On 19 October 2020, the Minister for Finance, Edward Scicluna presented the Budget for 2021 to the Parliament. The budget has no tax increases. The key measures regarding tax and incentives are as follows:

  • The tax refund check will be added. The highest amount will be up to EUR 95 and the lowest will be EUR 45, with the highest values ​​being given to the lowest income earners. They will be benefiting from this refund Over 218,000 people which will cost the Government almost EUR 16 million;
  • The stamp duty rate on property purchases has decreased from 5% to 1.5% on the first EUR 400,000 of the value of the property and the reduction of the tax rate, from 8% to 5% on those selling property, will remain in force;
  • 15% tax will apply on all of the gains or profits derived from the transfer of a promise of sale agreements with effect from 1 January 2021 to 31 December 2021;
  • Increase tax incentives for private pensioners from EUR 1,000 to EUR3,000 from 2021;
  • The maximum non-taxed pension income will be raised again to EUR 14,058. In addition, those couples with a pension and having a spousal allowance will be increased to EUR 3,600 the other income which will be exempt from tax. Thus, from next year, these pensioners will save a total of EUR 744 in tax payments;
  • A number of Malta Enterprise initiatives on start-ups, online sales for businesses, and even specific schemes for companies employing less than 50 people to enable them to strengthen their online business. The VAT threshold for small businesses will rise from EUR 20,000 to EUR 30,000;
  • Govt. vouchers will be reissued due to the COVID-19 pandemic. This will mean an expenditure of EUR 50 million. The EUR 100 vouchers will be divided into EUR 60 which can be converted into accommodation, hotels, and restaurants while EUR 40 vouchers can be converted into shops and services. Vouchers will be distributed to anyone over the age of 16 by the end of this year;
  • COVID-19 wage supplement and other measures including the tax deferrals, the moratorium, the Guarantee Scheme, and Interest Rate Subsidy Scheme extended until the end of March 2021.