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Malta Updates Tax Deferral Scheme for COVID-19 and Introduces Other Measures — Orbitax Tax News & Alerts

On 30 March 2021, Malta's Commissioner for Revenue published an update to the guidance on the postponement of payment of certain taxes in response to COVID-19. The guidance was first published in March 2020 and has been updated several times. The latest updates for the tax deferral scheme include the following:

Eligible Taxes: Provisional tax and social security contributions of self-employed persons and Value Added Tax.

Period covered: Eligible taxes which fall due in August 2020 up to and including December 2021.

Settlement period: The settlement of eligible taxes will start from May 2022.

How to apply: One is required to complete and submit an online application form available on the Malta Enterprise website. Such application is to be made not later than 15 May 2021. Companies and self-employed persons that had already applied for deferment of eligible taxes for March 2020 to August 2020 do not need to re-apply as they will automatically be considered for the extended period till December 2021.

Separately, Malta's Ministry of Finance has issued a release on further COVID-19 relief, including the tax deferral above, as well as an exemption from capital gains tax on properties sold by businesses where the proceeds from the sale go towards the payment of (other) taxes due. Agreements for the exemption must be entered into by March 2022, with the exemption applied to the amount of income from the sale of property that is equal to the amount of tax due.