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Income Tax Act (Cap. 123) Deduction (Electric Vehicles) Rules, 2011 (L.N. 13 Of 2011 )

INCOME TAX ACT (CAP. 123)Deduction (Electric Vehicles) Rules, 2011

Title and commencement.

IN exercise of the powers conferred by articles 14(2) and 96 of the Income Tax Act, the Minister of Finance, the Economy and Investment has made the following rules:-

Vehicles) Rules, 2011.
(2) These rules shall come into force as from the year of assessment 2012, in respect of expenditure incurred as from 1st January 2011.

Definitions. 2. In these rules, unless the context otherwise requires: "electrical vehicle" means a vehicle propelled exclusively by an

electric motor which gets its source of energy from a battery or a set
of batteries;
"qualifying expenditure" means expenditure of a capital nature incurred on the acquisition of electrical vehicles;
"qualifying person" means a company that carries on a trade or business.

Deduction. 3. (1) Where a qualifying person incurs qualifying expenditure in the year preceding the year of assessment, a deduction equivalent to 125% of the cost incurred shall be allowed against the said person’s income charged to tax for such year of assessment.

(2) The total deduction claimed under these rules as aforesaid shall not exceed twenty-five thousand euro (€25,000) in respect of each electrical vehicle.
(3) Where a deduction is claimed under these rules, no deduction in respect of wear and tear may be claimed in respect of the same electrical vehicle.