INCOME TAX & DUTY
- ?10,000 grant will be provided over a period of 10 years to every first-time buyer who acquires property not exceeding ?500,000. This will apply to every final deed done from 1 January 2022 onwards.
- A scheme intended to help buyers pay their 10% deposit to be broadened to properties valued up to ?225,000.
- The capping for the Private Rent Housing Benefit Scheme has also been increased by ?100 per month across the board. This means that it has gone from ?400 to ?500 per month for a one-bedroom residence, from ?500 to ?600 per month for a two-bedroom residence, and from ?600 to ?700 per month for a three-bedroom residence.
- For another year, employees earning less than ?60,000 shall receive again an ex-gratia tax refund of up to ?140. The highest income earners below the ?60,000 bracket would receive a refund of ?60:
INCOME TAX AND DUTY
- As announced in the previous budget, pensions income derived by
an individual on or after 1 January 2022, shall gradually not be
considered as part of the taxable income over a period of 5 years
starting from 2022 and thus, shall be partially or fully exempt
from tax as following:
Amount Exempt Applicability of the Exemption 20% Pensions income derived in the year immediately preceding the year of assessment 2023 40% Pensions income derived in the year immediately preceding the year of assessment 2024 60% Pensions income derived in the year immediately preceding the year of assessment 2025 80% Pensions income derived in the year immediately preceding the year of assessment 2026 100% Pensions income derived in the year immediately preceding the year of assessment 2027 and in subsequent years
- Authors shall benefit from a reduced tax rate of 7.5% (previously 15%) on royalty income received from the sale of books.
- A further extension applicable to companies that did not absorb capital allowances during 2020 and 2021 due to losses incurred in the pandemic. Companies can apply to have this deduction against any taxable income from other companies, which are part of the same group for basis year 2022.
- The reduced stamp duty rate from 5% to 1.5% on the transfer of family business from parent to child shall be extended again.
- The stamp duty exemption for first-time buyers, second-time buyers on the acquisition of their residential property and acquisition of property situated in Gozo have been extended once again.
- The Global Residence Programme and the Malta Residence Programme which have been in place for a number of years shall be evaluated to determine if any updates required, ensuring that Malta remains attractive in this regard.
- Individuals acquiring a cars equipped for wheelchair users will benefit from a subsidy of not more than 20% on the price. In the meantime, those who acquire a second-hand vehicle (equipped for wheelchair users), will benefit from a subsidy of not more than 10% on the price. This will apply to vehicles having emissions under 180g CO 2
- New guidelines to be launched by Malta Enterprise to assist companies in acquiring the ESG (Environmental, Social, Governance) credentials.
- Renewal of grant in relation to the purchase of electric vehicles. The grant shall amount to ?11,000, rising to ?12,000 if the scrappage scheme is applied.
- The scrappage scheme existent in Gozo for vehicles which pollute excessively shall be increased.
- Renewal of various eco-friendly measures including:
- the renewal of the grant provided to persons who change their vehicles from being dependant on petrol to gas;
- exemption of registration tax and annual car licence fees (for the first five years from the first registration) for electric vehicles and plug-in hybrid vehicles.
- Renewal of schemes for installation of photovoltaic panels, batteries for storing renewable energy, heat pump water heaters, and solar water heaters.
- Installation of more electric charging points throughout Malta - plan is to introduce 1,200 more charging points until 2024.
- Interest-free loans for businesses who choose to replace their vehicles to electric ones.
- Introduction of a new agency which shall coordinate different environmental projects and shall coordinate green urban reclamation projects.
THE ELDERLY AND PENSIONS
- Pensioners shall benefit from a weekly increase of ?12.50 per week with effect from 2023, inclusive of the Cost-of-Living Adjustment.
- As from January 2023, the amount of exempt pension shall be increased to ?14,968. Furthermore, persons claiming married rates will be entitled to a further ?3,600 tax free amount in respect of income from other sources. Those born after 1962 will also benefit from a new amount of exempt pension which will be announced in the coming months
- A bonus for the increased cost of living shall be paid in full to all pensioners who retired after 2008. This shall amount to a maximum of ?1.50 per week or ?78 annually
- Once again, the portion of any service pension will be increased further by an addition of ?200, whilst pensions for widows will increase by ?3.54 per week.
- Previously, workers who received a widow's pension because their spouse died young were not entitled to certain benefits. This will be revised as from 2023 and it will entitle them to also receive unemployment, sickness or worker's compensation benefits.
- An additional bonus amounting to ?50 annually shall be given to persons who reached retirement age but did not qualify for a contributory pension. The bonus for those who paid less than 5 years in social security will increase to ?450 per year and for people who paid more than 5 years (capped to 10 years) the bonus will increase to ?550 per year.
- Anyone aged 18-30 years of age who misses up to two years of work due to a mentalhealth-related issue is to get those social security payments covered by the state. Applicants will need to prove that they received psychiatric care during that time
EMPLOYMENT AND FAMILY
- The Cost-of-Living Adjustment will increase to ?9.90. This will be given to all employees, pensioners, and all those on social benefits. Stipends given to students will also increase pro-rata.
- Additional Cost-of-Living Adjustment Mechanism for the vulnerable - Benefit will be paid every year and applies to those who receive social benefits and their income is less than the Median Equivalised Income amounting to ?17,796.
- As from 2023, children's allowance will increase by ?90 for each child.
- As from 2023, foster care allowance will paid over a period of 4 years or until the child reaches 21 years of age, whichever comes first.
- ?20 per month to be paid to those having coeliac disorders.
- An increase in the Carers Grant from ?500 to an estimate of ?4,500 annually applicable to parents who are unable to work to take care of their adult children with special needs. This will be paid quarterly.
- A tax credit of ?200 per annum will be paid to parents having a child with special needs.
- Student stipends are to rise by ?50 a year.
- Extension of the In-Work Benefit for workers working atypical hours, including people who work evenings and weekends in the accommodation, food service, administration, manufacturing, transport, wholesale and retail industries. Workers who earn up to ?20,000 a year will receive ?150 as benefit
- An increase in paternity leave from one or two days to 10 days whilst a 2 month paid parental leave for each parent has also been introduced. An additional 5 days leave for those who take care of others requiring medical assistance.
- Extension of the initiative providing one tablet per child and a new laptop to every student in the 7th grade as from the next scholastic year.
- Increase of tax rebate from ?100 per year to ?300 per year for parents who send their children to sports, artistic, or cultural activities.
OTHER SALIENT MEASURES
- Rent subsidy shall be offered to local businesses which shall double from ?25,000 to ?50,000 for the first three years. Such scheme will also be extended to apply to a six year period.
- Micro Invest to be extend to Social Enterprises and not just commercial entities. Social Enterprises shall now be eligible for a tax credit up to ?70,000 over a period of 3 years.
- A new one-stop shop shall be launched, called Start in Malta, offering assistance to startups to establish in Malta.
- An EU Start-up Summit is to be held in Malta attracting the best European start-ups to Malta
- Malta Enterprise shall develop a new European Business Incubation Centre to serve as touch down facility for innovative start-ups .
- Further cash grants to be granted to small and medium-sized enterprises under the Business Enhance Scheme, with a total investment of ?40 million.
- Malta Enterprise shall double the financial assistance in the form of cash grants to local business investing in sustainable, digital projects. The grant shall cover 50% of the eligible investment, up to a maximum of ?100,000.
- Businesses established in Gozo as well as start-ups will continue to benefit from an additional 10% as tax credit, which credit can double to 20% if companies invest in projects that reduce carbon footprint in their operations.
- Maltese enterprises shall benefit from a maximum tax credit of ?40,000 when investing in digital projects, in projects that reduce energy or water consumption or in projects that increase efficiency in waste management.
OTHER SALIENT MEASURES
- Introduction of new health centres including Oncology Centre and an introduction of a new Diabetes centre in Qormi, Malta.
- Introduction of Pre-Implantation Genetic Testing (PGTM).
- Introduction of a new Outpatients building within Mater Dei
- Introduction of an Organic Processing Plant in order to maximise the use of waste. The Plant shall produce both electric energy and compost for agricultural use.
- Introduction of gate fees as from 1st January of the year 2023 to encourage waste separation.
- Further Investment in Malta's Pitkalija.
- Creation of a strategy for carbon farming.
- Extension of incentives for police personnel to continue working after pension age.
- Introduction of pension for a period of five years for widowed officials of disciplinary forces who die prior to providing 25 years of service.
- Investment in Police community Services.
- Strengthening of AML and CFT measures to increase compliance with FATF, MONEYVAL, and other recognised AML organisations. It shall be ascertained that entities like FIAU, Malta Business Registry, MFSA, the Police, Malta's Internal Tax Department, and Asset Recovery Bureau are given the resources which they require so that they operate in an effective manner.
Originally published by KSi Malta.
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