1. Without prejudice to the provisions of Article (28) of this Decree-Law, a payment or benefit provided by a Taxable Person to its Connected Person shall be deductible only if and to the extent that the payment or benefit corresponds with the Market Value of the service, benefit or otherwise provided by the Connected Person and is incurred wholly and exclusively by the Taxable Person for the purposes of the Taxable Person's Business. 2. For the purposes of this Decree-Law, a Person shall be deemed to be a Connected Person of a Taxable Person if that Person is: a. An owner of the Taxable Person. b. A director or officer at the Taxable Person. c. A Related Party of any of the Persons referred to in paragraphs (a) and (b) of Clause (2) of this Article. 3. For the purposes of paragraph (a) of Clause (2) of this Article, an owner of the Taxable Person is any natural person who directly or indirectly owns an ownership interest in the Taxable Person or Controls such Taxable Person. 4. Where the Taxable Person is a partner in an Unincorporated Association, a Connected Person is any other partner in that same Unincorporated Association, and any Person that is a Related Party of that partner. 5. To determine that a payment or benefit provided by the Taxable Person corresponds with the Market Value of the service or otherwise provided by the Connected Person in exchange therefor, the relevant provisions of Article (34) of this Decree-Law shall apply as the context requires. 6. Clause (1) of this Article shall not apply to any of the following: a. A Taxable Person whose shares are traded on a Recognized Stock Exchange. b. A Taxable Person that is subject to the regulatory oversight of a competent authority in the State. c. Any other Person as may be determined in a resolution issued by the Cabinet at the suggestion of the Minister.
Interpretation and application must be checked against the official text and current version.