Tax Credit (Women Returning to Employment) Rules, 2005

L.N. 110 of 2005

INCOME TAX ACT

(CAP. 123)

Tax Credit (Women Returning to Employment) Rules, 2005

IN exercise of the powers conferred by article 96 of the Income

Tax Act, the Prime Minister and Minister of Finance has made the

following rules>-

(1) The title of these rules is the Tax Credit (Women Citation and

commencement

Returning to Employment) Rules, 2005.

(2) These rules shall be deemed to have come into force as

from the year of assessment 2006.

These rules apply to women, who have not attained the Applicability

statutory retirement age and who return to employment on or after the

1 st of January 2005 after having been absent from any gainful occupation

for at least five years immediately preceding the date of the said return

to employment and who have never been, prior to the date of the said

return to employment, in receipt of a pension in view of past employment

and who, moreover, had previously been in employment for at least

twenty four consecutive months.

(1) (a) Subject to the provisions of rule 4 hereof, any Tax credit

woman to whom rule 2 hereof applies, including a married woman who,

or whose spouse has, opted for a separate computation for the purposes

of article 50 of the Act, and who is chargeable to tax at the rates specified

in article 56(1)(b) of the Act, shall benefit from a tax credit of seven

hundred liri which shall be set-off against the tax in respect of gains or

profits from the said employment.

(b) The tax credit as aforesaid may only be set-off

against the tax on employment income referred to in rule 2 hereof

but may be availed of over a period of two consecutive years of

assessment commencing from the year of assessment during which

the return to employment occurs. It shall not be available as a set-

off against the woman’s other sources of income, if any, or against

her spouse’s income.

(c) The income in respect of which a tax credit is granted

under these rules shall be deemed to constitute the first part of that

woman’s total income for the relative year of assessment.

(2) (a) Subject to the provisions of rule 4 hereof, any

woman to whom rule 2 hereof applies and who is chargeable to tax

jointly with her husband at the rates specified in article 56(1)(a) of the

Act, shall benefit from a tax credit of seven hundred liri which shall be

set-off against the tax on the total income of the†married couple.

(b) The tax credit as aforesaid may be availed of over a

period of two consecutive years of assessment commencing from

the year of assessment during which the return to employment

occurs.

(c) The income in respect of which a tax credit is granted

under these rules shall be deemed to constitute the last part of that

married couple’s total income for the relative year of assessment.

A woman shall not qualify under the provisions of these

rules where the return to employment referred to in rule 2 hereof is with

an employer who is the woman’s spouse, her or her spouse’s ascendant

or descendant in the direct line, her adoptive child, the spouse of any

such ascendant, descendant or adoptive child, her or her spouse’s brother

or sister or their spouses, or where the said employer is a company in

which the woman or any of the aforementioned persons is directly or

indirectly a shareholder.

Mitbug[ fl-Istamperija tal-Gvern – Printed at the Government Printing Press