A new legal notice has been issued in respect of which donations made to the Community Chest Fund during the year ended 31st December 2014, will be allowed as a deduction against the chargeable income for year of assessment 2015. The deduction allowed is equivalent to 50% of the actual donation made provided that the donation consists of a cash donation and is not less than €2,000.
The deduction is only available to companies as defined in the Income Tax Act and is not available to individuals or other bodies of persons which are not considered to be companies for the purposes of Maltese income tax legislation.
The deduction is allowed on condition that a relevant signed certificate in respect of such donation has been issued by the secretary of the Malta Community Chest Fund and is attached to and submitted together with the income tax return for year of assessment 2015. The said certificate must show the date of the donation, the name and company registration number of the donor and the value of the donation. The Malta Community Chest Fund must forward the details of all qualifying donations to the Commissioner by not later than the 30th June, 2015.
In general, donations are not allowed as a deduction for income tax purposes (with some minor exceptions) as donations are considered to be payments of a voluntary nature. Furthermore, donations are not considered to be expenses, which have been wholly and exclusively incurred in the production of the income.