Budget 2013 points for business

Below is a summary of the Budget
Measures deemed to be most important to business. Please feel free to contact
GRTU to have further information on any of them.

Cost of Living Adjustment of €4.08

More incentives towards enterprise

Extension
of High Energy Users Scheme to Gozitan industry.

Revision
of incubation services to start-ups in Kordin. Development of plug in/plug out
facility for ICT and Digital Content Businesses.

SMEs

MicroInvest
is extended for a further two years and businesses employing to 30 people are
now eligible.

Continuation
of MicroCredit and MicroGuarantee.

Scheme
towards the promotion of clusters and networks and to support small local
businesses benefit from the Single Market opportunities

BSTART:
a tax deduction scheme of up to €30,000 for seed capital investment

Entrepreneurship
action plan ranging from Primary Schools to tertiary education

Support
to young people willing to explore business opportunities through a Youth
Entrepreneurship Act.

University
will establish an Observatory to strengthen research on business and the
self-employed

Launch
of short and intensive weekend courses for those interested in starting up
their own business

ERDF
Scheme for Gozitan businesses

Strengthening
of the financial services sector through the establishment of an international
market for pensions and retirement schemes

Tourism

Licenced
hotels will benefit from Investment Aid on 15% of capital expenditure (in form
of tax credits)

Incentive
schemes to increaseboutique hotels in Valletta, Imdina and the 3 cities (tax
deductions on investments related to
purchase and development of these sites and MEPA/MTA fees)

Winter
incentive for visiting Gozo

Property

The
present choice on paying capital gains tax or 12% final witholding tax is
extended from 7 to 12 years as from 2013

Administrative
reform related to property valuation:

Couples
or persons purchasing the first residential home taking out bank loans will be
able to provide the bank architect property valuation

In
case of properties whose value exceeds €250,000, before signing of contracts
the seller and buyer may request the department to send its architect to issue
price valuation on which stamp duty is paid. This valuation remains valid for 6
months from date of issue.

As from 01/01/2013 removal of stamp duty on
will transfer of property from parents to children.

3.5% stamp duty ceiling for first time buyers
is increased from €116,468.67 to €150,000

First three hundred applicants
will qualify for subsidised 2.5% interest rate on bank loan for First 8 years.
These will receive up to €14,000 in subsidy.

Training

Active scheme will focus on those young people
who are on the unemployment register. Following provision of necessary
training, these young people will be offered a work experience of 20 hours in a
sector which best relates to their profile. A pro-rata benefit will apply.

Another scheme will target unemployed young
persons to explore entrepreneurship opportunities. The applicant will be able
to choose selfemployment or membership in a cooperative. Training and mentoring
will be provided, while employers employing up to persons will benefit from a deduction in
social contributions.

An innovative apprenticeship programme which
provides financial incentives to employers and students. Government will pay
SSC on the employer's behalf. Apprentice
stipend will increase from €86 to €95.

Extension of minimum wage scheme, with an
investment of €300,000 in favour of those earning up to 300 euro a week. These
will receive 25 euro a week.

Youth.Inc, target towards young people aged
16-21 is extended to those aged up to 24

Strengthening of professional team behind
Youth.Inc

Job Bridge programme will
provide specialised training to persons with a disability to strengthen their
skill set to adapt to the job market

Women and the
job market

Continuation of construction of 4 child care
centres (Naxxar, San Gwann, Gżira and Żurrieq).

Continuation of up to €1,300 tax deduction for
parents sending their children to child care centres

Women returning to work after 5 years or after
having children will maintain one year tax free status

Maternity Leave up to increases 18 weeks

Children's allowance increases
from €350 to €450, and to€527 for families dependent on a minimum wage

Income tax

Over
3 years income tax for those currently paying 35% income tax will be reduced as
follows:

32%
(2013)

29%
(2014)

25%
(2015)

Energy and
environment

Introduction
of feed-in tariffs for PV panels not supported through other funding:

Installations
of less than 1MW on rooftops: 18c/kWh for 20 years;

Installations
of less on the ground: 17c/kWh for 20
years;

Installations
of less than 1MW on rooftops: 17c/kWh for 20 years; and

Installations
of less than 1MW on the ground: 16ckWh for 20 years.

Plans
for a new PV panel scheme for households

Finalisation
of scheme in favour of families not able to invest in PV panels on their
rooftops

Extension
of Solar Water Heater rebate (40% up to max. €400)

15.25%
rebate up to €1,000 on double glazing and roof insulation.

Increase
in excise duty on fuel consumption of 2c per litre on petrol and diesel and 5
euro per tonne on cement.

Capital
Projects

Commencement
of underground carpark and public garden on Sliema Front and works on Paola
square

Restoration
opportunities

Scheme
for the restoration of residential properties which are classified as Grade 1
and 2 in UCAs. This will include provision of 25% on expenditure on such works
up to a max. of €5,000. Properties in Valletta benefit up to 30%.

NGOs
will also benefit from a similar scheme on buildings transferred to them from
Government. Buildings classified Grade 1 and 2 in UCAs are eligible. 25%
rebates up to €2,500.

Individuals
and companies that purchase properties outside UCAs for restoration purposes
will benefit from a 2% deduction in stamp duty. A 20% tax credit of up
to€200,000 related to restoration and development is also applicable

Transport

Euro
5 car registration tax is reduced by a maximum of 30%.

Euro
4 car registration tax is increased by an average of 10%

Tax
rate on N1 commercial vehicles is reduced by 12.5% to incentive purchase of new
cars

500
euro scrappage scheme for new private or commercial (N1) cars on scrappage of
older vehicle

Removal
of registration tax on motorcycles with 250cc engine and 25% reduction on other
engine capacities

Removal
of registration tax on classic cars aged 50 years and over

Classic
care definition is lowered from 35 to 30 years.

Removal
of annual circulation licence for classic cars. Replaced by administrative fee
of €8.

Rebate
scheme of €200 for conversion of cars to autogas.

Reduction
of annual circulation licence for autogas powered cars registered after 2009

Extension
of TM licence regularisation scheme

The
social sector

Energy
benefit: Gas price allowance to increase from €30 to €40.

 Elderly

€300
allowance announced last year for persons aged 80+ is extended to those aged
78+ and eventually to those aged 75+. 1.5 million euro vote per year.

Full
COLA increase to the elderly

Revision
of Supplementary Assistance for those aged 65+ in cases where household income
is below the risk-of-poverty threshold, to ensure that this category is covered
by a higher Supplementary Allowance