S.L. 123.194 чл. 5Costs which shall be taken into account.

(1) The costs which shall be taken into account for the purpose of calculating the qualifying IP Expenditure shall be established at the time when they are incurred and shall consist of the following:

(a) expenditure incurred directly by the beneficiary for, or in the creation, development, improvement or protection of, the qualifying IP;

(b) expenditure incurred by the beneficiary for activities related to the creation, development, improvement and protection of the qualifying IP subcontracted to persons which are not related to the beneficiary; and

(c) where expenditure has been incurred which does not fall within paragraphs (a) and (b), an amount equivalent to the lower of:

(i) the costs actually incurred in the acquisition, creation, development, improvement or protection of the qualifying IP, excluding expenditure falling within the purport of paragraphs (a) and (b), and

(ii) thirty per cent (30%) of the total of the amounts referred to in paragraphs (a) and (b):

Provided that in no case shall the qualifying IP Expenditure comprised in paragraphs (a), (b) and (c) exceed the Total IP Expenditure:

Provided further that, except for acquisition costs included in paragraph (c)(i), expenditure consisting of interest payments, building costs, acquisition costs or any costs that could not be directly linked to a specific qualifying IP asset shall be excluded in making the above calculation:

Provided further that expenditure for general and speculative research and development which cannot be included in the qualifying IP expenditure of a specific qualifying IP asset can be divided pro across all the qualifying IP assets to the extent that they are rata incurred for the creation, development, improvement or protection of such qualifying IP:

Provided further that expenditure referred to in paragraphs (a),

(b) and (c), which is attributable to a permanent establishment of a beneficiary situated in a jurisdiction other than that in which such beneficiary has its head office, shall not be deductible against income earned by that beneficiary which is attributable to its head office, unless the permanent establishment to which such expenditure is attributable is in operation at the time that the beneficiary earns the said income.

(2) For the purposes of sub-rule (1):

(a) an individual is deemed to be related to a body of persons, if that body of persons is directly or indirectly controlled or beneficially owned as to more than twenty-five per cent (25%) by the said individual;

(b) an individual is deemed to be related to another individual, if the relationship between the said individuals falls within the purport of article 5(2)(e)(i) of the Act;

(c) two bodies of persons are deemed to be related if they are, directly or indirectly, controlled or beneficially owned as to more than twenty-five percent (25%) by the same individuals.

(3) A beneficiary shall maintain appropriate records (including any relevant underlying documentation) to prove the total expenditure and the qualifying IP expenditure incurred in respect of any qualifying IP, the years in which such expenditure is incurred, income and gains derived from any qualifying IP and such other details as may be required in terms of guidelines which may be issued by the Corporation.