Deduction (Childcare Facilities at the Workplace) Rules, 2010

L.N. 430 of 2010

INCOME TAX ACT

(CAP. 123)

Deduction (Childcare Facilities at the Workplace) Rules, 2010

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 Deduction (Childcare Title and

commencement.

Facilities at the Workplace) Rules, 2010.

(2) These rules shall come into force as from the year of

assessment 2011, in respect of expenditure incurred as from 1 st

January 2010.

In these rules, unless the context otherwise requires –

Definitions.

"qualifying expenditure" means expenditure of a capital nature

consisting of

(a)

the construction of a childcare facility at the

workplace or the conversion of an existing structure at the

workplace into a childcare facility; and

(b)

the acquisition of childcare equipment for use in a

childcare facility at the workplace; and

"qualifying person" means a person who is an employer and

who incurs qualifying expenditure for the purpose of creating a

working environment where childcare services are provided for his

employees’ children.

(1)

Where a qualifying person incurs qualifying Deductions.

expenditure in the year preceding the year of assessment, a deduction

equivalent to 100% of the cost incurred shall be allowed against the

said person’s income charged to tax for such year of assessment;

(2) The total deduction claimed under these rules as aforesaid

shall not exceed twenty thousand euro (€20,000)

Provided that, to the extent that the deduction cannot be

wholly set off against the income of the qualifying person for the year

during which the expenditure was incurred, it shall be carried forward

and set off against the income for subsequent years in succession

Provided further that, where the qualifying person is an

individual, to the extent that the deduction cannot be wholly set off

against the income of the individual or of his spouse, where

applicable, for the aforesaid year, it shall be carried forward and set

off against the income for subsequent years in succession.

(3) The deduction shall only be allowed where the qualifying

person does not benefit from any other form of assistance in relation

to the said expenditure from the Government of Malta or from any

Government entity.

No deduction shall be allowed unless the qualifying person

claiming such deduction submits to the Commissioner, together with

the income tax return for the year, details relating to the qualifying

expenditure incurred to such extent and in such manner as the

Commissioner may require.

€0.19