On 11 May 2011, Royal Decree (No. 519) was gazetted, enhancing the corporate tax deduction concessions for disabled employees.

This Insight has been updated for the entitlement under Royal Decree (No. 519).

The Tax Deduction Concessions

From 10 June 2010 under Royal Decree (No. 499):

For expenditure incurred on employing people with disabilities		200% corporate tax deduction
For expenditure incurred by building owners, transportation or other public service operators on the provision of facilities or services for disabled people		200% corporate tax deduction (double depreciation claims)

From 12 May 2011 under Royal Decree (No. 519):

For expenditure incurred on employing people with disabilities when the No. of people with disabilities is 60% or more of the total workforce and the disable people work >180 days in a tax year

300% corporate tax deduction

The Rules and Conditions

​The rules and conditions prescribed in the Royal Decrees are that claimants:

1. Shall ensure their tax deduction claims are for people who are registered under the law governing the promotion and empowerment of people with disabilities; and
2. Shall comply with the Revenue Department's additional rules, procedures and conditions.

Caution​

If the Revenue Department's tax audit officers find any of the rules, procedures or conditions have not been met, the entitlement to the concession may be lost, and back-taxes plus penalty and surcharge could be payable.

---