On 17 October 2016, the Budget for 2017 was presented to the parliament. Details of the tax measures included in the Budget, which are yet to be implemented through legislative amendments and guidelines, are following:

 Taxation

  • Income tax on government and private pensions up to €13,000 will be removed from next year;
  • As part of the cost of living adjustment €1.75 wage will be increased;
  • Low-income people will actually be getting a raise of €4 per week through improvements to the in-work benefit and the supplementary allowance;
  • The price of cigarettes will go up by some 30 cents as last year;
  • New duties will impose on non-alcoholic drinks (excluding water) and building materials including steel rods, glass and tile;
  • Tax credits for employers who set up occupational pension schemes.

 Incentives

  • A Risk Investment Scheme will be introduced for investors in SMEs or in funds administered by SMEs on the Malta Stock Exchange Alternative Trading Platform, under which such investors will be benefited from a maximum tax credit of EUR 250,000;
  • Shareholders who own less than 0.5% shares in a company listed on the Malta Stock Exchange will be entitled to a credit for the underlying tax paid by the company making the dividend distribution;
  • An exemption for capital gains derived from the sale of shares to the public through a listing on the Malta Stock Exchange will be available;
  • financial assistance for setting up businesses by disadvantaged individuals;
  • a tax credit on R&D expenses;
  • a tax credit on expenses incurred for the development of digital games with a cultural theme; and a tax credit for expenses incurred with renovation works in the hospitality sector.

 Property

  • €5,000 tax concession for first-time property buyers will stay in place;
  • Incentives for those who buy property which needs renovation in urban conservation areas;
  • Tax on Gozo property purchases is going down to two per cent instead of five per cent;
  • Low-income tenants will have their rent subsidy doubled. Rents on social housing will be reversed to what they were in 2013.