Up to €20,000 tax deductions for construction of childcare facilities

Up to €20,000 tax deductions for construction of childcare facilities at workplace

New legal notices published by the finance ministry today officially offer income tax deductions in four spheres of economic activity.

For 2010, up to €20,000 in capital expenditure for the construction of a childcare facility at the workplace or the conversion of an existing structure at the workplace into a childcare facility, and the acquisition of childcare equipment, will be deducted from employers’ income tax.

The tax is not deductable in the same year, but in “subsequent years in succession.” The deduction shall only be allowed where the qualifying person does not benefit from any government assistance in childcare.

Other expenditure of up to €20,000 will be tax deductible for the installation and modification of physical structures and equipment designed to increase workplace accessibility; removal of architectural and physical barriers; acquisition of equipment and devices for persons with disability; and expenditure incurred in the training of employees having a disability for the purpose of performing their work.

Other tax deductible income includes royalties and similar fees from the licensing of patents registered in Malta.