Malta Budget for 2022 – Highlights

Earlier this evening the Minister for Finance and Employment, the Hon Clyde Caruana, delivered the Budget Speech for 2022, which put social measures and measures addressing sustainability at the forefront.

The following is an overview of some of the fiscal measures announced:

• An increase in the maximum amount of tax-free pension income to €14,318
• Benefit for pensioners still economically active – pension income will not be included as part of the taxable income
• Tax on income from part time employment reduced from 15% to 10%
• Reduction in rate of tax to 15% on overtime for employees earning less than €20,000
• Reduced income tax rate of 7.5% for artists and other persons in the arts, culture and entertainment sectors
• Extension of the application of the reduced rate in stamp duty on the transfer of a family business
• Extension of the application of the reduced rates of duty for first time buyers
• The introduction of a tax exemption on first €750,000 on transfers of certain property (property constructed over 20 years ago which has been vacant for 7 years, property in an UCA or property with traditional Maltese features)
• Grant equivalent to the VAT paid on the restoration of certain property (property constructed over 20 years ago which has been vacant for 7 years, property in an UCA or property with traditional Maltese features) up to a maximum of €54,000.
• Possibility for group companies which incurred losses in FY2020 and FY2021 due to the COVID-19 pandemic to surrender unabsorbed capital allowances to profitable group companies in FY2021
• Increase in the rate of interest on outstanding income tax and VAT payments to 7.2% annually (0.6% per month)

 

Download the full Budget Speech here.