S.L. 123.71 Art. 3Application and eligibility.

(1) These regulations shall apply to eligible persons deriving eligible profits in any of the years of assessment 2003 to

2005 and reinvested in an eligible reinvestment project within three years from the end of the base year.

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

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

(ii) had a minimum of two but not more than five employees of whom at least two were full time employees, and

(iii) was 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 changed 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 regulations, shall, by not later than one month after 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 the year, distinguishing between part-time and full-time;

(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 regulation, shall forfeit the right to be eligible for the benefit: Provided further that for the year of assessment 2003, such notification shall reach the Corporation by not later than the 31st of October 2003.

(4) The Corporation, on being satisfied with the application referred to in this regulation, shall issue a certificate indicating the amount of the eligible profits approved for reinvestment.