News
Update on the Rent and Electricity Refund Scheme
Deloitte Malta tax alert
4 September 2020
Following the Government of Malta’s announcement of the Economic Regeneration Plan on 8 June 2020, the Maltese Government recently launched details relating to the Rent and Electricity Refund Scheme (the ‘Scheme’). Through the Scheme, over 20,000 enterprises that have been granted the COVID Wage Supplement will be able to apply for a cash grant of up to €15,000 for rent and electricity costs (with a maximum of €7,500 per cost category).
Rental costs
An eligible undertaking may claim rental costs of up to €7,500 of annual rent on up to 5 licenced business premises as detailed below:
Number of employees receiving the COVID Wage Supplement |
Number of distinct electricity accounts |
Capping (€) |
|---|---|---|
1 - 9 |
1 |
€1,500 |
10 - 19 |
2 |
€3,000 |
20 - 29 |
3 |
€4,500 |
30 - 39 |
4 |
€6,000 |
40 and over |
5 |
€7,500 |
To be considered eligible, the premises must be rented from third parties specifically for the carrying out of economic activities and the rent agreement must have been signed before 9 March 2020. Renewals of rental agreements signed after 9 March 2020 shall be considered eligible if the rental agreement was active prior to 9 March 2020. Rental agreements entered into force after 9 March 2020 are not within the scope of the Scheme.
Electricity costs
An eligible undertaking shall be entitled to a grant of up €1,500 per account, covering 50% of the electrical power costs covering any period in July, August and September 2020. Business that have multiple energy accounts, by virtue of operating from multiple sites, may claim additional support up to €7,500 as detailed below:
Number of employees receiving the COVID Wage Supplement |
Number of distinct electricity accounts |
Capping (€) |
|---|---|---|
1 - 9 |
1 |
€1,500 |
10 - 19 |
2 |
€3,000 |
20 - 29 |
3 |
€4,500 |
30 - 39 |
4 |
€6,000 |
40 and over |
5 |
€7,500 |
Malta Enterprise will be publishing separate calls for applications, within which beneficiaries will be required to submit their application and related documentation. In the case of rental costs, once the application is processed, the grant will be disbursed by the end of 2020. In the case of electricity costs, applicants will have to submit their last energy bill and will receive a voucher to claim refunds on payments of any electricity bill which fully or partially covers the months of July, August and September 2020.
The closing date for scheme will be announced soon by Malta Enterprise. The guidelines may be found here.
For more information, please contact:
