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Malta Boosts Tax Perks In 2016 Budget

by Robert Lee, Lowtax.net, London
21 October, 2015

Malta has announced a number of new incentives for companies in its 2016 Budget.

Companies will gain from a number of incentives, including tax credits of up to EUR10,000 (USD11,350) when they employ (for no less than 12 months) persons holding or studying for doctoral degrees in science, information technology, or engineering.

Malta Enterprise will newly offer tax credits for companies making energy efficiency improvements and will offer 10-year loans of up to EUR500,000 for innovative start-up companies.

Changes to the Micro Invest scheme will encourage women to launch businesses. Female entrepreneurs or businesses that are majority owned by women will be eligible for a maximum tax credit of EUR50,000 (up from the normal credit of EUR30,000).

The cost of registering a company with less than EUR1,500 in capital will fall from EUR250 to EUR150, and the Government will introduce new legislation to allow groups of companies to file consolidated returns.

For individuals, income tax thresholds have been revised. The income tax-exempt threshold has been raised from EUR8,500 to EUR9,100. Malta will expand its special 7.5 percent income tax rate to cover all sportspeople. The income tax deduction for donations of art will be increased to 150 percent, and tax rate on rental income from commercial property (currently 25 percent) will be aligned with that for residential property (15 percent).

From April 1, 2016, all tourists over 18 will pay EUR0.50 per night (up to a maximum of EUR5 per visit) as an "environmental contribution." The Government is also to introduce a scheme for scrapping old, energy-inefficient vehicles, with tax concessions for environmentally friendly vehicle purchases.

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