Cap. 325 Art. 8Accelerated depreciation.

(1) Where a qualifying company is entitled to an investment allowance in respect of any asset under the provisions of article 7, the company shall, in addition, be entitled to a deduction in respect of wear and tear at the following rates on account of the same asset for the purpose of computing its chargeable income for income tax purposes:

When owned by When owned by Maltese companies other companies

Plant and 331 % 25% / 3 machinery per annum per annum Industrial building and 5% 4% structure per annum per annum: Provided that with effect from the year of assessment 2001 the rates applicable to Maltese qualifying companies shown above shall be applicable to all qualifying companies and the rates shown under the heading "When owned by other companies" shall cease to apply.

(2) The allowances for which provision is made in subarticle

(1) shall be granted as from the year of assessment in respect of which the relative allowance is first due to be granted and shall be computed on the straight line method.

(3) The allowances granted in terms of this article shall replace any allowances otherwise due to the qualifying company for any year of assessment under the provisions of article 14(1)(f) of the Income Tax Act.

(4) The cost of the land on which any industrial building or structure is constructed or erected shall, in all cases, be excluded from any expenditure in respect of which a deduction is due to be granted under the provisions of this article.

(5) Saving the provisions of this article and of article 7, investment allowances and accelerated depreciation shall for the purposes of the Income Tax Act be deemed to be deductions granted under article 14(1)(f) and (j) of the said Act and all the relevant provisions of that Act shall accordingly apply.

(6) No allowance under this article shall be due except in respect of assets which are first used by the company, having been acquired unused and not second hand: Provided that this subarticle shall not apply in respect of industrial buildings or structures acquired from the Government.

(7) For the purposes of articles 59 and 60 of the Income Tax

Act, the tax paid or payable in respect of income distributed by a company by way of dividend to its members may, at the request of the company, be calculated as if the company was not entitled to a deduction under this article, but to the deductions contemplated by article 14(1)(f) and (j) of the Income Tax Act.

(8) With effect from such year of assessment as may be determined by the Minister by order in the Gazette, the provisions of this article shall only be applicable to assets purchased by a qualifying company during the year preceding the year of assessment determined by the Minister as aforesaid.