The budget measures for 2024 were presented by Hon. Clyde Caruana, Minister of Finance and Employment on Monday 30th October 2023.
The below is a review of the main budget business highlights announced for your quick reference:
(Summarized for a 3 minute read)
- A Cola increase of €12.81 weekly (previous year €9.90). As a result the national minimum wage will be increased to €213.54/week (Cola Included);
- The reduced stamp duty of 1.5% on residential property acquired in Gozo will be removed and not apply in 2024;
- Duty on donation of family business (inter vivos) will continue to apply at 1.5% on the real value (the standard rate is 5%)
- The current imputation tax system in Malta will be retained during 2024.
- The fee for issuing a new single work permit for third country nationals will be increased and is expected to be higher than the annual renewal fee;
- There will be a maximum tax credit of Eur 500 on donations to certain NGOs registered with the Comm of Voluntary Organisations and who are operating in the social, environmental and animal welfare sectors;
- Energy price subsidy will continue by the government in order to control inflation;
- A new Common Central Data Repository will be set up to avoid duplicate requests by several regulatory bodies for the purposes of facilitating identification process of enterprises operating in Malta.
- Consultations with banks to ensure all traders will have access to a basic bank account;
- A new MBR portal to facilitate filing of companies’ documentation and other electronically signed documents;
- Family businesses ca benefit fro a higher tax credit cap on their investment (They must be registered with the Family Business Office)
- Cash grants under the Business Enhance Scheme to continue for small and medium sized enterprises
- The reduced income tax rate of 7.5% on income derived by players and licensed athletes and coaches will be extended and widened to more persons employed in sports;
- The establishment of a “Commercial Court” to achieve better judicial specialization;
- Tax refunds (ranging from €60 to €140) for taxpayers earning less than €60k annually will be issued again;
- The EU Minimum Tax Directive of 15% for companies forming part of a group with an annual turnover of over €750m will not be introduced in 2024 (under a derogation provided). The position will be assessed in future years depending on global international tax developments;
Other:
- An income tax exemption on pension income to increase to 60%;
- Increase in children’s allowance of €250;
- Installation of 1,200 electric vehicle charging stations;
- No capital gains or stamp duty to be charged on the first €200k of property transferred to tenants who previously leased the same property under a scheme administered by the Housing Authority;
- Continuation of first time buyers scheme (from 2022) where first time buyers who purchase property will benefit from a yearly grant of €1,000 for a period of 10 years;
- No tax and stamp duty on the first €750k of property (situated in an UCA) that has been constructed more than 20 years ago and has been vacant fro more than 7 years;