The COVID-19 outbreak has taken a toll on all of us -  unfortunately for some more than others, and in order to mitigate this, several considerations had to be well-thought-out including the implications on financial reporting as well as the way that a statutory audit shall be tackled due to these exceptional times.

These were somewhat considerations already engrained in us as it is our ‘bread and butter’, but what reflections were considered in order to ensure that we remain compliant with the fundamental principles? Where we considerate of our Independence and Ethical behaviour? As guidance, when facing dilemmas on the latter, the International Ethics Standard Board for Accountants (IESBA) has published a questions and answers document which can be found here.

The Industrial Rent subsidy Scheme 2020 was issued on the 14th of May 2020. The purpose of the scheme, which will be applicable between the 1st February until 31st December 2022, is to financially assist new businesses and self-employed that would like to rent an industrial space from a third party to commence a new business activity, implement growth plans, handle an increase in orders and implement innovations to increase efficiency. The applicants eligible for this scheme must be engaged in the following operational activities and sectors: manufacturing, repair of machinery and equipment, maintenance and repairs of motor vehicles and other industrial activities. Applications will be administered by the Malta Enterprise.

For more information, click here.

The Malta Financial Services Authority (MFSA) has issued a Circular, on 8^th May, as a reminder to investment firms regarding their conduct of business obligations and related organizational requirements under MiFID II upon COVID-19.

The Commissioner for Revenue notifies that the deadlines for the electronic filing of income tax returns for companies have been extended as per the following link.
 
Extensions apply only to the electronic filing of tax returns, and not to tax payments. Manual tax returns and all tax payments must reach the Office of the Commissioner for Revenue by the due dates contemplated by the Income Tax Acts.

The latest statement issued by EIOPA, following the ones noted below, relates to ‘supervisory expectations on Product Oversight and Governance requirements in the context of COVID-19’. This can be accessed here.

Further to the below, European Insurance and Occupational Pensions Authority (EIOPA) has issued a Guide for Consumers to understand their insurance coverage during COVID-19 outbreak.

The Malta Financial Services Authority (MFSA), on 3rd April,2020 has referred to the European Insurance and Occupational Pensions Authority (EIOPA)’s statement on actions to mitigate the impact of Covid-19 which can be accessed on the MFSA’s website.

On 22^nd April,2020 the European Banking Authority (EBA) has issued further guidance (following the ones below) on the use of flexibility in relation to COVID-19. Within the following Statement the EBA calls for heightened attention to risks.

On 3rd April, 2020 the European Banking Authority (EBA) has issued guidelines on treatments of the  public and private moratoria in light of COVID-19 measures. Also highlighted by MFSA here.

On 1st April, 2020 EBA provided additional clarity on measures to mitigate the  impact of COVID-19 on the EU banking sector.

As announced by Minister for Finance and Financial Services Prof. Edward Scicluna during a press conference, in addition to the Guarantee Scheme issued through the Malta Development Bank (MDB), the Government will also be subsidizing interest rates on the working capital loans for two years and up to a maximum 2.5%. For further details refer to press release here.

The Malta Financial Services Authority (MFSA) has issued a circular on the provision of services to the public by Credit Institutions during the COVID-19 period, dated 17th April, 2020. This can be found on the MFSA website here.

A Circular dated 17th April, 2020 has been issued by the Malta Financial Services Authority (MFSA) for prevention of insider offences in light of the COVID-19 Pandemic.

The Minister for public health and Minister for Finance and Financial Services issued the Moratorium on Credit Facilities Regulations in Exceptional Circumstances through Legal Notice 142 of 2020. Credit and financial institutions licensed by the Malta Financial Services Authority (MFSA) have been directed by these Regulations to offer a six-month moratorium on repayments on capital and interest for borrowers who have been negatively affected by COVID-19. Borrowers eligible for this moratorium will be permitted to postpone capital and/or interest repayments to a later date, without any penalties, restructuring or administrative fees.

Following consultations with the MFSA and the Malta Bankers' Association The Central Bank of Malta issued Directive 18 to define the eligibility for the moratorium and other conditions related to the implementation of the provisions of the Regulations. The moratorium applies to credit facilities sanctioned prior to 1 March 2020, for individuals, households or businesses who can show that they have been negatively affected by the pandemic. Applications by borrowers are to be made with their respective credit or financial institution until 30 June 2020. The six-month moratoria period will start with effect from the date of approval of the application.
 
For more information, the full directive, the legal notice and the guide on the directive refer to Central Bank.