Cottage Industry Rules, 1995

L.N. ISO of 1995

INCOME TAX MANAGEMENT ACT, 1994

(ACT NO. XVIU OF 1994)

INCOME TAX ACT

(CAP. 123)

Cottage Industry Rules, 1995

IN exercise of the powers conferred by section 48A and 96 of the

Income Tall Act and by section 57 of the Income Tu Management

Act, 1994, the Minister of Finance has made the follow ing rules:-

--

These rules may be cited as the Cottage Industry Ru les, Tide ond

( 1)

1995 .

(2) The provisions of these rules shall come into force upon

their publication in the Gazette in respect of the year of assessment

commencing on the \st Jan uary , 1996 and of su bsequent years of

assessment.

Where a VAT registered person engages oUlWorkers on a part-

time basis in activities mentioned in section 48A of the Income Tall

Act, he shall pay tall to the Commissioner at the rate of 15 ce nts in the

lira on the grossed-up annual remuneration paid by every oUlworker

for any tax which may be due by such outworkers in respect of such

activities. worked ou t in accordance with the following fonnula

Net-annual payment

x

100.

0.85

3_ The tax due under rule 2 hereof s hall be paid to the

Commissioner by not later than the 15th Jan uary of each year of

assessment , and shall be regulated by the relevant provisions o f Part

VII ofthe Income Tax Management Act, 1994.

4, The V AT registered person s hall furnish the Commissioner

with a list containing details of all outworkers fal ling under this rule

and includin g the remuneration paid to each outworke r. This list is to

accompany thc remittance made in accordance with rule 3 hereof.

II -pe~ u na li Ikun registrata ghall-finijiet tal-Taxxa dwar il- 0 I .... · ";U"O

VaJ ur Miijud ghandha taghli lina liII-Kummissarju li jkun fiha dettalji Il6400.

dwar kull ani gjan fid-dar)j din iT-regola tklln tapplika ghatih kif uk oll

dwar iJ- hlas li jinghara lil kllll anigjan fid-dar_ Oan J-elenku ghandu

jintehmei. mal -hlas ta' lau.a dovuta li jsir skond 018 hemm fir-regol a 3

ta' dawn ir-regoli.

S_ Mela I-Kummissarj u jkun sodisfatt li I-htigijiet tar-regoli 3 u

4 ta' dawn ir-regoli JKunu IhMsu, il-persuna li Ikun registrata gMll-

finijiet lal-Tax xa dwar il-Valur Mii.jud ikollha jedd, meta Iku n qed

tahdem il-profilti taghha ghall-ghan ij iel taI -taxxa fuq I-incomt, ghat

tnaqqis

(a) ta ' l-arnmonl nett moghti bi hJu liII-anitiani fid-dar li

d-dispoiizzjoo ijiet ta' dawn ir-regoli jkunu japplikaw ghalihom;

(b) tal -taxxa mhatlsa lill-Kummissarju skond ir-regola 3 1a'

dawn ir-regoli dwar is-sena ta ' slima rilevanti; u

(c) ammonl addi zzjonali ekwivalenti ghaI tletin fiI-mija tas-

somma totali li tohrog mi ll-paragrafi (a) u (b) la' din ir-regola.

Where the Commissioner is satisfied that the requirements of Dedu<%jrn

rules 3 and4 hereof have been complied with, the VAT registered person entide"",,(.

shall be entitled , in compu ting his profits for income tax purposes, to

deduct

(a) the net amount paid as remuneration to the outworkers

falli ng within the provisions of these rules;

(b) the tax remitted to the Commissioner in terms of rule 3

hereof in respect of the relevant year of assess ment: and

(c) an addit ional amOllnt equivalent 10 thirty per cent of the

10lal sum resulting from paragraphs (a) and (b) of this rule.

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