DONATIONS (SPORTS AND CULTURE) RULES

DONATIONS (SPORTS AND CULTURE)

SUBSIDIARY LEGISLATION 123.102

DONATIONS (SPORTS AND CULTURE) RULES

1st January, 2008

LEGAL NOTICE 159 of 2008, as amended by Legal Notices 301 of 2009,

63 of 2015, and 147 and 399 of 2016.

The title of these rules is the Donations (Sports and

Culture) Rules.

These rules shall apply only to companies as defined in the

Income Tax Act, hereinafter referred to as "the Act".

(1) Where, in any year of assessment, a company proves to

the satisfaction of the Commissioner that it has made a cash

donation to a sports person participating in a national sports event

or an international sports event, such donation may be claimed as a

deduction against income for the year of assessment in which it is

made, provided that a certificate is issued in this respect by

SportMalta thereby certifying recognition of the event and

registration of the sports person

Provided that such deduction may only be claimed if the

said sports person is not in any way related to the said donor

company.

(2) The total deduction claimed by a company in any year of

assessment in accordance with sub-rule (1) shall be the lesser of the

expense actually incurred or sixty thousand (60,000) euro.

(3) The certificate referred to in sub-rule (1) shall show, in

respect of each donation, the names and income tax registration

numbers of the donor and the recipient, the date and value of the

donation and the purpose for which the donation is being made.

(4) SportMalta shall provide such information as the

Commissioner may require regarding all certificates issued for each

calendar year by the 15th February of the following year and this

information shall be made and delivered on such form and in such

manner as the Commissioner may determine.

(5)

For the purposes of this rule

"international sports event" shall mean any form of event having

a competitive element, being organized by an international

governing body recognized by SportMalta, in which local sports

persons can participate;

"national sports event" shall mean any league, knock-out

competition or other form of local competition taking place in the

territory of Malta intended for local sports persons, recognized as

such by SportMalta; and

DONATIONS (SPORTS AND CULTURE)

" s po r ts p e r s o n" s h a l l m e a n an a t h l e t e , cl u b , as s o c i a t i o n ,

federation, foundation or any other sports organisation registered

under any other category as established by SportMalta which is

deemed to be a "not-for-profit" sports entity and is registered in the

Register of Persons kept by SportMalta as required by the Sports

Act.

(1) Where, in any year of assessment, a company proves to

the satisfaction of the Commissioner that it has made a cash

donation to the Arts Council Malta or a cash donation to a non-

profit making cultural organisation approved by the Arts Council

Malta, an amount equivalent to 150% of such donation may be

claimed as a deduction against income for the year of assessment in

which it is made, provided that a certificate is issued in this respect

by the Arts Council Malta and that, in the case of a donation to a

cultural organisation as aforesaid, such cultural organisation is not

in any way related to the donor company.

(2) The total deduction claimed by a company in any year of

assessment in accordance with sub-rule (1) shall be the lesser of the

amount calculated as aforesaid or fifty thousand (50,000) euro.

(3) The certificate referred to in sub-rule (1) shall show, in

respect of each donation, the names and income tax registration

numbers of the donor and the recipient, the date and value of the

donation and, with the exception of donations made to the Arts

Council Malta, the approval of the recipient cultural organisation

by the Arts Council Malta.

(4) The Arts Council Malta shall provide information as the

Commissioner may require regarding all certificates issued for each

calendar year by the 15th February of the following year and this

information shall be made and delivered on such form and in such

manner as the Commissioner may determine.

(1) Where, in any year of assessment, a company proves to

the satisfaction of the Commissioner that it has made a cash

donation or provided a scholarship to a bona fide artiste who is

ordinarily resident in Malta, such expense may be claimed as a

deduction against income for the year of assessment in which it is

made provided that the said artiste is not in any way related to the

donor company.

(2) The total deduction claimed by a company in any year of

assessment in accordance with sub-rule (1) shall be the lesser of the

expense actually incurred or eighteen thousand and six hundred

(18,600) euro.

(3) A company claiming a deduction under this rule shall

provide the Commissioner with particulars of the artiste, the nature

of the artistic activity and such other information regarding the

donation or scholarship as may be required on such form and in

such manner as the Commissioner may determine.