S.L. 123.84 Art. 12Calculation of the tax credit. Cap. 325.

(1) The tax credit due to an eligible owner in respect of allowable expenditure defined in rule paragraph (i) of the definition of "qualifying expenditure" in rule 2 (the construction, development or improvement of a warehouse) shall be allowable for the year of assessment immediately following that in which the employment condition is first satisfied and shall be the equivalent of: A x B x 2.5% where -A = the amount of the said expenditure incurred by the eligible owner on the whole approved project; B = the number of additional employees employed during the first year in which the employment condition is satisfied.

(2) The tax credit due to a qualifying company in respect of expenditure defined in paragraph (ii) of the definition of "qualifying expenditure" in rule 2 (the acquisition of plant and machinery) shall be allowable for each year of assessment immediately following a year in which that expenditure is incurred and shall be equivalent to -A x B x 10% where -A = the amount of the said expenditure incurred by the qualifying company in the respective year B = the number of additional employees employed during the year in which that expenditure is incurred.

(3) Notwithstanding the provisions of sub-rules (1) and (2) the tax credit due to a qualifying company in respect of an approved project shall not exceed, in the aggregate -

(a) in the case of a small or medium sized enterprise, fifty percent of the total cost of the project in question; and

(b) in the case of any other qualifying company, forty percent net grant equivalent of the total cost of the project in question:

Provided that where the company in question has benefited from any State aid in respect of expenditure incurred in the carrying out of the project, other than as provided for in these rules, the threshold referred to in paragraph (a) or (b), as the case may be, shall be reduced by the value of that aid:

Provided further that the correct calculation of the said reduction, where applicable, shall be the sole responsibility of the company.

(4) The tax credit shall be availed of by way of a deduction from the tax chargeable on gains or profits derived from the activities for which the investment to which the approved project refers is made, and shall not be allowable as a deduction from tax chargeable on gains or profits from any other source; and any amount of tax credit due for a year of assessment that is not so absorbed in that year may be carried forward and deducted from the tax chargeable in subsequent years on income from the said activities: Provided that any part of the tax credit that is not availed of up to the year of assessment 2013 shall not be carried forward and the right to a credit in respect thereof will lapse.

(5) Where, for a year of assessment, a company qualifies for a tax credit under the Business Promotion Act and also under the provisions of these rules, it shall avail itself of the tax credit under the Business Promotion Act before any set-off is made in respect of the tax credit due under these rules.

(6) A tax credit due in accordance with these rules shall not give rise to a right for any refund.