Deduction for Transportation Cost of Employees Rules, 2018

L.N. 67 of 2018

INCOME TAX ACT

(CAP. 123)

Deduction for Transportation Cost of Employees Rules, 2018

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 for Title and

commencement

Transportation Cost of Employees Rules, 2018.

(2) These rules shall apply in respect of transportation costs

incurred for the transport of employees as from the year of

assessment 2018.

In these rules, unless the context otherwise requires -

Interpretation.

"the Act" means the Income Tax Act;

"Commissioner" means the Commissioner for Revenue;

"employee" means any person who has entered into or

works under a contract of service, or any person who has

undertaken personally to execute any work or service for, and

under the immediate direction and control of another person,

including an outworker, but excluding work or service

performed in a professional capacity or as a contractor for

another person when such work or service is not regulated by a

specific contract of service as set out in the Employment and Cap. 452.

Industrial Relations Act;

"employee transportation costs" mean costs incurred by an

undertaking for transportation of employees to and from the

place of work using means of transport capable of carrying

more than eight (8) persons, whether organized by the

undertaking or any other entity;

"undertaking" means a person carrying on a trade,

business, profession or vocation as set out in paragraph (a) of

sub-article (1) of article 4 of the Act.

(1)

Subject to the other provisions of this rule, an Deduction.

undertaking may claim a deduction against its income equivalent to

150% of the employee transportation costs incurred in the relative

year.

(2) In respect of any year of assessment, the deduction

referred to in sub article one may only be claimed on the lower of

(i)

€25,000 of the employee transportation costs

incurred by the undertaking in the year preceding the year of

assessment; or

(ii) €300 per employee whose transportation costs have

been incurred by the undertaking in the year preceding the year

of assessment.

(3) The employee transportation costs in respect of which a

deduction is claimed under these rules may not benefit from any other

deduction provided under the Act.

The deduction available under these rules may only be

availed of if the undertaking benefiting thereunder

(a)

maintains proper records of the employee

transportation costs in respect of which the deduction is

claimed;

(b) claims the deduction in its income tax return relative

to the basis year in which the employee transportation costs

were incurred;

(c) submits with its income tax return a declaration by

a Certified Public Accountant confirming that the

undertaking has correctly computed the said costs, in such

manner as the Commissioner may require.

These rules shall remain in effect up to the year of

assessment 2020.

€0.18