S.L. 123.116 Art. 3Allowable deduction.

(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 form of assistance in relation to the said expenditure from the Government of Malta or from any other entity.