Important Webinar: Tax Deferrals, Moratoria on Bank Loans, Moratoria on the MDB Guarantee Scheme and the Wage supplement
14 April 2021
The Malta Chamber of SMEs would like to invite you to a webinar that will...
Following reports in the media on Government's intention is to opt out of the important European proposal directed at alleviating the accounting burden on the smallest businesses, GRTU has written to Government in this regard:
If this is so Government has taken this decision on a policy that is important and of direct impact on SMEs without any kind of consultation with the GRTU as the legal social partner representing businesses. GRTU's position has been that of persistently insisting that small businesses in Malta should be given the facility to do away with extensive financial returns.
At present, micro-entities, are required to draw up elaborate annual accounts and have them audited. In addition to diverting valuable manpower from these small companies with extremely limited human resources, the requirements also represent a high annual cost.
Government's GAPSE (General Accounting Principles for Smaller Entities), which was introduced without the support of GRTU, is not sufficient compared to what the Commission is trying to achieve. At the same time however GRTU also recognises a number of issues that we admit do not make it easy for the complete dismantling of the requirements, such as:
These arguments have led to GRTU's insistence on a very abridged accounts statement, which while reducing the costs for small business owners, will also satisfy the basic needs for accounting requirements.
GRTU therefore asks for a more abridged form of GAPSE as it is still too cumbersome and costly. In the absence of this, GRTU will then opt to fully support the Commission's proposal. GRTU in any case disagrees with the Government's decision to withdraw unless an agreement is reached on an ameliorated and abridged form of what exists today.
In line with the EU's Better Regulation Program and the European Economic Recovery Plan, the direction taken by the Commission will at the end of the day push Member States to reduce the burden on micro-enterprises from the scope of the burdensome EU accounting Directives and to align the reporting requirements of micro-entities to the real needs of users and preparers of the accounts. Malta is now choosing to take a different policy action, however maintaining GAPSE is not enough.
Malta is still committed to a Better Regulation Policy in this decision. A simple opt-out would severely threaten the credibility of the Government's p\romises to reduce administrative burdens and to create a healthier regulatory environment for SMEs. Government's move to ameliorate the accounting requirements would be entirely in line with the Think Small First principle and a clear and tangible measure to help SMEs.
After years of GRTU's leading members to accept the EU acquis and helping them deal with all the heavy burdens involved, we now expect that Government do its utmost to mirror EU efforts in their favour.
We have urged Government to officially consult the GRTU. To date other that an acknowledgement of receipt of our letter, GRTU has received no communication from the authorities in this regard.
The Malta Chamber of SMEs represents over 7,000 members from over 90 different sectors which in their majority are either small or medium sized companies, and such issues like the one we're experiencing right now, it's important to be united. Malta Chamber of SMEs offers a number of different services tailored to its members' individual requirements' and necessities. These range from general services offered to all members to more individual & bespoke services catered for specific requirements.
A membership with Malta Chamber of SMEs will guarantee that you are constantly updated and informed with different opportunities which will directly benefit your business and help you grow. It also entails you to a number of services which in their majority are free of charge and offered exclusively to its members (in their majority all free of charge).