The effects of Brexit will not stop at the UK’s border, it will not only be the UK which needs to adapt and cater for this big change (if Brexit goes through), but also European Union Member States. Especially those which had close relations; acting as a host country to various English people whilst also conducting financial negotiations with businesses that have their mother company or main hub situated in the UK. Malta is one of the Members which will be highly affected by this change, so much so, that the current Minister responsible for the Economy, Investment and Small Businesses has enacted a new regulation to try and mitigate as much as possible the negative repercussions.
The ‘Brexit Support Scheme Regulations’ came into force on the 1st of September 2019, whereby undertakings and small and medium enterprises will be given assistance to minimise the economic effects of Brexit. This assistance will be granted to those advisory services provided by external consultants, provided that these consultancy services do not relate to a continuous or periodic activity nor to the undertaking’s usual operating costs, such as routine tax consultancy services, regular legal services or advertising.
The aid will be given in the form of a cash grant covering fifty percent (50%) of the advisory services expenses and such a grant shall not exceed five thousand euro (€5,000).
In order to be eligible, undertakings have to prove that they operate in Malta and they have to justify a significant dependency on the British market in terms of import and, or export. Such significant dependency shall be defined in the guidelines and shall take into consideration the undertaking’s turn over-dependency on transactions related to the British market in the last two fiscal years.
Eligible undertakings have to submit their applications by the 31st December 2020 to be able to receive this financial grant.
This shall not be construed to be advice but shall merely serve as a brief description of this scheme. In case you would like to apply for such grant and require guidance, please send an email to [email protected].