Budget 2021: How can you benefit?
20 October 2020
After a challenging year, Hon. Prof. Edward Scicluna announced the Government’s budget for 2021 during last night’s parliamentary sitting. Although noting that inflation and unemployment have been contained in spite of the COVID-19 pandemic, a fiscal deficit of 9.4% is expected for 2020.
COVID-19 incentives are being extended, and measures to encourage a greener and more digital based economy were announced. What are these measures, and how could you benefit from them?
- Gains made from a promise of sale shall be taxed at 15%.
- VAT exempt threshold to be increased from €20,000 to €30,000.
- Tax refunds ranging between €45 and €95 per taxpayer.
- COLA increase of €1.75 per week
- The wage supplement scheme has been extended to March 2021.
- The €100 voucher scheme shall be reintroduced, with the vouchers being used by December 2020.
- The tax deferral scheme, along with other schemes such as the moratorium on borrowings shall be extended to March 2021, and will be reassessed then.
Malta Enterprise Schemes
- The Micro Invest Scheme, the Business Development and Continuity Scheme, and the Research and Development Scheme shall be extended to be in effect throughout 2021.
- A scheme which assists companies in investing in innovative projects which increase their efficiency and reduce their operational costs shall be introduced. This shall apply to companies with less than 50 employees and may cover up to 50% of the cost with a cap of €200,000 per company.
So how can you benefit from these schemes and initiatives? Contact our team of experts at AE for more information.