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Tax Deferral - COVID-19

20 March 2020


On Friday 20th March, the Commissioner for Revenue together with Malta Enterprise provided further details on the COVID-19 tax deferral.


We have summarised the new guidelines below:


COVID-19 Fiscal Assistance - Postponement of Payment of Certain Taxes

Eligible Taxes: Provisional tax, Employee taxes, maternity fund payments and social security contributions, social security contributions of self-employed persons and Value Added Tax, which fall due in March and April 2020


Settlement period: Eligible taxes (excluding Vat) 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


Benefit: No interest or penalties will be imposed on the deferred taxes.


Beneficiaries: Companies and self-employed persons that suffer a significant downturn in their turnover as a result of the economic constraints arising from the coronavirus pandemic and, as a result face substantial cash flow difficulty. The main industries identified in the online application form are education, hospitality and entertainment, hairdressing, beauty treatment, physical wellbeing, transport and manufacturing. Companies and self-employed persons not adversely hit are advised and encouraged not to avail themselves of this scheme. Ideally, eligible taxes should continue to be paid every month and on time because that would make for good business management. The benefit granted under this scheme shall not remove the obligation of beneficiaries to submit documents and returns by the due date as required by law.


Specifically excluded: 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. Moreover, 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.


Submission application deadline: One is required to complete and submit an online application by not later than the 15th April 2020.


Should you require additional information or require our assistance with filing a tax payment deferral application, do not hesitate to Contact Us.

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