INCOME TAX 

No change in the tax bands Full-time and part- time employee’s earnings less than €60,000 will be entitled to refund amounting from €40 to €68, depending on the gross income of the preceding year. Pensioners shall be exempt from tax on their first €13,200 Individuals who are below the age of 40 years enrolling for a post graduate course equivalent to Masters and PHD will be exempt from income tax for a maximum period of two years.

VAT

The exemption threshold for Small and Medium Enterprises will be extend from €14,000 to € 20,000 VAT exemption on motorcycles, scooters and pedelec bicycles. 7% reduced VAT on hiring of bicycles. Electric and hybrid cars to be exempt from registration tax. Certain vehicles may benefit from a year exemption on road tax. VAT Grouping introduced to the Gaming and Financial Services industries. Through VAT Grouping companies which form part of the same group may have one VAT number. Supplies of services intra group would fall outside of scope of VAT.

PROPERTY

White paper is expected to be published to discuss changes to rental marker. Exemption on the first €150,000 stamp duty for first time buyer’s to be extended for another year. Second time buyers may benefit from a maximum stamp duty exemption of €3,000 upon certain conditions being satisfied Reduction in stamp duty to 2.5 % on property purchased in urban conservation area. Reduction of stamp duty of 5 % on property purchased in Gozo extended for another year.

CORPORATE INCENTIVES

MircoInvest Scheme – value increased to €50,000 for the enterprises based in Malta and €70,000 for enterprises based in Gozo. Enterprises employing less than 50 employees on a full-time base will also be entitled to the said scheme. Private Entities in Gozo offering an employment contract of at least 3 years will benefit from a 30% refund of an average wage of an employee up to €6,000 per employee.

CITIZENSHIP

Citizenship by Merit to be introduced and granted only to those who excel in science, research, sports, art and culture

BLOCKCHAIN

It is the Government’s vision to make Malta a centre for excellence in Blockchain Technology. Government already set up a Task Force to evaluate proposals on a national Blockchain strategy. As part of this strategy there will be the creation of Blockchain Lab for the training of civil servants to become more acquainted with the use of blockchain technology. Government will be also setting up a Blockchain Hub to assist start ups and investors using this technology.

SOCIAL MEASURES

€10,000 maximum grant to couples to cover adoption expenses in relation to adoption proceedings. Increase in foster care allowance to € 100 per week. Pensioners of age 75 or older living in their dwelling house will be provided with a €300 per annum.