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.

Rent Subsidy 2020

Scope

The scheme supports businesses the require industrial space as a temporary, or permanent, solution to:

  1. i.Commence a new business activity;
  2. ii.implement growth plans;
  3. iii.handle an increase in orders; and/or;
  4. iv.carry out process innovations required to increase efficiency.

Aid

50% of the rental cost incurred (excluding any taxes) capped at €25,000 over 12-month period. The aid can be approved for a period of 3 years, capped at €75,000 over 3-year period.

This scheme has an overall budget of €2,500,000. The scheme falls under the ‘De Minimis’ rules and obligations.

Duration

Scheme is available from 1 February 2020 to 31 December 2022.

Legal form

Applicants can be companies, partnerships, cooperatives or self-employed registered with Jobsplus.

Eligible activity

The applicant must be engaged in:

a) Manufacturing;

b) Maintenance and Repairs of Motor Vehicles;

c) Repair of Machinery & Equipment;

d) Other industrial activities.

Other important limitations

  • Applicants in the preceding 2 years must have not employed more than 100 Full time employees.
  • Annual turnover in the preceding 2 years did not exceeded €10 million.
  • If the applicant is a registered company, the balance sheet total did not exceeded €10 million in the preceding 2 years.
  • Property must be rented from a third party from the private sector.
  • The property rented should not be owned by a legal person or a group of persons related to the applicant.
  • Public property is not eligible.
  • The rent agreement must have commenced not earlier than 1 year prior to the date when the application was submitted.
  • Showrooms, display areas and similar properties are not eligible.

Economic Regeneration Vouchers

The government with the collaboration of Mimcol, announced the mechanism that businesses should follow to redeem the Government vouchers.

The following are the essential facts to know and steps to follow:

  • Businesses are required to register an account following these instructions

https://www.vouchersmimcol.com/wp-content/uploads/2020/06/business-leaflet-guide-web.pdf

  • There is the possibility to add more than one outlet for each account.
  • A unique code will be provided for each business outlet. This code needs to be provided to manager or cashier in charge.
  • Once the account is registered and confirmed, login to this account will be done through a mobile app.
  • Each voucher will have a QR code and businesses should scan this code through the app. If the voucher is already redeemed it will display ‘Validation Failed’. The physical voucher should be retained by businesses.
  • After entering the voucher, a photo of the vat receipt should be uploaded on the app.
  • Red vouchers are valid for restaurants & accommodation vouchers, while blue vouchers are for retail & services.
  • Funds will be transferred to businesses the same day of redemption.
  • Mimcol will be sending letters to eligible businesses to inform them about the procedure. Businesses can also check if they are eligible by following this link and enter their vat number.