Deduction (Embellishment Project) Rules, 2017

L.N. 274 of 2017

INCOME TAX ACT

(CAP. 123)

Deduction (Embellishment Project) 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 Deduction Title and

commencement.

(Embellishment Project) Rules, 2017.

(2) These rules shall apply in respect of expenditure incurred

as from 1 st January 2017.

In these rules, unless the context otherwise requires –

Definitions.

"Directorate" means the Directorate responsible for Local

Councils;

"Local Council" means a Local Council established under

the Local Councils Act and being the relative Local Council Cap. 363.

responsible for the location where the qualifying project is

carried out;

"qualifying person" means a person carrying on a trade or

business who undertakes a qualifying project; and

"qualifying project" means an embellishment or other

project useful to the local community that has been approved as

such in writing by the Local Council and the Directorate on or

after 1 st January 2017, following an application made in this

respect on such form as the Directorate may require. Such

project must be wholly a community asset on which the

qualifying person retains no proprietary rights and for which the

said qualifying person is not remunerated in any way.

(1)

Where a qualifying person incurs expenditure in Deduction.

undertaking a qualifying project, a deduction equivalent to 120% of

the cost incurred on such expenditure in any year may be claimed in

the relative year of assessment against the said person’s income from

trade or business chargeable to tax

Provided that the deduction claimed under these rules may

not exceed €90,000 in any year.

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

deduction may be claimed in respect of the same expenditure.

(3) Where the qualifying person benefits from any form of

assistance in relation to the said expenditure by the Government or

from any other entity, the amount of such benefit or assistance shall

be subtracted from the expenditure on which the deduction under

these rules may be claimed.

(1)

The deduction provided for by these rules shall

only be allowed on completion of the project and where the details of

the expenditure incurred in respect of the qualifying project have

been provided to the Local Council, on such form and in such manner

as the Directorate may require, and such expenditure and completion

of the project is approved by the Local Council and the Directorate.

(2) The Directorate shall, following the approval in

accordance with sub-rule (1) hereof, submit the approved forms to the

Commissioner in such manner as the Commissioner may require.

(1)

Where a project is situated over an area which falls

under the remit of more than one Local Council, it shall only be

considered a qualifying project if, in addition to the requirements of

these rules, all Local Councils responsible for the said area approve

the project in terms of these rules and as approved by the Directorate.

(2) A qualifying person may not claim a deduction under these

rules for more than one qualifying project in any year.

€0.18