CHAPTER 75:01 - Inland Revenue Division

Corporation Tax Act Mac 1
Vol. 1
controlled as specified in the definition of "locally owned and
controlled" and partnerships the majority share in which and the
management of which are owned and performed by such persons.
127 16A. (1) Subject to this section and sections 16 B to 16 G inclusive
Reliefs for certain companies
Act No.11 of 1988
(a) an approved small company;
(b) an approved company carrying on business in a regional development
area; and
(c) an approved activity company
are entitled to a tax credit equal to twenty-five per cent of the
chargeable profits of such company and the amount of tax payable
shall be reduced by the amount of the credit. Act 91 of 2000*
(2) In the case of an approved company carrying on business in a regional
development area and an approved activity company, the tax credit shall
be granted for a period of 128 seven years, from 1st January in the year in
which the certificate of approval is issued. Finance Act 1994
(3) A company that is desirous of being granted a benefit under this
section may apply in writing to the Minister where it satisfies the criteria
set out in this section and sections 16 B and 16 C.
(4) A company referred to in subsection (1) shall not qualify for the tax
credit unless a certificate of approval to the effect that the company so
qualifies is issued by the Minister.
(5) The Minister may, after consultation with the Small Business
Development Company Limited, issue a certificate of approval to a small
company referred to in subsection (1) (a) where that company - Act 4 of 1995
(a) is locally owned and controlled as defined in section 16(9);
(b) has machinery, equipment and working capital the value of
which does not exceed 129 one million five hundred thousand
dollars; Finance Act 1994
(c) if incorporated on or after 8th January 1988, is not the result of
the splitting or the reconstruction of an existing company;
127 BIR Note: Effective 1st January 1988.
128 BIR Note: Effective 1st January, 1994 (Previous limit - 5 years)
*Effective 1 st January 2001
129 BIR Note: Effective 1st January, 1994. Previous limit - $500,000
BIR Mac Edition 91/01 Page 209