A reduction in transfer duties on family businesses has been announced by the Minister for Finance Edward Scicluna and Minister for the Economy, Investment and Small Business Chris Cardona.
PRESS RELEASE BY
THE MINISTRY FOR FINANCE
THE MINISTRY FOR THE ECONOMY, INVESTMENT AND SMALL BUSINESS
Addressing a press conference on the subject, both ministers explained that through this measure, family businesses which are passed from one generation to another through an act of donation will benefit from a heavy reduction in transfer duties. In fact, transfers that will take place from 1st April 2017 to 1st April 2018 will be taxed at 1.5% rather than 5%. This duty applies to immovable and movable property making up the business, which must have been held as a family business for three years prior to the donation and must be retained as a family business for three years following the donation.
Minister Scicluna recalled how this government succeeded in turning around the economy and achieving the first budget surplus in 35 years through measures aimed at helping businesses, such as increasing maternity benefits for the self-employed, facilitating of access to finance for SMEs through Prospects, a new market platform of the Malta Stock Exchange (MSE) designed specifically for SMEs and removing obstacles to wealth creation.
Minister Cardona noted how the Family Business Act is distinctive not only in its legislative scope and intention but unique to the legal community on a European and International level. Members of family businesses can receive legal guidance and assistance to plan adequately and affect a successful transfer of their business when the time comes. The Act gives due recognition to this important sector and will further facilitate and support their unity in their endeavours to work collectively to ensure their survival and their contribution of the economy.
Tuesday 25th April 2017