THE INCOME TAX ACT 1995 - MRA

1 THE INCOME TAX ACT 1995 (Consolidated Version) (with amendments up to 17 April 2012) Note:- The internet version of this Act is for information only. The Authoritative version are the ones published in the Government Gazette of THE INCOME TAX ACT 1995 2 * Please refer to endnotes at Appendix I Page 2 of 286 THE INCOME TAX ACT 1995 (Consolidated Version) ARRANGEMENT OF SECTIONS part I - PRELIMINARY Section 1. Short title 2. Interpretation 3. Application of Act part II - LIABILITY TO INCOME TAX 4. Imposition of tax 5. Derivation of INCOME 6.

2 INCOME to be expressed in Mauritius currency 7. Exempt body of persons and exempt INCOME 1* part III - PERSONAL TAXATION 8. Application of part III Sub- part A - Gross INCOME 9. INCOME of a married woman 10. INCOME included in gross INCOME 10A. [Gains from immovable property] Deleted 11. Emoluments received in arrears 12. INCOME received in anticipation 13. Valuation of trading stock 14. Transfer of trading stock with other assets or for inadequate consideration 15. Deemed INCOME arising from expenditure or loss discharged 16. Apportionment of INCOME on incorporation and disincorporation [Sub- part AA Solidarity INCOME Tax] Repealed 16A.

3 [Interpretation] Repealed 16B. [Liability to Solidarity INCOME Tax] Repealed Sub- part B - Allowable Deductions 17. Deduction in connection with employment 18. Expenditure incurred in the production of INCOME 19. Expenditure incurred on interest in the production of INCOME MRA THE INCOME TAX ACT 1995 * Please refer to endnotes at Appendix I Page 3 of 286 320. Losses 21. Bad debts and irrecoverable sums 22. Contributions to superannuation fund 23. Pensions to former employees 24. Annual allowance 25. [Investment allowance] Deleted 2* 26. Unauthorised deductions Sub- part C INCOME Exemption Threshold for Individuals 3* 27.

4 Entitlement to INCOME exemption threshold Sub- part D Interest Relief for Individuals 27A. Interest relief part IV - CORPORATE TAXATION 43. Application of part IV Sub- part A - Companies, unit trust schemes,trusts collective investment schemes and soci t s 44. Companies 44A Alternative minimum tax 45. Unit Trust Schemes 45A. Collective investment schemes year of assessment 2005-2006 and subsequent years 46. Trusts 47. Soci t s 48. Protected cell company 4* 49. Companies in the freeport zone 5* 50. Insurance, shipping, aircraft and other business Sub- part AA - Advance Payment System 6* 50A.

5 Application of Sub- part AA 50B. Advance Payment System 50C. Ascertainment of chargeable INCOME 50D. Calculation of tax 50E. Return and payment of tax at end of INCOME year 50F. Penalty for late payment of tax under APS Sub- part AB - Special levy on banks 7* 50G. Interpretation 50H. Liability to special levy MRA THE INCOME TAX ACT 1995 * Please refer to endnotes at Appendix I Page 4 of 286 4 Sub- part AC - Solidarity levy on telephony service providers 50I. Interpretation 50J. Liability to solidarity levy Sub- part AD - Corporate Social Responsibility 50K. Interpretation 50L.

6 CSR Fund 50M. One-off charge on banks Sub- part B - Gross INCOME 51. INCOME included in gross INCOME 51A. [Gains derived by company] Repealed 52. INCOME received in anticipation 53. Valuation of trading stock 54. Transfer of trading stock with other assets or for inadequate consideration 55. Deemed INCOME arising from expenditure or loss discharged 56. Apportionment of INCOME on incorporation and disincorporation Sub- part C - Allowable Deductions 57. Expenditure incurred in the production of INCOME 58. Expenditure incurred on interest in the production of INCOME 59.

7 Losses 59A Transfer of losses on takeover or merger. 60. Bad debts and irrecoverable sums 61. Contributions to superannuation fund 62. Pensions to former employees 63. Annual allowance 64. [Investment allowance] Deleted 8* 64A. [Additional investment allowance ] Deleted 9* 65. [Pre-operational expenses of tax incentive companies] Deleted 10* 66. [Contributions to road fund ] Deleted 11* 67. [Donations to charitable institutions] Deleted 12* 67A. [Marketing and promotional expenses] Repealed 67B. [Contributions to sport clubs and sport training centres ] Deleted 13* 67C.

8 [Contributions to the National Solidarity Fund and Prime Minister s Children s Fund ] Deleted 14* 67D. [Contributions to employees' share scheme ] Deleted 15* 67E. [Investment in start-up companies ] Deleted 16* 67F. [Expenditure incurred in the setting up of social infrastructure] Deleted 17* 67G. [Contributions to the national ambulance services ] Deleted 18* 68. Unauthorised deductions MRA THE INCOME TAX ACT 1995 * Please refer to endnotes at Appendix I Page 5 of 286 5 Sub- part D - Deleted 19* 69. [Investment tax credit ] Deleted 69A. [Special tax credit for investment in spinning companies].

9 Deleted. 70. [Tax credit to modernisation and expansion enterprises] Deleted 71. [Tax credit for exports] Deleted 72. [Limitation to tax credits] Deleted part V - INTERNATIONAL ASPECTS OF INCOME TAX 73. Definition of residence 73A. Residence in the case of company holding a Category 2 Global Business Licence 74. INCOME derived from Mauritius 75. Application of arm's length test 76. Arrangements for relief from double taxation 76A. Arrangements for assistance in the recovery of foreign tax 77. Credits in respect of foreign tax part VI - AGENTS, ABSENTEES AND NON-RESIDENTS AND DECEASED PERSONS 78.

10 Liability of principal not affected 79. Provisions applying to agents 80. INCOME tax paid on behalf of another person 81. Agents of incapacitated persons, companies and bodies of persons 81A. Tax liability of appointed person 82. Agents of absentees and non-residents 83. Deceased persons part VII - ANTI-AVOIDANCE PROVISIONS 84. Interest on debentures issued by reference to shares 85. Excess of remuneration or share of profits 86. Excessive remuneration to shareholder or director 86A. Benefit to shareholder 87. Excessive management expenses 88. Leases for other than an adequate rent 89.