COVID-19 temporary support measures regulations

The COVID-19 Temporary Support Measures Regulations, 2020 were published on 25 August 2020 in virtue of LN 345 of 2020, with effect from 1 April 2020.

The Regulations authorise the Malta Enterprise Corporation to provide assistance to eligible undertakings which require support to sustain, preserve and regenerate their economic activity. Such assistance shall be established in Guidelines published by Malta Enterprise and shall be in any form allowed by the Malta Enterprise Act and in accordance with the Temporary Framework for State Aid measures to support the economy in the current COVID-19 outbreak published by the European Commission.

Further information on the Temporary Framework is available here.

The application deadline for assistance under these Regulations is 31 December 2020.

The Regulations clarify that where assistance is granted in the form of a tax credit:

  • an amount equivalent to the tax credit awarded shall be deducted from the amount of income tax which is due on chargeable income derived from trade or business in the years of assessment following the award of the benefit;
  • unutilised tax credits can be carried forward;
  • tax credits do not give rise to a right to a tax refund.