L.S. 123.177 Regoli dwar Tnaqqis (Proġetti ta’ Tisbiħ)

(1)The title of these rules is the Deduction (Embellishment Project) Rules. Title and commencement.

(2)These rules shall apply in respect of expenditure incurred as from 1st January

2. In these rules, unless the context otherwise requires – Definitions. "Directorate" means the Directorate responsible for Local Councils; "Local Council" means a Local Council established under the Local Government Act and being the relative Local Council responsible for the location where the qualifying project is carried out; Cap.
3. "qualifying person" means a person carrying on a trade or business who undertakes a qualifying project; and "qualifying project" means an embellishment or other project useful to the local community that has been approved as such in writing by the Local Council and the Directorate on or after 1st January 2017, following an application made in this respect on such form as the Directorate may require. Such project must be wholly a community asset on which the qualifying person retains no proprietary rights and for which the said qualifying person is not remunerated in any way. 3.

(1)Where a qualifying person incurs expenditure in undertaking a qualifying project, a deduction equivalent to 120% of the cost incurred on such expenditure in any year may be claimed in the relative year of assessment against the said person’s income from trade or business chargeable to tax: Provided that the deduction claimed under these rules may not exceed €90,000 in any year.

(2)Where a deduction is claimed under these rules, no other deduction may be claimed in respect of the same expenditure.

(3)Where the qualifying person benefits from any form of assistance in relation to the said expenditure by the Government or Deduction. 1 2 [ S.L. 123.177 DEDUCTION (EMBELLISHMENT PROJECT) RULES from any other entity, the amount of such benefit or assistance shall be subtracted from the expenditure on which the deduction under these rules may be claimed. Certification. 4.

(1)The deduction provided for by these rules shall only be allowed on completion of the project and where the details of the expenditure incurred in respect of the qualifying project have been provided to the Local Council, on such form and in such manner as the Directorate may require, and such expenditure and completion of the project is approved by the Local Council and the Directorate.

(2)The Directorate shall, following the approval in accordance with sub-rule

(1)hereof, submit the approved forms to the Commissioner in such manner as the Commissioner may require. Clarifications. 5.

(1)Where a project is situated over an area which falls under the remit of more than one Local Council, it shall only be considered a qualifying project if, in addition to the requirements of these rules, all Local Councils responsible for the said area approve the project in terms of these rules and as approved by the Directorate.

(2)A qualifying person may not claim a deduction under these rules for more than one qualifying project in any year.