On 11th May 2022, the Ministry for Finance and Employment (‘MFE’) issued a press release laying down the timing for the payment of tax that was postponed under the COVID-19 Tax Deferral Scheme.
The COVID-19 Tax Deferral scheme, launched in March 2020, provided for a moratorium on certain taxes that fell due during the pandemic. Initially the moratorium was for two months but it was later extended until the end of December 2021. It was subject to certain terms and conditions as laid down on the Revenue’s website.
In the press release of the MFE it was announced that the beneficiaries of the scheme will have the possibility to pay the eligible taxes over a period of 30 months, until the end of December 2024. The first payment starts from June 2022 with a monthly payment thereafter. During this period, the interest on the deferred tax will be suspended. In the case that the eligible tax is not paid by the end of December 2024, the deferment benefit may be lost and the interest clawed-back, thereby becoming due as if the scheme never applied. Any other taxes that fall due during the period (June 2022 until December 2024) are expected to be paid by their due date. Enterprises which have outstanding amounts for other periods not covered by the COVID-19 Tax Deferral scheme, must also pay the dues by the end of December 2024, unless they have agreed otherwise with the Office of the Commissioner for Revenue.
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