Deductions (Pharmacy Of Your Choice)

L.N. 283 of 2016

INCOME TAX ACT

(CAP. 123)

Deductions (Pharmacy Of Your Choice)

(Amendment) Rules, 2016

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

the Income Tax Act, the Minister for Finance has made the following

rules:-

(1) The title of these regulations is the Deductions Citation. and

(Pharmacy Of Your Choice) (Amendment) Rules, 2016, and these commencement

rules shall be read and construed as one with the Deductions S.L.123.112

(Pharmacy Of Your Choice) Rules, hereinafter referred to as "the

principal rules".

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

from the year of assessment 2017.

In rule 1 of the principal rules, immediately after the word Amends rule 1

of the principal

"Deductions" there shall be added the words "and Tax Credits".

rules.

Immediately after rule 3 of the principal rules there shall Adds new rule

to the principal

be added the following new rule

rules.

" Additional

(1) These rules shall also apply to

scope.

any person carrying on a business through a

pharmacy

outlet

who

incurs

capital

expenditure or labour expenditure, as defined

in sub-rule (2), for the purpose of

implementing the Pharmacy of Your Choice

scheme.

(2) For the purpose of this rule

"capital

expenditure"

shall

mean

expenditure for the acquisition of equipment

(including a motor vehicle), as approved by the

Standing

Advisory

Committee,

which

equipment shall be used for the home delivery

scheme as part of the Pharmacy of Your Choice

scheme;

"labour expenditure" shall mean additional

labour costs, as approved by the Standing

Advisory Committee, for the purposes of the

home delivery scheme as part of the Pharmacy

of Your Choice scheme.".

Immediately after sub-rule (2) of rule 4 of the principal

rules, there shall be added the following new sub-rule

"(3) No deduction under this rule may be claimed in

respect of any expenditure incurred after the 31st December,

2015.".

Immediately after rule 4 of the principal rules there shall

be added the following new rule

" Tax credit.

4A. (1) Where a qualifying person

incurs expenditure in accordance with the

provisions of rule 3A after the 1st January,

2016, a tax credit equivalent to one hundred

per cent (100%) of the cost incurred with

respect to each pharmacy outlet shall be

allowed against the said person’s tax charge for

the relative year of assessment.

(2) The total tax credit available under

these rules as aforesaid in respect of each

pharmacy outlet shall not exceed fourteen

thousand euro (€14,000).

(3) No tax credit under this rule may be

claimed for any expenditure in respect of

which a deduction has been claimed under rule

4. (4) No tax credit under this rule may be

claimed in respect of any expenditure incurred

after the 31st December, 2019.".

In sub-rule (1) of rule 5 of the principal rules, for the words

"The deduction provided for by these rules shall only be allowed

where the works related to the expenditure have been completed",

there shall be substituted the words "The deduction or tax credit

provided for by these rules shall only be allowed where the works

related to the expenditure have been completed or the expenditure

ascertained".

€0.18