Can I Claim Industrial Buildings and Structures as a Business Expense in Malta?
Yes. Industrial buildings and structures, including hotels, qualify for a wear and tear allowance of 2% a year.
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What Malta Tax and Customs Administration (MTCA) says
Industrial buildings and structures, including hotels, receive an allowance of 2% a year under S.L. 123.01. The expense must pass the wholly and exclusively test in article 14 of the Income Tax Act. Confirm asset-specific treatment with MTCA or a licensed practitioner.
When you can claim
- Factories and warehouses used in the business
- Hotels
- Structures used in production
- 2% a year on cost
When you cannot claim
- Land
- Buildings used privately
- Improvements, which are disallowed under article 26
- Buildings not owned by the business
Good to know
Pro tip: Separate the cost of land from the cost of the building, because only the building qualifies.
Related expenses
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