COVID-19 Export Response Scheme

Deloitte Malta tax alert

9 September 2020

On 22nd June 2020, TradeMalta issued the COVID-19 Export Response Scheme (the ‘Scheme’) in order to assist Malta-based enterprises which are experiencing difficulties due to the current pandemic.

The Scheme aims to support eligible undertakings in order to (i) mitigate the impact of cancelled international trade events; and (ii) provide support for investment in digital marketing channels to promote their products and services internationally.

Eligible undertakings may be awarded support to recover costs incurred when an international trade event is cancelled due to the COVID-19 pandemic, such support being in the form of a reimbursement of up to 80% of the irrecoverable costs, upon submission of written evidence. Participation in the trade event must have already been approved by TradeMalta in line with its Trade Promotion scheme. This measure covers expenses dating from 1 January 2020.

With respect to the provision of support for investment in digital marketing, TradeMalta may reimburse up to a maximum of 50% of the eligible costs. Businesses advertising online in international markets and/or providing eLearning courses to their staff in digital marketing can benefit up to €10,000 with a 50% refund for eligible costs. This measure covers expenses dating from 1 March 2020. Eligible costs include direct advertising on the main search engines, social media platforms, and other online platforms and the purchasing and/or participation of on-line training courses about digital marketing. TradeMalta may also consider the participation of beneficiaries to on-line trade fairs.

The guidelines governing the Scheme further stipulate that whereas previously applications for assistance to participate in trade exhibitions could only be entertained if the application reached TradeMalta at least three months before the event, enterprises may now apply for exhibiting in trade fairs without the three-month requirement.

The total aid that may be granted to a single undertaking is limited to Eur25,000 in any calendar year.

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