DEDUCTION (CHILDCARE FACILITIES AT THE WORKPLACE) RULES

DEDUCTION (CHILDCARE FACILITIES AT THE WORKPLACE)

SUBSIDIARY LEGISLATION 123.118

DEDUCTION (CHILDCARE FACILITIES

AT THE WORKPLACE) RULES

1st January, 2011

LEGAL NOTICE 430 of 2010.

(1) The title of these rules is the Deduction (Childcare

Facilities at the Workplace) Rules.

(2) These rules shall come into force as from the year of

assessment 2011, in respect of expenditure incurred as from 1st

January 2010.

In these rules, unless the context otherwise requires -

"qualifying expenditure" means expenditure of a capital nature

consisting of

(a) the construction of a childcare facility at the

workplace or the conversion of an existing structure at

the workplace into a childcare facility; and

(b) the acquisition of childcare equipment for use in a

childcare facility at the workplace; and

"qualifying person" means a person who is an employer and who

incurs qualifying expenditure for the purpose of creating a working

en v ir on m en t wh er e ch il dcar e ser v ices ar e p ro v id ed f or h is

employees’ children.

(1) Where a qualifying person incurs qualifying

expenditure in the year preceding the year of assessment, a

deduction equivalent to 100% of the cost incurred shall be allowed

against the said person’s income charged to tax for such year of

assessment.

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

shall not exceed twenty thousand euro (€20,000)

Provided that, to the extent that the deduction cannot be

wholly set off against the income of the qualifying person for the

year during which the expenditure was incurred, it shall be carried

forward and set off against the income for subsequent years in

succession

Provided further that, where the qualifying person is an

individual, to the extent that the deduction cannot be wholly set off

against the income of the individual or of his spouse, where

applicable, for the aforesaid year, it shall be carried forward and set

off against the income for subsequent years in succession.

(3) The deduction shall only be allowed where the qualifying

person does not benefit from any other form of assistance in

relation to the said expenditure from the Government of Malta or

from any Government entity.

DEDUCTION (CHILDCARE FACILITIES AT THE WORKPLACE)

No deduction shall be allowed unless the qualifying person

claiming such deduction submits to the Commissioner, together

with the income tax return for the year, details relating to the

qualifying expenditure incurred to such extent and in such manner

as the Commissioner may require.