Facilitation of Teleworking Activities Scheme

Purpose of scheme

In wake of the COVID-19 recent developments, Malta Enterprise launched an incentive scheme to support employers investing in teleworking technology. The teleworking arrangements should enable employees working from their own residence.

Deadline

Application should be submitted by 30th March 2020.

Eligibility

All employers are eligible for this scheme. Employers should enter into teleworking agreements with the employees.

Aid

Cash grant of 45% of the eligible cost incurred from 1st March 2020 to 30th March 2020. The grant to each beneficiary is capped at €500 per teleworking agreement and total aid of €4,000. This means that a beneficiary can only apply on a maximum of 8 teleworking agreements.

The aid falls under the de minimis regulation limits (€200,000 undertaking over a period of 3 rolling fiscal years, and to €100,000 for undertakings engaged in Road Freight Transport).

Eligible cost

  1. a)Purchasing and/or leasing of portable computer hardware equipped with connectivity software.
  2. b)Communication solutions (hardware and software) that allows different users from outside office premises to connect to their place of work (VPN, Point-to-point connection etc.)

Compliance requirements

After the application is approved, beneficiaries are required to submit other documentation in line with the scheme guidelines.

3a role

In these challenging economic conditions, 3a is there to be your advisory partner. For additional information about this scheme and other advisory services, kindly contact us on tonio@3a.com.mt

COVID 19 – Financial Aid Package for Businesses & Self-Employed

The Maltese Government announced the second set of financial measures aimed to support businesses for the implications of COVID-19

Liquidity measures

  • As already launched in the first set of aid, the Government once again committed to allow businesses to postpone the payments related to income tax, Vat and NI that are due in March and April dues. The Government will communicate at a later stage when the dues needs to be settled.

The measure is available both to employers and self-employed and in total €400m-€700m worth of payments are estimated to be deferred.

  • Government will grant bank guarantees worth of €900m to be utilised by businesses in situations such as new bank loans and moratorium on existing bank repayments.

€150m worth of bank guarantees are already committed through the National Development and Social Fund. Three months moratorium on personal and business loans can be requested though guarantees from this Fund.

Employment financial assistance

  • €350 per employee to businesses that have had employees on mandatory quarantine.
  • Grant of 2 days per week salary (based on monthly salary of €800) for persons employed with businesses that suffered complete suspension of operations such as accommodation, food and beverage, language schools and entertainment.

Such aid is also available to self-employed individuals operating in sectors that suffered complete suspension of operations.

  • Grant of 1 day per week salary (based on monthly salary of €800) for persons employed with businesses that suffered at least 25% drop in operations.
  • Persons whose full-time employment was terminated as from 9th March 2020 shall benefit from a temporary increase in their unemployment benefit of up to €800.
  • Persons with disability whose employment was stopped due to their vulnerability for COVID-19 and unable to work from home, shall be entitled for a monthly benefit of €800.
  • Families with children where both parents/guardians are employed in the private sector and both unable for telework will be entitled to €800/month for up to 2 months. This measure will make for the additional leave required for child-care.
  • Existing government housing subsidies shall increase for those families where one dependant had his/her employment terminated.

New employment procedures

  • All businesses who terminate an active employment contract will be denied applying for recruiting third-country national workers.
  • New applications for employment of third-country nationals will only be accepted for highly skilled works.
  • Existing third-country nationals whose employment has been terminated will be assisted to find an alternative job.
  • New service will be launched by Jobsplus to assist:
  1. o Persons whose employment was terminated;
  2. o Employers seeking recruits;
  3. o Third-country nationals for work permit queries.

Detailed implementation guidelines will be issued by the Government in due course. Government also announced that further measures can be launched to help enterprises during these challenging times.

We shall be closely following any developments and will communicate them once available. For any assistance on these matters you can contact us on tonio@3a.com.mt.

COVID-19 Tax Deferment scheme

Eligible beneficiaries

Companies and full-time self-employed persons that suffer at least 25% downturn in their turnover.

Companies and self-employed persons which have failed to comply with their tax obligations (submission of documents / returns and payments) falling due by the 31st December 2019 are specifically excluded from this scheme.

Application deadline

Applications are received online by not later than 15th April 2020

Eligible taxes

Provisional tax, employees’ taxes, maternity fund contributions, social security contributions and VAT which fall due in March and April 2020

Benefit of deferment

No interest or penalties will be charged in respect of eligible taxes that would have been deferred in terms of this scheme.

Settlement period

Provisional tax, employees’ taxes, maternity fund contributions, social security contributions to be settled in four equal monthly instalments in the four month period between May and August 2020.

VAT dues to be settled in two equal instalments with the two quarterly returns immediately following the quarter whose dues would have been deferred.

Submission documents

The required tax documents and returns still needs to be submitted by the due date as required by law.

Anti-abuse

The benefit granted under this scheme shall be forfeited if the beneficiary is found to be in breach of any of its terms and conditions making use of this scheme under false pretences. In case of forfeiture, beneficiaries will have to settle their dues as demanded by the Commissioner for Revenue and such payments shall be subject to interest or penalties as stipulated by law.