SUPPORT FOR REDUCING THE ENVIRONMENTAL IMPACT OF CONSTRUCTION ACTIVITIES REGULATIONS

SUPPORT FOR REDUCING THE ENVIRONMENTAL

IMPACT OF CONSTRUCTION ACTIVITIES

SUBSIDIARY LEGISLATION 463.47

SUPPORT FOR REDUCING THE ENVIRONMENTAL

IMPACT OF CONSTRUCTION ACTIVITIES

REGULATIONS

1 st December, 2022

LEGAL NOTICE 377 of 2022.

The title of these regulations is the Support for Reducing

the Environmental Impact of Construction Activities Regulations.

In these regulations, unless the context otherwise

requires

"Act" means the Malta Enterprise Act;

"aid intensity" means the gross aid amount expressed as a

percentage of the eligible costs, before any deduction of tax or

other charge;

"corporation" means the Malta Enterprise established by

article 7 of the Act;

"guidelines" means the guidelines as published by the

Corporation, from time to time, in accordance with the Act

establishing the parameter of implementing the assistance

through these regulations;

"project" means an action to be taken by an undertaking

in accordance with the guidelines resulting in the procurement

of equipment that is eligible for assistance in accordance with

these regulations;

"undertaking" shall have the same meaning assigned to it

in the Act.

Where the corporation is satisfied that the undertaking

requires assistance to carry out investments that reduce the impact of

its construction activities by facilitating the reduction in volume of

construction waste, control dust emission or the replacement of

equipment, the corporation may provide assistance within the terms

and conditions set out in the guidelines, at an aid intensity of up to fifty

per cent (50%) to a maximum amount of one hundred thousand

(€100,000) per project.

(1)

An undertaking benefiting from tax credits in

accordance with these regulations and the respective guidelines, shall be

entitled to deduct from the amount of income tax which is due on its

chargeable income derived from its trade or business in the years of

SUPPORT FOR REDUCING THE ENVIRONMENTAL

IMPACT OF CONSTRUCTION ACTIVITIES

assessment following the award of the benefit the amount shall be

equivalent to the tax credit awarded.

(2)

An undertaking that in any year of assessment does not

utilise any tax credit awarded to it or does not deduct the value from the

amount of income tax which is due on its chargeable income, derived

from its trade or business that is less than the tax credit awarded, shall

carry forward the unutilised tax credit for the following year of

assessment and for further years of assessment.

(3)

Tax credits awarded in accordance with these regulations

and the respective guidelines shall not give rise to a right to a refund of

tax.

(4)

Any tax credits shall be utilised by the fifth year of

assessment commencing from the year of assessment as established by

the corporation in accordance with the terms and conditions set out in

the guidelines.

(5)

Where an undertaking has benefited from the provisions

of this regulation, the tax credit shall be deemed to have relieved from

tax that part of the undertaking’s chargeable income which, when

multiplied by the rates of tax at which it was chargeable in that year, is

equal to the tax credit, and when the undertaking is a company and such

undertaking or any subsequent company distributes the income which

is so deemed to have been relieved from tax, such undertaking shall

declare in the dividend warrant pertaining to any such distribution of

tax on that income, has been relieved from tax by a tax credit in

accordance with this regulation.

(6)

(a)

In the case the undertaking is a company, the

chargeable income which is deemed to have been relieved from tax in

accordance with sub-regulation (5) shall be, for the purposes of the

Income Tax Act, allocated to the respective tax accounts of the

company in question in accordance with the Tax Accounts (Income

Tax) Rules and any dividend, or part thereof, distributed from such

income shall be exempted from income tax once in the hands of the

members of the company on receipt of such distribution;

(b)

Where a dividend referred to in paragraph (a) is

distributed to a member which is also a company, in this sub-

regulation is referred to as "the second company", the said

dividend shall likewise be distributed by the second company to

its members in the form of dividends exempt from income tax in

the hands of the recipients, and where a member of the second

company is also a company, the preceding provisions shall apply

mutatis mutandis as though references to the first company were

references to the second company, and as though references to

the second company were references to that member, and the

principle set out in this sub-regulation shall continue to be

SUPPORT FOR REDUCING THE ENVIRONMENTAL

IMPACT OF CONSTRUCTION ACTIVITIES

applied for as long as such income, or part thereof, to which this

regulation applies, is distributed by way of dividends.

(7)

In the case of a company, no tax credit shall be due to an

undertaking in accordance with this regulation unless it is claimed in

the appropriate section of a tax return submitted by electronic means

by not later than the relative tax return date.

Applications for assistance to support undertakings under

these regulations shall reach the corporation by not later than 30th

November, 2023

Provided that no assistance shall be granted in

accordance with these regulations by the corporation after 31st

December, 2023.