Cap. 123 ст. 92Flat-rate foreign credit.

(1) For the purposes of the Income Tax Acts, the flat-rate foreign tax credit shall be credit given in respect of income or gains which either satisfy all the provisions of sub-article (1) or all the provisions of sub-article (2):

(a) income or gains which are received by a company registered in Malta; and

(b) which the company is specifically empowered to receive and fall to be allocated to the foreign income account as defined in article 2, but excluding profits resulting from dividends paid out of the foreign income account of another company resident in Malta: Provided that in the case of a company resident in Malta prior to the 1 January 2007, the first condition of this paragraph shall apply as from the 1 January 2011, or, where such company informs the Commissioner as contemplated in article 48(4A)(b)(1) or (2) of the Income Tax Management Act, as from the date on which such information is effective, whichever is the earlier; and

(c) in respect of which documentary evidence is available which indicates to the satisfaction of the Commissioner that such income or gains, as the case may be, fall to be allocated to the foreign income account as provided in paragraph (b). For the purposes of this requirement, a certificate issued by a certified public accountant and auditor shall be satisfactory documentary evidence.

(2) Income or gains which are received -

(a) by a Rule 9 company registered in Malta;

(b) which the Rule 9 company is specifically empowered to receive and would fall to be allocated to the foreign income account as defined in article 2 were it not a Rule 9 company, but excluding profits resulting from dividends paid out of the foreign income account of another company resident in Malta; and

(c) in respect of which documentary evidence is available which indicates to the satisfaction of the Commissioner that such income or gains, as the case may be, would fall to be allocated to the foreign income account were it not a Rule 9 company, as provided in paragraph (b). For the purposes of this requirement, a certificate issued by a certified public accountant and auditor shall be satisfactory documentary evidence. For the purpose of this sub-article, ''Rule 9 company'' shall mean a company which has made an election not to allocate its gains or profits to the foreign income account and the Maltese taxed account in terms of rule 9 of the Tax Accounts (Income Tax) Rules.

(3) When a company elects to apply the provisions governing the flat-rate foreign tax credit in respect of any of its income or gains and also claims a deduction in terms of paragraph (o) of sub-article (1) of article 14 (hereinafter referred to as "paragraph (o)") in determining the said income or gains, no account shall be taken of the amount referred to in sub-article (1) of article 94 for the purpose of calculating any limitation to the amount of the said deduction which may be prescribed by rules issued in terms of the said paragraph (o), and which is calculated by reference to the company’s chargeable income.