On 28 November 2012, the Minister of Finance, Honourable Tonio Fenech presented to the House of Representatives the budget for 2013. The House of Representatives is expected vote on this proposal on 10 December 2012. The following measures are of particular interest:
- The option to elect for a taxation of the capital gain instead of the 12% flat tax on the transfer value of immovable property situated in Malta. This option was extended and now applies within 12 years from the acquisition of the immovable property (currently the option applies for a disposal within 7 years);
- Reforms to stamp duty rules in case of transfers or donations of immovable property causa mortis and rules regulating the valuation of properties;
- Exemption from tax for mergers and divisions of companies in order to align national transactions with cross-border ones;
- Taxation of individuals will gradually decrease by amendments to the income brackets; most importantly, within a newly introduced income bracket of EUR 19,501-60,000 for singles and EUR38,701-60,000 for married couples, the income tax will decrease gradually from 35% to 25% in 2015;
- Extension of “20 million to industry” scheme which provide support to Malta’s international competitiveness, innovation, e-Business, R&D, environment and start-ups as well as a new BSTART scheme which encourages the provision of seed capital to new start-up companies as may be approved by Malta Enterprise;
- Strengthening of incentives to attract international film productions (rebate for production is increased from 20% to 23% and to 25% if Malta is featured and referred to).
For more information please refer to the Ministry of Finance, the Economy and Investment: http://finance.gov.mt/