The newly announced measures for Malta’s 2022 budget introduce a number of new incentives, as well as grant extensions to existing schemes for businesses.
Here’s a breakdown of the most salient 2022 Budget incentives:
New Business Initiatives
- Part-time workers’ tax rate will be reduced to 10% tax rate from 15%.
- In terms of capital investment, a rental subsidy incentive will be extended to a larger number of businesses, while other incentives will be offered to attract enterprise investment through the Change to Grow and Smart & Sustainable Investment schemes.
- Companies with unused capital allowances for 2020 or 2021 due to pandemic-induced losses will be eligible for a tax reduction benefit.
- Malta Enterprise will be working with the Malta Residency Agency to offer the Start-Up Residence Permit to offer a visa package for Non-EU start-up entrepreneurs.
VAT interest
- Interest on unpaid VAT is set at 7.2% rate, and on exception will only be waived in line with the law.
Stamp duty
- Anyone passing on a family business to a relative will only pay 1.5% in stamp duty on the transfer, reduced from 5%.
Extension of business schemes
- The SME Tailored Facility by the Malta Development Bank will be extended to include green and sustainable projects. SMEs will be provided aid when diversifying into more green practices.
Assistance for the arts industry
- As of 2022, individuals working in the arts, culture and entertainment sectors shall benefit from a income tax rate of 7.5%, calculated on a 3-year average period.
- A €1 million guarantee fund will be set up for artistic events so that producers and promoters can recover their costs when unexpected restrictions are introduced.
Tax rebate cheque
- Following the success of the previous year’s handout, the Government will be once again gifting workers on the lowest incomes with a €140 cheque (previously €95), while those in the top category, earning up to €60,000 will get a refund of €60.
Cost of living allowance increase
- A €1.75 weekly wage increase will be given as a cost of living adjustment. This also applies to pensioners in full and pro-rata to students.
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