Malta: 2025 budget includes update on Pillar Two implementation

Highlights of Budget 2025

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October 29, 2024

The Minister for Finance introduced the 2025 budget, which includes the following proposed tax measures:

  • Increase cost-of-living adjustment (COLA) to €5.24 per week
  • Increase the national minimum wage to €221.78 per week
  • Subsidize energy, fuel, and grain prices
  • Introduce wider individual (personal) tax bands as from 2025
  • Require employers to offer occupational pension plans
  • Social security contributions remain unchanged
  • Duty on transfer of family businesses remains at 1.5%
  • Launch of Malta’s Vision 2050
  • Introduce visas for esports athletes
  • Discussions with EU Commission on Pillar Two-compliant grants / qualified refundable tax credits (QRTCs)
  • Increase pensions by €8 per week
  • Extend urban conservation area (UCA) and old / vacant property schemes

Read an October 2024 report prepared by the KPMG member firm in Malta

Read a November 2024 report prepared by KPMG's EU Tax Centre that provides updates on Pillar Two implementation and the introduction of tax incentives

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