New Financial Assistance and Other Measures – COVID-19

The Government has yesterday introduced a new financial aid package as well as  other measures intended to alleviate the burden which businesses and employees are currently facing because of COVID-19.  Earlier on this week, the Government had already announced other measures.  The new measures have a value of Eur1.8 billion, which is approximately 12.9% of […]

Written By Stephen Balzan

On March 19, 2020
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The Government has yesterday introduced a new financial aid package as well as  other measures intended to alleviate the burden which businesses and employees are currently facing because of COVID-19.  Earlier on this week, the Government had already announced other measures.  The new measures have a value of Eur1.8 billion, which is approximately 12.9% of the country’s Gross Domestic Product.  This is a rate, which is higher than the EU average rate.  A summary of the new measures is set out below.

  1. Deferral of tax payments which are estimated to be in the region of Eur400 and Eur700 million
  2. Eur150 million of bank guarantees
  3. Eur750 million of soft loans
  4. Three month moratorium period to be applied on both personal and business loans
  5. Provision of guarantees of up to Eur900 million
  6. The Government to make Eur210 million available to cover any expenditure related to COVID-19
  7. An additional funding of Eur35 million in the health budget to fund additional expenditure in the acquisition of equipment and supplies to be used in the fight against this virus
  8. A grant of Eur350 per employee to be paid to employers that have employees subject to mandatory quarantine
  9. A grant of 2 days’ salary per week (based on a monthly salary of Eur800) to employees whose employers suffered from a complete suspension of operations
  10. Self-employed individuals who had to suspend their operations will receive a grant equivalent to two days’ salary per week (based on a monthly salary of Eur800)
  11. Self-employed individuals with employees will receive a grant equivalent to three days’ salary per week (based on a monthly salary of Eur800)
  12. Where a business can prove that its operations have been reduced by at least 25%, their employees will benefit from a grant which is equivalent to one days’ salary per week (based on a monthly salary of Eur800)
  13. Employees who will lose their job after the 9th March 2020 will receive a temporary increase in their unemployment benefits of up to Eur800 per month
  14. Employers terminating employment contracts, will have no possibility of employing third country nationals
  15. No further applications for employment will be accepted from third country nationals, unless the employee is highly skilled
  16. Jobs Plus will assist all third country nationals who would have been made redundant to find alternative employment
  17. Jobs Plus will also assist other people whose job has been terminated as well as employers to seek new employees
  18. A grant of Eur800 per month (for two months) will be paid to families whose children have to stay at home due to the closure of schools.  This applies where both parents work in the private sector, are unable to work remotely and who require additional leave to take care of their children
  19. Persons with disability who are unable to work remotely will be entitled to a benefit of Eur800 per month for a specified period
  20. Employees having their employment terminated and who reside in subsidised accommodation will benefit from higher rent subsidies

How can we help?  

For further information, please contact one of the firm’s tax partners, Stephen Balzan on [email protected] or Elaine Camilleri [email protected]. ACT can help you understand the changes to the tax rules and how these can impact your business.  

Apart from its offices in St. Julian’s Malta, ACT operates from a second office in Gozo, which is situated in the capital city of Victoria.  For an appointment in our Gozo office, please call on 00356 21378672 or send us an email on [email protected]. 

Disclaimer: This article contains general information only and is not intended to address the circumstances of any particular individual or entity. ACT, by means of this article is not rendering any accounting, business, financial, investment, legal, tax, or other professional advice or service. This article is not a substitute for such professional advice, nor should it be used as a basis for any decision or action that may affect your finances or your business. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. Before making any decisions or before taking any action that may affect your finances or your business, you should consult a qualified professional adviser. ACT shall not be responsible for any loss whatsoever sustained by any person who relies on this article.