Budget 2024

Author: Ann Bugeja

On the 30^th October, Finance Minister Clyde Caruana delivered the budget speech and the below  are some of the highlights particularly those which have an impact on businesses and employment:

• COLA has been set at €12.84 per week for 2024;
• The national minimum wage will increase gradually, initially by 8% and then by a maximum of an additional €10 by 2027. The minimum wage as of 2024 will be €213.54 per week, inclusive of COLA;
• Malta is developing measures and incentives to comply with EU and OECD regulations and maintain competitiveness on an international level;
• The current full imputation tax system will be retained;
• Duty exemptions for first-time buyers and partial stamp duty refunds for second-time buyers will be extended for another year;
• Existing property schemes providing exemptions from income tax and duty on properties located in Urban Conservation Areas (UCA) or vacant properties constructed at least 20 years ago will continue;
• A new Malta Business Registry portal will be launched to facilitate the filing of electronically signed documents;
• The Seed Investment Scheme, providing tax credits to qualifying investors in start-up businesses, will be extended;
• Various schemes and initiatives supporting business development, skills development, innovation, energy efficiency, and investment in the semiconductors and microchips industry will be extended;
• The gaming industry’s regulatory framework will be strengthened, and the e-sports strategy will be implemented;
• Duty on transfers of company shares and commercial tenements in intra-family donations will be subject to a reduced rate of 1.5%;
• Efforts will be made to enhance the skills of foreign workers coming to Malta, and the cost of issuing new work permits for foreign workers will be increased;
• Fiscal incentives for highly qualified expatriates will be consolidated and updated;
• Laws will be aligned to simplify administrative obligations for companies under the Companies Act and the Merchant Shipping Act;
• Changes will be made to the Merchant Shipping Act, and a long-term vision for the maritime industry will be established;
• Implementation of a new superyacht policy will begin;
• Efforts will be made to strengthen the aviation industry through additional investment, a new aviation policy, and the introduction of the Air Navigation Act;
• There are plans to establish a Commercial Court with the aim of introducing the necessary framework to achieve judicial specialisation;
• Tax refunds for persons earning less than €60,000 will be issued, with the refunds ranging from €60 to €140, depending upon the level of income.