Tax Credit (Malta International Airport plc)

L.N. 247 of 2022

INCOME TAX ACT

(CAP. 123)

Tax Credit (Malta International Airport plc)

(COVID-19 Damage Compensation) Rules, 2022

IN EXERCISE of the powers conferred by article 96 of the

Income Tax Act, the Minister responsible for finance has made the

following rules:-

The title of these rules is Tax Credit (Malta International

Airport plc) (COVID-19 Damage Compensation) Rules, 2022.

In these rules, unless the context otherwise requires

"Act" means the Income Tax Act;

"Commissioner" shall have the same meaning as assigned

to it in the Act;

"eligible costs for damage compensation" means the total

net amount suffered by the company as a direct consequence of

the COVID-19 pandemic during the period 21st March 2020 and

30th June 2020 and recognized as eligible costs for damage

compensation in the decision of the European Commission

communicated to the Government by means of a letter dated 27

June 2022 with the subject "State Aid SA.102240 (2022/N) –

Malta COVID-19 Damage compensation to Malta International

Airport plc".

"the company" means Malta International Airport plc,

whose company registration number is C12663.

A tax credit shall be allowed to the company in accordance

with these rules in an amount that shall not exceed the lower of the

following two amounts

(a) the eligible costs for damage compensation net that

do not include

(i) any amount recovered by the company by

insurance, litigation, arbitration or other source for the

same damages, including any amount that is so recovered at

any time after these rules come into force;

(ii) any damages for which the company was

responsible or which was attributable to the failure on the

part of the company to conduct its activities with due

diligence and in compliance of applicable legislation or to

its failure to take measures to mitigate it;

(iii) any grant, compensation, relief or other form of

aid paid to the company by or on behalf of the Government

or a government agency in consideration of the said

damage to the extent that it is not already compensated in

the calculation of the eligible costs for damage

compensation; and

(b)

twelve million euro (€12,000,000).

(1) The tax credit that the company may claim for a year Claim for the

of assessment in accordance with these rules shall not exceed the tax tax credit.

on its chargeable income for that year after taking into account any

other tax credit, tax exemption and any other form of tax relief that

may be allowed to the company for that year.

(2) Subject to the limitation provided for in sub-rule (1), the

company may claim the tax credit allowable in accordance with these

rules for the year of assessment 2023.

(3) Any balance of the tax credit that is not availed of in the

year of assessment 2023 on account of the limitation provided for in

sub-rule (1) shall be carried forward and made available as a tax credit

for subsequent years of assessment, subject to the same limitation,

until it is fully availed of.

(1) Where it results that the tax credit granted to the Repayment of

company exceeds the tax credit allowable in accordance with these excess

credit.

rules, the company shall repay such excess to the Commissioner.

(2) A repayment of the excess tax credit shall be payable with

interest calculated at rates stipulated in article 44(2A) of the Income

Tax Management Act and for the purposes of that article, the said Cap. 372.

repayment shall be deemed to have become payable by the company

on the tax settlement date for the year of assessment or years of

assessment for which the excess was claimed.

(3) The liability of the company to make a repayment arises

also if the excess tax credit results from the recovery by the company

of an amount by insurance, litigation, arbitration or other source on a

date that is later than the date on which the excess was claimed, but in

such a case the repayment shall be deemed to have become due and

payable to the Commissioner on such later date.

The said amount out of the company’s chargeable income

Allocation of

profits to the

for the respective year of assessment on which no tax is payable as a

final tax

result of a tax credit under these rules shall be allocated to the

account.

company’s final tax account.

€0.27