COTTAGE INDUSTRY _g S.L.372.13 1
SUBSIDIARY LEGISLATION 372.13
COTTAGE INDUSTRY RULES
24th October, 1995
LEGAL NOTICE 150 of 1995, as amended by Legal Notice 177 of 1995.
Title.
Payment of tax by 
VAT registered 
person.
Amended by:
L.N. 177 of 1995.
Cap. 123.
2. Where a VAT registered person engages outworkers on a
part-time basis in activities mentioned in article 48A of the Income
Tax Act, he shall pay tax to the Commissioner at the rate of 15
cents in the lira on the grossed-up annual remuneration paid to
every outworker for any tax which may be due by such outworkers
in respect of such activities, worked out in accordance with the
following formula:
When payment is 
due.
Cap. 372.
3. The tax due under rule 2 shall be paid to the Commissioner
by not later than the 15th January of each year of assessment, and
shall be regulated by the relevant provisions of Part VII of the
Income Tax Management Act.
List of outworkers.
with a list containing details of all outworkers falling under this
rule and including the remuneration paid to each outworker. This
list is to accompany the remittance made in accordance with rule 3.
Deduction 
entitlement.
5. Where the Commissioner is satisfied that the requirements
of rules 3 and 4 have been complied with, the VAT registered
person shall be entitled, in computing his profits for income tax
purposes, to deduct:
( a ) the net amount paid as remuneration to the outworkers
falling within the provisions of these rules;
( b ) the tax remitted to the Commissioner in terms of rule 3
in respect of the relevant year of assessment; and
( c ) an additional amount equivalent to thirty per cent of
the total sum resulting from paragraphs ( a ) and ( b ).
Net-annual payment X 15
0.85 100
