DEDUCTIONS AND TAX CREDITS (PHARMACY OF YOUR CHOICE) RULES

DEDUCTIONS AND TAX CREDITS

(PHARMACY OF YOUR CHOICE)

SUBSIDIARY LEGISLATION 123.112

DEDUCTIONS AND TAX CREDITS

(PHARMACY OF YOUR CHOICE) RULES

1st January, 2010

LEGAL NOTICE 171 of 2010, as amended by Legal Notices 113 of 2012

and 283 of 2016.

The title of these rules is the Deductions and Tax Credits

(Pharmacy Of Your Choice) Rules.

In these rules, unless the context otherwise requires

"Pharmacy Of Your Choice" means the scheme by that name

resulting from the agreement dated 28th July 2007 reached by the

Government of Malta and the Malta Chamber of Pharmacists and

the GRTU Chamber of Small and Medium Enterprises;

"qualifying person" means a person to whom rule 3 applies;

"Standing Advisory Committee" means the committee of that

name specified in the agreement dated 28th July, 2007 reached by

the Government of Malta and the Malta Chamber of Pharmacists

and the GRTU Chamber of Small and Medium Enterprises.

These rules shall apply to any person who

(a) carries on a business through a pharmacy outlet; and

(b) incurs expenditure in purchasing or installing any

equipment or software in a pharmacy outlet for the

implementation of the Pharmacy Of Your Choice

scheme.

(1) These rules shall also apply to any person carrying on

a business through a pharmacy outlet who incurs capital

expenditure or labour expenditure, as defined in sub-rule (2), for

the purpose of implementing the Pharmacy of Your Choice scheme.

(2)

For the purpose of this rule

"capital expenditure" shall mean expenditure for the acquisition

of equipment (including a motor vehicle), as approved by the

Standing Advisory Committee, which equipment shall be used for

the home delivery scheme as part of the Pharmacy of Your Choice

scheme;

"labour expenditure" shall mean additional labour costs, as

approved by the Standing Advisory Committee, for the purposes of

the home delivery scheme as part of the Pharmacy of Your Choice

scheme.

(1) Where a qualifying person incurs expenditure in

accordance with the provisions of rule 3, a deduction equivalent to

three hundred per cent (300%) of the cost incurred with respect to

each pharmacy outlet shall be allowed against the said person’s

income chargeable to tax for the relative year of assessment

DEDUCTIONS AND TAX CREDITS

(PHARMACY OF YOUR CHOICE)

Provided that where the cost referred to in this rule was

incurred prior to the year preceding the year of assessment 2010,

the said deduction shall be availed of in the year of assessment

2010. (2) The total deduction claimed under these rules as aforesaid

in respect of each pharmacy outlet shall not exceed twelve

thousand euro (€12,000).

(3) No deduction under this rule may be claimed in respect of

any expenditure incurred after the 31st December, 2015.

(1) Where a qualifying person incurs expenditure in

accordance with the provisions of rule 3A after the 1st January,

2016, a tax credit equivalent to one hundred per cent (100%) of the

cost incurred with respect to each pharmacy outlet shall be allowed

against the said person’s tax charge for the relative year of

assessment.

(2) The total tax credit available under these rules as aforesaid

in respect of each pharmacy outlet shall not exceed fourteen

thousand euro (€14,000).

(3) No tax credit under this rule may be claimed for any

expenditure in respect of which a deduction has been claimed under

rule 4.

(4) No tax credit under this rule may be claimed in respect of

any expenditure incurred after the 31st December, 2019.

(1) The deduction or tax credit provided for by these rules

shall only be allowed where the works related to the expenditure

have been completed or the expenditure ascertained and an

application has been made to the Standing Advisory Committee, by

providing details of the expenditure in respect of each pharmacy

outlet in such manner as the Committee may require, and such

application is recommended and approved by the said Committee.

(2) The Standing Advisory Committee shall, following its

recommendation and approval in accordance with sub-rule (1),

submit to the Commissioner the details of applications approved, in

such manner as the Commissioner may require.