S.L. 123.86 Art. 3Application and eligibility.

(1) These rules shall apply to eligible persons deriving eligible profits in the year immediately preceding any of the years of assessment 2006 to 2010 and reinvested in an eligible reinvestment project by not later than three years from the beginning of the respective base year.

(2) In order to qualify for the benefits under these rules, a person shall, in the base year:

(i) have had a turnover of not more than €585,000, and

(ii) have had a minimum of three but not more than ten employees of whom at least three were full time employees: Provided that persons engaged as apprentices and students shall not be treated as employees for the purpose of this item; and

(iii) have been registered as an FSS payor under the Final Settlement System (FSS) Rules: Provided that in the case of a company which prepares its financial statements in a currency other than in Euros, the turnover shall be converted into Euros by reference to the middle rate of exchange as determined by the Central Bank of Malta.

(3) A person intending to benefit from the incentive provided by these rules, shall, by not later than three months before the relative tax return date, notify the Corporation of such intention for each base year by means of a letter of application specifying such intention and providing the following details:

(i) the person’s name, address, income tax registration number and employer number;

(ii) the profit declared for the base year;

(iii) the amount of eligible profits to be set-aside for reinvestment;

(iv) the turnover for the base year;

(v) the number of employees engaged during that year, distinguishing between part-time and full-time employees as well as the number of apprentices and students, if any, engaged by that person;

(vi) the period during which the reinvestment is to be made;

(vii) the details of the reinvestment project, with a breakdown of the major expense headings;

(viii) a certificate issued by a Certified Public Accountant and Auditor confirming that the reinvestment project is viable, that the expenses involved are reasonable and fair according to market values, and that the reinvestment has the capacity to expand the business: Provided that any person who fails to notify the Corporation in writing about the intention to apply for the incentive provided by this rule, shall forfeit the right to be eligible for the benefit.

(4) The Corporation, on being satisfied with the application referred to in this rule, shall issue a letter, copied to the Commissioner, indicating the amount of the eligible profits approved for reinvestment and setting out therein any conditions that it may deem fit to impose.