Malta Budget 2016 Factsheet

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Visit our website for our full Budget 2016 analysis. www.ksimalta.com

Malta Budget How does it affect you? th

On the 12 of October, the Government presented the budget for measures to be introduced during 2016. Outlined hereunder are the main fiscal highlights announced on the night.

2016

Key Points

Income Tax Reforms

Pension Increases

New Tax Credits for Businesses

1) For Individuals Single declarations up to €9,100, joint declarations up to €12,700, and parent declarations up to €10,500 won’t be taxed.

Minimum Pension earners will receive an increase of between €4.15 and €8.92 per week.

1) Start-Ups: The bureaucratic procedure to open a business will be reduced from 3 weeks to 1 week.

Thanks to this Income Tax revision there will be savings from €90 to €210.

2) For Sports Activities VAT charged on sports activities including fitness centres, gym memberships and sports nurseries will be reduced from 18% to 7%. The current 7.5% income tax applicable for football and waterpolo players is being extended also to coaches and players of all sports.

Property Incentives 1) First-time buyers will continue to save up to €5,000 stamp duty on their first home. 2) The 15% withholding tax option on rented property was also extended to commercial premises. 3) Duty on property in urban conservation areas will be halved from 5% to 2.5%.

New schemes will be introduced by the Malta Enterprise to help start-ups generate funds 2) SMEs: Financial Assistance will be given to SMEs in the Manufacturing Sector. 3) Females: Tax credits of up to €50,000 will be granted to female-controlled businesses.

Donations Donations to the Community Chest Fund of at least €2000 made by companies in 2015 will receive a tax deduction of an equivalent amount.

4) Groups of Companies: Tax Reforms for Groups of Companies were also announced.

Contact Us

Our Office

Benjamin Griscti, Tax Manager bgriscti@ksimalta.com

Villa Gauci, Mdina Road Balzan BZN 9031 Tel: (+356) 21226176 Fax: (+356) 21226019

Kristine Scerri, Tax Advisor kscerri@ksimalta.com


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