S.L. 123.102 Art. 3Donations towards participation in sports events.

(1) Where, in any year of assessment, a company proves to the satisfaction of the Commissioner that it has made a cash donation to a sports person participating in a national sports event or an international sports event, such donation may be claimed as a deduction against income for the year of assessment in which it is made, provided that a certificate is issued in this respect by SportMalta thereby certifying recognition of the event and registration of the sports person: Provided that such deduction may only be claimed if the said sports person is not in any way related to the said donor company.

(2) The total deduction claimed by a company in any year of assessment in accordance with sub-rule (1) shall be the lesser of the expense actually incurred or sixty thousand (60,000) euro.

(3) The certificate referred to in sub-rule (1) shall show, in respect of each donation, the names and income tax registration numbers of the donor and the recipient, the date and value of the donation and the purpose for which the donation is being made.

(4) SportMalta shall provide such information as the Commissioner may require regarding all certificates issued for each calendar year by the 15th February of the following year and this information shall be made and delivered on such form and in such manner as the Commissioner may determine.

(5) For the purposes of this rule: "international sports event" shall mean any form of event having a competitive element, being organized by an international governing body recognized by SportMalta, in which local sports persons can participate; "national sports event" shall mean any league, knock-out competition or other form of local competition taking place in the territory of Malta intended for local sports persons, recognized as such by SportMalta; and "sports person" shall mean an athlete, club, association, federation, foundation or any other sports organisation registered under any other category as established by SportMalta which is deemed to be a "not-for-profit" sports entity and is registered in the Register of Persons kept by SportMalta as required by the Sports Act.