Government incentives and measures introduced in light of COVID-19

//Government incentives and measures introduced in light of COVID-19

A number of measures have been announced to counteract the negative economic impact of the COVID-19 pandemic.

These measures have a value of around €1.8bn, which represents around 12.9% of Malta’s Gross Domestic Product (GDP) in 2019. A summary of the announced measures is set out below.

Business and employment measures:

  • Liquidity injection and bank guarantees of up to €1.6bn consisting of:
    • Tax deferrals up to Euro 700 million deferral of income tax, VAT and NI payments for March and April for both employers and self-employed;
    • €750m of soft loans;
    • €150m of bank guarantees.
  • Requesting a three-month moratorium for both personal and business loans.
  • Provision of guarantees by the Government of up to €900m thereby making credit of €4.5bn available.
  • Employees of enterprises that suffered from a complete suspension of operations will be entitled to a grant of 2 days’ salary per week (based on a monthly salary of €800).
  • Self-employed individuals operating in the said industries will also receive a grant equivalent to two days’ salary per week. Those self-employed individuals having their own employees shall receive a grant equivalent to three days’ salary per week (Both cases are based on an assumed monthly salary of €800).
  • Where the operations of a business have reduced by at least 25%, employees will benefit from a grant equivalent to 1 day’s salary per week (based on a monthly salary of €800).
  • Individuals whose full-time job has been terminated as from 9th March 2020 shall benefit from a temporary increase in their unemployment benefit of up to €800 per month.
  • A grant of €350 per employee to businesses that have had employees on mandatory quarantine.

Third Country Nationals

  • Malta shall no longer accept applications for new third-country nationals except for highly skilled workers.
  • Assistance to all third country nationals to find alternative employment in case of Job termination.
  • All enterprises who terminate an active employment contract shall be denied the possibility of applying for third-country national workers.

The details of these measures are still being communicated and further clarifications will need to be sought.

Contact us now for more insight on the above measures.

2020-03-20T11:18:24+00:00March 20th, 2020|

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