Cap. 325 Art. 24BReduced rates of tax for upgrading, refurbishing or renovation of a hotel.

(1) Where it appears to the Corporation in the case of a company which carries on or carries out, in Malta, a trade or business consisting mainly of the operation or management of a hotel or group of hotels, that the gains or profits or part thereof derived by that company from its trade or business or part thereof in the year of assessment commencing on 1st January, 1997, or in subsequent years of assessment, have been set aside for the exclusive purpose of financing a project for the upgrading, refurbishing or renovation of a hotel or hotels owned, operated or managed by such a company and as shall have been approved by the Corporation, and that the gains or profits or part thereof have in fact been used for the purposes for which they were set aside, the Corporation shall issue to such company a certificate showing compliance and thereupon the rate of income tax chargeable on the gains or profits or part thereof so used shall be reduced by seventeen and a half percentage points, or such higher percentage as the Minister may prescribe, and in any such case the tax chargeable shall be assessed, or reassessed and where necessary refunded, as the case may require.

(2) The provisions of article 6(2) shall apply mutatis mutandis to companies qualifying for assistance under the provisions of subarticle (1).

(3) The Minister may by regulations prescribe rules and conditions for the application of the benefit provided by this article.