Deductions and Tax Credits

L.N. 175 of 2017

INCOME TAX ACT

(CAP. 123)

Deductions and Tax Credits

(Relevant Qualifications for Industry) Rules, 2017

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 rules is the Deductions and Tax

Credits (Relevant Qualifications for Industry) Rules, 2017.

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

1st January, 2017, and shall apply for applications received on or after

the 1st January 2017.

In these rules, unless the context otherwise requires -

"the Act" means the Income Tax Act;

"the Commissioner" means the Commissioner for Revenue;

"the Department" means the Department responsible for the

administration of the scheme and the issuing of certificates within the

Ministry responsible for Education;

"guidelines" means the relevant guidelines as published by the

Ministry from time to time;

"Ministry" means the Ministry responsible for Education;

"parents" mean the father or the mother and includes any person

who has the care and custody, whether legal or actual, of a student;

"relevant qualification" means a certification, degree or post-

graduate degree approved by the Ministry for the purposes of these

rules, awarded on the successful completion of a relevant course and

undertaken through a university, institution or another entity

recognised by the Ministry;

"relevant course" means a course of studies leading to a relevant

qualification;

"student" means an individual following a relevant course;

"study costs" means such fees paid by an individual to the

university, institution or other entity recognised by the Ministry for

the admission and attendance to the relevant course and for sitting for

the examinations required to achieve the relevant qualification or as

specified in the guidelines.

(1) Subject to the other provisions of this rule, an Tax credits.

individual who is a student shall become entitled to the tax credit

referred to in this rule when, after following a relevant course, he

successfully completes that course.

(2) With effect from the 1st January 2017, the tax credit

referred to in this rule shall be an amount as may be determined by

the Ministry that shall not exceed seventy per cent (70%) of the study

costs paid by the student for the period commencing on the date of the

commencement of the relevant course till the end of the relevant

course or on a date specified by the Ministry.

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

deduction from the tax payable by the student 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

Provided that the beneficiary of the tax credit referred to in

these rules may be the student or his/her parents, as the case may be.

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

the student submits to the Commissioner the following required.

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

which the tax credit is claimed

(a) 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

Department, providing the course in question, confirming the

successful completion of the course by that individual; and

(c)

a copy of the tax credit certificate issued by the

Department 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 tax credit certificate referred to in rule 4(c) shall be

issued by the Ministry in terms of guidelines to be published in the

Ministry’s website following the application by a student, when the

Ministry 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 Ministry shall not issue the tax credit

certificate in respect of a course of studies that commences after the

31st December, 2020 or after such earlier date as the Ministry may

specify by means of a notice in the Gazette

Provided further that the Ministry shall not issue the tax

certificate in respect of an application that reaches the Ministry after

two (2) years from the day on which the relevant qualification is

obtained.

The Deductions and Tax Credits (Relevant Qualifications

for Industry) Rules, are hereby revoked, provided that they shall

remain in force with reference to applications submitted thereunder,

prior to the coming into force of these rules.

€0.27