Prime Minister Robert Abela convened a high-level meeting with the Malta Chamber of SMEs on 10 September 2026 to discuss the forthcoming 2027 Budget’s tax measures targeting small and medium enterprises. The meeting, held at the Auberge de Castille, focused on three pillars: extending the temporary investment tax credit for digital and green transitions, adjusting the micro-invest scheme thresholds for inflation, and introducing a voluntary pay-as-you-earn (PAYE) simplification for employers with fewer than 10 employees. The Prime Minister emphasized the government’s commitment to maintaining fiscal discipline while supporting productive investment, referencing the EU’s revised Stability and Growth Pact requirements effective 2027.
Key Takeaways
- Enhanced Investment Incentives: The government signaled willingness to increase the investment tax credit from 15% to 20% for qualifying digitalization and energy efficiency expenditures incurred between 1 January 2027 and 31 December 2028. This would complement the existing R&D tax credit (up to 25% of qualifying expenditure) and align with the EU’s Recovery and Resilience Facility milestones for Malta’s digital transition.
- PAYE Simplification Pilot: A proposed pilot program would allow eligible micro-employers to file a single quarterly declaration combining PAYE, social security contributions, and VAT, reducing filing frequency from 12 to 4 times per year. The Commissioner for Revenue is expected to issue operational guidelines by November 2026, with legislative amendments tabled in the 2027 Budget speech scheduled for late October.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement