S.L. 123.71 Art. 2Interpretation. Cap. 123.

In these regulations, unless the context otherwise requires -''base year'' means the year during which the profit eligible to be reinvested has been earned and subsequently declared in the tax return for the relative year of assessment; ''Commissioner'' means the Commissioner of Inland Revenue; ''Corporation'' means the Institute for the Promotion of Small Enterprise Limited; ''eligible person'' means a person resident in Malta deriving eligible profits that are reinvested in an eligible reinvestment project approved by the Corporation and conforming with the requirements of regulation 3; ''eligible profits'' means income deriving from any activity carried out in Malta chargeable under the provisions of article 4(1)(a) of the Income Tax Act, hereinafter referred to as ''the Act'' and computed in accordance with the provisions of the Act, and set-aside for the exclusive purpose of financing an approved reinvestment project; ''eligible reinvestment project'' means a project approved by the Corporation under these regulations, in respect of which qualifying expenditure has been incurred and is retained within the business for at least two years or such other shorter period as the Corporation may deem appropriate in view of the nature of the project;

''qualifying expenditure'' shall mean expenditure of a capital nature exclusively financed by eligible profits, incurred as part of an eligible reinvestment project as approved by the Corporation in acquiring brand new plant and machinery, but excluding motor vehicles unless these are specialised commercial vehicles that are essential to the implementation of the project: Provided that the Corporation may, in its absolute discretion, approve expenditure within an eligible reinvestment project, incurred in acquiring:

(a) second-hand, refurbished or reconditioned plant and machinery;

(b) any extension to an existing industrial building or structure, including the cost of land forming an integral part of such extension: Provided further that such expenditure is incurred on assets -

(a) which are first used in Malta; and

(b) in respect of which no income tax benefit or incentive has previously been obtained under any other legislation;

''qualifying profits'' means income deriving from the same activity in which eligible profits have been earned, computed in accordance with the provisions of the Act, that is relieved by a reinvestment tax credit.