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Malta Budget 2016 How does it affect you?

Key Points

On the 12th 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.

Income Tax Reforms

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.

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.

Pension Increases

Minimum Pension earners will

receive an increase of between

€4.15 and €8.92 per week.

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%.

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.

New Tax Credits for Businesses

1) Start-Ups: The bureaucratic

procedure to open a business

will be reduced from 3 weeks to

1 week.

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.

4) Groups of Companies: Tax

Reforms for Groups of

Companies were also

announced.

Contact Us Benjamin Griscti, Tax Manager bgriscti@ksimalta.com Kristine Scerri, Tax Advisor kscerri@ksimalta.com

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