be granted assistance equivalent to 1 day per week based on Euro 800 per month salary.
- Those families with working parents that were forced to take leave to care for their children as neither parent nor guardian was able to telework will be granted two months additional leave of Euro 800 per month.
- Individuals whose full-time job has been terminated as from 9th March 2020 shall benefit from a temporary increase in their unemployment benefit of up to Euro 800 per month.
- Persons with disabilities who are unable to work from home and decide to stop due to health concerns are entitled to Euro 800 per month.
- Rent subsidies shall increase for those families where one dependent had his/her employment terminated.
Third Country Nationals
- All enterprises who terminate an active employment contract shall be denied the possibility of applying for third-country national workers.
- Malta shall no longer accept applications for new third-country nationals except for highly skilled workers.
- Assistance to all third country nationals to find alternative employment in case of Job termination.
Contact us today for more insight and support:
Timothy Zammit – Partner ([email protected])