Deduction (Electric Vehicles) Rules, 2011

L.N. 13 of 2011

INCOME TAX ACT

(CAP. 123)

Deduction (Electric Vehicles) Rules, 2011

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

the Income Tax Act, the Minister of Finance, the Economy and

Investment has made the following rules:-

(1) The title of these rules is the Deduction (Electric

Vehicles) Rules, 2011.

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

assessment 2012, in respect of expenditure incurred as from 1st

January 2011.

In these rules, unless the context otherwise requires

"electrical vehicle" means a vehicle propelled exclusively by an

electric motor which gets its source of energy from a battery or a set

of batteries;

"qualifying expenditure" means expenditure of a capital nature

incurred on the acquisition of electrical vehicles;

"qualifying person" means a company that carries on a trade or

business.

(1) Where a qualifying person incurs qualifying

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

equivalent to 125% 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-five thousand euro (€25,000) in respect of

each electrical vehicle.

(3) Where a deduction is claimed under these rules, no

deduction in respect of wear and tear may be claimed in respect of the

same electrical vehicle.

€0.09