S.L. 325.6 Art. 22Grants not taxable.

(1) Benefits and grants provided in terms of these regulations or the Act or in terms of the Malta Enterprise

Corporation Act shall be exempt from income tax and the provisions of article 36 of the Act shall apply with regard to such receipts as the provisions of that article are applicable to the grants referred to in subarticle (4)(b) of that article.

(2) For the purposes of sub-regulation (1), the benefit provided by regulations 8 and 9 shall be the difference between the interest charged by the Corporation and the interest which is normally charged by a commercial bank in Malta as determined by the Corporation and the company benefiting from these regulations shall be entitled to deduct the benefit accruing to it in an accounting period from its chargeable income of that accounting period.