S.L. 372.22 Art. 3Transitional period. Code Item 1000 1001 1002 1003 1004 1005 1006 1007 1008 1009 1198 Total 1199 Total 1200 Land 1201 1202 Land 1203 1204 1205 1206 1207 1208 1209 1210 1300 1301 1302 1303 1304 1305 equipment of water or of water or and 1383 1384 1385 1386 1387 1388 1389 1390 1391 1392 1393 1394 1395

A transitional period shall be in force for tax returns due to be filed up to and including the 31st August, 2003. During such transitional period it shall be acceptable to aggregate items of expenditure in the Profit and Loss Account under the provisional code 6996 except for:

(i) provisions and expense items that are not allowable or require adjustment for tax purposes; and

(ii) expense items that must satisfy any statutory disclosure requirements. SCHEDULE

(Rule 2) Tax Index of Financial Data

BALANCE SHEET ITEMS FIXED ASSETS Description

Intangible assets Accumulated amortisation of intangible assets Goodwill

Accumulated amortisation of goodwill Formation expenses Accumulated amortisation of formation expenses

Royalties, trademarks, paternts, rights, etc. Accumulated amortisation of royalties, trademarks, patents Research and development (capitalised)

Accumulated amortisation of research and development Intangible assets accumulated amortisation of Intangible assets

TANGIBLE ASSETS and buildings Accumulated depreciation of land and buildings improvements Accumulated depreciation of land improvements Industrial buildings and structures

Accumulated depreciation of industrial buildings and structures Non-industrial buildings Accumulated depreciation of non-industrial buildings

Parking areas Accumulated depreciation of parking areas Buildings under construction

Wasting assets Accumulated depreciation of wasting assets Petroleum and natural gas properties

Accumulated depreciation of petroleum and natural gas properties Deferred exploration and development charges Accumulated depreciation of deferred exploration and development charges 1306 Quarries 1307 Accumulated depreciation of quarries

1350 Plant and machinery 1351 Accumulated depreciation of plant and machinery 1352 Motor vehicles

1353 Accumulated depreciation of motor vehicles 1354 Construction and excavating equipment 1355 Accumulated depreciation of construction and excavating equipment

1356 Production machinery and equipment 1357 Accumulated depreciation of production machinery and equipment 1358 Tools and dies

1359 Accumulated depreciation of tools and dies 1360 Catering Equipment 1361 Accumulated depreciation of catering equipment

1362 Cable Infrastructure 1363 Accumulated depreciation of Cable Infrastructure 1364 Pipeline Infrastructure

1365 Accumulated depreciation of pipeline infrastructure 1366 Communication and broadcasting equipment 1367 Accumulated depreciation of communication and broadcasting

1368 Medical equipment 1369 Accumulated depreciation of medical equipment 1370 Lifts and escalators

1371 Accumulated depreciation of lifts and escalators 1372 Air-conditioners 1373 Accumulated depreciation of air-conditioners

1374 Equipment mainly designed or used for the production electricity

1375 Accumulated depreciation of equipment for the production electricity

1376 Electrical and plumbing installations and sanitary fittings 1377 Accumulated depreciation of electrical and plumbing installations sanitary fittings 1378 Exploration equipment 1379 Accumulated depreciation of exploration equipment

1380 Ships and vessels 1381 Accumulated depreciation of ships and vessels 1382 Shipping equipment Accumulated depreciation of shipping equipment Aircraft

Accumulated depreciation of aircraft Machinery and equipment under construction Commercial vehicles

Accumulated depreciation of commercial vehicles Computers and electronic equipment Accumulated depreciation of computers and electronic equipment

Computer software Accumulated depreciation of computer software Furniture, fixtures, fittings and soft furnishings

Accumulated depreciation of furniture, fixtures, fittings and soft furnishings

Other plant Accumulated depreciation of other plant Other machinery

Accumulated depreciation of other machinery Other tangible assets Accumulated depreciation of other tangible assets

Capital leases - buildings Accumulated depreciation of capital leases - buildings Capital leases - machinery and equipment

Accumulated depreciation of capital leases - machinery and equipment Capital leases - vehicles Accumulated depreciation of capital leases - vehicles

Capital leases - others Accumulated depreciation of capital leases - others Leasehold improvements

Accumulated depreciation of leasehold improvements Capital assets under construction tangible assets accumulated depreciation of tangible assets LONG TERM ASSETS from shareholder(s) and / or director(s)

from individual shareholder(s) from corporate shareholder(s) from director(s)

from members 1720 Due from joint venture(s) and / or partnership(s) 1730 Due from and / or investment in related parties

1731 Shares in local related companies 1732 Loans and / or advances to Maltese related companies 1733 Due from and / or investment in Maltese related parties

1734 Shares in foreign related companies 1735 Loans and / or advances to foreign related companies 1736 Due from and / or investment in foreign related parties

1740 Loans to third parties 1750 Soft loans 1760 Long-term investments

1761 Provision(s) for loss in value of investments 1762 Shares in local companies - Quoted 1763 Shares in local companies

1764 Shares in foreign companies 1765 Investment in joint venture(s) and / or partnership(s) 1766 Long term investments in local institutions

1767 Securities purchased under resale agreements 1768 Government of Malta debt 1769 Other Maltese investments

1770 Other foreign investments 1800 Other long-term assets 1801 Deferred unrealised exchange losses

1802 Other deferred items and / or charges 1803 Accumulated depreciation of deferred charges 1998 Total long-term assets

1999 Total Fixed Assets CURRENT ASSETS 2000 Stocks

2001 Stock of finished goods 2002 Stock of goods held for resale 2003 Stock of raw materials

2004 Stock of parts and supplies 2005 Stock of properties 2006 Stock of securities

2007 Work in progress 2050 Accounts receivable Provision for doubtful accounts Trade debtors

Provision for doubtful trade debtors Trade accounts receivable from related parties Provision for doubtful trade accounts receivable from related parties

Interest receivable Holdbacks receivable Leases receivable

Provision for doubtful amounts in leases receivable Subscriptions due from members (NPOs) from shareholder(s) and / or director(s) and related parties - current portion from individual shareholder(s) - current portion from corporate shareholder(s) - current portion from individual director(s) - current portion from related parties - current portion

Loans, advances and demand notes from related parties - current portion Interest receivable from related parties from third parties - current portion

Customers’ liability under acceptances at bank and in hand Deposits in Maltese banks and institutions - Maltese currency

Deposits in Maltese banks and institutions - foreign currency Deposits in foreign banks Other cash like instruments

Other current assets Accrued investment income

Deferred income tax Income tax refundable refundable

Prepaid expenses, advances, tender deposits, etc. current assets assets*

CURRENT LIABILITIES overdraft Short-term debt

Corporate loans 3022 Local bank loan(s) - current portion 3023 Liability for securities sold short

3024 Liability for securities sold under repurchase agreements 3040 Current portion of long term liability 3050 Bankers’ Acceptances

3080 Deferred income - current portion 3100 Amounts payable and accrued liabilities 3101 Trade creditors

3102 Trade accounts payable to related parties 3103 Holdbacks payable 3104 Wages and salaries payable

3105 Management fees payable 3106 Withholding taxes payable 3107 Interest payable

3108 Amounts payable to members of NPOs 3200 Taxes, licences and fees payable 3201 CIR - Corporation Tax payable

3202 CIR - FSS and SSC payable 3203 VAT payable 3204 Registrar of Companies - Registration fee

3205 Licences payable 3206 Fees payable 3300 Due to shareholder(s) and / or director(s) and / or related parties

3301 Short-term loans and / or advances due to individual shareholder(s) 3302 Short-term loans and / or advances due to corporate shareholder(s) 3303 Short-term loans and / or advances due to director(s)

3304 Short-term loans and / or advances due to related parties 3305 Interest payable to shareholder(s) and / or director(s) 3306 Interest payable to related parties

3370 Short-term loans and / or advances due to members (NPOs) 3380 Short-term loans and / or advances due to joint venture(s) partnership(s) 3390 Short-term loans due to third parties 3400 Other current liabilities

3401 Deposits received 3402 Dividends payable 3403 Deferred income tax

3404 Provisions for guarantees, warranties, or indemnities General Provisions Current liabilities

LONG TERM LIABILITIES term debt loan(s)

Loans - MDC Supply company loan Third party loans

Deposit liabilities Bonds and debentures Deferred income - long-term

Long-term amounts due to shareholder(s) and / or director(s) and / or related parties

Long-term loans due to individual shareholder(s) Long-term loans due to corporate shareholder(s) Long-term loans due to director(s)

Long-term loans due to Maltese related parties Long-term loans due to foreign related parties Long-term loans due to members (NPOs)

Long-term loans due to joint venture(s) and / or partnership(s) Other Long-term liabilities term obligations and / or commitments and / or capital leases

Provision for guarantees, warranties, or indemnities Deferred revenue from incomplete contracts Deferred tax long term liabilities liabilities* CAPITAL AND RESERVES

Capital Ordinary share capital Cumulative preference share capital

Non-cumulative preference share capital Other share capital Share premium account

Capital account(s) (partnerships and self-employed) Accumulated fund (NPOs) Capital

Reserves 3901 Revaluation reserve 3902 Capital redemption reserve fund

3903 General reserve 3904 Incentives and Benefits Reserve (BPA) 3905 Retained earnings

3906 Non-distributable reserves 3950 Total Reserves 3998 Total shareholder equity*

3999 Total liabilities and shareholder equity INCOME STATEMENT 4500 NAME OF THE OPERATING ESTABLISHMENT

4501 OPERATION DESCRIPTION 4502 ACTIVITY NUMBER REVENUE

5000 Sale of goods and rendering of services 5001 Export sales 5002 Wholesale sales

5003 Retail sales 5004 Sale of goods to related parties 5005 Interdivisional sales

5006 Income from production and / or processing - local 5007 Income from production and / or processing - foreign 5008 Income from production and / or processing - related parties

5009 Income from the rendering of services - local 5010 Income from the rendering of services - overseas 5011 Income from the rendering of services to related parties

5099 Total sales of goods and services 5100 Income from Investments 5101 Interest from Maltese banks

5102 Interest received or receivable from shareholders and / or directors 5103 Interest received or receivable from related parties 5104 Loan interest - from local sources

5105 Securities interest - from local sources 5106 Interest from other Maltese sources 5107 Interest from foreign banks

5108 Loan interest - from foreign sources 5109 Securities interest - from foreign sources Interest from other foreign sources Dividends from Maltese sources

Dividends from foreign sources Commission Income Commission income on real estate transactions

Rental income estate rental Income Income from ground rents and / or laudemium rental Vehicle leasing Amounts received by non-profit making organisations (NPOs)

Membership fees received Donations and gifts received Gross sales and Income from organisational activities

Realised gains or losses on disposal of fixed assets Realised gains or losses on disposal of intangible assets Realised gains or losses on disposal of tangible assets

Realised gains or losses on disposal of immovable property Realised gains or losses on sale of investments Other Income

Realised profit or loss on exchange Unrealised profit or loss on exchange Profit or loss from joint ventures and partnerships

Realisation of deferred Income Income from royalties, patents, rights, etc. Management and administration fees

Consultancy fees Subsidies and grants Insurance recoveries

Waiver of amounts payable debt recoveries revenue from other sources revenue* COST OF SALES Opening stock

Opening stock of raw materials and / or semi-finished goods Opening stock of work in progress 5503 Opening stock of finished goods 5504 Property held for development and resale at beginning of period

5550 Purchases 5551 Imports of raw materials and / or semi-finished goods 5552 Local purchases of raw materials and / or semi-finished goods

5553 Imports of finished goods 5554 Freight, insurance and duty on imported goods 5555 Local purchases of finished goods

5556 Carriage inwards 5557 Foreign purchases 5600 Direct Costs

5601 Direct productive wages 5602 Subcontracting 5603 Hire of machinery and equipment

5604 Rent of factory premises 5605 Development expenses 5606 Royalty costs

5607 Stock write down 5608 Depreciation of industrial building or structure 5609 Depreciation of production machinery and equipment

5610 Depreciation of factory plant 5611 Overhead expenses allocated to cost of sales 5700 Closing stock

5701 Closing stock of raw materials and / or semi-finished goods 5702 Closing stock of work in progress 5703 Closing stock of finished goods

5704 Property held for development and resale at end of period 5998 Cost of sales* 5999 Gross profit or loss

OPERATING EXPENDITURE 6000 Advertising and promotion 6001 Advertising

6002 Promotion 6003 Meals and entertainment 6004 Donations

6020 Wages, Salaries and Employee benefits 6021 Wages - Regular Wages - Casual Fringe benefits

Bonuses and similar incentive compensation Directors’ salaries and remuneration Directors’ fees

Management salaries Employer’s share of Social Security Contributions Social Security Contributions - Self

Social Security Contributions - Partners Social Security Contributions - Directors training and education safety welfare uniforms

Group insurance benefits Commissions Subcontracting and Out-sourcing

Travel Expenses Meetings and conventions Insurance insurance on executives Motor vehicle(s) insurance(s) Office Expenses

Office stationery and supplies Office utilities processing

Professional fees Legal fees Accountancy fees

Audit fees Consultancy fees Architect fees

Appraisal fees Brokerage fees Management and administration fees

Restructuring costs Security and exchange commission fees 6200 Licences, permits and membership 6201 Membership and subscription fees

6202 Franchise fees 6203 Company registration fee 6204 Motor vehicle(s) licence(s)

6220 Rental 6221 Property rental 6222 Occupancy costs

6223 Condominium fees 6224 Equipment rental 6225 Motor vehicle rentals

6226 Berthing and moorage 6227 Storage 6228 Quota rental

6250 Repairs and maintenance 6251 Repairs and maintenance - buildings 6252 Repairs and maintenance - motor vehicles

6253 Repairs and maintenance - boats 6254 Repairs and maintenance - aircraft 6255 Repairs and maintenance - machinery and equipment

6290 Supplies 6291 Loose tools 6292 Shop expense

6293 Uniforms 6294 Laundry 6295 Computer-related expenses

6310 Utilities 6311 Water and Electricity 6312 Fuel costs

6313 Telephone and telecommunications 6314 Garbage removal 6340 Interest and bank charges

6341 Hire Purchase Interest 6342 Overdraft Interest 6343 Bank Loan Interest

6344 Loan Interest to third parties 6345 Bank Charges Realised loss or gain on exchange Finance charges

Credit card charges Provisions Unrealised loss or gain on exchange

Increase or decrease in provision for bad and doubtful debts Provision for slow moving or obsolete stock Provision for diminution in value of investments

Provision for loan losses Amortisation of intangible assets Amortisation of goodwill

Amortisation of formation expenses Amortisation of royalties, trademarks, patents Amortisation of research and development

Depreciation of Immovable property Depreciation of industrial buildings and structures Depreciation of non-industrial buildings

Depreciation of parking areas Depreciation of wasting assets Depreciation of petroleum and natural gas properties

Depreciation of deferred exploration and development charges Depreciation of quarries Depreciation of tangible assets

Depreciation of motor vehicles Depreciation of construction and excavating equipment Depreciation of tools and dies

Depreciation of catering equipment Depreciation of cable infrastructure Depreciation of pipeline infrastructure

Depreciation of communication and broadcasting equipment Depreciation of medical equipment Depreciation of lifts and escalators

Depreciation of air-conditioners Depreciation of equipment for the production of water or electricity Depreciation of electrical and plumbing installations and sanitary fittings

Depreciation of exploration equipment Depreciation of ships and vessels 6445 Depreciation of shipping equipment 6446 Depreciation of aircraft

6447 Depreciation of commercial vehicles 6448 Depreciation of computers and electronic equipment 6449 Depreciation of computer software

6450 Depreciation of furniture, fixtures, fittings and soft furnishings 6451 Depreciation of other plant 6452 Depreciation of capital leases - buildings

6453 Depreciation of capital leases - machinery & equipment 6454 Depreciation of capital leases - vehicles 6455 Depreciation of capital leases - others

6456 Depreciation of leasehold improvements 6457 Depreciation of other machinery 6600 Other expenses

6601 Bad debts written off 6602 Loan losses 6603 Cash over or short

6604 Warranty expenses 6605 Royalty expenses - resident 6606 Royalty expenses - non-resident

6607 Research and development 6608 General and administrative expenses 6609 Transport Expenses

6610 Formation Expenses written-off 6611 Motor vehicles running costs 6612 Grants

6613 Subsidies 6997 Total operating expenses* 6998 Total Expenses

7050 Net income or loss on ordinary activities before tax* 7060 Current tax provision 7080 Deferred tax provision

7100 Net income or loss on ordinary activities after tax 7200 Extraordinary, exceptional and unusual items 7201 Extraordinary income

7202 Extraordinary charges 7203 Exceptional and unusual items period adjustments Unrealised gain or loss on revaluation of assets

Extraordinary profit or loss on extraordinary profit or loss STATEMENT OF RETAINED EARNINGS

income or loss for the period Retained earnings brought forward Dividends proposed during the year

Dividends proposed and paid during the year Transfer to general reserve Transfer to revenue reserve

Transfer to capital reserve Transfer to the Incentives and Benefits Reserve Transfer to other reserve(s)

Retained earnings carried forward* items that are marked with an asterisk (*) are mandatory fields and always be reported.