As communicated by the Minister for Finance and Financial Services, the Commissioner for Revenue and Malta Enterprise, the application of the deferral of taxes has been re-opened with an extension. The application deadline for a deferral of taxes owed up to and including June 2020 has been extended to 15th May, 2020. The measure applies to enterprises, including the self-employed, to pay Provisional Tax, VAT and National Insurance Contribution on salaries.

All tax forms should be submitted according to normal deadlines. The incentive is primarily aimed, but not limited to, the tourism and hospitality, entertainment, transport, and manufacturing sectors. Enterprises will still collect National Insurance on their employees' wages, but will keep these dues for the duration of the deferral.

Without prejudice to the right of each enterprise to prove a "significant downturn in turnover" in its specific circumstances, a drop of circa 25% or more in sales registered would certainly satisfy this condition.

This would be ascertained on the basis of a 3 month period in which March would be either the first or the second month, i.e. either from February to April or else from March to May 2020 as compared with the same period of 2019.

Naturally, this would in part be based on estimates but as long as such estimates are drawn up in a reasonable manner then they should suffice.

Enterprises claiming this benefit should keep records of these estimates.

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 and who opted to pay VAT under the Mini One Stop Shop (MOSS).

Source: Malta Enterprise

Originally published 11 May 2020

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