Cap. 325 · Business Promotion Act (Cap. 325)
Cap. 325 Art. 6Reduced rate of tax.
PART II
(1) Subject to the provisions of subarticle (2), where it appears to the Corporation that the gains or profits or part thereof derived by a qualifying company from its trade or business or part thereof in the year of assessment commencing on lst January, 1988, or in subsequent years of assessment, have been set aside for the exclusive purpose of financing any project as shall have been approved by the Corporation, and that the gains or profits or part thereof have in fact been used for the purpose for which they were set aside, the Corporation shall issue to the qualifying 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, and in any such case the tax chargeable shall be assessed, or reassessed and
*1st November, 2000 - see Legal Notice 135 of 2001. where necessary refunded, as the case may require:
Provided that where the qualifying company is a Maltese company, the rate of income tax chargeable shall be reduced by nineteen and a quarter percentage points: Provided further that as from the year of assessment 2001 the reduction in the rate of income tax shall in all cases be of nineteen and a quarter percentage points or such other higher percentage as the Minister may from time to time by regulations prescribe.
(2) The Corporation shall not grant any approval for the purposes of subarticle (1) -
(a) in respect of any application for the purpose of this article filed with the Corporation later than twenty-four months after the end of the year immediately preceding the year of assessment in which the income in respect of which approval may be given falls to be charged to tax; or
(b) in respect of any project requiring for its realisation a period of more than five years from the date of approval.
(3) The Minister may by regulations prescribe rules for the application of the benefit provided by this article. Such rules may be in addition to or in substitution of the rules and conditions prescribed in this article.