TAX CREDIT (MALTA INTERNATIONAL AIRPORT PLC) (COVID-19 DAMAGE COMPENSATION) RULES

TAX CREDIT (MALTA INTERNATIONAL AIRPORT PLC)

(COVID-19 DAMAGE COMPENSATION)

SUBSIDIARY LEGISLATION 123.206

TAX CREDIT (MALTA INTERNATIONAL AIRPORT

PLC) (COVID-19 DAMAGE COMPENSATION) RULES

11th October, 2022

LEGAL NOTICE 247 of 2022.

The title of these rules is Tax Credit (Malta International

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

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

TAX CREDIT (MALTA INTERNATIONAL AIRPORT PLC)

(COVID-19 DAMAGE COMPENSATION)

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 of assessment in accordance with these rules shall not exceed the

tax 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

company exceeds the tax credit allowable in accordance with these

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

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

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

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

company’s final tax account.