Donations (Sports and Culture) Rules, 2008

L.N. 159 of 2008

INCOME TAX ACT

(CAP. 123)

Donations (Sports and Culture) Rules, 2008

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 Minister

of Finance, the Economy and Investment has made the following rules>-

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

commencement.

Culture) Rules, 2008.

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

the 1 st January, 2008.

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

2. Act.

Dawn ir-regoli g[andhom japplikaw biss g[al kumpanniji kif Kif japplika.

imfissra fl-Att.

(1) Where, in any year of assessment, a company proves to Donations towards

participation in

the satisfaction of the Commissioner that it has made a cash donation to sports events.

an athlete or sports organisation participating in national or international

sports events and such events are approved by the Malta Sports Council,

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

year of assessment in which it is made, provided that a certificate is

issued in this respect by the Malta Sports Council and the said athlete

or sports organisation is not in any way related to the donor company.

(2) The total deduction claimed by a company in any year

of assessment in accordance with sub-rule (1) hereof shall be the lesser

of the expense actually incurred or 60,000 euro.

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

show, in respect of each donation, the names and income tax registration

numbers of the donor and the recipient, the date and value of the donation

and the purpose for which the donation is being made.

(4) The Malta Sports Council shall provide such information

as the Commissioner may require regarding all certificates issued for

each calendar year by the 15 th February of the following year and this

information shall be made and delivered on such form and in such

manner as the Commissioner may determine.

(1) Where, in any year of assessment, a company proves to

the satisfaction of the Commissioner that it has made a cash donation to

the Arts Fund or a cash donation to a non-profit making cultural

organisation approved by the Arts Fund, such donation may be claimed

as a deduction against income for the year of assessment in which it is

made, provided that a certificate is issued in this respect by the Arts

Fund and that, in the case of a donation to a cultural organisation as

aforesaid, such cultural organisation is not in any way related to the

donor company.

(2) The total deduction claimed by a company in any year

of assessment in accordance with sub-rule (1) hereof shall be the lesser

of the expense actually incurred or 50,000 euro.

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

show, in respect of each donation, the names and income tax registration

numbers of the donor and the recipient, the date and value of the donation

and, with the exception of donations made to the Arts Fund, the approval

of the recipient cultural organisation by the Arts Fund.

(4) The Arts Fund shall provide information as the

Commissioner may require regarding all certificates issued for each

calendar year by the 15 th February of the following year and this

information shall be made and delivered on such form and in such

manner as the Commissioner may determine.

(1) Where, in any year of assessment, a company proves to

the satisfaction of the Commissioner that it has made a cash donation

or provided a scholarship to a bona fide artiste who is ordinarily resident

in Malta, such expense may be claimed as a deduction against income

for the year of assessment in which it is made provided that the said

artiste is not in any way related to the donor company.

(2) The total deduction claimed by a company in any year

of assessment in accordance with sub-rule (1) hereof shall be the lesser

of the expense actually incurred or 18,600 euro.

(3) A company claiming a deduction under this rule shall

provide the Commissioner with particulars of the artiste, the nature of

the artistic activity and such other information regarding the donation

or scholarship as may be required on such form and in such manner as

the Commissioner may determine.

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

€0.19 (Lm0.08)