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Introduction of Corvid -19 in Malta  

 

 

We understand that these are challenging times and we are committed to doing everything we can to assist our clients navigate through this situation.

Our employees are here for you with advice, solutions and the support you need and this will be offered free of charge since we want to assist local companies, the self-employed and your employees to emerge from this storm as painless as possible.

We are constantly monitoring the situation and will keep you informed of any new developments as soon as they emerge.

A set of friendly guidelines have been prepared and will be kept updated in order to ease the comprehension of the Government’s measures.

The measures have been segmented as follows;

  1. Wage Supplement

  2. Teleworking

  3. Deferral Payment of Taxes

  4. Quarantine Leave

  5. Bank Related Matters

  6. Other Measures

Covid-19 – Wage supplement

Businesses and self-employed operating in sectors that suffered drastically or had to temporarily suspend operations on the order of the Public Health, can benefit €800 per month per employee retained in employment. 

 

These sectors include;

  • Wholesale (part of)

  • Food & Beverage Services

  • Travel Agencies

  • Building Services

  • Personal Activities

  • Accommodation

  • Tour Operators & other reservation services

  • Retails

  • Motor Vehicle Leasing

  • Transport

  • Security & Investigation Activities

  • Creative Arts & Entertainment

  • Employment Activities

Businesses and self-employed operating in sectors that have been affected, though to a smaller extent than the above, can benefit up to 1 or 2 days per week based on a €800 (ie €160 or €320) per month salary for each employee retained in employment. 

 

These sectors include;

  • Wholesale (part of)

  • Retail (part of)

  • Manufacturing

  • Warehousing

  • Information

  • Gozo based enterprises will be entitled to two days’ salary per week equivalent to €320 per month. This will increase to 3 days salary, equivalent to €480 per month, for those self-employed who employ staff, whilst the employees will still be entitled to two days’ salary per week

 

Part timers will be entitled to one day’s salary per week, equivalent to €100 per month.

 

Contact us for more information and support.

The aim of this grant is to support employers and self-employed to invest in technology that enables teleworking.

 

Eligibility

  • this grant is open to all undertakings irrespective of size and sector

  • where employees did not have a teleworking agreement in place prior to the 15th of February 2020

  • for costs incurred between 15th of February 2020 and 8th May 2020

Eligible Expenses

  • purchasing and/or leasing of computer hardware (included operating systems) which are considered portable, including installation and setting up of connectivity software

  • communication solutions (hardware and software) that allows different users to connect to their place of work (VPN, Point-to-point connection etc.)

Benefit

  • up to €500 per teleworking agreement

  • 45% of the eligible cost

  • max €4,000 per undertaking

Method

  • the application and claim form together with additional documentation should be submitted by email on covid@maltaenterprise.com

  • the applicant is required to provide the following: –

    • signed teleworking agreement;

    • a document signed by the employee as a confirmation that the employee has sole responsibility of the hardware and software left in his/ her care;

    • copy of invoices together with proof of payment of the eligible costs;

    • in case of leased equipment, provide a copy of the lease agreement.

  • the Corporation shall issue a letter of approval indicating the value of aid awarded

  • the undertaking will have to provide and install the approved equipment at the teleworker’s residence within two (2) weeks from the approval letter

  • the beneficiary shall submit a monthly report on the teleworking activity of the employee for the three (3) months following the approval.

We can help you in preparing the teleworking agreements, submitting the application and preparing the monthly reports.

Deferral Payment of Taxes

The aim of this deferral is to improve business liquidity by easing pressures on cash flow arising from the current economic impact.

Eligibility

  • Businesses and self-employed persons who suffer a significant decline in their turnover and as a result face substantial cash flow difficulties

  • Companies and self-employed persons not adversely hit are advised and encouraged not to avail themselves of this scheme for good continuation.

Excluded

Companies and self-employed persons who have failed to comply with their tax obligations (submission of documents / returns and payments) falling due by 31st December 2019

Eligible Taxes

Provisional tax - Employee taxes

Maternity fund payments  - Social security contributions of employees &

Value Added Tax -  the self-employed

 

which fall due in March and April 2020.

Method

  • Eligible taxes (excluding VAT) to be settled in four equal monthly instalments in the four month period between May and August 2020

  • VAT dues to be settled in two equal instalments with the two quarterly returns immediately following the quarter whose dues would have been deferred

  • No interest or penalties to be charged in respect of eligible taxes that would have been deferred in terms of this scheme

  • All tax forms should be submitted according to normal deadlines.

  • Enterprises will still collect National Insurance on their employees’ wages, but will keep these dues for the duration of the deferral

  • The benefit granted under this scheme shall not remove the obligation of beneficiaries to submit documents and returns by the due date as required by law

 

An application form which is available on covid19.maltaenterprise.com is to be submitted online.

Deadline for this scheme is 15th April 2020.

Quarantine Leave

The aim of this grant is to financially support those employers who have employees under quarantine leave.

 

Eligibility

  • Employers who have full-time employees on mandatory quarantine leave

  • Self-employed (full time) persons who have to undergo mandatory quarantine

Benefit

  • A grant of €350 per employee

Method

  • The applicant is required to provide the following;

    • Type of business

    • VAT Number

    • PE Number

    • NACE Code

  • Other business details & banking details

  • Details of the employee who had to undergo mandatory quarantine, i.e.

    • Name & Surname

    • ID Number

    • Date of birth

    • Start of quarantine date

    • Reason for quarantine.

 

The application form should be submitted online via the following link: https://covid.maltaenterprise.com/quarantineleave.

Bank Related Matters

 

New Loans – Covid-19 Guarantee Scheme (CGS)

The government allotted a fund amounting to €350 million for the bank guarantees. This Scheme will facilitate commercial banks to fund up to €777.8 million worth of loans to Maltese businesses. The Malta Development Bank will administer the CGS to aid companies facing cash flow disruptions.

 

Eligible working capital costs include:

  • Salaries

  • Rental Costs

  • Water and Electricity bills

  • Fuel

  • Trade Creditors

  • Acquisition of Material or Stock

  • Direct expenses of contracts which were cancelled or postponed.

Small and medium sized business can benefit from a loan up to €2-€4 million while large business can benefit from a loan up to €5-€8 million. These loans come at lower interest rates with a repayment period of up to 6 years and a 6-12 months moratorium on both interest rates and loan repayments.

 

How can we assist you?

  • Evaluate the current financial position

  • Prepare the financial projections required by the Banks

  • Guidance and support during the course of the application

Existing Loans

  • Possibility to apply for a three-month moratorium from banks for business or personal loans

 

We can assist you in applying for new loans or for moratorium on your existing loans

Other measures

Parents of School Aged Children

  • Parents who both work in the private sector requiring one of the parents to stay at home to take care of school-aged children will get a salary of €800 per month (provided that they cannot carry out their functions through teleworking arrangements)

  • This measure also applies for single parent families

Disabled employees

  • Persons with Disability who work in the private sector and are duly registered with Jobsplus, may opt to stay home for health and safety reasons and will be entitled to a benefit of €800 per month

Medical Benefit

  • Persons employed in the private sector, who after 27th March 2020, are not going to work because they are ordered by the Superintendent of Public Health not to leave their home, are not able to work from home and are not being paid by their employer during their absence from work are eligible to apply for this benefit.

  • Full time employees will receive a direct payment of €166.15 per week

  • Part time employees will receive a direct payment of €103.85 per week

  • Children’s Allowance rate will be adjusted according to this new income and may increase up to the maximum rate of €24.08 per week per child

Terminated employees

  • Employees who had their full-time employment terminated as of 9th March 2020 as a result of the COVID-19 pandemic will be eligible for an unemployment benefit of up to €800 monthly.

  • Government will increase rent subsidies for individuals who have their job terminated.

Employment of Third Country Nationals

  • No new third country national applications will be received from now on except for applications related to highly qualified persons.

  • Companies who terminate an active employment contract shall be denied the possibility of recruiting other third country nationals.

  • Jobsplus will assist Third Country Nationals living in Malta to find an alternative job should their employment be terminated.

 

Application forms for the schemes will be accessible through the website: https://socialsecurity.gov.mt

 
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