Notice to self-employed persons – COVID wage supplement : SSC implications

The Commissioner for Revenue (CfR) has recently issued a notice to self-employed persons, who were in receipt of a COVID wage supplement, with respect to the calculation of their social security contributions (SSC) due. The wage supplement represents or supplements the normal income of the self-employed person and hence is taxable in the hands of […]

Written By Stephen Balzan

On May 25, 2020
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The Commissioner for Revenue (CfR) has recently issued a notice to self-employed persons, who were in receipt of a COVID wage supplement, with respect to the calculation of their social security contributions (SSC) due.

The wage supplement represents or supplements the normal income of the self-employed person and hence is taxable in the hands of the recipient.  When effecting payment of the COVID wage supplement, the Government withholds a 10% prepayment on account of the SSC due by the self-employed person.  The self-employed person will then have to calculate the total amount due by way of SSC to the CfR and then deduct the amount of SSC withheld by the Government when effecting payment of the COVID wage supplement.

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].