Enterprise Minister Miriam Dalli has announced fresh details behind Malta’s 2021 wage supplement scheme, which will see COVID business aid no longer be calculated based on an entity’s NACE categorisation, but on loss of turnover.
This had been announced in the 2021 Budget however details are now being provided.
At a press conference jointly addressed with Malta Enterprise CEO Kurt Farrugia, Dr Dalli revealed that the updated support measures will see the Government fork out €40 million monthly but described the new system as a “fairer” one.
The support level will be calculated according to the difference in turnover declared by a business over six months between March and October 2019, against turnover declared over six months between March and October 2020.
The new system caters for three different types of VAT procedures: Monthly VAT returns, quarterly VAT returns and yearly VAT returns.
For VAT exempt and new VAT numbers, the level of support will be paid according to the current scheme (Annexes A, B & C), which are determined according to the NACE code categorisation.
Supplement according to the % drop in sales
|Percentage drop in sales||Wage supplement monthly rate (gross) – full timers||Wage supplement monthly rate (gross) – part timers & casuals|
|55% or greater||€ 800||€ 500|
|45% up to 54%||€ 640||€ 400|
|35% up to 44%||€ 480||€ 300|
|25% up to 34%||€ 320||€ 200|
|10% up to 24%||€ 160||€ 100|
|Increase in revenue/ up to 9% drop in sales||€ 0||€ 0|
Businesses which had to close down following the issuance of legal notices by the Superintendent of Public Health will continue to receive the wage supplement at the maximum rate.
Both Minister Dalli and Mr Farrugia, in their address, stressed that this is not the only assistance being given to businesses, and reminded the audience of utility bill subsidies and rent subsidies being provided to help businesses navigate through COVID.
The change could hit smaller establishments negatively
The new rules come into effect from 1st January 2024
Only competent authorities or subject persons will have access to information on Beneficial Ownership