Tax deduction for companies on donations to Malta Community Chest Fund
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As part of the Government’s efforts to encourage further donations by local enterprises, donations made by companies to the Community Chest Fund will be tax deductible.
This tax reduction measure was announced by the President of Malta Marie-Louise Coleiro Preca, and the Minister for Finance Prof. Edward Scicluna.
Launching the tax deduction, the Minister for Finance explained that this measure will be part of the coming Budget 2015, but was being announced ahead of time so as to allow companies the time to plan ahead.
The measure would allow companies which make donations amounting to €2,000 or more to the MCCF to claim half of that amount as an expense.
“The Ministry for Finance recognises the assistance that is given voluntarily by all Maltese and Gozitans, as well as those NGOs who dedicate time and energy to providing philanthropic services to the country. In this regard, the Malta Community Chest Fund performs an invaluable role,” Prof. Scicluna said.
“This is why the Government wants to encourage this Fund to grow by means of targeted incentives, and this is why we are announcing this fiscal measure today. By means of this measure, we are encouraging a culture that already exists in other countries, whereby the Government encourages such donations and other types of philanthropic activities, especially among enterprises,” Prof. Scicluna said.
“We know that all families give as much as they can, but when it comes to companies, the principle of social corporate responsibility enables them to do considerably more,” Prof. Scicluna added. “We look forward to gauging the impact of this measure with the hope that this can be expanded further. For the moment, we will wait and observe its outcome.”
The President of Malta Marie-Louise Coleiro Preca thanked the Minister for Finance Prof. Edward Scicluna, the Cabinet, and the Government, for this initiative which will mean that the country recognises those who perform their social responsibility.
The President said this initiative is especially welcome news for vulnerable members of society, noting that vulnerability stems from illness, and that certain incidence of illness is tied to social status. The President also thanked Minister Scicluna in view of how this fiscal measure will encourage a greater culture of social responsibility among local companies and entities.
The President noted that according to the national cancer register, in the last 10 years (2003-2013), cancer incidence among men increased by 38 percent, and by 53 percent among women. She explained that science is constantly developing cures, but that these are invariably expensive. For this reason, the MCCF must be strengthened to be able to assist those requiring such treatments.
She further noted that in instances when oncologists and professionals are faced with patients requiring specialised care, these are being referred automatically to seeking assistance from the MCCF. Because of this, the MCCF has now become an extension of the public healthcare service.
The President urged companies and entities to take up this fiscal incentive, and in so doing, further strengthen the Malta Community Chest Fund.
Photograph; DOI/Omar Camilleri