Mini Budget 2020 – Fiscal Incentives and Grants for Businesses

The Mini Budget 2020 announced on 8 June 2020, by Malta’s Prime Minister Dr Robert Abela and Minister of Finance Profs Scicluna contained various measures to assist businesses in this post-covid-19 scenario. In this blog we will be reviewing the fiscal incentives announced in this mini budget:
Tax Deferrals
The Tax Deferral Scheme, which covers Provisional Tax, VAT and National Insurance Contribution on salaries, has seen its period extended by another two months, up to the end of June.
National Insurance, income tax and maternity contributions will now start to be paid from 1 July.
Other taxes due by companies have been deferred to the end of August. Companies can pay the deferred tax by May next year, with no interest charged.
Measures already announce for taxes and other contributions paid by businesses will be extended till the end of August. Payments will be deferred till end of May 2021 and can be paid by instalment.
Conversion of tax credits into grants
The micro-invest scheme will see 30% of such tax credits payable to applicants transformed into cash grants. Malta based businesses will receive up to €2,000 in cash, with this amount increased to €2,500 for Gozitan businesses.