Donations (National Heritage) Rules, 2006

L.N. 266 of 2006

INCOME TAX ACT

(CAP. 123)

Donations (National Heritage) Rules, 2006

IN exercise of the powers conferred by articles 14(2)(b) and 96 of

the Income Tax Act, hereinafter referred to as “the Act”, the Prime

Minister and Minister of Finance has made the following rules>-

(1) The title of these rules is the Donations (National Citation and

commencement.

Heritage) Rules, 2006.

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

from the year of assessment 2007.

These rules shall apply only to companies as defined in the Applicability.

Act.

Deduction for

(1) Where, in any year of assessment, a donation of not less donations.

than one thousand Maltese liri is made in cash or in the form of any

other asset, excluding immovable property, to any of the following>

(a)

the Superintendent of Cultural Heritage<

(b) Heritage Malta<

(c)

Fondazzjoni Patrimonju Malti<

(d) non-Government cultural heritage organizations,

such a donation may be claimed as a deduction against income for the

year of assessment in which it is made, provided that>

(i) a relevant signed certificate in respect of such a donation

has been issued by any of the above and is attached to and submitted

together with the income tax return for the relevant year< and

(ii) the donation is made for the purpose of research,

conservation or restoration, education and exhibition of the cultural

heritage, which purpose shall also be indicated in the said

certificate< and

(iii) in the case of a donation falling under paragraph (d)

hereof, the donation is made to a non-Governmental cultural

heritage organisation registered with the Superintendence of

Cultural Heritage in terms of the Cultural Heritage Act, that is not

in any way related to the donor company.

(2) The certificate referred to in sub-rule (1) hereof shall

indicate>

(a)

the date of the donation,

(b) the name of the donor,

(c)

the value of the donation,

(d) the purpose for which the donation is being made.

(3) Where capital allowances have been allowed in respect

of an asset donated in accordance with sub-rule (1) hereof, the value of

the donation shall be considered to be the written down value of the

asset as on the date of donation.

(4) Where an asset donated in accordance with sub-rule (1)

hereof is purchased by the donor for forwarding to any of the said donees

or is issued out of the donor’s own stock, whether purchased or

manufactured by the said donor, the value of the donation shall be

equivalent to its cost to the donor.

(1) Where, in any year of assessment, a donation of not less

than five thousand Maltese liri is made in cash to any of the entities

listed in sub-rule (1) of rule 3 hereof for the purpose of carrying out

restoration works and such restoration works are approved and

undertaken by, or on behalf of, any of these same entities, such donation

may be claimed as a deduction against income for the year of assessment

in which it is made, provided that a relevant certificate in respect of

such donation has been issued by the Superintendence of Cultural

Heritage and is attached to and submitted together with the income tax

return for the relevant year>

Provided that no such deduction is allowed where it is made to a

non-Governmental cultural heritage organisation that is not registered

with the Superintendence of Cultural Heritage in terms of the Cultural

Heritage Act or is in any way related to the donor company.

(2) The certificate referred to in sub-rule (1) hereof shall

show the date of the donation, the name of the donor and the value of

the donation.

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