Deductions and Tax Credits

L.N. 243 of 2009

INCOME TAX ACT

(CAP. 123)

Deductions and Tax Credits

(Relevant Qualifications for Industry) Rules, 2009

IN exercise of the powers conferred by articles 14(2) 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 Deductions and Tax

Credits (Relevant Qualifications for Industry) Rules, 2009.

(2) These rules shall apply to qualifying study costs

incurred on or after the 1st January, 2009.

In these rules, unless the context otherwise requires –

“the Act” means the Income Tax Act;

“the Commissioner” means the Commissioner of Inland

Revenue;

“the Corporation” means the Malta

Enterprise

established in terms of the Malta Enterprise Act;

“relevant qualification” means a certification, degree or

post-graduate degree required by industry and approved by

the Corporation in an area that is largely transferable to other

firms or fields of work, awarded on the successful completion

of a relevant course and undertaken through a university,

institution or an other entity recognised by the Corporation;

“relevant course” means a course of studies leading to a

relevant qualification;

“study costs” means such fees paid by an individual to

the university, institution or other entity recognised by the

Corporation for the admission and attendance to the relevant

course and for sitting for the examinations required to achieve

the relevant qualification.

(1) Subject to the other provisions of this rule, when

an individual is a student who after following a relevant course

successfully completes that course, he becomes entitled to the tax

credit referred to in this rule.

(2) The tax credit referred to in this rule shall be

an amount as may be determined by the Corporation that shall

not exceed the study costs paid by the individual for the period

commencing on the date of the commencement of the course

and ending on the date of the conclusion of the course or on a

date specified by the Corporation, which in any case shall not

exceed thirty-six months from the commencement of the course,

whichever is the earlier.

(3) The tax credit referred to in this rule shall be

due as a deduction from the tax payable by the individual on his

chargeable income for the year of assessment commencing on the

1st January of the year immediately following that in which the

relevant qualification is obtained, and any amount not absorbed

by the tax payable for that year of assessment may be carried

forward to be allowed as a tax credit for the subsequent ten years

of assessment.

The tax credit referred to in this rule shall not be due

unless the individual submits to the Commissioner the following

documentation, with the tax return for the first year of assessment

for which the tax credit is claimed

(a) an itemised statement of the study costs incurred

and a declaration that he is not and has not been entitled

from any source whatsoever to any reimbursement of or

compensation for the costs claimed as a tax credit or any part

of those costs; and

(b) a copy of the certificate or an equivalent document

issued by a university or institution recognised by the

Corporation, providing the course in question, confirming the

successful completion of the course by that individual; and

(c) a copy of the letter of approval issued by the

Corporation confirming that the qualification obtained is a

relevant qualification

Provided that the Commissioner may require evidence

confirming that such costs have been incurred and the authenticity

of the certificate substantiating the claim for the tax credit.

The letter of approval referred to in rule 4(c) shall be

issued by the Corporation in terms of guidelines to be published

in the Corporation’s website, on the application of an individual,

when the Corporation is satisfied that the application is a bona

fide application that complies with the provisions of rule 3, and

when, after it has obtained all such information and made such

ascertainment as it has considered necessary, it considers it

appropriate so to do, it may determine that the course in question is

a relevant course and determine the extent to which, in its opinion,

the expenditure referred to in the application constitutes qualifying

study costs and is necessary and reasonable in the light of the

purpose for which it is incurred, and the amount so determined

shall constitute the maximum qualifying study costs

Provided that the Corporation shall not issue the letter of

approval in respect of a course of studies that

(a) had already been terminated at the time of

application; or

(b) was commenced more than twelve months before

the date of the application; or

(c) commences after the 31st December, 2013 or after

such earlier date as the Corporation may specify by means of

a notice in the Gazette.

B

B

€0.37