Income Tax Act (Cap. 123), article 89

89. (1) If any person resident in Malta who has paid, by deduction or otherwise, or is liable to pay, tax under this Act for any year of assessment on any part of his income, proves to the satisfaction of the Commissioner that he has paid, by deduction or otherwise, or is liable to pay, Commonwealth income tax for tha t year in respect of the same part of his income, he shall be ent itled to relief from tax in Malta paid or payable by him on that part of his income at a rate thereon to be determined as follows: (a) if the Commonwealth rate of tax does not exceed one- half of the rate of tax approp riate to his case under this Act in Malta, the rate at which relief is to be given shall be the Commonw ealth rate of tax; (b) in any other case the rate at which relief is to be given shall be half the rate of tax appropriate to his case under this Act. ( 2 ) I f a n y p e r s o n n o t r e s i d e n t i n M a l t a w h o h a s p a i d , b y deduction or otherwise, or is liable to pay, tax under this Act for any year of assessment on any part of his income, proves to the satisfaction of the Commissioner that he has paid, by deduction or otherwise, or is liable to pay, Commonwealth income tax for tha t year of assessment in respect of the same part of his income, h e shall be entitled to relief from tax paid or payable by him und er this Act on that part of his income at a rate thereon to be determin ed as follows: (a) if the Commonwealth rate of tax appropriate to his case does not exceed the rate of tax appropriate to his case under this Act, the rate at which relief is to be given shall be one-half of the Commonwealth rate of tax; (b) if the Commonwealth rate of tax appropriate to his case exceeds the rate of tax appropriate to his case under this Act, the rate at which relief is to be given shall be equal to the amount by which the rate of tax appropriate to his case unde r this Act ex ceeds one-half of the Commonweal th rate of tax. ( 3 ) F o r t h e p u r p o s e o f t h i s a r t i c l e , " C o m m o n w e a l t h i n c o m e tax" means any income tax or tax of a similar nature charged un der any law in force in any country of the Commonwealth, other than Malta or the United Kingdom of Great Britain and Northern Ireland, if the legislature of such country has provided for re lief in respect of tax charged on income both in that country and in Ma lta in a manner which appears to the Commissioner to correspond to the relief granted by this article. (4) For the purposes of this article, the expression "rate of ta x" when applied to tax paid or paya ble under this Act means the ra te determined by dividing the amount of tax paid or payable for th e year (before the deduction of any relief granted under this art icle) by the amount of the income in respect of which the tax paid or payable under this Act has been charged for that year, except t hat where the income which is the su bject of a claim to relief unde r this article is computed by reference to the provisions of this Act on an INCOME TAX [CAP. 123. 207 amount other than the ascertained amount of the actual profits, the rate of tax shall be deter mined by the Commissioner. (5) Where a person is for any year of assessment resident both in Malta and in a part, place or territory in which Commonwealt h income tax is charged, he shall for the purposes of this articl e be deemed to be resident where during that year he resides for the longer period. ( 6 ) A n y c l a i m f o r r e l i e f u n d e r this article shall be made not later than two years after the end of the year of assessment to which the claim refers. (7) The provisions of this article shall not apply in the case o f gains or profits referred to in article 23. Relief in respect of Bearer Accounts Levy. Repealed by: XXV .1960.16. Added by: XXXV .1972.14. Amended by: XXI. 1980.14. Renumbered by: XVII. 1994.2. Amended by: IX. 1999.14. Cap. 219.