CONDITIONS REGULATING THE LEASES OF CLUBS [ S.L.16.13 1 SUBSIDIARY LEGISLATION 16.13 CONDITIONS REGULATING THE LEASES OF CLUBS REGULATIONS 1st January, 2014 * LEGAL NOTICE 195 of 2014. 1. The title of these Regulations is the Conditions regulating the Leases of Clubs Regulations. 2.
(1)The rent of a club as referred to in Article 1531J of the Civil Code which is paid on the basis of a lease entered into before the 1st June 1995 shall, unless otherwise agreed upon in writing after the 1st January 2014, or agreed upon in writing prior to the 1st June 1995 with regard to a lease which was still in its original period di fermo or di rispetto on the 1st January 2014, as from the date of the first payment of rent due after the 1st January 2014, be increased by a fixed rate of ten per cent over the rent payable in respect of the previous year and shall continue to be increased as from the date of the first payment of rent due after the 1st January of each year until and including the year 2016 by ten per cent over the previous rent. Citation. Rent of clubs. Cap. 16.
(2)The rent as from the first payment of rent due after the 1st January 2017 shall be increased by a fixed rate of five per cent over the rent payable in 2016. Such rent shall continue to be increased by five per cent per annum until the 31 December 2023 and the rent shall thereafter increase every year according to the index of inflation for the previous year. 3.
(1)Where club premises or part thereof to which these regulations apply are used for the generation of income through an economic activity carried out in the said premises, then as from the 1st January 2015 the tenant of the said premises shall also pay the person entitled to receive the rent a sum equivalent to five per cent of the annual income derived by the club from the said economic a c t i v i t y, o t h e r t h a n i n c o m e d e r i v e d f r o m f u n d r a i s i n g o r philanthropic activities organized and managed by the club itself: Provided that for the purposes of this regulation, income generated from economic activity means any income which is directly or indirectly derived from the bar and, or restaurant and from any lease, sub-lease, lease of a going-concern or a management agreement of the said premises that is leased out as a club or part thereof.
(2)The amount referred to in sub-regulation
(1)shall be calculated on an annual basis and shall be payable by the 30th September of the following year with the first payment being due in respect of the year 2015 by the 30th September 2016.
(3)The annual income referred to in sub-regulation
(1)shall be *see regulation 1
(2)of these Regulations as originally promulgated. Where club premises generate income from economic activity. 2 [ S.L.16.13 CONDITIONS REGULATING THE LEASES OF CLUBS calculated on the basis of financial statements signed by a certified public accountant in the case of clubs having an income of less than €200,000 per annum and by audited financial statements in the case of clubs having an income of €200,000 or more per annum.