Tax deferral scheme

The Malta Enterprise has published guidelines in order to minimize the effect of preventive measures being implemented by the country. The aim of these measures is to improve business liquidity by easing pressure on their cash flows arising from the economic impact and encourage the retention of employees.

The measures provide that the payment of ‘eligible taxes’ for the period March and April will be delayed as as follows:

• Eligible taxes (excluding VAT) are to be settled in four equal monthly installments between May and August 2020;

• VAT dues are to be settled in two equal installments with the two quarterly returns immediately following the quarter whose dues would have been deferred.

The benefit granted under these measures shall however, not remove the obligation of beneficiaries to submit documents and returns by the due date as required by Law.

The term ‘Eligible taxes’ refers to the following taxes which fall due in March and April (2020):

• Provisional taxes;

• Employee taxes (including maternity fund and social security contributions); and

• VAT.

No interest or penalties to be charged in respect of eligible taxes that would have been deferred in terms of this scheme.

Furthermore, companies and self-employed persons who have failed to comply with their tax obligations falling due by 31 December 2019 may not avail themselves from these measures.

This assistance does not apply automatically to all companies. and applicants are required to submit their application by not later than 15th April 2020.