Malta | Government Budget 2017
The Maltese Government’s Budget 2017 – 17th October 2016 (evening sitting)
Relevant government budget 2017 measures:
- Cost of Living Allowance (COLA) – increase of €1.75 per week commencing January 2017 – view 2017 COLA
- Minimum wages 2017 and historical minimum wages updated – view 2017 minimum wage
- Bonus and weekly allowance to remain fixed as in 2016 – view bonuses for March, June, September and December
- Malta resident status tax rates for 2017 – view 2017 resident status tax rates
- Certain persons receiving dividends on profits from companies quoted on the Malta Stock Exchange during 2017 shall have this tax refunded if declared in the tax return
- Eco-contribution on certain items shall be removed (Examples: batteries, mattresses, detergents, vehicle filters and plastic containers used in kitchens)
- Toiletries shall incur excise duty instead of the eco-contribution (Examples: perfumes, toilet water, make-up, beauty and hair products, skin products, shampoo, deodorants, personal hygiene products, aftershave, room-deodorisers, soap, shower gel)
- Excise duty on non-biodegradable garbage bags shall be incurred as of 18/10/2016
- Cost of cigarettes and similar products shall increase at an average of 3.76% to 5.5%
- Excise duty shall increase by €0.02 per liter on non-alcoholic drinks, excluding water
- Excise duty on a number of building material products shall be introduced (Examples: cement structures, ceramic tiles, glass, iron rods and beams and iron nets)
- Stamp duty shall be decreased from 5% to 1.5% when parents transfer their business to their children
- The stamp duty on the transfer of property in Gozo during 2018 and who register the preliminary agreement with the IRD by the 31st December 2017 shall be reduced from 5% to 2%
- A final withholding tax of 7% shall be charged on inherited property sold by judicial auction (subbasta)
- All rental agreements for three months or longer must be registered with the Inland Revenue Department by the owner or the lessee. The owner shall incur fines if the rental agreement is not registered during 2017
- In-Work maximum benefit for working single parents earning between €6,600 to €14,999 in 2017 shall be at a maximum of €1,250 per child.
- In-Work maximum benefit for working single parents earning between €15,000 to €16,500 in 2017 shall be €50 per child.
- In-Work maximum benefit for working parents earning between €10,000 to €20,399 in 2017 shall be at a maximum of €1,200 per child.
- In-Work maximum benefit for working parents earning between €20,400 to €24,000 in 2017 shall be from €170 to €100 per child.
- In-Work maximum benefit for one working parent with dependent children below the age of 23 earning between €6,600 to €16,500 in 2017 shall be from €350 to €52 per child.
- Increases shall be introduced to those who may benefit from supplementary assistance
- The minimum pensions shall increase by €4 per week and pro-rata for those receiving a pension slightly higher than the minimum pension
- Pensioners of the age of 61 and over who qualify for the single rates shall be exempted from tax on the first €10,500 in 2017 (€13,000 in 2018) on income derived from pensions (Examples: treasury, social security, local and foreign pensions)
- Pensioners who qualify from the married tax rates shall be be exempted from tax on the first €13,000 in 2017 on income derived from pensions and additionally exempted from tax on the first €500 in 2017 (€1,000 in 2018) on other income
- Pensioners who qualify for the parent tax rates shall be exempted from tax on the first €11,500 in 2017 (€13,000 in 2018) on income derived from pensions
- Pensioners of 75 years and over shall retain the grant of €300 p.a. on the condition that they live in their own home
- In 2017 pensioners who have not reached the age of 75 and who have paid between 1 year and 5 years of social security contributions shall receive a bonus of €150, an increase of €50
- In 2017 pensioners who have not reached the age of 75 and who have paid over 5 years of social security contributions shall receive a bonus of €250, an increase of €50
- Service pension shall increase by €200 and shall be deducted from the social security pension
- The differences between female and male pensions shall be eliminated by bringing female pensions equivalent to male pensions
- The rent subsidy for eligible persons shall be from €133.34 to €166.66
- The rent increases imposed by the civil code shall be relaxed for lessees living in government property
- The wage subsidy for care workers caring for old aged persons who are in the waiting list to enter a government managed care home shall reach a maximum subsidy of €5,200p.a.
- Full-time students who have not reached the age of 24 and who work as self-employed may pay a pro-rata social security contribution of 15% on the self-employed earnings
- A tax credit of 150% of the transport expense shall be availed of to companies that provide transport for their employees free of charge (capped at €35,000 for single companies and €50,000 for partnered companies)
- Students who turn 18 years of age in 2017 shall benefit from a capped subsidy of €312 on their public transport costs
- Companies registered in the last three years by certain post-secondary students shall be exempt from statutory audits on their financial statements (threshold below €80,000 turnover) or may opt to be granted 120% deduction of the audit cost (capped at €700p.a.)
- Restaurants shall be offered a fiscal grant of €10,000 if they engage a chef having prior international experience
Pre-budget proposals 2017 documents If your organisation would like to add its pre-budget proposals 2017 document to the list above please send us the relevant link
Tax Rebate on Pensions explained
Relevant Government budget measures 2017
Relevant Government Budget 2017 measures affecting pensioners
Relevant Government Budget 2017 measures affecting 1st time buyers