Malta: Tax measures in budget 2023

Proposals for business taxpayers

Proposals for business taxpayers

Malta’s budget for 2023, presented on 24 October 2022, includes tax provisions that would affect business and individual taxpayers.

Regarding the proposals for business taxpayers, the budget 2023 includes:

  • An extension (by a year) of the temporary measure allowing entities with excess capital allowances, as a result of losses suffered during the COVID-19 pandemic, to be surrendered to other group entities to be utilised in basis year 2022 (in addition to basis year 2021)
  • Subsidy assistance to eligible undertakings requiring support to rent industrial space for developing a business activity—the aid will be increased from €25,000 to €50,000 annually over a maximum period of six years
  • Extension of the “micro invest scheme” to social enterprises that will become eligible for a tax credit of up to €70,000 spread over a period of three years
  • Government-funded price differentials resulting from cost-of-living adjustment (COLA) increases to private enterprises that are fulfilling contracts with government
  • Reduced duty rate of 1.5% on the transfers inter vivos of company shares and commercial tenements in intra-family donations on the real value would be extended beyond 2022
  • Investment in research and innovation
  • Reduced tax rate on royalty income from literary works for authors and co-authors (from 15% to 7.5%)

Other proposals concern start-ups; property; health and pensions; children and education; tax refunds; and environmental, social, and governance (ESG).

Read an October 2022 report [PDF 10.9 MB] prepared by the KPMG member firm in Malta


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