Investment Aid 2021 (Amendment) Regulations, 2021

L.N. 390 of 2021

MALTA ENTERPRISE ACT

(CAP. 463)

Investment Aid 2021 (Amendment) Regulations, 2021

IN EXERCISE of the powers conferred by article 5 of the Malta

Enterprise Act, the Minister for Energy, Enterprise and Sustainable

Development, after consultation with the Malta Enterprise Corporation

and with the concurrence of the Minister for Finance and Employment,

has made the following regulations:-

The title of these regulations is the Investment Aid 2021 Citation.

(Amendment) Regulations 2021 and these regulations shall be read

and construed as one with the Investment Aid 2021, Regulations, S.L. 463.40

hereinafter referred to as the "principal regulations".

Immediately after regulation 7 of the principal regulations Adds new

there shall be added the following new regulation

(1) Where an undertaking has benefited

and dividends.

from the provisions of regulations 5 and 6, the investment

tax credit shall be deemed to have relieved from tax so

much of that undertaking’s chargeable income which,

when multiplied by the rates of tax at which it was

chargeable in that year, is equal to the investment tax

credit and where the undertaking or any subsequent

undertaking distributes the income which is so deemed to

have been relieved from tax, such undertaking or

undertakings shall state in the dividend warrant

pertaining to any such distribution that such income has

been relieved from tax by an investment tax credit in

accordance with regulations 5 and 6 and that tax which

has so been relieved shall not be available for refund for

any purpose of the Income Tax Act.

(2) The chargeable income which is deemed to

have been relieved from tax in accordance with sub-

regulation (1) shall, for the purposes of the Income Tax

Act, be allocated to the Final Taxed Account of the

company in question and any dividends (or part thereof)

distributed from such income shall be exempted from

income tax in the hands of the members of the company

on receipt of such distribution.

(3) Where a dividend referred to in sub-regulation

(1) is distributed to a member which is also a company

(in this sub-regulation referred to as "the second

company"), the said dividend shall likewise be

distributed by the second company to its members in the

form of dividends exempt from income tax in the hands

of recipients, and where a member of the second

company is again a company, the preceding provisions

shall apply mutatis mutandis as though references to the

first company were references to the second company,

and as though references therein to the second company

were references to that member, and the principle set out

in this sub-regulation shall continue to be applied for as

long as such income or part thereof to which this

regulation applies are distributed by way of dividends.".

3. Regulations 8 and 9 of the principal regulations shall be

renumbered as regulations 9 and 10 respectively.

€0.18