With the COVID-19 pandemic continuing to act as a tax on human activities, various economies worldwide have been negatively effected, including Malta's. On Monday 19th October, Minister of Finance Prof. Edward Scicluna announced various key measures as part of the 2021 budget in a bid to minimize this negative impact on the country's economy.
First and second financial aid packages - A recap
In the first and second financial aid packages launched earlier last week, the government announced various measures to aid business battle the economic slowdown resulting from the COVID-19 worldwide pandemic.
Here is a recap of all the support measures and fiscal assistance published so far;
Third financial aid package
Yesterday evening, Maltese Prime Minister Dr. Robert Abela announced the third financial package and measures in a bid to further the support towards businesses and employees adversely affected by the novel COVID-19 viral pandemic.
Financial aid to critically hit sectors
Financial aid to Less critically hit sectors
Do you have any questions?
In the meantime, for any clarifications on how these measure impact your business/enterprise and for assistance in applying and benefiting from any of the above listed measures, you may contact us by sending us an email on email@example.com.
Finding the right place to relocate a company is obviously not something decided overnight. Location, benefits, frameworks, costs level, are some of the endless list of points that one has to take into consideration when choosing the place to relocate to. And this can be a real headache. Well, until now. Here’s why you literally run out of options when deciding such matter, until you encounter the tiny Mediterranean Island of Malta.
Apart from being just over three hundred square metres of land, and therefore never more than fifteen minutes away from the nearest beach, the Maltese Archipelago has earned itself a remarkable reputation with the world for its economy, legislation and business activity.
In the past years, the country has registered a constant and significant growth in its GDP (Gross Domestic Product) compared to the rest of the European Union. And it doesn’t seem to be slowing down anytime soon. Recently-issued economic forecasts of the European Commission expresses a whopping 4.4% increase in the GDP for 2018, nearly three times that of the Euro zone. The increase has also impressed the America-based rating giant, Moody’s, which in a statement said;
“Malta's economic growth exceeded expectations in 2016, with real GDP expanding by 5%, driven by robust private consumption and a strong contribution from net exports.”
The economic activity isn’t the only asset that attracts international investors to relocate to Malta. The robust and flexible regulatory framework also tops the list with business owners. Its framework, offers foreign individuals an unprecedented list of benefits, should they relocate their business to the island. Example of such benefits includes the running of business from all across the globe and thus not specifically tied to the country, yet still offering the advantageous tax rates present in the Maltese Islands as well as the famous tax refunds, just by having their company incorporated within the archipelago.
With its favourable corporate tax system recently making the worldwide news, unwittingly, Malta offers businesses a tax-ideal corporate structure that favours the growth of the activity of the company by maintaining capital in the business rather than government treasury. Foreign-owned businesses may benefit from up to 85% tax refund reducing the tax rate from 35% to an ideal 6%. This helps the positive feedback loop with regards to the level of employment and average salary rate. as well as also the governments revenue as it increases proportioniately with the level of business turnover and commerce.
The country also operates one of the world’s busiest international ports with a trade volume of 3.06 million TEUs (Twenty-foot equivalent units – a measure used for capacity in container transportation) per year. Being strategically placed in the heart of the Mediterranean, and having efficient Value Added Tax systems and importation procedures, the country’s port has become a house-hold name for shipping companies and ship repairing ventures. This is evident in the country’s shipping register, which is the third largest ship register in the world, and being a tiny spot on the map, that is an astounding achievement.
The company’s pool of qualified individuals is also a factor which is not to be ignored. Along the years, its Universities and schools have earned the country a name in education, with students from across the world always opting to come to Malta to study languages, business and professions. Combining such asset, with the country’s ready-made business platform and marketing lobby, the island has become a hub for companies in various sectors including gaming, insurance and investment companies.
The list continues on with record-breaking tourism influx and high local expenditure resulting in further commerce and new business opportunities that are waiting to be exploited.
All in all, compiling the complete list of benefits of relocating and operating through the Maltese Archipelago is definitely a challenge that would result in a series of books being published. It is quite evident that business owners have no other option but to relocate and benefit from unprecedented business growth and beautiful weather that the Maltese Islands offer.
BGMT is a multi-disciplinary firm offering accounting, taxation and advisory services to multi-tier business operating in various industries.