Category: Articles

A number of recommendations put forward by Malta Chamber of SMEs have been upheld and taken on-board

The Malta Financial Services Authority have recently published a consultation document on the Updated CSP rules and rulebook. Tha SME Chamber has once again kickstarted a consultation process amongst CSP operators and sole pretensioners who offer the service of a CSP. The CSP committee has also met on this topic in order to discuss into more details the provisions and changes proposed.

The SME Chamber positively notes that the rulebook published addresses a number of concerns raised in earlier feedback by the SME Chamber. Moreover, a number of recommendations put forward by Malta Chamber of SMEs have been upheld and taken on-board.

Of the main changes it is important to note;

• The creation of new classes which enable natural persons whose main revenue is not generated from CSP services to operate within limited thresholds, MFS proposed a Class A under threshold and a Class B under-threshold.

• MFSA ‘may’ consider allowing a CSP to establish and maintain a risk management function which does not operate independently provided that; a) this does not give rise to conflicts of interest; and b) the CSP demonstrates to the Authority that the establishment and maintenance of a dedicated independent risk management function with sole responsibility for the risk management function is not appropriate and proportionate in view of the nature, scale and complexity of its business and the nature and range ofthe CSP services and activities undertaken in the course of that business

• Trusts and Trustees are now being exempted from seeking authorisation.

• MLROs will now require to possess both relevant qualifications and experience in AML/CFT

The SME Chamber proposed the below in order to ensure the smooth transition and also ensure that the principle of proportionality is being taken into consideration;

• The creation of under-threshold Class C is created in order to ensure that the principle of proportionality is being observed. By way of eligibility, the SME Chamber is proposed that; (i). CSP Services offered are this within the CSP Act as listed under Article 2 (1) (ii). Refers to individuals in possession of a warrant, or equivalent, to carry out the profession of advocate, notary public, legal procurator or certified public accountant whose revenue from corporate services forms, or is forecast to form, in the upcoming year, not more than: (a). 35% of the combined total revenue from the provision of all professional services; or (b). EUR100,000, whichever is the higher. (iii) Aggregate of not more than five (5) involvements for acting as acting as director or company secretary of a company, a partner in a partnership or in a similar position in relation to other legal entities.

• Since MLROs currently practice no qualifications in AML/CFT are required for persons sitting as MLROs. Having said that normally MLROs would have years of experience working in AML/CFT. In order to address this gap and provide a transitionary mechanism, the SME Chamber is proposing that for the first 2 years of implementation, the Authority will accept MLROs with only relevant work experience as long as the particular MLRO undertakes a course which would lead up to a qualification during the first 24 months from authorization.

• A director that besides being a member of the board of directors, is employed with the company as executive director and performs other services, for example being a CEO, CFO, etc. In this case this exemption will apply whether the person is employed on full-time or part-time basis while also sitting as a director should also be exempted from seeking authorisation.

• The SME Chamber proposes that prior to imposing mandatory PII on the industry and/or increased required minimum limits of indemnity, the Authority carries out market research to ensure that there is suitable coverage available from the insurance industry.

The position paper submitted to MFSA can be viewed here. The SME Chamber, together with the CSP committee will also be holding a meeting with MFSA to explain the main concerns.

Members who would like to submit additional feedback are to get in touch with Andrew Aquilina by sending an email to

Les cookies nécessaires sont absolument essentiels au bon fonctionnement du site. Cette catégorie inclut uniquement les cookies qui garantissent les fonctionnalités de base et les fonctionnalités de sécurité du site Web. casino canada Ces cookies ne stockent aucune information personnelle.

Foundation aimed at upskilling transport employees

The Transport Foundation board, of which the Malta Chamber of SMEs is a co-founder, met for the first time  to discuss the prospective plans for the transport sector.

This foundation will be improving the skills of current and future employees of this sector, will be gradually, but steadily, building a portfolio of initiatives that reflect the impact of new technologies in the field, and will be working with various stakeholders in order to be an important source which discloses information about new technologies to the general public.

With this foundation all aspects of the transport sector will be discussed and addressed including subjects such as the help required for people with mobility challenges in order to have an easier and smoother experience.

One of the foundation’s aims is to partner and engage with international stakeholders in order to build a strong relationship and create a dynamic network where research and innovation are key practices which will ultimately lead to more positive results and improvements in the transport sector.

Malta Chamber of SMEs President Mr Paul Abela participated on behalf the SME Chamber. This first board meeting was also addressed by the Minister for Transport, Infrastructure and Capital Projects Ian Borg.

Minister Ian Borg congratulated each one of the members and delivered a message in favour of proactivity and unity in order to reach the success that the transport sector deserves.

“The transport sector has been and still remains a major pillar of contribution to our economy. Despite the challenges brought by the pandemic, it was this sector, among others, that helped keep our economic wheel turning and our country operating normally. These meetings will be essential in order to offer viability, sustainability and safety to the transport sector. This foundation will be instrumental in building that sense of intermodality in the people. It is a priority for this Government to reach its vision in terms of transport both on the basis of objectives scheduled for 2030 and the 2050 strategies for the adoption of greener and cleaner modes of transport and I believe that these meetings will be another step that will lead to this, ”said Minister Ian Borg.

With the participation of the Customs Department and Taxation Department

Following the urgent informative Webinar with the participation of the Customs Department and Taxation Department, we are communicating updates and clarifications related to Brexit.

This webinar was an opportunity for businesses to communicate about the preparations that need to be made and to understand the new realities that Brexit will bring.

Implementing Rules of Origin on goods originating from the UK and those bound for the UK

If goods originate (manufactured or grown) in the UK, one may be able to claim a preferential rate of duty when these are imported into Malta and released for free circulation. This means they’ll be free (or benefit from a reduced rate) of Customs Duty. VAT will still be due on import.

To claim preferential rates of duty, the imported product must originate in the UK (as the exporting country) as set out in Chapter 2 of the Trade and Cooperation Agreement ‘rules of origin’ and Chapter 2 of the Union Customs Code.

One is to properly classify the specific product originating in the UK, to be able to assess the duties and specific provisions associated with it, against the TARIC database. The TARIC database is available on the Customs Department’s website, as follows:

https://ec.europa.eu/taxation_customs/dds2/taric/taric_consultation.jsp?Lang=en

To benefit from preferential tariffs when importing into the EU from the UK, the importer will be required to present a declaration that they hold proof that the goods comply with the rules of origin.

Entitlement to claim the preferential rate of duty is subject to a statement on origin that the product is originating made out by the exporter.

If goods do not meet the rules of origin requirements (or if proof of origin cannot be provided) Customs Duty still needs to be paid.

Exports from the EU to the UK

The procedures for exporting goods to the UK will be the same as those currently employed for exports to other third countries. However, the agreement provides for preferential treatment of goods originating in the EU for UK importers. In order to fulfil this provision, economic operators who export goods to the UK need to register in the REX System. These economic operators are guided to contact the Special Procedures Unit on 25685141 and 25685156 in order to initiate their registration process.

All relevant information associated with the procedures to be followed upon imports from and exports to the UK can be found in the Guidance Note – Withdrawal of the United Kingdom and EU Rules in the Field of Customs, including Preferential Origin – https://ec.europa.eu/taxation_customs/United Kingdom_withdrawal_en.This is also available on the website of the Customs Department.

Brexit and the single market – Information provided  by MCCAA

The EU-UK Trade and Cooperation Agreement creates a free trade area with zero tariffs and zero quotas. Nonetheless, this does not mean that the status quo is being maintained – some goods may still be subject to customs duties, and all goods would need to go through the customs formalities.
This applies also to vehicles being imported from the UK. The below table outlines the different scenarios of when customs duties and V.A.T would need to be paid.
For more information, one may also refer to the notice issued by the Customs Department on the Rules of Origin of goods:

Malta Enterprise launches the Brexit Impact Check

Malta Enterprise invites businesses and self-employed operating from Malta to take a Brexit Impact Check through the newly launched Brexit website: brexit.maltaenterprise.com

The website aims to serve as repository of information for businesses who following the EU-UK  Trade and Cooperation Agreement, which had been reached on 24^th December 2020, are in the process of understanding the full impact of this new reality on their business.

The structure of the website provides a user-friendly question and answer format, which guides the businesses accordingly. The website also links the users to other government entities such as Customs Department, Malta Competition & Consumer Affairs Authority (MCCAA), Environmental & Resources Authority (ERA), and the Commerce Department, the Medicines Authority, Transport Malta, the Plant Health Directorate and the Information and Data Protection Commissioner website.

The Brexit Impact Check is the result of collaborative exercise among various government entities in order to assist businesses that may be effected in one or more of the following matters: (i) Imports, (ii) Exports, (iii) Services, (iv) Transport, (v) Supply, (vi) Digital Data and Services, and (vii) Intellectual Property Rights.

Businesses are also encouraged to familiarise themselves with the content on other government websites such as that of Customs, MCCAA, the EU Coordination Department (formerly known as EU Secretariat) and the Commerce Department, among others.

The Brexit Impact Check serves as a starting point and will be updated from time to time in order to reflect new details and more in-depth information generated from interactions with local and international authorities; as well as feedback and interactions with clients in relation to more specific cases.

Businesses are encouraged to submit their questions and suggestions on .

Further information

Anyone wishing for more information should visit the site www.brexit.gov.mt, which is constantly updated with notices and informative material. Direct assistance is being offered to citizens via the Brexit helpline on number 153 and to businesses on the BusinessFirst helpline on number 144. Help is also provided via e-mail on the address , where more individual and specific questions may be addressed.

Members requiring further information or clarification can either get in touch on  or by phone on 21232881.

Retailers can opt to train all cash handlers or else only one member of staff who will act then as a trainer

The Central Bank of Malta is launching a training scheme for retailers to build up and enhance cash handlers’ skills in checking the authenticity of banknotes at the point of sale.

The training is being offered for free and can be offered on site or online. The training has been designed in such a way that retailers can opt to train all cash handlers or else only one member of staff who will subsequently be able to act as a trainer for the rest. 

Upon completing the necessary training, retailers will be given a sticker by the Bank which they can display as a form of certification, which will be valid for a two-year period. As part of the scheme, the Bank can also provide the latest counterfeit calibrating equipment to ensure that retailers’ machines and devices are capable of detecting all known current counterfeit banknotes.

By participating in this scheme, retailers will reduce their risk of financial losses and the reputational risks resulting from the inadvertent acceptance of counterfeit notes, and at the same time will support society by helping to prevent the spread of counterfeit banknotes and the crime associated with them. 

For further information on this scheme, retailers can contact the Central Bank of Malta on (+356) 2550 6010/1 or by email on .

This was the first meeting with the newly appointed Education Minister

The Malta Chamber of SMEs together with the committee representing Licensed Educational Institutions, held an introductory meeting with the newly appointed Education Minister Hon. Justyne Caruana.

During the meeting it was agreed that the SME Chamber and the Ministry for Education, will work closely with the aim of improving the sector.

The Malta Chamber of SMEs has officially met Opposition Leader Dr Bernard Grech to discuss issues related to members of the Malta Chamber of SMEs.

SME Chamber President Paul Abela augured Dr Grech for being elected as PN and Opposition Leader and stated that the SME Chamber considers the opposition as alternative Government.

SME Chamber President Paul Abela emphasized how important it is to give businesses the necessary breathing space at the moment, giving them the ability to extend their loan repayments on a long time-frame to give them time to make up for this year.

Whilst mentioning that the SME Chamber was catalyst to convinve the Government to introduce the wage supplement, Mr Abela mentioned the importance of new incentives for SMEs and the economic growth post Covid-19.

Mr Abela also mentioned the importance of a economic regeneration process and the importance of the Environment, stressing that the Malta Chamber of SMEs is on the forefront in promoting renewal energy  and manages two Schemes one for packaging and electrical equipment.

President Paul Abela, Vice-Presidents Marcel Mizzi, Michael Galea, Chris Vassallo and CEO Abigail Mamo, participated on behalf the SME Chamber during this meeting.

1. Cost of Living Increase

Legal Notice 468 of 2021: This Legal Notice establishes the Cost of Living Increase for 2021, previously announced by the Government in the financial estimates. Therefore, the wages of whole-time employees have, as of 1st January 2021, been increased by €1.75 per week (or pro rata for part-time employees).

2. Minimum Wages

Legal Notice 469 of 2020: This Legal Notice amends the minimum wages stipulated in the sector-specific Wage Regulation Orders as from the 1st of January 2021, reflecting the Cost of Living Increase.

3. Public Holidays and Vacation Leave

During the last Budget speech, employees were given the impression that in 2021 the Government would be adding an additional day of paid vacation leave, as it had done over the last three years, this to make up for ‘lost’ public holidays that fall on weekends. This would have increased the entitlement to 28 days. However, after much confusion, we can confirm that the leave entitlement for 2021 shall remain 27 days as there will not an additional day added.

The Government has announced that the National Holidays and Other Public Holidays Act (Chapter 252) shall be amended, so that each calendar year the paid vacation leave entitlement will fluctuate up, or down, according to the number of ‘lost’ public holidays falling on a weekend. For instance, this will mean that in 2022 the entitlement will go up to 28 days, but in 2023 the entitlement will be reduced to 26 days. Employers will have to monitor the fluctuations on a yearly basis.

The information provided on this Update does not, and is not intended to, constitute legal advice. All information, content, and materials available are for general informational purposes only.  This Update may not constitute the most up-to-date legal or other information and you are advised to seek updated advice.

Date: Friday, 29th January 2021

Time: 09:30 to 13:30.

Funding opportunity for SMEs has arisen, to support R&I projects in the field of Maritime and Marine Technologies.

Click here for more information. 

Call Website