Notice issued by the Commissioner for Revenue on the social security contribution implications of the COVID Wage Supplement

Deloitte Malta tax alert

22 May 2020

The Commissioner for Revenue (‘CfR’) has issued a notice to clarify the social security contribution (‘SSC’) implications with respect to the COVID Wage Supplement.

SSC implications for self-employed persons

Eligible self-employed persons will receive €800 (or less, depending on the person’s eligibility) from the Government of Malta and the Government of Malta will retain 10% SSC (€80 or less) as pre-paid SSC. The self-employed person shall calculate the totality of the SSC due to the CfR at the normal SSC rates for all the weeks covered by the respective SSC instalment and deduct therefrom the amount of SSC prepaid as detailed herein.

SSC implications for employed persons who are liable to pay Class 2 SSC

Where employers of employees liable to pay Class 2 SSC rates are eligible for the COVID Wage Supplement on behalf of such persons, the 10% SSC shall be retained and treated as pre-paid SSC.

The emoluments earned and tax paid should be declared on the relevant Final Settlement System forms. However, the Class 2 SSC should be omitted from such forms in line with standard procedures.

The full text of the notice may be accessed here.

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