11.3 C
Monday, 17 January 2022
HomeTaxationCompanyCovid aid to businesses guaranteed through 2021

Covid aid to businesses guaranteed through 2021

Companies registered in Malta that have suffered drops in turnover certified by VAT returns will continue to be supported by the support measures already put in place by the Government until the end of 2021: this was confirmed by Industry Minister Miriam Dalli and Finance Minister Clyde Caruana.

The Government therefore seeks to overcome the dependence of companies on wage subsidies gradually, and not in advance of the end of an emergency that is still in full swing, with the increase in contagions linked to the English variant of Covid-19 and a new series of restrictive measures that have imposed the closure of restaurants and stores selling non-essential goods, at least until next April 11.

With immediate effect, therefore, businesses directly affected by the latest restrictions will benefit from the full 800 euro wage supplement that was granted in 2020. It should be recalled that, as of January 2021, this supplement was calculated on the turnover declared by a company over six months between March and October 2019 compared to that declared between March and October 2020.

Let’s review then the parameters used:

  • Companies that have experienced a 55% or greater drop in sales will receive the full wage supplement, i.e. €800 for each employee
  • Sales reduction from 45% to 54%: EUR 640
  • Sales reduction from 35% to 44%: €480
  • Sales reduction from 25% to 34%: €320
  • Sales reduction from 25% to 10%: €160

Companies that, on the other hand, have achieved better results or have suffered a loss of sales of less than 9% in the last year will not be eligible for wage subsidies, regardless of the sector in which they operate.

Instead, companies that have had to cease operations will receive a supplement equal to full salary. Finally, there are some companies that are exempt from VAT, for which it is difficult to have a certified determination of losses: in this case, salary integrations will refer to the same attachments as last year.

Minister Caruana pointed out that in 2020 wage integrations for a total value of 360 million euros were granted, and it is estimated that in the absence of this measure the decrease in national GDP would have been 33% higher.

For more information and assistance contact the Malta Business Agency team via the following form.

Giovanni Guarise
Professional journalist since 2010, over the years as a freelance he has dedicated particular attention to the world of Small and Medium Enterprises, creating in-depth studies and focuses for various newspapers, and collaborating in communication activities for a trade association in Veneto.
We are partners ofspot_img

Related articles

VAIOT is the first digital asset regulated by the MFSA

VAIOT seeks to enable both businesses and consumers to utilize a set of technologies called Intelligent Contracts to create legal agreements.

Cell Companies in the maritime and aviation sectors

Cell companies are companies that separate their business into "protected cells" through a segregated portfolio in which the assets and liabilities of different classes...

Hanover Investors appoints its first Chief Business Officer

Hanover Investors has appointed Jeremy Westhead as its first Chief Business Officer, it was announced recently. The specialist investor, that operates in under-analysed and illiquid...

Funding focus
Discover the news in the dedicated section