KEY MEASURES

  • Malta will not introduce any of the components of OECD Pillar 2 rules on global minimal tax of 15% in 2024
  • No changes to the corporate tax system in Malta are envisaged; the full imputation system will remain
  • Cost-of-living adjustment (COLA) will be €12.81 per week
  • Increase of minimum wage from €192.73 per week to €213.54 per week as of January 2024
  • Introduction of a Venture Capital Fund for startups
  • €10,000 increase in grant for first time buyers purchasing UCA or vacant property in Gozo
  • Extension of stamp duty reduction from 5% to 1.5% on transfer of family businesses
  • Malta advances esports strategy, promotes digital game education, and will host ESL Pro League Season, and strengthen gaming regulations
  • Preferential tax rate of 7.5% applicable to players, licensed coaches and athletes extended to other persons employed in a sporting activity

ECONOMIC DEVELOPMENTS

  • Economic growth of 6.9% in 2022.
  • Introduction of various measures to mitigate the impact of rising energy and fuel prices.
  • Maltese economy expected to grow by 4.2% in real terms and 7.4% in nominal terms in 2024
  • Common safeguards to ensure debt sustainability will remain in place.
  • Government committed to keeping public debt below 60% in the coming years.

CORPORATE TAX

  • OECD Pillar II will not be implemented in 2024, therefore Malta will not introduce the 15% minimum tax rate this coming year.
  • There are no plans to change the tax system in Malta in 2024. The full imputation system will continue to apply as before.
  • Commitment to ensure that measures and incentives in the form of grants or tax credits (so-called Qualified Refundable Tax Credits or QRTCs) are in line with EU and OECD rules.
  • Extension of the reduction of stamp duty from 5% to 1.5% on inter vivos transfers of family businesses to younger generations.
  • Family businesses can benefit from a higher cap on tax credits for investments made in their business.

PERSONAL TAX

  • Annual tax refund for individuals ranging from €60 to €140 depending on their income.
  • Working pensioners will continue to enjoy further tax benefits, with a higher proportion of their tax base being disregarded for tax purposes (from 20% to 60%).
  • The preferential tax rate of 7.5% applicable to players, licensed coaches and athletes will be extended to other persons employed in a sporting activity.

REAL ESTATE

  • Exemption from stamp duty and tax on capital gains on the first €200,000 on the transfer of property rented to the Housing Authority and used for social accommodation and on the transfer of property sold to tenants who availed of the rent benefit scheme.
  • Stamp duty reduction extended for first-time buyers and second-time buyers for another year
  • Reduction of stamp duty on purchase of properties in Gozo will continue to apply for promise of sales entered into until end of December 2023.
  • Continued exemption from capital gains tax and stamp duty on the first €750,000 when purchasing properties which have been built for more than 20 years and have been vacant for more than 7 years, or purchasing property located in a UCA area
  • No VAT will be payable on the first €300,000 in restoration and finishing costs of vacant and UCA properties. First-time buyers will also benefit from a €15,000 grant for properties in Malta and a grant of €40,000 in Gozo (increased from €30,000).

BUSINESS INCENTIVES

  • Establishment of a Common Central Data Repository to reduce bureaucracy and facilitate the process of identifying applicants doing business in Malta.
  • Launch of a new online portal for the Malta Business Registry (MBR).
  • Legislative changes will be introduced to reduce compliance costs associated with auditor fees for tax returns and annual accounts for small companies incorporated under the Merchant Shipping Act and the Companies Act.
  • Launch of a Venture Capital Fund for startups.
  • Extension of the Seed Investment Scheme which will continue to offer tax credits to Maltese companies investing in startups, and extension of the Startup Finance Scheme.
  • EU Startup Summits will be held in Malta in 2024, 2025 and 2026.
  • The Small and Medium Enterprises Assistance Scheme, which provides advisory services on ESG and how to improve the sustainability of their operations, will be extended in 2024.
  • The Malta Financial Services Authority is in the process of implementing a number of regulatory changes, including those relating to Notified Professional Investor Funds and Limited Partnerships, which are mainly aimed at allowing different structures to be set up in Malta for international investors, particularly in private equity.
  • Legislative changes are being prepared to attract foreign banks into the aircraft leasing industry, and a specific framework for depreciation (of aircraft) is being developed.

SOCIAL MEASURES

  • Cost-of-living adjustment (COLA) will be €12.81 per week.
  • Pensioners will receive a further increase in the COLA of €15 per week or €780 per year.
  • The minimum wage will increase from €192.73 per week to €213.54 per week from January 2024.
  • Increase in children's allowance by €250 per child.
  • Introduction of a special allowance of €500 per year for a period of three years for parents whose children are still living with them and continue full-time education after compulsory age.
  • Families welcoming new children will receive an allowance of €500 for the first child and an allowance of €1,000 for every other child.
  • An increase from €200 to €500 per year in tax credit for the use of therapy for every child with a disability.

GREEN ECONOMY

  • Schemes incentivising purchase of new vehicles, including motorcycles, that work with electricity will be extended.
  • Electric and plug-in hybrid vehicles with an electric range of 50km or more will remain exempt from registration tax and exempt from paying the annual road license for a period of 5 years from the date of first registration.
  • Mass storage projects through batteries are planned to strengthen the national grid and accommodate more renewable energy.
  • A strategy for introducing hydrogen as a clean fuel option for industries is being developed.

EDUCATION

  • Student stipends will increase by €64 per year.
  • Existing Scholarship programmes will continue to be provided as well as tax credits for those students who wish to advance their studies at Masters and Doctoral level through the Get Qualified and Higher Educational Qualifications.

OTHER MEASURES

  • The maritime industry is growing, with projects aimed at accommodating larger ships and reducing air pollution in ports.
  • Focus on aircraft registration and investments in aviation infrastructure.
  • Outsourcing and temping agencies will need to obtain a licence and would not be able to bring in further third country nationals without holding such licence.

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