COVID-19 Fiscal Assistance – Postponement of Payment of Certain Taxes

​Tax Deferral Scheme: 

1.     Objective: to improve business liquidity by easing pressures on their cash flow arising from the economic impact of the coronavirus pandemic and encourage the retention of employees

2.     Eligible Taxes: Provisional tax, Employee taxes, maternity fund payments and social security contributions, social security contributions of self-employed persons and Value Added Tax

3.     Period covered: Eligible taxes which fall due in March up to and including June 2020*

4.     Settlement period: Eligible taxes to be settled by the 31st October 2020**

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

6.     Beneficiaries: Companies and self-employed persons that suffer a significant downturn in their turnover as a result of the economic constraints arising from the coronavirus pandemic and, as a result, face substantial cash flow difficulties as identified in the online application form. Companies and self-employed persons not adversely hit are advised and encouraged not to avail themselves of this scheme. Ideally, eligible taxes should continue to be paid every month and on time because that would make for good business management.

7.     Significant downturn in turnover: Without prejudice to the right of each enterprise to prove a “significant downturn in turnover” in its specific circumstances, a drop of circa 25% or more in sales registered would certainly satisfy this condition. This would be ascertained on the basis of a 3 month period in which March would be either the first or the second month, i.e. either from February to April or else from March to May 2020 as compared with the same period of 2019.  Naturally, this would in part be based on estimates but as long as such estimates are drawn up in a reasonable manner then they should suffice. Enterprises claiming this benefit should keep records of these estimates.

8.     Specifically excluded: Companies and self-employed persons which have failed to comply with their tax obligations (submission of documents/returns and payments) falling due by the 31st December 2019 and who opted to pay VAT under the Mini One Stop Shop (MOSS).

9.     Forfeiture of benefit: The benefit granted under this scheme shall be forfeited if the beneficiary is found to be in breach of any of its terms and conditions making use of this scheme under false pretences. In case of forfeiture, beneficiaries will have to settle their dues as demanded by the Commissioner for Revenue and such payments shall be subject to interest or penalties as stipulated by law.

10.  Submissions: the benefit granted under this scheme shall not remove the obligation of beneficiaries to submit documents and returns by the due date as required by law.

11.  How to apply: One is required to complete and submit an online application form available on the Malta Enterprise website. Such application is to be made not later than the 15th May 2020.*​

  * Updated on the 30/04/2020

** Updated on the 25/05/2020