Now that we know what’s in store for Malta’s 2020 budget, the core question many business owners are wondering is, ‘how will these new proposals and developments affect my business?’
In this blog post we will be reviewing the top new government incentives that will have an impact on your business and how it’s run.
Extra day of leave
All workers in Malta will now be entitled to an extra day of leave, bringing the total leave time to 216 hours per annum.
Tax rebate cheque
Following the success of last year’s handout, the Government will be once again gifting anyone earning under €60,000 with a tax rebate cheque – with the amount being proportionate to the gross income.
Separate tax returns for married couples
Sure to affect business owners and employees alike, married couples will now be able to file tax returns independently.
Intra-family business share transfers
Originally introduced in 2017, the reduced intra-family transfer duty rate of 1.5% has been extended to last through 2020.
Reduced tax rate of 15% on overtime
Employees will be taxed 15% on the first 100 hours of overtime, provided they are on €20,000 basic salary and do not hold a managerial position.
Cost of living allowance increase
A €3.49 weekly wage increase will be given as a cost of living adjustment. This also applies to pensioners in full and pro-rata to students.
€3.51 per week increase in pensions
A weekly increase of €3.51 will apply to pensioners as of 2020.
Want to learn more about how a particular development will be affecting your business? Get in touch today to speak to one of our advisors!