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Third wave of fiscal aid measures in the light of COVID-19

On Wednesday 18th March the Prime Minister announced the third wave of fiscal measures to support commercial entities and safeguard employment.

An online site will be launched by Malta Enterprise which will help companies and self employed persons determine which fiscal measures they are eligible to claim based on their VAT Number and NACE code.

All measures shall apply retrospectively to 9 March 2020. The fiscal aid differentiates between business sectors that have been critically hit and those which have been hit less so (critically).

The measures below will also apply to self employed persons in the same way. In the case of part time employees the same fiscal aid will apply with the difference that the deemed monthly salary shall be €500.

In the case of activities based in Gozo, the fiscal aid will cover an additional day’s salary in addition to that extended to Maltese businesses.

These are summarized below:

Critically hit business sectors

  • Certain wholesale and retail activities;
  • Accommodation and food and beverage service activities;
  • Transport and Rental and leasing of vehicles;
  • Employment;
  • Travel agencies and tour operators;
  • Security and investigation activities;
  • Building services;
  • Creative arts and entertainment activities;
  • Personal services activities;

For the above sectors the Government will finance up to €800 monthly for each employee’s salary. The employer is expected to finance the remaining monthly salary up to at least €1,200. If the employer is unable to finance the difference to top up the salary to €1,200 then an adhoc agreement is to be reached with the Department for Industrial and Employment Relations;

It is understood that the employer shall remain responsible for FSS and Social Security deductions for these employees;

“Less Critically hit” business sectors

  • Manufacturing
  • Certain wholesale and retail sector activities
  • Warehousing
  • Information

For the above sectors the Government will finance one day’s salary of each employee’s salary deemed to be €800 monthly with the possibility of this being extended to 2 days;

In order to determine which measures you are entitled to you need to know your NACE code. For this purpose please send an email to vat@gov.mt with a copy of your ID Card.

For further information please follow https://covid19.maltaenterprise.com/