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INCOME TAX ACT 1995
THE INCOME TAX ACT 1995
Act 16/1995
ARRANGEMENT OF SECTIONS

PART I – PRELIMINARY

1
Short title
2
Interpretation
3
Application Act

PART II – LIABILITY TO INCOME TAX

4
Imposition of tax
5
Derivation of income
6
Income to be expressed in Mauritius currency
7
Exempt income

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
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 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
20
Losses
21
Bad debts and irrecoverable sums
22
Contributions to superannuation fund
23
Pensions to former employees
24
Annual allowance
25
Investment allowance
26
Unauthorised deductions

Sub-Part C – Personal Reliefs and Deductions
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INCOME TAX ACT 1995

27
Reliefs and deductions limited to individuals resident in Mauritius
28
Emoluments relief
28A.
Agricultural income relief
29
Relief for contribution to certain funds and schemes
30
Interest relief
31
Relief for life insurance premium
32
Relief for premium on personal pension
33
Relief for premium on retirement annuity
34
Relief for contribution to medical scheme
35
Savings relief
36
Investment relief
36A.
Relief for shares traded on the Official List of the Stock Exchange
36B.
Relief for investment in Retirement Savings Scheme
37
Deduction for medical expenses
37A.
Donations to charitable institutions
37B.
Contributions to the National Solidarity Fund
37C.
Expenditure incurred on education and training
38
Basic personal deduction
39
Deduction for dependent spouse
40
Deduction for alimony and maintenance
41
Deduction for dependent children
41A. Deduction for educational expenses
42
Deduction for dependent handicapped child
42A. Deduction for other handicapped person

PART IV – CORPORATE TAXATION

43
Application of Part IV

Sub-Part A – Companies, unit trust schemes, trusts and sociétés

44
Companies
45
Unit Trust schemes
46
Trusts
47
Sociétés
48
Listed companies and subsidiaries of listed companies
49
Companies in the freeport zone
50
Insurance, shipping, aircraft and other business

Sub-Part B – Allowable Deductions

51
Income included in gross income
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
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INCOME TAX ACT 1995
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
Losses
60
Bad debts and irrecoverable sums
61
Contributions to superannuation fund production of income
62
Pensions to former employees
63
Annual allowance
64
Investment allowance
64A.
Additional investment allowance
65
Pre-operational expenses of tax incentive companies
66
Contributions to road fund
67
Donations to charitable institutions
67A.
Marketing and promotional expenses
67B.
Contributions to sports clubs and sports training centres
67C.
Contributions to the National Solidarity Fund
68
Unauthorised deductions

Sub-Part D – Tax Credits

69
Investment tax credit
70
Tax credit to modernisation and expansion enterprises
71
Tax credit for exports
72
Limitation to tax credits

PART V – INTERNATIONAL ASPECTS OF INCOME TAX

73
Definition of residence
73A.
Residence in the case of company holding a Category 2 Global Business Li
cence
74
Income derived from Mauritius scheme 75 Application of arm’s length test
76
Arrangements for relief from double taxation
77
Credits in respect of foreign tax

PART VI – AGENTS, ABSENTEES AND NON-RESIDENTS AND DECEASED PERSONS

78
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
82
Agents of absentees and non-residents
83
Deceased persons

PART VII – ANTI-AVOIDANCE PROVISIONS

84
Interest on debentures issued by reference to shares
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INCOME TAX ACT 1995
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
Rights over income retained
90
Transactions designed to avoid liability to income tax

PART VIII – RETURNS, COLLECTION AND PAYMENT OF TAX

Sub-Part A – Pay As You Earn (PAYE) System

91
Due date for payment of income tax
92
Application of Sub-Part A
93
Employer to withhold tax from emoluments
94
Registration of employers
95
Employee declaration
96
Ascertainment of chargeable income
97
Direction not to withhold tax
98
Decision as to whether an amount is emoluments
99
Obligation of employer to withhold tax
100
Payment of tax by employer
101
Penalty for late payment of tax by employer
102
Priority over tax withheld
103
Tax withheld deemed to be tax paid by employee
104
Non-disclosure of information by employer

Sub-Part B – Current Payment System (CPS)

105
Application of Sub-Part B
106
Statement of Income and payment of tax
107
Ascertainment of chargeable income
108
Calculation of tax
109
Penalty for late submission of Statement of Income
110
Penalty for late payment of tax under CPS
111
Return and payment of tax at end of income year
112
Return and payment of tax by individuals

Sub-Part C – Returns

113
Power to require returns
114
Time limit to require returns
115
Return by persons leaving Mauritius
116
Return of income by companies
117
Return of income in special circumstances
118
Approved return date
119
Return in respect of a trust
120
Return in respect of the estate of a deceased person
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INCOME TAX ACT 1995
121 Penalty for late submission of return of income
122
Penalty for late payment of tax specified in return
122A Publication of names of companies not submitting returns
122B
Automatic tax claim in case of non submission of return

PART IX – GENERAL POWERS OF COMMISSIONER

123
Power to require information
124
Obligation to furnish information
125
Production of books and records
126
Power of inspection
127
Time limit to require information and production of books and records
128
Power to waive penalty
128A.
Use of computer system

PART X – ASSESSMENTS AND APPEALS

129
Commissioner may make assessments
130
Time limit to make assessments
131
Special assessments
131A
Objection to assessments
131B
Determination of objections
131C Objection to determination of loss
132
Time limit to amend assessments
133
Penalty for non-payment of income tax assessed
134
Appeals
135
Conclusiveness of assessment

PART XI – RECOVERY OF TAX

136
Application of Part XI
137
Recovery of tax in arrears from emoluments
138
Recovery of tax by attachment
139
Recovery of tax by distress and sale
140
Contrainte
140A Proceedings for temporary closing down of business
141
Privilege
142
Uninscribed privilege
143
Security
144
No limitation of action for recovery of tax

PART XIA – COMMISSIONER, LARGE TAXPAYER DEPARTMENT

144A.
Interpretation of Part XIA
144B.
Administration of Income Tax enactments by Commissioner, Large Taxpayer
Department

PART XII – OFFENCES

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INCOME TAX ACT 1995
145 Offences relating to PAYE
146
Offences relating to CPS
147
Offences relating to returns, books and records
148
Other offences
148A.
Prosecution by Commissioner
149
Compounding of offences
150
Tax payable notwithstanding prosecution

PART XIII – MISCELLANEOUS

151
Ascertainment of income tax in certain cases
152
Refund of excess income tax
153
Keeping of books and records
154
Secrecy
155
Service of documents
156
Validity of notice of assessment or determination
157
Power to write off arrears of tax
158
Remission of tax
159
Rulings
159A. Statement of Practice
160
Jurisdiction of Magistrate
161
Regulations
161A.
Transitional provisions
162
Repeal and savings
163
Commencement

First Schedule
Second Schedule
Third Schedule
Fourth Schedule
Fifth Schedule
Sixth Schedule
Seventh Schedule
Eighth Schedule
———–
To amend and consolidate the law relating to income tax
PART I – PRELIMINARY

1. Short title
This Act may be cited as the Income Tax Act 1995.

2. Interpretation
In this Act, unless the context otherwise requires –
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INCOME TAX ACT 1995
“absentee” means –
(a) an individual who is, at the relevant time, not in Mauritius;
(b) a company which does not have a permanent place of business in Mau
ritius at which it carries on business in its own name;
(c) a company not incorporated in Mauritius which is declared by the C
ommissioner to be an absentee by notice given to that company or to its agent in Mauritius;

”agent” includes a person deemed by section 81, 82 or 83 to be an age
nt;
“allowable deduction” means –
(a) in the case of an individual, any expenditure, loss or allowance w
hich is deductible under Sub-Part B of Part III; or
(b) in any other case, any expenditure, loss or allowance which is ded
uctible under Sub-Part C of Part IV, for the purpose of ascertaining net income;

“appropriate retiring age” has the meaning assigned to it in section
23;
“approved investment trust company” means a public company, approved
by the Commissioner, the principal objects of which are to invest in the securities of companies generally;
“approved return date” means a date approved by the Commissioner unde
r section 118;
“authorised mutual fund” has the same meaning as in the Companies Act
1984;
“base value” means the cost to the owner of any plant or machinery after
deducting therefrom any amount allowed by way of annual allowance;
“benevolent association” means an association registered under the Re
gistration of Associations Act being an association whose main activity is to provide benefits during sickness
or infirmity, or in old age, or in widowhood or for orphans;

“body of persons” means any body corporate or unincorporate;
“business” includes any trade, profession, vocation or occupation,
manufacture or undertaking, or any other income earning activity, carried on with a view to profit;

“chargeable income” means –
(a) for the purposes of section 96, the amount of income ascertained i
n accordance with that section;
(b) for the purposes of section 107, the amount of income ascertained
in accordance with that section;
(c)
for the purposes of Sub-Part C of Part VIII –
(i) in the case of an individual, the amount remaining after deducting
from the net income all personal reliefs and deductions to which that individual is entitled; and
(ii) in any other case, the net income;
“charitable institution” means an institution approved by the Mini
ster the objects of which –
(a) are of a public character;
(b)
do not yield any profits to its members; and

(c) are exclusively –
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INCOME TAX ACT 1995
(i) the advancement of religion;
(ii)
the advancement of education;
(iii)
the relief of poverty, sickness and disability;
(iv)
The protection of the environment;
(v)
the advancement of human rights and fundamental freedoms;
(vi)
the promotion of any other public object beneficial to the community;
(d) are to be carried out in Mauritius or elsewhere;

“charitable trust” has the same meaning as in the Trusts Act 2001;

Amended by [
Act No. 14 of 2001]

“child”, in section 41 and 42 means –
(a) an unmarried child, stepchild or adopted child of a person;
(b) an unmarried child whose guardianship or custody is entrusted to t
he person by virtue of any other enactment or of an order of a court of competent jurisdiction;

(c) an unmarried child placed in foster
care of the person by virtue of an order of a court of competent jurisdiction;

Amended by [
Act No. 9 of 1997]; [ Act No. 18 of 2003]

“Commissioner” means the Commissioner of Income Tax;

“Company” –
(a) means a body corporate, other than a local authority, incorporated
in Mauritius or elsewhere; and
(b) includes a non-resident société, a trust or a trustee of a u
nit trust scheme; but (c) does not include a Land Area Management Unit;
“Committee” means the Assessment Review Committee set up under sec
tion 8E of the Unified Revenue Act 1983;

Added by [
Act No. 23 of 2001]

“consideration” means the price, in money or money’s worth paid or
given in return for any benefit;
“CPS” means the Current Payment System referred to in Sub-Part B o
f Part VIII;

“CPS period” means a period of 6 months ending 31 December;
Amended by [
Act No. 9 of 1997]

“CPS threshold” means the threshold specified in the Sixth Schedul
e;

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INCOME TAX ACT 1995
“credit”, in relation to foreign tax, means the amount deductible
from income tax under section 77;
“Current Payment System” means the system of payment of income tax
referred to in Sub-Part B of Part VIII;
“deep sea international trade” means any trade excluding fishing c
arried out outside the territorial waters of Mauritius;
“dependent child” means a child in respect of whom a deduction is allowa
ble under section 41;

Amended by [
Act No. 9 of 1997]

“dependent spouse” means a person in respect of whom a deduction is a
llowable under section 39;

Amended by [
Act No. 9 of 1997]

“disabled person” means a person suffering from disablement;
Amended by [
Act No. 18 of 1999] “disincorporation”, in sections 16 and 56, means the transfer of a
ll the assets and liabilities of a company to the persons who were shareholders of that company;

“dividends” – (a) means a distribution authorised by the Board of Directo
rs of a company and made out of the retained earnings of the company, after having made good any
accumulated losses at the beginning of its accounting period, either in
cash or in shares to its shareholders; and
(b) includes a distribution under section 45(3); but
(c) does not include interest deemed to be dividends under
section 84 and a benefit referred to in section 86A;
Amended by [
Act No. 23 of 2001]; [ Act No. 28 of 2004] “earned income”, in relation to an individual, means the amount re
maining after deducting the allowable deductions from the gross income derived from –
(a) emoluments; or
(b) any business other than rents, interest or dividends, unless the r
ents or interest are derived by the individual in the ordinary course of his business;

“emoluments” –
(a) means any advantage in money or in money’s worth referred to in se
ction 10 (1)(a); and
(b) includes –
(i) a remuneration to the holder of any office and fees payable to the
director of a company;
(ii) an allowance under the National Assembly Allowances Act or a pens
ion under the National Assembly (Retiring Allowances) Act;
(iii) a remuneration payable to a Mayor, Chairman of a District Counci
l or Chairman of a Village Council under the Local Government Act 1989;
(iv)
an allowance payable to an apprentice;

(v) an allowance under the Rodrigues Regional
Assembly (Allowances and Privileges) Act 2002;
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INCOME TAX ACT 1995
Added by [
Act No. 18 of 2003] “employee” means a person who receives or is entitled to receive e
moluments;
“employees’ share scheme” means a scheme or fund established fo
r the benefit of the employees of an employer under the Companies Act 2001.

Amended by [
Act No. 18 of 1999]; [ Act No. 28 of 2004] “employer”
(a)
means a person responsible for the payment of emoluments; and
(b) includes an agent of that person; but
(c) does not include a person employing only household employees;

“equity fund” means an equity fund approved by the Financial Servi
ces Commission established under the Financial Services Development Act 2001;
Added by [
Act No. 20 of 2002]

“exempt income” means any income specified in the Second Schedule;
“exempt person” means – (a)
an employee whose emoluments do not exceed the amount specified in Part
I of the Fourth Schedule;
(b)
a field worker or a non-agricultural worker employed in the sugar indust
ry whose emoluments do not exceed the amount specified in Part I of the Fourth
Schedule;
(c)
a household employee; or
(d)
an individual who derives gross income falling under Sub-Part B of Part
VIII which does not exceed the CPS threshold and whose tax liability for the CPS
period in respect of that gross income is of an amount specified in Part
II of the Fourth Schedule;
Amended by [
Act No. 9 of 1997] “foreign tax” means a tax, of a similar character to income tax, i
mposed by the laws of a foreign country;
“foreign vessel”, in relation to item 8 of Part I and item 12 of P
art II of the Second Schedule, means a ship registered in Mauritius and owned by –
(a) a body corporate incorporated in Mauritius which is not under the
effective control of citizens of Mauritius; or
(b) a body corporate which is incorporated outside Mauritius;
“gross”, in relation to an amount, means without any deduction fro
m that amount;

“gross income” means –
(a) the aggregate amount of all income –
(i) in the case of an individual, specified in Sub-Part A of Part III;
or

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INCOME TAX ACT 1995
(ii) in any other case, specified in Sub-Part B of Part IV, other than
exempt income; or
(b) the amount of income derived from a particular source without any
deduction from that amount;

“handicapped” means –
a person who is physically or mentally handicapp
ed in a permanent capacity;

Amended by [
Act No. 10 of 1998] “health institution” has the same meaning as in the Private Health In
stitutions Act 1989;
“household employee” means any person employed by a person other t
han a company, société, trust, trustee or other body of persons to work in his private dwelling and the
grounds attached thereto and includes a driver;

“hotel” means any building in which –
(a) not less than 9 bedrooms appropriately furnished together with nec
essary amenities are set apart for letting; and
(b) one or more rooms are set apart and structurally built or adapted
and appropriately furnished for the preparation and sale to residents of food and drinks for
consumption;

Added [
Act No. 23 of 2001]

“income tax” –
(a)
means the income tax imposed by section 4; and
(b) includes any penalty imposed under this Act but(c) does not incl
ude any fine;
“income year”, in relation to the income of any person, means the
year in which that income is ,derived by him;
“incorporation”, in sections 16 and 56, means the transfer to a compa
ny of all the assets and liabilities of a business in consideration of the issue of shares in that company;
“industrial premises” means any building or structure, including a
ny extension thereto, used –
(a) for the purposes of a trade –
(i) carried on in a mill, factory or other similar premises;
(ii)
consisting of the manufacture of goods or materials, or the subjection o
f goods or materials to any process;
(iii) consisting of the storage of goods or materials which are to be
used in the manufacture of other goods or materials or are to be subjected, in the course of a
trade, to any process;
(b) for the purposes of a transport, dock or electricity undertaking;
(c) for the purposes of a hotel;
(d) for the welfare of workers employed in a trade, undertaking or hot
el specified in paragraph (a), (b) or (c), respectively, but does not include –
(i) any building or structure in use as, or part of, a dwelling house,
retail shop, showroom or office, or used for any purpose ancillary to the purposes of a dwelling
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INCOME TAX ACT 1995
house, retail shop, showroom or office; or
(ii) any land, tree, plant, garden or earthworks;

(e) for the provision of education
or training;

(f) for the purposes of operating a
n aerodrome;
Amended by [
Act No. 9 of 1997]; [ Act No. 23 of 2001] “inter-crop season” has the same meaning as in section 26 of the L
abour
Act;

“ICT company” –
(a) means a company deriving at least 75 per cent of its gross income from i
nformation and communication services as defined in the Information and Communication
Technologies Act 2001; but

(b) does not include public paid or mobile telecommunication ne
twork and service including value added services and mobile internet;

Amended by [
Act No. 20 of 2002]

“Land Area Management Unit” has the same meaning as in the Farmers
Service Corporation Act 1991;
“lease” means a tenancy of any duration, whether in writing or oth
erwise, and includes a sublease or a contract of hire;
“listed company” has the meaning assigned to it in section 48;
“local authority” has the same meaning as in the Local Government Act 19
819;
“loss” in sections 20 and 59 means the amount of the deficit where
the allowable deductions exceed the gross income in an income year;

“manufacture” –
(a) means the transformation of materials or semi-processed materials
into finished or semi-finished goods; and
(b) includes the assembly of parts into a piece of machinery or equipm
ent or other product;

“manufacturing company” –
(a) means a company which derives at least 75 per cent of its gross in
come from manufacturing activities in Mauritius; but
(b)
does not include –
(i)
a company engaged in the manufacture of alcoholic drinks or cigarettes a
nd other tobacco products; or
(ii)
a company engaged in carrying on the business of restaurant;

Amended by [
Act No. 18 of 1999]

“miller”, for the purposes of –
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INCOME TAX ACT 1995
(a) items 5, 6 and 7 of Part IV of the Second Schedule, means any pers
on or group of persons operating a factory and includes any person acting as manager for that
person or group of persons; and
(b) section 59 (3), means any person or group of persons, other than
an individual, operating a sugar factory;

“mineral” includes oil, clay, stone, gravel or sand;
“Minister” means the Minister to whom the responsibility for the s
ubject of finance is assigned;
“net income” means the aggregate amount remaining after deducting
from the gross income all allowable deductions;
“non-citizen” means an individual who is not a citizen of Mauritius;
“non-resident ‘means a person who is not resident in Mauritius;
“non-resident trader” means a person who, being in Mauritius, carries
on business in Mauritius but has no permanent place of business or abode in Mauritius;
“officer” means a public officer posted to the Income Tax Department;
“Official List” has the same meaning as in the Stock Exchange Act 198
8;
“other income earning activity” means any activity from which income
of a kind specified under section 10 (1) (c), (d) or 10 (2) is derived;
“owner”, in relation to a foreign vessel, has the same meaning as in
the Merchant Shipping Act 1986;
“repay” means pay, distribute, transfer, credit or deal with in the i
nterest or on behalf of any person and whether in money or money’s worth;
‘PAYE’ means the Pay As You Earn (PAYE) System referred to in Sub-Part
A of Part VIII;

“person” shall be deemed to include a trust;
“personal reliefs and deductions” means the personal reliefs And dedu
ctions specified in Sub-Part C of Part III;

“planter”, for the purposes of
(a) items 4, 10, 18 and 19 of Part IV of the Second Schedule, means an
y person or group of persons growing sugar cane in one or more factory areas and includes any
person acting as manager for that person or group of persons; and
(b) section 59 (3), means any person or group of persons, other than
an individual, engaged wholly or mainly in the growing of sugar cane in one or more factory areas;

Amended by [
Act No. 20 of 2001]

“premises” includes land or buildings;
“qualified auditor” has the meaning assigned to it in the Companies A
ct, 1984;
“registered owner”, in relation to items 8 and 9 of Part I of the
Second Schedule, means a person who has been registered as the owner of a ship under the Merchant Shipping Act
1986;
“related company” has the meaning assigned to it by section
2(2) of Companies Act 2001;
Amended by [
Act No. 18 of 2003]

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INCOME TAX ACT 1995
“relative”, in relation to a person, means any other person connec
ted with him by –
(a) blood relationship as parent, grandparent, brother, sister, brothe
r or sister of a parent, nephew, niece or descendant;
(b) marriage, as his spouse or the spouse of a person married to that
other person or to a person specified in paragraph (a);
(c) adoption, as his child or as a child of a person specified in para
graph (a) other than the adopted child of his nephew or niece;
(d) natural relationship, through a mother who has acknowledged her ch
ild;

“rent” includes any premium or other consideration for a lease;
“resident” has the meaning assigned to it in section 73;
“retiring allowance” means a lump sum payment by way of a bonus, grat
uity or other allowance in respect of the full-time employment of a person made on the occasion of his
retirement from that employment;
“return date” means the last day of the period for which a return
of income is required to be made;
“seaman” in relation to item 12 of Part II of the Second Schedule,
means a seaman who is employed on a vessel registered in Mauritius or a foreign vessel;
“securities” in item I of Part IV of the Second Schedule has the s
ame meaning as in the Stock Exchange Act 1988 but does not include treasury bills and Bank of Mauritius Bills;

Amended by [
Act No. 28 of 2004]

“sell” includes transfer;
“share” in relation to a company, includes an interest in the capital
of the company;

“shareholder” includes a member of a company whether or not the capit
al of that company is divided into shares and, in sections 84, 85 and 86 includes a person by whom or on
whose behalf shares in the company have at any time been held;

“société” –
(a)
means a société formed under any enactment in Mauritius; and
(b) includes –
(i)
a société de fait or a société en participation;
(ii) a joint venture; or
(ii)
a société or partnership formed under the law of a foreign country
;
(ii)
“société de secours mutuels” means an association registered un
der the Registration of Associations Act, whose main activity is to provide welfare benefits;
“start-up company” shall be construed in accordance with section 67E;

Added by [
Act No. 25 of 2000] “Stock Exchange” means the Stock Exchange established by the Stock
Exchange Act 1988;

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INCOME TAX ACT 1995
“superannuation fund” means a fund or scheme established for the b
enefit of the employees of an employer and approved by the Commissioner;

“tax avoidance” includes, directly or indirectly –
(a) altering the incidence of income tax;
(b) relieving any person from liability to pay income tax;
(c) avoiding, reducing, or postponing any liability to pay income tax;
“tax incentive companies” means companies of a type listed in Part
IV of the First Schedule;

Amended by [
Act No. 25 of 2000]

“taxpayer”, in relation to an income year, means a person having a
chargeable income for that income year, whether on his own account or as an agent;
“trade” means any trade, adventure or concern in the nature of tra
de;
“trade union” means a trade union of employees registered under th
e Industrial Relations Act;

“Tribunal” – Deleted by [
Act No. 23 of 2001]

“trust” means a trust recognized under the laws of Mauritius;
Amended by [
Act No. 14 of 2001]

“trustee”, in relation to a unit trust scheme, has the meaning ass
igned to it in the Unit Trust Act 1989;
“Unified Revenue Board” means the Unified Revenue Board establishe
d under the Unified Revenue Act 1983;
“unit”, in relation to unit trust scheme, has the same meaning as
in the Unit Trust Act 1989;
“unitholder” has the same meaning as in the Unit Trust Act 1989;

“unit trust scheme” has the same meaning as in the Unit Trust Act 198
9;

“Unit Trust Fund” has the same meaning as in the Unit Trust Act 19
89;

“venture capital fund” means a venture capital fund approved by th
e Minister;

“year” means a period of 12 months commencing on 1 July;
“year of assessment” means the year in and for which tax is payabl
e under section 4.
Amended by [
Act No. 13 of 1996]; [ Act No. 9 of 1997]

3. Application of Act
Sub-Part A of Part VIII, Part XI, sections 123 and 154 (1) of this Act
shall bind the State.
PART II – LIABILITY TO INCOME TAX

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INCOME TAX ACT 1995
4. Imposition of tax
Subject to the other provisions of this Act; income tax shall, in and fo
r every year –
(a) be paid to the Commissioner by every person on all income,
other than exempt income, derived by him during the preceding year; and
(b) be calculated on the chargeable income of the person at the
appropriate rate specified in the First Schedule.

5. Derivation of income
(1) Income shall be deemed to be derived by a person where-
(a)
the income was derived from Mauritius, whether the person was resident i
n Mauritius or elsewhere; or
(b)
the income was derived at a time when the person was resident in Mauriti
us, whether the income was derived from Mauritius or elsewhere.
(2) Subject to the other provisions of this Act, income shall b
e deemed to be derived by a person when –
(a) it has been earned or has accrued; or
(b) it has been dealt with in his interest or on his behalf, whether o
r not it has become due or receivable.
(3) Earned income derived from outside Mauritius shall be deeme
d to be derived by a person when –
(a) it is received in Mauritius by him or on his behalf; or
(b) it is dealt with in Mauritius in his interest or on his behalf.

6. Income to be expressed in Mauritius currency

(1) Income wherever derived, and expenses and losses, wherever
incurred, shall be expressed in terms of Mauritius currency.
(2) Where income, expenditure or losses are expressed in terms
of any currency other than Mauritius currency, they shall be converted into Mauritius currency at the
exchange rate between Mauritius currency and the other currency.
(3) For the purposes of subsection (2), the exchange rate sha
ll be –
(a) where income is remitted to Mauritius or the amount of any deducti
on is remitted from Mauritius during the income year in which it is derived or incurred, as the case
may be, the rate in force at the date of the remittance; or
(b) where income or the amount of deduction is not remitted during the
income year in which it is derived or incurred, as the case may be, the rate in force at the end of
that income year.

(4) Notwithstanding the other provisions of this section, the net inco
me of –
(a) a corporation holding a Category 1 Global Business Lic
ence under the Financial Services Development Act 2001; or
(b) a bank holding a banking licence under the Banking Act
2004 in respect of its banking transactions with non-residents and corporations holding
a Global Business Licence under the Financial Services Development Act 2
001,
shall be converted into Mauritius currency at the exchang
e rate in force at the date on which the return of income is submitted to the Commissioner.
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INCOME TAX ACT 1995

Amended by [
Act No. 25 of 2000]; [ Act No. 13 of 2001]; [ Act No. 20 of 2002]; [ Act No. 18 of 2003]; [ Act No. 35 of 2004]

7. Exempt income
(1)
The income specified in the Second Schedule shall be exempt from income
tax.
(2)
Except as otherwise provided for in this Act, nothing in this section sh
all exempt from taxation in the hands of a recipient any sum paid, by way of emoluments, dividends,
interest or otherwise, wholly or partly out of income so exempt from tax
ation.
PART III – PERSONAL TAXATION

8. Application of Part III
This Part shall apply to individuals.
Sub-Part A – Gross Income

9. Income of a married woman
(1) All income derived by a married woman shall be liable to in
come tax separately from the income of her husband in her own name.
(2) Any income derived by a married woman jointly with her husb
and shall be deemed to be derived by them in such proportion as may be declared by the couple in their
tax returns.
(3) Where no declaration is made by the couple under subsection
(2), the income shall be deemed to be derived by them in equal proportion.

10. Income included in gross income

(1) Subject to the other provisions of this Act, the gross inco
me of an individual shall include –
(a) any advantage in money or in money’s worth which is –
(i) salary, wages, leave pay, fee, overtime pay, perquisite, allowance
, bonus, gratuity, commission or other reward or remuneration in respect of or, in relation to
the office or employment of that individual, other than passages, by sea
, air or land between Mauritius and another country, provided under the contract of
employment;
(ii) superannuation, compensation for loss of office, pension (includ
ing a pension in respect of which a deduction is allowed under section 23 or 62, as the case
may be), retiring allowance, annuity or other reward in respect of or i
n relation to past employment or loss or reduction of future income of that individual, whether
receivable by individual or by any person who is or has been the spouse
or dependent of that individual;
(b) any gross income derived from any business;
(c)
any rent, royalty premium or other income derived from property;

Amended by [
Act No. 9 of 1997] (d) any dividend, interest, charges, annuity or pension (other than a
pension referred to in paragraph (a) (ii); and
(e) any other income derived from any other source.
(2) For the purposes of subsection (1) (b), the gross incom
e derived from a business shall include –
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INCOME TAX ACT 1995
(a) any sum or benefit, in money or money’s worth, derived from the ca
rrying on or carrying out of any undertaking or scheme entered into or devised for the purpose of
making a profit, irrespective of the time at which the undertaking or sc
heme was entered into or devised;
(b) any sum or benefit derived from the extraction, removal or sale of
any mineral, tree or wood;
(c) any sum or benefit, in money or money’s worth, derived from the sa
le of any immovable property or interest in immovable property, where the property was acquired
in the course of a business the main purpose of which is the acquisition
and sale of immovable property;
(d) any increase in the value of trading stock on hand, at the time of
transfer by sale or otherwise of a business or on the reconstruction of a company; and
(e) any subsidy derived in the carrying on of a business.

11. Emoluments received in arrears
Where arrears of emoluments earned in an income year are received by a p
erson in the following or any subsequent income year, those emoluments shall be deemed to have
been earned in the income year in which they are received.

12. Income received in anticipation
Where income is derived by a person in any year by way of premium or pay
ment in advance or in any like manner by way of anticipation, the Commissioner may, on the written
application of that person during the following year, apportion that inc
ome between the income year and any number of subsequent years not exceeding 5, and the part so
apportioned to each of those years shall be deemed to be income derived
in that year.

13. Valuation of trading stock
(1) Where a person owns or carries on a business, the value of
his trading stock at the beginning and at the end of every income year shall be taken into account in
ascertaining whether or not he has derived income during that year under
section 10 (1) (b).
(2) The value of the trading stock to be taken into account sha
ll be determined on such basis as may be prescribed.
14. Transfer of trading stock with other assets or for inadeq
uate consideration
(1) Subject to the other provisions of this Act, where any trad
ing stock is sold or otherwise transferred together with other assets, the part of the consideration attributable
to the trading stock shall be determined by the Commissioner, and the pa
rt of the consideration so determined shall be deemed to be the price paid for the trading stock by
the purchaser.
(2) For the purposes of subsection (1), any trading stock whi
ch has been transferred otherwise than by sale shall be deemed to have been sold, and any trading stock so
transferred and any trading stock which has been sold for a consideratio
n other than cash shall be deemed to have realised the market price at the day on which it was so
transferred or sold, but where there is no market price; trading stock s
hall be deemed to have realised a price determined by the Commissioner.
(3) In this section ‘trading stock’ includes any other property
which, as and when realised; produces income for the person under section 10(2)(c).
(4) Where any trading stock is sold or transferred without cons
ideration in money or money’s worth or for a consideration that is less than its market price or true value on
the day of the sale or transfer –
(a) the trading stock shall be deemed to have been sold at and to have
realised the market price on the day of the sale or transfer, but shall, where there is no market
price, be deemed to have been sold at and to have realised a price deter
mined by the Commissioner;
(b) the price which under this section the trading stock is deemed to
have realised shall be taken into account in calculating the gross income of the person selling or
transferring the trading stock;
(c) the person acquiring the trading stock shall, for the purpose of c
alculating his net income, be deemed to have purchased the trading stock at the price which under
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INCOME TAX ACT 1995
this section the trading stock is deemed to have realised.
15. Deemed income arising from expenditure or loss discharged
(1) Where the amount of any expenditure or loss incurred by a p
erson has been taken into account in calculating his net income for an income year, and the liability of
the person in respect of that amount is subsequently discharged in whole
or in part, the amount so discharged shall be deemed to be income derived in the year in which the
amount is discharged.
(2) For the purposes of this section, a liability in respect of
expenditure or loss shall be deemed to have been discharged to the extent to which the person has been
discharged from that liability without adequate consideration in money o
r money’s worth.

16. Apportionment of income on incorporation and disincorpora
tion

(1) Where a business is transferred to a company on incorporation and
the persons who carried on that business prior to incorporation are the shareholders in that
company immediately after incorporation, the Act shall have effect as if
–
(a) the business had not ceased or been transferred on incorporation;
and
(b) at all times prior to incorporation the company had been carrying
on the business.
(2) Where a business is transferred by a company on disincorpor
ation and the persons who carry on that business after disincorporation were the shareholders in that
company immediately prior to disincorporation, the Act shall have effect
as if –
(a) the business has hot ceased or been transferred on disincorporatio
n; and
(b) at all times prior to disincorporation that person or those person
s had been carrying on the business.
(3) Where incorporation or disincorporation takes place during
an income year, the gross income of the business for that income year shall be apportioned between the
company and the person carrying on the business on the basis of the prop
ortion of the income year before and after incorporation or disincorporation.
Sub-Part B – Allowable Deductions

17. Deduction in connection with employment
(1) (a) Any expenditure which is wholly, exclusively and nec
essarily incurred by a person in performing the duties of an office or employment shall be deductible
from the gross income referred to in section 10 (1) (a) in the incom
e year in which the expenditure is incurred.
(b) Notwithstanding paragraph (a) but subject to paragra
ph (c), any expenditure incurred for attending seminars, workshops, symposiums and other training
courses in connection with the duties of an office or employment by a me
mber of a recognised professional body or for the payment of membership fees of a
recognized professional body shall be deductible from the gross income r
eferred to in section 10 (1) (a) in the income year in which the expenditure is incurred.
(c) The amount deductible under paragraph (b) shall not exceed 30,00
0 rupees.
(d)
No deduction under this section shall be allowed in respect of
an income year where a deduction has been allowed under section 37C for
that income year.

Added [
Act No. 23 of 2001]; [ Act No. 18 of 2003] (2) The Commissioner may determine whether and to what extent a
n allowance made to a person constitutes a reimbursement of expenditure wholly, exclusively and
necessarily incurred by that person in performing the duties of his offi
ce or employment and the allowance shall, to the extent so determined, not be included in his gross
income.

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INCOME TAX ACT 1995
(3) Where the Commissioner is satisfied that the whole or part
of any advantage has necessarily to be provided by an employer for a person for the performance of the
duties of his office or employment, the advantage, or part thereof, shal
l not be included in the gross income of that person.
(4) (a) Subject to paragraph (b), a benefit to an employee
from a payment by his employer to provide a pension or retiring allowance for the employee or his
dependents and which is an allowable deduction under section 22 or 61, a
s the case may be, shall not be included in the gross income of the employee in the year in
which the payment is made.
(b) Where the pension or retiring allowance is deemed to have been der
ived by the employee under section 5(2), it shall, subject to section 10(1)(a)(ii), be included in
the gross income for the year in which the pension or retiring allowance
is derived.
(5) A benefit to an employee from a payment by his employer to
a scheme approved by the Commissioner to provide against medical expenses for the employee or his
dependents and which is an allowable deduction under section 22 or 61, a
s the case may be, shall not be included in the gross income of the employee in the year in which
the payment is made.
Amended by [
Act No. 13 of 1996]

18. Expenditure incurred in the production of income
(1) Any expenditure or loss shall be deductible from the gross
income, other than gross income specified in section 10(1)(a), of a person in the income year in which it is
incurred to the extent to which it is exclusively incurred in the produc
tion of his gross income, other than gross income specified in section IO (1) (a), for that income year.
(2) Any expenditure which satisfies the requirements of subsect
ion (1), on or in relation to –
(a) minerals, trees or wood which when realised, produces gross income
under section 10(1)(b); or
(b) immovable property, including the cost of acquisition, which when
realised, produces gross income under section 10(2)(c),
shall be deductible from the gross income, other than gross income speci
fied in section 10(1)(a), of a person in the income year in which he derives the gross income
specified in this subsection.
(3) Any expenditure, which satisfies the requirements of subsec
tion (1), incurred by a person on the repair of premises, machinery or plant, or on rent, or on export
duties, rates and taxes, other than income tax or any other tax on incom
e or profits, shall be deductible from his gross income, other than gross income specified in section 10
(1)(a), in the income year in which the expenditure is incurred.
(4) An amount equal to 200 per cent of expenditure incurr
ed by a person in an income year and which satisfies the requirements of subsection (1) shall be deductible
from his gross income in that income year where the expenditure is incur
red on –
(a) emoluments in respect of a disabled person; or
(b) emoluments and training costs in respect of an employee employed i
n any business set up in the Island of Rodrigues.

(5) Subject to subsection (1) and section 26(1)(b) and (
3), where any expenditure or loss incurred by a bank is not directly attributable to either its income derived from
Mauritius or its foreign source income, the bank shall forward, together
with its return of income which is required to be furnished under this Act, a certificate from a qualified
auditor certifying that such expenditure or loss has been apportioned in
a fair and reasonable manner, after taking into account any expenditure or loss incurred in the
production of exempt income.
Added by [
Act No. 18 of 1999]; [ Act No. 14 of 2005]

19. Expenditure incurred on interest in the production of income
(1) Subject to the other provisions of this section, where in a
n income year a person has incurred expenditure on interest in respect of capital employed exclusively in the
production of gross income specified in section 10(1)(b), (c) or (
d), as the case may be, he shall be allowed, in that income year, a deduction in respect of the interest from
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INCOME TAX ACT 1995
the gross income in the production of which the capital was employed.
(2) The Commissioner may require a person to support his claim
for deduction in respect of interest under subsection (1) by a certificate from a qualified auditor certifying
that the amount of interest claimed has been incurred on capital employe
d exclusively in the production of gross income specified in section 10(1)(b), (c) or (d).
(3) The Commissioner may refuse to allow a deduction on expendi
ture incurred as interest where he is satisfied that –
(a) the interest is payable to a non-resident who is not chargeable to
tax on the amount of the interest; or
(b) the interest is not likely to be paid in cash within a reasonable
time.

20. Losses
(1) Where a person satisfies the Commissioner that he has in an
income year incurred a loss in the production of gross income specified in section 10(1)(b), (c) and (d)
that loss –
(a) shall not be deducted from or set off against his gross income spe
cified in section 10(1)(a) for that income year; but
(b) may be carried forward and set off against his gross income, other
than gross income specified in section 10(1)(a), in the following income year and in the
succeeding years.

Amended by [
Act No. 25 of 2000] (2) For the purposes of this section, where any question arises
under this section as to the quantum of losses available for set off or carry forward, the question shall be
determined by the Commissioner.

21. Bad debts and irrecoverable sums
(1) Subject to subsection (3), a person who derives gross inc
ome specified in 10(1)(b) in an income year may deduct the amount of a debt or sum which is proved to
have become bad and to have been actually written off as a bad debt by t
he person in that income year.
(2) Subject to subsection (3), a person who derives gross inc
ome, other than gross income specified in section 10(1)(b), may deduct any debt or sum not received in an
income year but which is deemed to be derived in that income year and wh
ich is proved to have become irrecoverable by the person.
(3) Any amount allowed as a deduction which is subsequently rec
eived by the person on account of any bad or irrecoverable debt shall be deemed to be gross income
derived in the income year in which it is received.

22. Contributions to superannuation fund
(1) Subject to subsection (2), an employer may deduct any amo
unt irrevocably paid by him to provide –
(a) a pension or retirement allowance to his employees and their depen
dents under a superannuation fund; and
(b)
for the medical expenses of his employees and their dependents under a s
cheme approved by the Commissioner.

(2)Notwithstanding section 18 where an amount paid by an employer unde
r subsection (1) is a lump sum payment in respect of past services of employees, one-enth of the
payment shall be deductible in the income year in which the payment is m
ade and in each of the 9 succeeding years.

23. Pensions to former employees
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INCOME TAX ACT 1995
(1) Subject to subsection (2), the Commissioner may, in the c
ase of a person deriving gross income specified in section 10(1)(b) allow a deduction in respect of any
amount which is not deductible otherwise than under this section and whi
ch, in the opinion of the Commissioner, is reasonable in the particular circumstances of the case,
paid by the person in that income year by way of a pension to any former
employee in the business of that person, or to the surviving spouse of that employee, in
consideration of the past services of that employee in that business of
the person, where the Commissioner is satisfied that –
(a)
the pension is receivable by the recipient –
(i) by virtue of any enactment;
(ii) as of right under a written document for a fixed period or for li
fe;
(iii) in the case of the surviving spouse, for a fixed period or for l
ife or until he or she remarries; or
(iv) on grounds which the Commissioner determines to be compassionate
grounds; and
(b) except in the case of the death of the employee while in the emplo
yment of the person, the employee did not retire from his employment before attaining the
appropriate retiring age.
(2) This section shall not apply where because of any relations
hip to or with the employer or otherwise the former employee or the surviving spouse had or has, in the
opinion of the Commissioner, any control in relation to the payment of t
he pension by the person.
(3)
For the purposes of this section –
“appropriate retiring age” means –
(a) not less than the age of 50;
(b) such earlier age as the Commissioner considers reasonable, having
regard to the nature of the employment of the person or service or the general terms of
employment in the business or occupation in which the person was employe
d;
(c) the age at which the person retired; in the case of retirement on
the ground of serious illness or permanent disability; or
(c)
the age at which a person ceased to be employed in any full-time employm
ent and the Commissioner is satisfied that he ceased to be so employed by reason
of redundancy or other similar circumstances.

24. Annual allowance
(1) Subject to the other provisions of this section, where, in
an income year, a person has incurred capital expenditure on –
(a) the acquisition, construction or extension of any industrial premi
ses or of a hotel;
(b) the acquisition of plant or machinery;
(c) agricultural improvement on agricultural land;
(d) scientific research;
(e) the setting up of golf courses; or

(f) the acquisition or improvement of any other item of a c
apital nature which is subject to depreciation under the normal accounting principles, other than non-
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INCOME TAX ACT 1995
industrial premises,
(2) (a) Subject to paragraph (b), where, in an income
year, a medical
practitioner has incurred expenditure on improve
ments to his
consulting and waiting rooms, he shall be allowe
d in that
income year and in each of the 2 succeeding inco
me years a
deduction by way of annual allowance at the rate
of 331/3 per
cent of the expenditure so incurred.
(b) No deduction shall be allowed under paragraph (a) where a deduct
ion has been allowed under subsection (1) in respect of the same expenditure.

(3) No annual allowance shall be allowed under this section unless –
(a) the expenditure is incurred exclusively in
the production of gross income; and
(b) the provisions of section 153(1) are com
plied with.
(4) The total amount of allowance claimed under this section sh
all not exceed in the aggregate the amount of the capital expenditure incurred.
(5) Subject to subsection (6), where, in an income year, a pe
rson sells or otherwise transfers an asset in respect of which an allowance has been allowed under this
section at a price or for a consideration –
(a) in excess of the amount to which the value of the asset has been r
educed by the allowance, the excess to the extent of the amount of the allowance granted shall
be deemed to be the gross income of the person in that income year; or
(b) which is less than the amount to which the value of the asset has
been reduced by the allowance, the difference shall be allowed as a deduction from the gross
income of the person in that income year.
(6) Where a person sells or otherwise transfers plant, machiner
y or industrial premises to a relative or to a related company and the plant, machinery or industrial
premises sold or transferred is used by the relative or the related comp
any for the production of gross income, the sale or transfer shall, unless the Commissioner directs
otherwise, be deemed to have been made at a price equal to the base valu
e of the plant , machinery or industrial premises at the date of sale or transfer.

(7)
Where an investment approved by the Commissioner is made in a
company holding a regional development certificate, the investment is de
emed to be capital expenditure for the purposes of this section.
Amended by [
Act No. 13 of 1996]; [ Act No. 10 of 1998]; [ Act No. 25 of 2000]; [ Act No. 28 of 2004]; [ Act No. 28 of 2004]; [ Act No. 14 of 2005]

25. Investment allowance
(1) Subject to the other provisions of this section, where a pe
rson has incurred capital expenditure on –
(a)
the construction of industrial premises;
(b)
the acquisition of new plant and machinery; or
(c) the acquisition of computer software,
he shall be allowed a deduction of 25 per cent of the capital expenditur
e so incurred by way of investment allowance in respect of the income year in which the expenditure is
incurred.

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INCOME TAX ACT 1995
(2) No deduction shall be allowed under subsection (1) in respect of expen
diture incurred in the acquisition of a road vehicle other than a new bus of a seating capacity of not
less than 30.
(3)
Subject to subsection (4), where a person has incurred capital expendi
ture on –
(a) the construction of industrial premises; or
(b) the acquisition of new plant and machinery for the processing of a
gricultural, fisheries or livestock products or for manufacture,
in the Island of Rodrigues, he shall be allowed a deduction of the capit
al expenditure so incurred by way of investment allowance in respect of the income year in which the
expenditure is incurred.

Amended by [
Act No. 18 of 1999]

(4) No deduction shall be allowed under subsection (1) where
the person is allowed a deduction under subsection (3).
(5) No investment allowance shall be allowed under this section
–

(3) No annual allowance shall be allowed under this section unless –
(a) the expenditure is incurred exclusively in
the production of gross income; and
(b) the provisions of section 153(1) are com
plied with.
(b) in respect of expenditure incurred in the acquisition of machinery
or plant which is used or second-hand at the date of its acquisition; or
(c) where before the expiry of 5 years from the date on whi
ch the expenditure was incurred –
(i) the industrial premises are sold, demolished or destroyed, or ceas
ed to be used exclusively as industrial premises;
(ii) the plant or machinery is sold, scrapped or ceases to be used for
the purposes of the trade carried on by the person; or
(iii)
the trade carried on by the person is permanently discontinued.
Amended by [
Act No. 28 of 2004] (6)
Subject to subsection (7), where a deduction has been allowed under th
is section and any of the events specified in subsection (5) (c) occurs, the deduction allowed shall be
withdrawn and the amount of the deduction so withdrawn shall be deemed t
o be the gross income of the person in the income year in which the event occurs.
Amended by [
Act No. 18 of 1999]

(7) (a) Subsection (6) shall not apply –
(i)
where a person sells or otherwise transfers plant or machinery to a rela
tive or to a related company and the plant or machinery sold or transferred is used
by the relative or the related company for the production of gross incom
e;

(ia) where a person sells or otherwise transfers industrial premises t
o a relative or to a related company and the premises sold or transferred are used by the
relative or the related company as industrial premises;
Added by [
Act No. 14 of 2005] (ii) in respect of industrial premises or plant or machinery sold or o
therwise transferred by a person or body of persons engaged in a specified activity to a
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INCOME TAX ACT 1995
company engaged in a specified activity provided that the company or its
holding company, as the case may be, satisfies the conditions specified in section 12 of
the Sugar Industry Efficiency Act 2001.

Amended by [
Act No. 10 of 1998]; [ Act No. 18 of 1999]; [ Act No. 20 of 2001]; [Act 20 of 2002] (b) In this subsection –
(i)
“specified activity” means –

(A) the growing of sugarcane;
(B)
the milling of sugar; or
(C)
the processing of sugar cane by-products including the production of fir
m or continuous electricity for export to the grid through the use of bagasse
or coal, as the case may be.

(ii) “holding company” has the same meaning as in the Companies Act 20
01.

Amended by [
Act No. 20 of 2002] (8)
Where an investment approved by the Commissioner is made in a
company holding a regional development certificate, the in
vestment is deemed to be capital expenditure for the purposes of this section.

Amended by [
Act No. 10 of 1998]; [ Act No. 18 of 1999]

26. Unauthorised deductions
(1) Notwithstanding sections 18 and 19 but subject the other pr
ovisions of this section, no deduction shall be made in respect of –
(a) any investment, expenditure or loss to the extent to which it is c
apital or of a capital nature;
(b) any expenditure or loss to the extent to which it is incurred in t
he production of income which is exempt income;
(c) any reserve or provision of any kind;
(d) any expenditure or loss recoverable under a contract of
insurance or of indemnity;

(d)
any expenditure incurred in providing business entertainment or any gi
ft;
(e)
any tax payable under the Land (Duties and Taxes) Act 1984;
(g) income tax or foreign tax;
(h) any expenditure or loss to the extent to which it is of a private
or domestic nature.
(2)
Where the Commissioner is satisfied that any expenditure of a capital na
ture in relation to alterations or improvements to any premises, machinery or plant, does not
increase the capital value of the premises, machinery or plant, or that
the expenditure increases the capital value by an amount less than the amount of the expenditure, he
may allow such deduction as he thinks fit.
(2)
(3) Where any expenditure or loss incurred by a person in the p
roduction of his gross income and exempt income is not directly attributable to the production of such
income, that part of the expenditure or loss attributable to the product
ion of the exempt income shall be disallowed in such proportion as may be prescribed.
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INCOME TAX ACT 1995
(4) Where a developer under the Morcellement Act incurs, in the
ordinary course of his business, expenditure in respect of tax payable under the Land (Duties and
Taxes) Act, such expenditure shall be allowed as a deduction.

Amended by [
Act No. 18 of 1999]

Sub-Part C – Personal Reliefs and Deductions
27. Reliefs and deductions limited to individuals resident in
Mauritius
No relief or deduction under this Sub-Part shall be allowed unless the p
erson is resident in Mauritius in this income year in which the income is derived.

Amended by [
Act No. 13 of 1996]

28. Emoluments relief
(1) Notwithstanding section 27, every person who derives emolum
ents in an income year shall be allowed, in that income year, a relief by way of deduction from his net
income from emoluments of –
(a) an amount equal to 15 per cent of his net income from emoluments o
r 135,000 rupees, whichever is the lesser; and
(b) an amount equal to his pension or 75,000 rupees, whichever is the
lesser.

(2) For the purposes of this section, “pension” means
a pension –
(a)
paid by virtue of any enactment other than the National Pensions Act;
(b) paid from a superannuation fund; or
(c) which is a pension deductible under section 23 or 62, as the case
may be.
Amended by [
Act No. 13 of 1996]; [ Act No. 9 of 1997]; [ Act No. 10 of 1998]; [ Act No. 20 of 2002]; [ Act No. 14 of 2005]

28A. Agricultural income relief
(1) Notwithstanding section 27, every person who derives income
from agriculture in an income year ah be allowed, in that income year a relief by way of deduction from
his net income from agriculture of an amount equal to 15 per cent of his
net income from agriculture or 100,000 rupees, whichever is the lesser.
(2) For the purposes of this section, net income from agricultu
re –
(a)
includes the share of an associate attributable to the net
income derived from agriculture by a “société”;
(b) does not include any income from agriculture which is e
xempt income.
Added by [
Act No. 9 of 1997]; Amended by [ Act No. 10 of 1998]

29. Relief for contribution to certain funds and schemes
Every person who, in an income year, contributes to such funds or scheme
s as may be prescribed shall, in that income year, be allowed a relief by way of deduction from his net
income of the amount paid as contributions.

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INCOME TAX ACT 1995
Amended by [ Act No. 13 of 1996]

30. Interest relief
(1) Subject to this section, every person shall, in an income y
ear, be allowed a relief by way of deduction from his net income in respect of any expenditure incurred in
that income year on interest on a loan or for the financing of tertiary
education of his dependent children –
(a) secured by mortgage or fixed charge on immovable property;
(b) raised on the security of an insurance policy on his life or on th
e life of his dependent spouse or on the life of his dependent children;
(c) raised on the security of a standing crop or the proceeds of a cro
p; or
(d) on a loan raised on the pledge of shares or debentures and used ex
clusively for the purchase of land to be used for the construction of his residence or for the
purchase, construction or improvement of his residence.

Amended by [
Act No. 18 of 1999]; [ Act No. 23 of 2001] (2) The deduction under subsection (1) shall, subject to subs
ection (3), not exceed –
(a) 125,000 rupees for each spouse, in the case of a couple where neit
her spouse is a dependent spouse;
(b) 250,000 rupees, in the case of a couple where one spouse is a depe
ndent spouse or where only one of the spouses has contracted the loan; or
(c) 250,000 rupees, in any other case.
Amended by [
Act No. 9 of 1997]; [ Act No. 20 of 2002]

(3) Where, in the case of a couple, the loan is in the joint na
mes of the spouses and neither spouse is a dependent spouse, the deduction under subsection (2) (a) shall
be allowed in any proportion as may be claimed by the spouses, provided
that, in the aggregate, the deduction does not exceed 250,000 rupees.

Amended by [
Act No. 20 of 2002]

(4) The Commissioner may refuse to allow a deduction on
expenditure incurred as interest where he is satisfied that –
(a) this interest is payable to a non-resident who is not assessable t
o tax on the amount of the interest; or
(b)
the interest is not likely to be paid in cash within a reasonable time.
(5) For the purposes of this section, “loan” does not includ
e any credit facility given by way of bank overdraft.
Amended by [
Act No. 13 of 1996]; [ Act No. 18 of 1999]; [ Act No. 23 of 2001]

31. Relief for life insurance premium
(1) Subject to the other provisions of this section, every pers
on shall, in an income year, be allowed a relief by way of deduction from his net income in respect of the
amount paid as premium in that income year, under a life insurance polic
y which secures a capital sum on death, whether or not in conjunction with any other benefit, on his
life, the life of his dependent spouse or the life of any of his childre
n who at the end of that income year was under the age of 18.
(2) Where the life insurance policy is held in the joint names
of the spouses, the deduction under subsection (1) shall be allowed in any proportion as may be claimed by
the spouses provided that, in the aggregate, the deduction does not exce
ed the amount of premium paid.

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INCOME TAX ACT 1995
(3) Where an employer has provided an insurance or contribution
for the benefit of a person, his spouse, children and other dependents in respect of a pension, annuity,
lump sum, gratuity or other like benefit accruing on death or retirement
of the person, otherwise than under a superannuation fund, and the amount of the premium or
contribution is included in an income year in the gross income of the pe
rson in section 10(1)(a), the person shall be allowed relief by way of deduction from his net income in
respect of the amount of premium or contribution paid by the employer in
that income year.
(4) The relief under this section shall not, in the aggregate e
xceed 80.000 rupees.
Amended by [
Act No. 13 of 1996]; [ Act No. 18 of 1999]

32. Relief for premium on personal pension scheme
Subject to section 35, every person shall, in an income year, be allowed
a relief by way of deduction from his net income in respect of the amount paid as premium in that income
year under a personal pension scheme approved by the Commissioner, being
a scheme which has as its main object the provision of a pension for himself or his dependent
spouse.

Amended by [
Act No. 13 of 1996]

33. Relief for premium on retirement annuity
Subject to section 35, every person who in an income year derives earned
income –
(a) from a non-pensionable office or employment; or
(b) which is included in the gross income specified in section
10(1)(b),
shall be allowed a relief by way of deduction from his net income in res
pect of the amount paid as premium or contribution in that income year under an annuity contract or scheme
approved by the Commissioner, being a contract or scheme which has as it
s main object the provision of life annuity for him in his old age.

Amended by [
Act No. 13 of 1996]

34. Relief for contribution to medical scheme and for ambulance se
rvices
Subject to section 35, every person shall, in an income year, be allowed
a relief by way of deduction from his net income in respect of contributions made by him in that income
year under a scheme approved by the Commissioner which has as its main o
bject – (a) the refund of medical expenses incurred by him for himself and for his d
ependants; or
(b) the provision of ambulance services to him and to his dependants.
Amended by [
Act No. 13 of 1996]; [ Act No. 20 of 2002]

35. Savings relief
The relief by way of deductions under sections 32, 33 and 34 shall, in t
he aggregate, be limited to 20 per cent of the net income of the person.
Amended by [
Act No. 13 of 1996] [ Act No. 9 of 1997] [ Act No. 18 of 1999]

36. Investment relief
(1) Subject to the other provisions of this section, every pers
on shall, in an income year, be allowed a relief by way of deduction from his net income in respect of –
(a)
an amount paid as subscription in the share capital of a company which i
s
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INCOME TAX ACT 1995
listed on the Stock Exchange or of an authorized mutual fund
.Amended by [
Act No. 9 of 1997]; [ Act No. 28 of 2004]; [ Act No. 14 of 2005] (b) investments made in –
(i) units; or
(ii) newly issued securities of an investment trust company
; or
(c) contributions made to –
(i) a medical savings scheme approved by the Commissioner; or
(ii) an investment club formed in accordance with the Stock Exchange A
ct 1988.
(2) Subject to subsections (3) and (4), the deduction allow
able under subsection (1) shall be –
(a) 40 per cent of the amount paid as subscriptions or of the investme
nts in the newly issued securities of an investment trust company or contributions made, as the
case may be; or
(a)
40 per cent of the excess of the investment in units held at the end of
an income year over the investments in units held at the end of the immediately preceding
income year.

Amended by [
Act No. 9 of 1997]; [ Act No. 10 of 1998] (3) Where, in an income year, 40 per cent of the amount paid as
subscription or of the investments or contributions made, as the case may be, exceeds 50,000 rupees,
the excess shall, subject to subsection (4), be deductible in the 2 su
cceeding income years following that income year.

Amended by [
Act No. 9 of 1997]; [ Act No. 25 of 2000] (4) The relief under this section shall not, in the aggregate,
exceed 50,000 rupees in any one income year.

Amended by [
Act No. 9 of 1997]; [ Act No. 25 of 2000] (5) Where the subscription is paid or the investments or contri
butions are made by a resident société, the relief under this section shall be allowed to each of the
associates of the société in the proportion of his share in the in
come of the société.

Amended by [
Act No. 9 of 1997] (6) Where a deduction under this section has been allowed for a
n income year and within a period of 12 months following that income year the shares, units or securities
are sold or transferred otherwise than on death, or the contributions a
reimbursed otherwise than on death, the deduction shall be withdrawn and the amount of the deduction
so withdrawn shall be deemed to be the gross income of the person in the
income year in which the sale or transfer or reimbursement takes place.
(7)
No deduction shall be allowed under this section where a person has
claimed an exemption under item 14 of Part IV of the Second Sc
hedule in respect of the same investment.
Amended by [
Act No. 13 of 1996]; [ Act No. 9 of 1997]; [ Act No. 10 of 1998]; [ Act No. 25 of 2000]; [ Act No. 20 of 2002]

36A. Relief for shares traded on the Official List of the Stock Exch
ange

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INCOME TAX ACT 1995
(1) Subject to the other provisions of this section, every pers
on shall in respect of shares traded on the Official List of the Stock Exchange, be allowed a relief by way of
deduction from his net income –
(a) for the income year ended 30 June 1999, the value of shares held b
y him at 30 June 1999, and
(b) for the income year ending 30 June 2000, the excess of the value o
f shares held by him at 31 December 1999 over the value of shares held by him at 30 June
1999.
(2)(a) For the purposes of subsection (1)(a), the value of
shares held at 30 June 1999 shall be computed by deducting from the aggregate purchase value of shares
acquired as from 15 June 1999, the aggregate sale value of any shares so
ld, transferred or otherwise disposed of during the period 15 to 30 June 1999, irrespective of
the date on which the shares sold, transferred or otherwise disposed of
were acquired.
(b) For the purposes of subsection (1)(b), the value of s
hare held at 31 December 1999 shall be computed by deducting from the sum of the value of shares held
at 3O June 1999 and the aggregate purchase value of shares acquired as f
rom 1 July 1999, the aggregate sale value of any shares sold, transferred or otherwise
disposed of during the period 1 July to 31 December 1999, irrespective o
f the date on which the shares sold, transferred or otherwise disposed of were acquired.
(3) The relief under this section shall not, in aggregate, exce
ed – (a) 10,000 rupees in respect of the income year ended 30 June 1999; an
d
(b) 10,000 rupees in respect of the income year ending 30 June 2000.
(4) Where a person has been allowed a deduction under this sect
ion in respect of the income year ended 30 June 1999 and the value of shares held by him at 30 June
1999 exceeds the value of shares held by him at 31 December 1999, the ex
cess, to the extent of the amount of relief allowed under this section, shall be withdrawn and the
amount so withdrawn shall be deemed to be the gross income of the person
for the income year ending 3O June 2000.
(5) Subject to subsection (6), for the purposes or computing
the excess amount of the relief to be withdrawn under subsection (4) –
(a) where the value of the shares held at 30 June 1999 and at 31 Decem
ber 1999 does not each exceed 10,000 rupees, the excess amount of the relief to be
withdrawn shall be the difference between the value of the shares held a
t 30 June 1999 and the value of the shares held at 31 December 1999;
(b) where the value of the shares held at 30 June 1999 exceeds 10,000
rupees but the value of the shares held at 31 December 1999 does not exceed 10,000 rupees,
the value of the shares held at 30 June 1999
(c) where the value of the shares held at 30 June 1999 and at 31 Decem
ber 1999 exceeds 10,000 rupees, the excess amount of the relief to be withdrawn shall be
deemed to be zero.
(6) Where the value of shares held at 31 December 1999 exceeds
the value of shares held at 30 June 2000, the latter value shall be used for the purposes of computing
the amount of relief under subsection (1)(b) or the excess amount of
relief to be withdrawn under subsection (4), as the case may be.
(7) For the purposes of subsection (6), the value of shares h
eld at 30 June 2000 shall be computed by deducting from the sum of the value of shares held at 31
December 1999 and the aggregate value of shares acquired as from 1 Janua
ry 2000, the aggregate sale value of any shares sold, transferred or otherwise disposed of
during the period 1 January to 30 June 2000, irrespective of the date on
which the shares sold, transferred or otherwise disposed of were acquired.

Added [
Act No. 18 of 1999]

36B. Relief for investment in Retirement Savings Scheme
(1) Subject to subsection (2), every person shall, in an inco
me year, be allowed a relief by way of deduction from his net income in respect of investments made by him in
that income year in such retirement savings scheme as may be prescribed.
(2) The deduction allowable under subsection (1) shall not ex
ceed 50,000 rupees.

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37. Deduction for medical expenses
(1) Subject to this section, every person shall, in an income y
ear, be allowed a deduction from his net income in respect of any expenses incurred in that income year for
medical treatment of himself, his dependent spouse or dependent children
in a health institution or hospital.
(2) Subject to subsections (3) and (4), the deduction allow
able under subsection (1) shall be 75 per cent of the difference between the expenses incurred and any
amount received by him from whatever source in respect of the expenses s
o incurred or –
(a) 25,000 rupees, where the treatment is undergone in Mauritius; or

(b)
35,000 rupees, where the treatment is undergone outside Mau
ritius,
whichever is the lesser.

(3) Where in an income year, 75 per cent of the difference betwe
en the expenses incurred and any amount received by him from whatever source in respect of the
expenses so incurred exceeds the deduction allowable under subsection (
2)(a) or (b), the excess shall, subject to subsection (4), be deductible in the 2 succeeding income
years following that income year.
(4) The deduction under this section in any one income year shall
not, in the aggregate, exceed the deduction allowable under subsection (2).
Amended by [
Act No. 13 of 1996]; [ Act No. 9 of 1997]; [ Act No. 10 of 1998]; [ Act No. 20 of 2002]; [ Act No. 14 of 2005]

37A. Donations to charitable institutions
(1) Subject to subsection (2), every person shall, in an inco
me year, be allowed a deduction from his net income in that income year in respect of any donations made to
a charitable institution.
(2) The deduction allowable under subsection (1) shall not, i
n the aggregate, exceed 40,000 rupees.

Amended [
Act No. 9 of 1997] [ Act No. 25 of 2000]; [ Act No. 28 of 2004]

37B. Contributions to National Solidarity Fund and Prime Minister’s C
hildren’s Fund
Every person shall, in an income year, be allowe
d a deduction from his net income in that income year in respect of any contributions made to –

(a) the National Solida
rity Fund; or

(b) the Prime Minister’
s Children’s Fund.

Amended by [
Act No. 9 of 1997]; Added by [ Act No. 28 of 2004]

37C. Expenditure incurred on education and training
(1) Subject to subsection (2), every person shall, in an inco
me year, be allowed a deduction from his net income in that income year in respect of any subscription,
examination or course fees or expenses payable to a recognised instituti
on for his education or training, whether by distance learning or otherwise.
(2) The deduction allowable under subsection (I) shall not ex
ceed 50,000 rupees.
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Added [
Act No. 9 of 1997]; Amended by [ Act No. 18 of 2003]

38. Basic personal deduction
(1) Subject to subsection (2), every person shall, in an inco
me year, be allowed a deduction from his net income in that income year of an amount specified in the Third
Schedule.
(2) Notwithstanding section 27, where a person who, in an incom
e year, is not resident in Mauritius proves to the satisfaction of the Commissioner that he is a citizen of
Mauritius in that income year, the person shall be allowed a deduction u
nder subsection (1) in that income year.

Amended by [
Act No. 13 of 1996]; [ Act No. 9 of 1997]

39. Deduction for dependent spouse

Every person –
(a) who in an income year has his spouse living with him or who
se spouse, if not living with him is maintained by him otherwise than by an order of court; and
(b) whose spouse does not derive any income, or if in receipt o
f income, derives net income and exempt income of an amount not exceeding the deduction allowable
under this section,
shall be allowed a deduction from his net income in respect of his depen
dent spouse in that income year of an amount specified in the Third Schedule.

Amended by [
Act No. 13 of 1996]

40. Deduction for alimony and maintenance
Every person shall, in an income year, be allowed a deduction from his n
et income in respect of alimony paid to a previous spouse whose marriage with him has been dissolved by
a court of competent jurisdiction, or in respect of maintenance paid to
his spouse in accordance with an order of a court, in that income year.

Amended by [
Act No. 13 of 1996]

41. Deduction for dependent children
(1) Subject to the other provisions of this section, every pers
on shall, in an income year, be allowed a deduction from his net income in that income year in respect of his
dependent child, of an amount specified in the Third Schedule.

(2) No deduction shall be allowed in an income year under this
section –

(a) to a person and his spouse in respect of more than 3 children in the agg
regate;
(b) to a person where a deduction has been claimed by his spouse in re
spect of the same child; or
(c) in respect of a child who has sufficient income for his own support.
(3) For the purposes of subsection (2)(c), a child shall be
deemed to have sufficient income for his own support in an income year where the amount of the net income
and exempt income derived by him in that income year exceeds the amount
of the deductions allowable under this section and section 41A.
Amended by [
Act No. 13 of 1996]; [ Act No. 20 of 2002]; [ Act No. 28 of 2004]

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INCOME TAX ACT 1995
41A. Deduction for educational expenses
(1) Subject to subsections (2) and (3), ev
ery person shall, in an income year, be allowed a deduction from his net income in respect of school fees
paid by him to a recognised educational institution for the education of
his dependent child in respect of whom he has been allowed a deduction under section 41.
(2) The deduction allowable under subsection (
1) shall not exceed –
(a) 10,000 rupees in respect of a child receiv
ing pre-primary, primary or secondary education;
(b) 80,000 rupees in respect of a child receiv
ing tertiary education in Mauritius.
(3) The deduction allowable under subsection (1) in respect of a chi
ld receiving tertiary education outside Mauritius shall be 80,000 rupees.
(4) The deduction under subsection (2) shall
be allowed on production of relevant receipts from the educational institution in respect of school fees
paid to that institution.

Added by [
Act No. 10 of 1998]; [ Act No. 28 of 2004]

42. Deduction for dependent handicapped child
(1) Subject to subsection (2), every person shall, in an inco
me year, be allowed a deduction from his net income in that income year in respect of his dependent
handicapped child who is over the age of 18 in that income year of an am
ount specified in the Third Schedule.
(2) No deduction shall be allowed under this section –
(a) where in respect of the child, the person has claimed in that inco
me year a deduction under section 41; or
(b) where the spouse of the person nhas been allowed a deduction in t
hat income year in respect of the same child.
Amended by [
Act No. 13 of 1996]; [ Act No. 10 of 1998]

42A. Deduction for other handicapped person

(1)
Subject to the other provisions of this section, every person who,
being a tutor for handicapped persons, maintains in an income year a handicapped person shall be allowed a deduction from his net income in t
hat income year in
respect of that handicapped person of an amount specified in the Third S
chedule.
(2) No deduction shall be allowed under this section where a de
duction for a handicapped person has been claimed under section 39,41 or 42 in that income year in
respect of the same person.
(3) Where claims for deduction are made under this section by 2
or more taxpayers, the deduction shall be apportioned between them in proportion to the amount or
value of their respective contributions towards the maintenance of the h
andicapped person.
(4) For the purposes of this section, “tutor” means a person wh
o maintains a handicapped person who is connected with him or with his dependent spouse by blood
relationship as parent, grandparent, brother, sister, uncle, aunt, nephe
w or niece.

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INCOME TAX ACT 1995
Added [ Act No. 10 of 1998]; [ Act No. 20 of 2002]

PART IV – CORPORATE TAXATION

43. Application of Part IV
This Part shall apply to companies, unit trust schemes, trusts and socié
tés.

Amended by [
Act No. 13 of 1996] Sub-Part A – Companies, unit trust schemes, trusts and sociétés

44. Companies
Every company shall be liable to income tax on its chargeable income at
the rate specified in Part II or Part III of the First Schedule, as the case may be.

44A. Alternative minimum tax
(1) Notwithstanding the other provisions of this Act, but subject to t
he other provisions of this section, where in the case of a company, the normal tax
payable is less than 5 per cent of its book profit in an income year, th
e tax payable for that income year shall be deemed to be –
(a) 5 per cent of its book profit in respect of that year; or

(b) 10 per cent of the aggregate amount of any dividends declared and
any amount distributed by way of shares in lieu of dividends in that year,

whichever is lesser.
(2) This section shall not apply –
(a) to a company which is exempt from the payment of income tax; or

(b) where 10 per cent of the aggregate amount of any dividends declare
d and any amount distributed by way of shares in lieu of dividends by the
company for the purposes of subsection (1) does not exceed the amount
of the normal tax payable.
(3) Where a company derives gross income and a
ny dividends, profits or gains referred to in subsection (4)(a), any expenditure attributable to the
production of the dividends, profits or gains shall be disallowed for th
e calculation of the book profit of the company for the purposes of this section.

(4) For the purposes of
this section –
“book profit” means the profit computed in accordance with international
ly accepted accounting practices –

(a) as redu
ced by –
(i) dividends receivable from resident compani
es;

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INCOME TAX ACT 1995
(ii)
profits on disposal or revaluation of fixed assets; and
(iii) profits or gains from sale or revaluatio
n of securities,
if any such item is credited to the profit and l
oss account; and

(b) as incr
eased by –

(i)
loss on disposal or revaluation of fixed assets; and

(ii)
loss from sale or revaluation of securities,
if any such item is debited to the profit and lo
ss account;

“normal tax payable” means the tax payable arrived at by multiplying the
chargeable income of the company by the tax rate applicable to that company and after
allowing for any credit to which the company may be entitled except a cr
edit for any foreign tax.
Added by [
Act No. 28 of 2004]

Amended by [
Act No. 13 of 1996]; [ Act No. 25 of 2000]; [ Act No. 14 of 2005]

45. Unit Trust Schemes
(1) Every trustee of a unit trust scheme shall pay income tax o
n his chargeable income at the rate specified in Part II of the First Schedule.
(2) Any gains derived by the trustee of a unit trust scheme on
realisation of any investments shall be deemed not to be income derived by the trustee provided that at
least 70 percent of the gains –
(a) is not distributed as income to the unit holders but is credited t
o the Unit Trust Fund of the scheme;
(b) is appropriated to meet realised losses; or
(c) is applied towards a capital purpose only.
(3) Any distribution to a unit holder out of the net income der
ived by the unit trust schemes shall be deemed to be a dividend to a shareholder.
Amended by [
Act No. 13 of 1996]

46. Trusts
(1) Subject to section 7 and subsections (2) and (3) of thi
s section, every trust shall be liable to income tax on its chargeable income at the rate specified in Part III of the
First Schedule.

(2) A trust –
(a) of which the settlor is a non-resident or
holds a Category 1 Global Business Licence or a Category 2 Global Business Licence
under the Financial Services Development Act 2001 or another trust which
qualifies under this subsection; and
(b) (i) of which all the beneficiaries appoi
nted under the terms of the trust are, throughout an income year, non-residents or hold
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INCOME TAX ACT 1995
a Category 1 Global Business Licence or a Category 2 Global Business Lic
ence under the Financial Services Development Act 2001; or
(ii) which is a purpose trust under the Trusts
Act 2001 and whose purpose is carried out outside Mauritius,
shall be liable to income tax on its chargeable
income at the rate specified in Part II of the First Schedule.

(3) Where a trust which qualifies under subsection (2) deposi
ts a declaration of non-residence for any income year with the Commissioner within 3 months after the
expiry of the income year, it shall be exempt from income tax in respect
of that income year.
(4) The chargeable income under subsections (1) and (2) sha
ll be the difference between –
(a) the net income derived by the trust; and
(b) the aggregate amount of income distributed to the beneficiaries un
der the terms of the trust.
(5) Any amount of income distributed to the beneficiaries under
the terms of the trust shall be deemed to be a charge under section 10(l)(d) and shall be liable to income
tax in the hands of the beneficiaries.
(6) Notwithstanding subsection (5), a non-resident beneficiar
y of a trust shall be exempt from income tax in respect of his income under the terms of the trust.
Amended by [
Act No. 13 of 1996]; [ Act No. 9 of 1997]; [ Act No. 18 of 1999]; [ Act No. 25 of 2000] [ Act No. 14 of 2001]; [ Act No. 18 of 2003]

47. Sociétés
(1) No resident société shall be liable to income tax
.
(2) Subject to the other provisions of this Act, every associat
e of a resident société shall be liable to income tax on his share of income from that soci6t6.
(3) The net income of an associate from a resident sociC@t6 sha
ll be deemed to be the share to which he would have been entitled in the income of the société during
an income year if the income had been wholly distributed among the assoc
iates.
(4) For the purpose of calculating the net income of an associa
te specified in subsection (3), the associate shall be deemed –
(a) to have derived that part of the gross income of the société
; and
(b) to have incurred that part of the allowable deductions of the soci
été,
which bear the same proportion to the gross income or allowable deductio
ns of the société as his share in the income of the société calculated in accordance with subsection
(3) bears to the income of the société.
(5) Every associate of a société holding a Category 1 Glo
bal Business Licence under the under the Financial Service Development Act 2001 shall be liable to income tax
in respect of his share of income in that société at the rate spec
ified –
(a) in Part I of the First Schedule where the associate is an individu
al, subject to a maximum rate of 15 per cent;
(b) in Part II of the First Schedule where the associate is a company.

Amended by [
Act No. 13 of 2001]

(6) Notwithstanding subsection (1), a société referred
to in subsection (5) may, by notice in writing given simultaneously to the Commissioner and to the Commission
established under the Financial Service Development Act 2001, opt to be
liable to income tax at the rate specified in Part II of the first Schedule.
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INCOME TAX ACT 1995

Amended by [
Act No. 25 of 2000];[ Act No. 13 of 2001]

(7) A non-resident soci6td shall –
(a) be liable to income tax as if the société were a company; an
d
(b) pay income tax on its chargeable income at a rate specified in Par
t II or Part III of the First Schedule, as the case may be.
Amended by [
Act No. 13 of 1996]; [ Act No. 25 of 2000]

48. Listed companies and subsidiaries of listed companies
(1) Where, on the appropriate date specified in subsection (2)
, a company was a listed company or a subsidiary of a listed company, that company shall be liable to
income tax for any year of assessment –
(a) in the case where it is a tax incentive company, at the rate speci
fied in Part II of the First Schedule; or
(b) in any other case, at the rate specified in Part III of the First
Schedule.

(2) The appropriate date shall be –
(a) where section 118 applies, the date of the relevant annual balance
of the company’s accounts; or
(b) in any other case, the last day of the income year preceding that
year of assessment.

(3) For the purposes of this section –
“listed company” means a company which has been admitted to, and h
as not been suspended or withdrawn from, the Official List; and
“subsidiary of a listed company” means a public company whose issued
share capital is held by a listed company to the extent of at least 60 per cent.

49. Companies in the freeport zone
(1) Subject to the other provisions of this se
ction, a private freeport developer or freeport operator shall be exempt from income tax.
(2) Where a private freeport developer or free
port operator is authorised by virtue of its licence to carry out any specified manufacturing or
processing activities, it shall, subject to subsection (3), be liable
to income tax on its chargeable income at the rate specified in Part II of the First Schedule.
(3) Where a private freeport developer or freeport operato
r referred to in subsection (2) is licensed prior to 1 June 2002 and is authorised to provide goods
and services to a person outside the freeport zone –
(a)
it shall be liable to income tax on its chargeable income computed by re
ference to its income derived from the provision of those goods and
services at the rate specified in Part II of the First Schedule; but
(b) it shall be exempt from income tax in resp
ect of its income other than its income referred to in
paragraph (a).
(4) Where a private freeport developer or free
port operator, other than one referred to in subsection (2) or (3), is authorised to provide goods and
services to a person outside the freeport zone, it shall be liable to in
come tax on its income from the provision of those goods and services –
(a) at the rate specified in Part II of the Fi
rst Schedule where the sale is made to a company holding an investment certificate in respect of an
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INCOME TAX ACT 1995
export enterprise under the Investment Promotion Act or to a duty free s
hop under the Customs Act; and
(b) at the rate specified in Part III of the F
irst Schedule, in any other case.
(5) Where a company is licensed to carry out a
ctivities as an occasional operator, it shall be liable to income tax on its income derived from those
activities at the rate specified in Part III of the First Schedule.
(6) Every third party freeport developer shall
be liable to income tax on its chargeable income at the rate specified in Part II of the First Schedule.
(7) The chargeable income under subsections (
2), (3) and (4) shall be computed in such manner as may be prescribed.
(8) In this section, “freeport operator”, “occasional operator”, “priv
ate freeport developer” and “third party freeport developer” means a company licensed as such
under the Freeport Act 2004.

Amended by [
Act No. 18 of 1999]; [ Act No. 25 of 2000]; [ Act No. 20 of 2002]; [ Act No. 18 of 2003]; [ Act No. 43 of 2004]; [ Act No. 14 of 2005]

50. Insurance, shipping, aircraft and other business
(1) The net income of a company deriving income from insurance,
shipping or aircraft business shall be ascertained in such manner as may be prescribed.
(2) The Minister may, by regulations, make provision for the as
certainment of the net income of any other business.
Sub-Part B – Gross Income

51. Income included in gross income

Subject to the other provisions of this Act, the gross income of a compa
ny shall include the income referred to in section 10 (1) (b), (c), (d) and (e).

52. Income received in anticipation
The provisions of section 12 shall apply in all respects to a company as
they apply to an individual.

53. Valuation of trading stock
The provisions of section 13 shall apply in all respects to a company as
they apply to an individual.
54. Transfer of trading stock with other assets or for inadeq
uate consideration
The provisions of section 14 shall apply in all respects to a company as
they apply to an individual.

55. Deemed income arising from expenditure or loss discharged
The provisions of section 15 shall apply in all respects to a company as
they apply to an individual.

56. Apportionment of income on incorporation and disincorpora
tion
The provisions of section 16 shall apply in all respects to a company as
they apply to an individual.
Sub-Part C – Allowable Deductions

57. Expenditure incurred in the production of income
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INCOME TAX ACT 1995
The provisions of section 18 shall apply in all respects to a company as
they apply to an individual.

58. Expenditure incurred on interest in the production of inc
ome
The provisions of section 19 shall apply in all respects to a company as
they apply to an individual.

59. Losses
(1)(a) Where a company satisfies the Commissioner that it has
in an income year incurred a loss, it may deduct that loss in computing its net income for that income
year.
(b) Where the amount of a loss cannot be fully relieved under
paragraph (a), the company may claim that the unrelieved
amount of the loss be carried forward and set off against its
net income derived in the following income year and in the
succeeding years, subject to such conditions as may be
prescribed.
(2) (a) Where a wholly owned subsidiary incorporated on or after 1
July 1993 which is a tax incentive company satisfies the Commissioner that it has in an income
year incurred a loss, it may transfer in that income year any unrelieved
loss to its holding company.
(b) Any unrelieved loss specified in paragraph (a) shall be deemed t
o be incurred by the holding company in the income year in which the loss is transferred and shall
be available for set off against the income of the holding company.
(c) For the purposes of paragraphs (a) and (b),
“wholly owned subsidiary” has the same meaning as in the Companies Ac
t.
(3) (a) Subject to paragraph (c), where a miller who is not also
a planter satisfies the Commissioner that he has in an income year incurred a loss, he shall be entitled
to transfer in that income year any unrelieved loss to a planter related
to the miller in proportion to the share of direct or, indirect interest of the planter with the miller or
of the miller with the planter.
(b) Any unrelieved loss transferred under paragraph (a) shall be dee
med to be incurred by the planter in the income year in which the loss is transferred and shall be
available for set off against the net income of the planter.
(c) This subsection shall apply to any loss incurred in the year of as
sessment 1994-95 and thereafter.
(4)(a) Where a subsidiary company which operates a business in
the Island of Rodrigues satisfies the Commissioner that it has in an income year incurred a loss, it
may transfer in that income year any unrelieved loss to its holding comp
any in Mauritius.
(b) Any unrelieved loss transferred in accordance with para
graph (a) shall be deemed to be incurred by the holding company in the income year in which the loss
is transferred and shall be available for set off against the act income
of the holding company.
Amended by [
Act No. 18 of 1999] (5) For the purposes of subsection (3), a planter is related
to a miller where the planter is –
(a) the shareholder, other than, an individual, of the miller;
(b) the holding company of the miller;

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INCOME TAX ACT 1995
(c) the subsidiary of the miller;
(d) the subsidiary of the holding company of the miller; or
(c)
the shareholder, other than an individual, of the holding company of the
miller.

Amended by [
Act No. 18 of 1999]

(6) (a) Notwithstanding the other provisions of this Act –
(i) where a body of persons engaged in specified activity sells or oth
erwise transfers, in an income year, its business to a company engaged in a specified activity,
the body of persons may, in that income year, transfer any unrelieved lo
ss to the company; or
(ii) where more than 50 per cent of the allotted shares of a body of p
ersons engaged in a specified activity are sold or otherwise transferred in an income year to a
company engaged in a specified activity, any unrelieved loss of the body
of persons –
(A) shall be available in that income year to the body of persons for
carry forward to the succeeding income year; or
(B) may be transferred to the company in proportion to its shareholdin
g in the capital of the body of persons,
provided that the company or its holding company, as the case may be, sa
tisfies the conditions specified in section 12 of the Sugar Industry Efficiency Act 2001.

(b) Any unrelieved loss transferred under paragraph (a)
shall be
deemed to be incurred by the company in the inco
me year in
which the loss is transferred and shall be avail
able for set-
off against the net income of the company.

(c) For the purposes of paragraph (a), “holding company” and “specif
ied activity” have the same meaning as in section 25.
Added [
Act No. 20 of 2001]; [ Act No. 20 of 2002]

(7) Where any question arises under this section –
(a)
in relation to the quantum of losses available for set off or transfer;
(b) as to whether a planter is related to a miller; or
(c) as to any matter relating to the application of this section, the
question shall be determined by the Commissioner.
Amended by [
Act No. 18 of 1999]

59A. Transfer of loss on takeover or merger

(1) Notwithstanding the other provisions of this Act, where –

(a) a company takes over another company engaged in manufacturing acti
vities; or
(b) 2 or more companies engaged in manufacturing activities merge into
one company,

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INCOME TAX ACT 1995
any unrelieved loss of the acquiree may be transferred to the acquirer i
n the income year in which the takeover or merger takes place, on such
conditions relating to safeguard of employment as may be approved by the
Minister.

(2)
Any unrelieved loss transferred under subsection (1) shall be deemed t
o be incurred by the acquirer in the income year in which the loss is transferred and shall be
available for set-off against the net income of the acquirer.
(3) Where, at any time before the exp
iry of 3 years from the date of the takeover or merger, more than 50 per cent of the number of
employees of the acquiree taken over by the acquirer or of the employees
of both the acquiree and the acquirer, as the case may be, are made redundant,
any loss transferred under subsection (1) shall be withdrawn and the a
mount of the loss so withdrawn shall be deemed to be the gross income of the
acquirer in the income year in which the employees are made redundant.
(4) For the purposes of this section –
“acquiree” means a company of which the assets and liabilities hav
e been acquired by another company through a takeover or merger and which is dissolved;
“acquirer” means a company which has acquired the assets and liabi
lities of another company by means of a takeover or merger.
Amended by [
Act No. 18 of 2003]; [ Act No. 14 of 2005]

60. Bad debts and irrecoverable sums
(1) Subject to subsection (3), a company which derives gross
income specified in section 10 (1) (b) in an income year may deduct –
(a) the amount of a debt or sum which is proved to have become bad and
to have been actually written off as a bad debt by the company in that income year; and
(b) in the case of banks or of financial institutions as may be approv
ed by the Minister –
(i) the amount of any irrecoverable loan due by a company in liquidati
on in respect of which winding-up procedures have started; and
(ii) the amount of a specific loan due by a tax incentive company and
which is considered to be a bad and irrecoverable debt, subject to a prescribed limit.
(2) Subject to subsection (3), a company which derives gross
income, other than gross income specified in section 10 (1) (b), may deduct any debt or sum not received
in an income year but which is deemed to be derived in that income year
and which is proved to have become irrecoverable by the company.
(3) Any amount allowed as a deduction under subsections (1) a
nd (2) which is subsequently received by the company shall be deemed to be gross income derived in the
income year in which it is received.

61. Contributions to superannuation fund
The provisions of section 22 shall apply in all respects to a company as
they apply to an individual.

62. Pensions to former employees
(1) Subject to subsection (2), the Commissioner may in the ca
se of a company deriving gross income specified in section 10 (1) (b) allow a deduction in respect of any
amount which is not deductible otherwise than under this section and whi
ch, in the opinion of the Commissioner, is reasonable in the particular circumstances of the case,
paid by the company in that income year by way of a pension to any forme
r employee in the business of the company, or to the surviving spouse of that employee, in
consideration of the past services of that employee in that business of
the company, where the Commissioner is satisfied that –
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INCOME TAX ACT 1995
(a)
the pension is receivable by the recipient –
(i) by virtue of any enactment;
(ii) as of right under a written document for a fixed period or for li
fe;
(iii) in the case of the surviving spouse, for a fixed period or for l
ife or until he or she remarries; or
(iv) on grounds which the Commissioner determines to be compassionate
grounds; and
(b) except in the case of the death of the employee while in the emplo
yment of the company, the employee did not retire from his employment before attaining the
appropriate retiring age.

(2) This section shall not apply where –
(a) the employee was or is a director of the company and was not in th
e full-time employment of the company; or
(b) in any other case, because of any relationship to or with the empl
oyer or otherwise the former employee or the surviving spouse had or has, in the opinion of the
Commissioner, any control in relation to the payment of the pension by t
he company.

63. Annual allowance
The provisions of section 24 shall apply in all respects to a company as
they apply to an individual.

64. Investment allowance
The provisions of section 25 shall apply in all respects to a company as
they apply to an individual.
64A. Additional investment allowance

(1) Subject to other provisions of this section, where –
(a) a manufacturing company has incurred capital expenditure on the ac
quisition of state-of-the-art technological equipment; or
(b) an ICT company has incurred capital expenditure on the acquisition
of new plant and machinery or computer software,
it shall, in addition to the deduction to which it may be entitled under
section 64, be allowed a deduction of 25 per cent of the capital expenditure so incurred by way of
investment allowance in respect of the income year in which the expendit
ure is incurred.
(2) No deduction under subsection (1) shall be allowed in res
pect of expenditure incurred –
(a) in the acquisition of a road vehicle; or
(b)
in the case of a manufacturer company, on or after 1 July 2008.

(2A) The deduction allowable under subsection (1) to a manufactu
ring company in respect of capital expenditure incurred on or after 1 July 2005 shall be
at the rate of –
(a) 20 per cent of the capital expenditure inc
urred in the income year ending on 30 June 2006;
(b) 15 per cent of the capital expenditure inc
urred in the income year ending on 30 June 2007; and

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INCOME TAX ACT 1995
(c) 10 per cent of the capital expenditure incurred in the income year
ending on 30 June 2008.
(3) No investment allowance shall be allowed under this section
where, before the expiry of 5 years from the date on which the expenditure was incurred –
(a) the equipment is sold, scrapped or ceases to be used for the purpo
ses of the business carried on by the company; or
(b) the business carried on by the company is permanently discontinued
.
(4) Where a deduction has been allowed under this section and a
ny of the events specified in subsection (3) occurs, the deduction allowed shall be withdrawn and the
amount of the deduction so withdrawn shall be deemed to be the gross inc
ome of the company in the income year in which the event occurs.
Added [
Act No. 25 of 2000]; [ Act No. 20 of 2002]; [ Act No. 28 of 2004]

65. Pre-operational expenses of tax incentive companies Where a company incorporated on or after 1 July 1993, being a tax incent
ive company, has incurred pre-operational expenses, it shall be allowed a deduction from its gross
income of the expenses so incurred.

66. Contributions to road fund
A company which derives gross income specified in section 1 0 (1) (b)
may, in an income year, deduct from its gross income any expenditure incurred in that income year on
contributions to any road fund approved by the Minister or set up under
any enactment.

67. Donations to charitable institutions
(1) Subject to subsection (2), every company shall, in an inc
ome year, be allowed a deduction from its gross income in that income year in respect of any donation made
to a charitable institution.
(2) The deduction allowable under subsection (1) shall not, i
n the aggregate, exceed 400,000 rupees

Amended by [
Act No. 25 of 2000]; [ Act No. 28 of 2004]

67A. Marketing and promotional expenses
A company engaged in tourism or export activities may, in an income year
, deduct from its gross income twice the amount of any expenditure incurred in that income year on
overseas marketing, export promotion including participation in internat
ional trade fairs, overseas advertising and preparation of tenders for the export of goods or services.

Added by [
Act No. 9 of 1997]

67B. Contributions to sports clubs and sports training centr
es

(1) Subject to subsection (2), where in respect of an inco
me year, a company proves to the satisfaction of the Commissioner that it has incurred expenditure on
contributions to any sports club, Sports Federation, Multisport Organisa
tion, the Trust Fund for Excellence in Sports established under the Finance and Audit (Trust Fund for
Excellence in Sports) Regulations 2002 or any sport training centre set
up by Government, it shall be allowed, in that income year, a deduction from its gross income in respect
of the expenditure so incurred.
(2) The deduction allowable under subsection (1) shall not, i
n the aggregate, exceed one million rupees.

(3) For the purposes of this section, “sport
s club”, “Sports Federation” and “Multisport Organisation”
have the same meaning as in the Sports Act 2001.

Amended by [
Act No. 9 of 1997]; [ Act No. 10 of 1998]; [ Act No. 28 of 2004]

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INCOME TAX ACT 1995
67C. Contributions to National Solidarity Fund and Prime Minister’s C
hildren’s Fund
Section 37B shall apply in all respects to a company as they apply to an
individual.

Added by [
Act No. 9 of 1997]; [ Act No. 28 of 2004]

67D. Contributions to employees’ share scheme
Every company shall, in an income year, be allowed a deduction from its
gross income in respect of any contribution made in that income year to an employees’ share scheme.

Added [
Act No. 18 of 1999]

67E. Investment in start-up companies (1) Where a company has subscribed in an income year to the sha
re capital issued by a start-up company within 24 months of the date of the incorporation of the start-
up company, the company shall be allowed in that income year and in each
of the 2 succeeding income years a deduction from its gross income at the rate of 33 1/3 per cent
of the amount so invested.
(2) No deduction under this section shall be allowed where a ta
x credit has been allowed under section 69 in respect of the same investment.
(3) For the purposes of this section, a company incorporated un
der the Companies Act 1984 and engaged in the development and provision of services in respect of
information technology, telecommunications and multimedia development sh
all be regarded as a start-up company for a period of 24 months as from the date of its
incorporation, provided that more than half of the voting power at a gen
eral meeting is controlled by individuals who are the promoters of the company and have conceived
the business project for which the company has been set up.

67F. Expenditure incurred in the setting up of social infrastructure
Every company shall, in an income year, be allowed a deduction from its
gross income in respect of any expenditure incurred in that income year for the setting up of such social
infrastructure for the benefit of the community, as may be approved by t
he Minister.

67G. Contributions to the national ambulances services

Every company shall, in an income year, be allowed a deduction from its
gross income in respect of any contribution made in that income year towards the provision of national
ambulance services.

Added by [
Act No. 25 of 2000]

68. Unauthorised deductions

The provisions of section 26 shall apply in all respects to a company as
they apply to an individual.
Sub-Part D – Tax Credits

69. Investment tax credit
(1)
Subject to the other provisions of this section and to section 72, where
a company has subscribed in an income year to the share capital issued by a company which is listed
on the Stock Exchange or an equity fund or an authorized mutual fund, it
shall be allowed a tax credit by way of deduction from its income tax otherwise payable for that income
year and for each of the 2 subsequent income years of an amount equal to
10 per cent of the amount actually paid in cash.

Amended by [
Act No. 28 of 2004]; [Act 14 of 2005]

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INCOME TAX ACT 1995
(2) No deduction under subsection (1)
shall –
(a) in any one income year exceed 300,000 rupees; or
(c)
be allowed where a company has claimed an exemption under item
14 of Part IV of the Second Schedule in respect of the same investment.

Amended by [
Act No. 25 of 2000]; [ Act No. 20 of 2002] (3) Where –
(a)
the shares or any part of the shares are sold or transferred;or
(c) the company reduces its capital and makes a repayment to the shar
eholder,no tax credit under this section in respect of those shares or any part thereof shall be
allowed byway of deduction for the income year in which the sale, transf
er, cessation or repayment takes place.

Amended by [
Act No. 28 of 2004]; [ Act No. 14 of 2005]

(4) This section shall not apply to a company which is a tax in
centive company.

69A. Special tax credit for investment in qualify
ing companies

(1) Subject to the other provisions of this se
ction, where a company has subscribed in an income year to the stated capital of a qualifying company
of an amount exceeding 60 million rupees or at least 20 per cent of the
stated capital, whichever is the higher, it shall be allowed a tax credit by way of deduction
from its income tax otherwise payable for the income year immediately pr
eceding the income year in which the shares were acquired and at the option of the
company –
(a) for each of the 3 subsequent income years,
of an amount equal to 15 per cent of the amount actually paid in cash; or
(b) for each of the 5 subsequent income years,
of an amount equal to 10 per cent of the amount actually paid in cash.
(2) Subject to subsection (3), where the ded
uction under subsection (1) in respect of an income year exceeds the amount of income tax otherwise
payable for that income year, the excess may be carried forward to the f
ollowing income year.
(3) No deduction under subsection (2) in res
pect of an investment shall be carried forward beyond a period of 5 consecutive income years starting
from the income year in which the investment was made.
(4) Where a deduction has been allowed under t
his section and the qualifying company has not started operations by 30 June 2006, the deduction
allowed shall be withdrawn and the total amount of tax credit claimed sh
all be deemed to be income tax payable to the Commissioner in the income year
following the income year ending 30 June 2006.

(5) Where –
(a) the shares or any part of the shares are s
old or transferred;
(b) the qualifying company reduces its capital
and makes a repayment to the shareholder; or
(c) the trade carried on by the qualifying com
pany is permanently discontinued,

no tax credit under this section in respect of those shares or any part
thereof shall be allowed by way of deduction for the income year in which the sale, transfer,
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INCOME TAX ACT 1995
repayment or cessation takes place.
(6)
No deduction under this section shall be allowed where a company has cla
imed a deduction under section 69 in respect of the same investment.

(7) For the purposes of this section, “qualifying company” means
a company set up for the purpose of operating a spinning, weaving or dyeing factory.

Amended by [
Act No. 18 of 2003]; [ Act No. 14 of 2005]

70. Tax credit to modernisation and expansion enterprises
(1) Subject to the other provisions of this section and to sect
ion 72, where a company which is the holder of an investment certificate in respect of a modernisation and
expansion enterprise, issued under the Investment Promotion Act 2000 has
incurred capital expenditure, of not less than 10,000,000 rupees within 2 years from the date of
the issue of the certificate, on the acquisition of new plant and equipm
ent or technology for modernisation and expansion, it shall be allowed a tax credit by way of deduction
from the income tax otherwise payable by it of an amount equal to IO per
cent of the capital expenditure go incurred.

Amended by [No. 23 of 2001]

(2) The tax credit under subsection (1) may be spread in such
manner as the company may opt for over a period of 3 years starting from the income year in which the
expenditure was incurred.
(3) Where a tax credit under subsection (1) has for any incom
e year been allowed and within 5 years following that income year –
(a) the company ceases to be engaged wholly or mainly in the qualifyin
g activity; or
(b)
the company sells or otherwise transfers the new plant and equipment or
technology,
an amount equal to the tax credit or the proportionate part of the tax c
redit allowed under this section shall be included in the income tax payable by the company in the
income year in which the cessation, sale or transfer takes place.
(4) The tax credit allowed under this section shall be in addit
ion to the allowances to which the company is entitled under sections 63 and 64.
(5) For the purposes of this section, ‘qualifying activity’ has
the meaning assigned to it in the Industrial Expansion Act 1993.
(6)
This section shall, not apply to a company which is a tax incentive comp
any.

71. Tax credit for exports
(1) Subject to subsection (2) and to section 72, every compan
y, engaged in the export of goods which are manufactured or produced in Mauritius or in the provision of
services to a non-resident, shall, in an income year, be allowed a tax c
redit by way of deduction from the income tax otherwise payable by the company in that income year of
such amount as may be prescribed.
(1)
Subsection (1) shall not apply to a company which is a tax incentive c
ompany.

72. Limitation to tax credits
Where, in an income year, the amount of income tax otherwise payable by
a company after deducting the aggregate amount of tax credits specified in sections 69, 70 and 71 –
(a) exceeds 15 per cent of its chargeable income; the aggregate
amount of tax credits shall be allowed as a deduction; or
(b) does not exceed 15 per cent of its chargeable income, the a
ggregate amount of tax credits shall be limited to such amount that would not reduce the tax payable after
deducting that amount to less than 15 per cent of the chargeable income
of the company.
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PART V – INTERNATIONAL ASPECTS OF INCOME TAX

73. Definition of residence
For the purposes of this Act, ‘resident’, in respect of an income year,
when applied to –
(a)
an individual means a person who –
(i) has his domicile unless his permanent place of abode is outside Ma
uritius;
(ii) has been present in Mauritius in that income year, for a period o
f, or an aggregate period of, 183 days or more; or
(iii) has been present in Mauritius in that income year and the 2 prec
eding income years, for an aggregate period of 270 days or more;
Amended by [
Act No. 9 of 1997]

(b)
a company, means a company which –
(i) is incorporated in Mauritius; or
(ii) has its central management and control in Mauritius;

(c) a société –
(i) means a société which has its seat or siège in Mauritius;
and
(ii) includes a société which has at least one associate or asso
cié or gérant resident in Mauritius;

(d) a trust, means a trust –
(i) where the trust is administered in Mauritius and a majority of the
trustees are resident in Mauritius; or
(ii) where the settler of the trust was resident in Mauritius at the t
ime the instrument creating the trust was executed;
(e) any other association or body of persons, means an associat
ion or body of persons which is managed or administered in Mauritius.
73A. Residence in the case of company holding a Category 2 Gl
obal Business Licence

A company holding a Category 2 Global Business Licence under
the Financial
Services Development Act 2001 shall not be resident for the
purposes of
section 76.

Added by [
Act No. 15 of 2001]

74. Income derived from Mauritius
(1) Subject to subsection (2), income derived from Mauritius
shall include-
(a) emoluments derived from any office or employment, the duties of wh
ich are performed wholly or mainly in Mauritius, whether such emoluments are received in
Mauritius or not;
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INCOME TAX ACT 1995
(b) annuity, pension including a pension in respect of past services r
eferred to in sections 23 and 62;

(c) income derived from any business carried on wholly or partly in Ma
uritius;
(d) income derived from any contract wholly or partly performed in Mau
ritius;
(e) income derived by a person in his capacity as owner of any immovab
le property in Mauritius;
(f) income derived from investment in shares,, debentures or other sec
urities in Mauritius;
(g) income derived by a person from money lent by him –
(i) in Mauritius; or
(ii) outside Mauritius to –
(A) a resident, other than a resident banking company, except where th
e money lent is used by the resident for the purpose of a business carried on by him
outside Mauritius through a fixed establishment outside Mauritius; or
(B) a non-resident, if the money lent is used by the non-resident for
the purpose of a business, other than the business of money-lending, carried on by him
in Mauritius through a permanent establishment in Mauritius;
(h) premium or other like payment which is derived from property in Ma
uritius; and
(i) income derived directly or indirectly from any other source in Mau
ritius.
Amended by [No. 23 of 2001]

(2) Where by reason of –
(a) the manufacture, production, or purchase of goods in one country a
nd their sale in another;
(b) successive steps of production or manufacture in different countri
es;
(c) the making of a contract in one country and its performance in ano
ther; or
(d) any other cause,
the source of any income, other than income referred to in subsection (
1) (e), is not exclusively in Mauritius, that income shall be apportioned between its source in Mauritius
and its source elsewhere, or attributed to one of such sources to the ex
clusion of the other, in such manner as the Commissioner thinks fit, having regard to the nature and
relative importance of the source of that income, and the income so appo
rtioned or attributed to a source in Mauritius shall be regarded as derived from Mauritius.

(3) For the purposes of subsection (1) (g), “money lent
” includes –
(a) any money advanced, deposited or otherwise let out whether on, cur
rent account or otherwise; and
(b) any credit given, including the forebearance of a debt, whether on
current account or otherwise.

75. Application of arm’s length test
(1) This section shall apply to any case where –
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INCOME TAX ACT 1995
(a)
any business or other income earning activity carried on in Mauritius –
(i) is controlled by a non-resident; or
(ii) is carried on by a non-resident company or by a company in which
more than one half of the shares are held by or on behalf of a non-resident; or
(b) in the carrying on of any business or other income earning activit
y in Mauritius any person controlling that business or activity, by reason of his relationship or
otherwise with any other person, is not in the opinion of the Commission
er at arm’s length with that person with respect to any commercial or financial transaction; and
(c) it appears to the Commissioner that the business or other income e
arning activity in Mauritius produces no net income or less than the amount of net income which
in the opinion of the Commissioner might be expected to be derived from
that business or activity.
(2) Where the conditions specified in subsection (1) are sati
sfied, the net income of any person carrying on a business or other income earning activity in Mauritius shall
be the amount which the Commissioner determines would have been derived
from that business or activity, had all its commercial and financial transactions and relations
been wholly at arm’s length.
(3) The Minister may make such regulations as he thinks fit for
the purposes of this section.

76. Arrangements for relief from double taxation
(1) The Minister may enter into arrangements with the governmen
t of a foreign country –
(a) with a view to affording relief from double taxation, in relation
to foreign tax imposed by the laws of that country and income tax; and
(b)
for the exchange of information with a view to assisting –
(i) in the determination of credits and exemptions in respect of incom
e tax and foreign tax;
(ii) in the prevention of fraud; or
(iii) in the administration of the laws in relation to income tax and
foreign tax.
(2) Notwithstanding this Act or any other enactment but subject
to the other provisions of this section, an arrangement entered into under subsection (1) shall have effect
in relation to income tax and according to its tenor.
(3) An arrangement under subsection (1) may contain provision
in relation to foreign tax and income tax –
(a) for relief from tax;
(b) for assessing the income derived from sources in Mauritius by non-
residents;
(c) for determining the income to be attributed to non-residents and t
heir agencies, branches, or establishments in Mauritius;
(d) for determining the income to be attributed to residents who have
special relationships with non-residents;
(e) for relief from tax for periods, before the commencement of this A
ct or before the making of the arrangement; and
(f) as to income which is not itself subject to double taxation.
(4) An arrangement under subsection (1) may at any time be am
ended or revoked by a subsequent arrangement, and the subsequent arrangement may contain such
transitional provision as appears to the Minister to be necessary or exp
edient.
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INCOME TAX ACT 1995
(5) Where an arrangement is made under subsection (1), the ob
ligations as to secrecy imposed under section 154 shall not prevent the Commissioner from disclosing to
an officer authorised by the government with which the arrangement is ma
de such information as is required to be disclosed under the arrangement.
(6)
The Minister may make such regulations as he thinks fit to give effect t
o any arrangement entered into under this section.

77. Credits in respect of foreign tax
(1) Where a taxpayer derives income which is subject to foreign
tax, the amount of foreign tax so paid shall be allowed as a credit against income tax payable in
Mauritius in respect of that income.
(2) The credit in respect of foreign tax shall, in the case of
a dividend, include credit for any foreign tax imposed on the profits out of which that dividend is directly or
indirectly paid.
(3) The Minister may, by regulations, provide for the implement
ation of the provisions of this section and for the granting of credit for foreign tax in such manner and on
such conditions as he thinks fit.
PART VI – AGENTS, ABSENTEES AND NON-RESIDENTS AND DECEASED PERSONS
78. Liability of principal not affected
(1) Nothing in this Act relating to an agent shall be construed
so as to release the principal from liability to make returns and pay income tax, and the principal and agent
shall be jointly and severally liable for the income tax.
(2) Where 2 or more persons are liable as agents in respect of
the same income tax, they shall be jointly and severally liable for it.

79. Provisions applying to agents
Subject to this Act, every agent shall –
(a) be answerable for the doing of all such things as are requi
red to be done under this Act in respect of the income derived by him in his representative capacity, or
derived by the principal by virtue of the agency, and for the payment of
income tax on it;
(b) in respect of that income, make returns and be liable on th
at income but in his representative capacity only, and each return and tax liability shall be separate and
distinct from any other;
(c) be authorised and required to retain out of any money or ot
her property received by him in his representative capacity so much as is sufficient to pay the income tax
which is or will become payable in respect of that income;
(d) not make any payment of income to a nonresident or absentee
or transfer out of Mauritius any sum for the purpose of making any such payment, unless and until
arrangements have been made to the satisfaction of the Commissioner for
the payment of any income tax which is or will become payable in respect of that income;
(e) be personally liable for the income tax payable in respect
of the income to the extent of any amount that he has retained, or should have retained under paragraphs
(c) and (d);
(f) be indemnified for all payments which he makes under this
Act or for any requirement of the Commissioner;
(g) where another agent pays an amount for which they are joint
ly liable, be liable to pay to that agent his proportionate share of the amount so paid;
(h) for the purpose of ensuring the payment of income tax, be l
iable, to the extent provided in paragraph (e), in respect of attachable property of any kind vested in him or
under his control or management or in his possession to the same measure
‘s which the Commissioner may enforce against the property of any taxpayer in respect of income
tax.

80. Income tax paid on behalf of another person
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INCOME TAX ACT 1995
Every person who, under this Act, pays income tax for or on behalf of an
y other person may recover it from that other person as a debt in any court of competent jurisdiction or may
retain or deduct it out of money at any time in his hands belonging or p
ayable to that other person.

81. Agents of incapacitated persons, companies and bodies of
persons
(1) Every person who has the possession, control or disposal of
any income derived by an incapacitated person shall be deemed to be the agent of the incapacitated
person in respect of that income.
(2) Every secretary, manager or other principal officer of a co
mpany, société or other body of persons shall be deemed to be the agent of the company, société or other
body of persons in respect of income derived by it.
(3) Every receiver or receiver and manager of the property of a
company, or every liquidator of a company, shall be deemed to be the agent of the company in respect of
any income derived by the company in any income year.
(4) Every trustee shall be deemed to be the agent of a trust in
respect of income derived by that trust.
(5) Every trustee or manager of a unit trust scheme shall be de
emed to be the agent of that unit trust scheme.
(6) For the purposes of this section –
‘incapacitated person’ means a minor or a person suffering from mental o
r physical disability; and
‘manager’, in relation to a unit trust scheme, has the same meaning a
s in the Unit Trust Act 1989.

82. Agents of absentees and non-residents

(1)
Notwithstanding the fact that there may be another agent in Mauritius wh
o shall continue to be liable as agent, but subject to this Act –
(a) every person who carries on business in Mauritius on behalf of a p
rincipal who is an absentee shall be deemed to be the agent of that principal in respect of all
income derived from that business and shall be liable to income tax on i
t, whether or not any income derived by the principal is received by him;
(b) where a non-resident derives chargeable income from Mauritius from
the business of shipping, the master of any ship and the captain of any aircraft shall be
deemed to be the agent of that non-resident in respect of all income der
ived from the carriage of passengers, cargo or mail by that ship or aircraft and shall be liable to
income tax on it, whether or not any income derived by the nonresident i
s received by him;
(c) every person who in Mauritius collects or receives or in any way h
as the possession, control or disposal of any income derived by an absentee shall be deemed to
be the agent of the absentee in respect of that income.

(2) Where a non-resident sells goods –
(a) by himself while in Mauritius; or
(b) through a person who is in Mauritius, and the goods are in Mauriti
us or are to be brought into Mauritius for the purpose or in pursuance or consequence of the sale,
the nonresident shall be deemed to have sold the goods in the course of
carrying on business in Mauritius, whether the contract of sale is made in or outside Mauritius.
(3) Where goods are sold by a non-resident through a person who
is in Mauritius, that person shall be deemed to be the agent of that non-resident in respect of all
income derived from the business carried on in Mauritius by the non-resi
dent and shall be liable to income tax on it, whether or not any income derived by the nonresident is
received by him.

83. Deceased persons

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INCOME TAX ACT 1995
(1) Where a taxpayer dies, every person specified in subsection
(3), shall, subject to subsections (2), (4), (5) and (6), be liable to income tax on all income derived by the
taxpayer in his lifetime in the same manner in which the taxpayer would
have been liable had he remained alive, and shall be deemed to be an agent of the deceased
taxpayer.
(2)
The income tax payable in accordance with subsection (1) shall be redu
ced by –
(a) 10,000 rupees; or
(b) an amount equivalent to half of any lump sum payable under any ena
ctment on the death of the taxpayer by way of death gratuity or in commutation of pension or
from a superannuation fund,

whichever is the higher.
(3) The persons specified for the purposes of subsection (1)
shall be –
(a) an heir who accepts the succession of the deceased simply (“purem
ent et simplement”) or under benefit of inventory;
(b) a surviving spouse;
(c)
a universal legatee;
(d) an executor;
(e) a notary acting as liquidator of the succession of the deceased;
(f) where there is no person specified in paragraph (a), (b) or (
c), a legatee or donee; and
(g) where he is vested with the vacant succession of the deceased, the
Curator of Vacant Estates.
(4) Where a person specified in subsection (3) has distribute
d the whole of the estate of the deceased taxpayer and thereafter a change occurs in the rate of income tax,
he shall not be liable for any additional income tax resulting from the
change.
(5) A person specified in subsection (3)(a), (b) or (f)
shall not be liable under subsection (1) to any income tax in excess of his share in the estate of the deceased
taxpayer.
(6) Nothing in this section shall affect the rights of a person
specified in subsection (3) over or against any heir, surviving spouse or legatee.
PART VII – ANTI-AVOIDANCE PROVISIONS

84. Interest on debentures issued by reference to shares
Where a company has issued debentures to its shareholders or any class o
f shareholders, and the amount of the debentures issued to each shareholder has been determined by
reference to the number, the nominal value or the paid-up value of the s
hares in that company or in any other company, whether or not that other company is being or has been
wound up, that were held by or on behalf of the shareholder at the time
the debentures were issued or at any earlier time, the interest paid by the company on the debentures so
issued shall not be an allowable deduction and shall be deemed to be a d
ividend received from the company by the shareholders or class of shareholders of the company.

85. Excess of remuneration or share of profits
(1) Subject to subsection (3), where –
(a) a taxpayer carries on any business or other income earning activit
y and employs a relative, or, being a company, employs a relative of a director or shareholder of
the company, to perform services in connection with the business or acti
vity;
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INCOME TAX ACT 1995
(b) a taxpayer carries on business or other income earning activity as
an associate with any person, whether or not any other person is a member of the société; and
(i) a relative of the taxpayer is employed by the société to per
form services in connection with the business or activity; or
(ii) where one of the associates is a company, a relative of a directo
r or shareholder of the company is employed by the société to perform services in connection
with the business or activity; or
(c) a taxpayer carries on business or other income earning activity in
association with a relative or with a company of which a director or shareholder is a relative of the
taxpayer or, being a company, carries on business or other income earnin
g activity in association with a relative of a director or shareholder of the company, whether or
not any other person is a member of the société,
and the Commissioner is of opinion that the remuneration, salary, share
of profits or other income payable to or for the benefit of that relative or company under the contract
of employment or on the terms of the société exceeds the amount wh
ich is reasonable, having regard to the nature and extent of the services rendered, the value of the
contributions made by the respective associates by way of services or ca
pital or otherwise, and any other relevant matters, the Commissioner may apportion the net income
of the business or other income earning activity, without deducting any
amount payable to that relative or company, between the parties to the contract of employment or the
associates or any of them in such shares and proportions as he considers
reasonable, and the amounts so apportioned shall be deemed to be income derived by the persons
to whom those amounts are so apportioned and by no other person.
(2) Subject to subsection (3), where any sum paid or credited
by a company, being or purporting to be remuneration for services rendered by a person who is a relative
of a director or shareholder of the company, is apportioned to that comp
any in accordance with subsection (1), the amount so apportioned to the company shall be deemed to
be a benefit referred to in section 86A received by that person as a sha
reholder of the company.
(3) This section shall not apply to a contract of employment or
an agreement to form a société where –
(a) the contract or agreement is in writing and signed by all parties;
(b) no associate and no person employed under the contract or agreemen
t was a minor at the date on which the contract was signed;
(c) the contract or agreement is binding on the parties for a term of
not less than 3 years and cannot be terminated by any party before the expiry of that term;
(d) each party to the contract has a real and effective control of the
remuneration, salary, share of profit, or other income to which he is entitled under the contract; and
(e) the remuneration, salary, share of profits or other income payable
to a relative or to a company of which a director or shareholder is a relative is not of such an
amount that the transaction constitutes a gift or other disposition of p
roperty without adequate consideration in money or money’s worth.

Amended by [
Act No. 23 of 2001]

86. Excessive remuneration to shareholder or director
Where any sum paid or credited by a company, being or purporting to be r
emuneration for services rendered by a person who is a shareholder or director of the company, exceeds
the amount which in the opinion of the Commissioner is reasonable, the a
mount of the excess shall not be an allowable deduction and shall be deemed to be a benefit referred to
in section 86A received by that person as a shareholder of the company.

Amended by [
Act No. 23 of 2001]

86A. Benefit to shareholder
Where a benefit of any nature, whether in money or money’s worth, other
than payment of dividend, is made by a company to any shareholder or a relative of the shareholder, the
value of that benefit, to the extent that it exceeds the payment, if any
, made therefor, shall be deemed to be income referred to in section 10(1)(e) and received by the shareholder
or the relative of the shareholder, as the case may be.

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INCOME TAX ACT 1995
Added by [ Act No. 23 of 2001]

87. Excessive management expenses (1) Subject to subsection (2), where a person carries on any
business or other income earning activity and the Commissioner is of the opinion that any management
expenses incurred by him exceed the amount which is reasonable, having r
egard to the nature and extent of the management services rendered, the amount of the excess
shall not be an allowable deduction.
(2) This section shall not apply to the extent that the income
of the taxpayer concerned is adjusted under section 84, 85 or 86.
(3) For the purposes of this section, “management expenses”
means an emolument, fee, rent, commission, charge or other administration expense incurred in the
general management of a business or other income earning activity.

88. Leases for other than an adequate rent

(1) Where property owned by a person, by 2 or more persons whet
her jointly or in undivided ownership or by a société is leased to a relative of any of those persons or
any associate of the société or to a related company, or where pro
perty owned by a company is leased to a shareholder or a relative of a shareholder or to any other person
and the rent is not an adequate rent for the property or the lease makes
no provision for the payment of rent, there shall be deemed to be payable under the lease a rent that
is equal to an adequate rent for the property, and that rent shall be de
emed to be income derived by the lessor –
(a) where a rent is payable under the lease, in respect of the periods
for which the rent is so payable; or
(b) where no rent is payable under the lease, in respect of such perio
ds as the Commissioner determines.
(2) The rent deemed to be payable under subsection (1) shall
be deemed to accrue from day to day during the period in respect of which it is payable, and shall be
apportioned accordingly.
(3) For the purposes of this section, ‘adequate rent’ means the
amount of rent which the Commissioner determines to be adequate for the period for which the
determination is made.

89. Rights over income retained
Where a person sells property or any right to income to a relative and r
etains or obtains the power to enjoy income arising from that property or from that right or retains or obtains
the right to dispose of or direct or control the disposition of that inc
ome or of that property or right, the income shall be deemed to be income derived by the transferor and by no
other person as if the sale had not taken place.

90. Transactions designed to avoid liability to income tax
(1) This section shall apply where any transaction has been ent
ered into or effected and that transaction has, or would have had but for this section, the effect of
conferring a tax benefit on a person, hereinafter referred to as relevan
t person, and having regard to –
(a)
the manner in which the transaction was entered into or carried out;
(b) the form and substance of the transaction;
(c) the result in relation to the operation of this Act that, but for
this section, would have been achieved by the transaction;
(d) any change in the financial position of the relevant person that h
as resulted, will result, or may reasonably be expected to result, from the transaction;
(e) any change in the financial position of any person who has, or has
had, any connection, whether of a business, family or other nature, with the relevant person,
being a change that has resulted or may reasonably be expected to result
from the transaction;
(f) whether the transaction has created rights or obligations which wo
uld not normally be created between persons dealing with each other at arm’s length under a
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INCOME TAX ACT 1995
transaction of the kind in question; and
(g) the participation in the transaction of a corporation resident or
carrying on business outside Mauritius,
the Commissioner may conclude that the person, or one of the persons, wh
o entered into or carried out the transaction, did so for the sole or dominant purpose of enabling
the relevant person, either alone or in conjunction with other persons,
to obtain a tax benefit.
(2) Where subsection (1) applies the Commissioner shall asses
s the liability to tax of the relevant person –
(a) as if the transaction or any part thereof had not been
entered into or carried out; or
(b) in such other manner as the Commissioner considers appropriate to
counteract the tax benefit which would otherwise be obtained.

(3) For the purposes of this section –
‘tax benefit’ means the avoidance or postponement of the liability to pa
y income tax or the reduction in the amount thereof;
‘transaction’ includes a transaction, operation or scheme whether or not
such transaction, operation or scheme is enforceable, or intended to be enforceable, by legal
proceedings.
PART VIII – RETURNS, COLLECTION AND PAYMENT OF TAX

91. Due date for payment of income tax
Subject to the other provisions of this Act, income tax for any year of
assessment shall, whether or not a return of income has been submitted, or an assessment has been made,
be due on 1 July in that year.
Sub-Part A – Pay As You Earn (PAYE) System

92. Application of Sub-Part A
This Sub-Part shall apply to emoluments but shall not apply to emolument
s derived by an exempt person.

93. Employer to withhold tax from emoluments

(1) Every employer shall, at the time the emoluments are receiv
ed by or made available to an employee, withhold income tax from the emoluments of that employee.

(2) The tax shall be calculated –
(a)
on the chargeable income of the employee determined under section 96; an
d
(b) in accordance with either Part A, Part B, Part C or Part D of the
Fifth Schedule, as the case may be.
(3) Every employer shall give to his employee a Statement of Em
oluments and Tax Deduction in such manner as may be prescribed.

94. Registration of employers
Every employer shall register with the Commissioner in such manner and o
n such conditions as may be prescribed.

95. Employee declaration
(1)
Subject to subsections (2) and (3), every employee who, for an incom
e year is entitled to personal reliefs and deductions under sections 30, 32, 33, 34, 36, 36B, 37, 37A,
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INCOME TAX ACT 1995
37B, 37C, 38, 39, 40, 41, 41A, 42 and 42A in respect of that income year
and who wishes to have those deductions taken into account for the purposes of determining his
chargeable income and the amount of income tax, if any, to be withheld f
rom his emoluments under section 93 during that income year, shall submit to his employer an
Employee Declaration Form in such manner and on such conditions as may b
e prescribed.
(2) The relief by way of deductions under sections 32, 33 and 3
4 shall be subject to the limit under section 35.
(3) Where any of the reliefs or deductions referred to in subse
ction (1) has been claimed, that relief or deduction shall not be claimed for the purposes of Sub-Part B of
PART VIII.
Amended by [
Act No. 13 of 1996]; [ Act No. 9 of 1997]; [ Act No. 10 of 1998]; [ Act No. 18 of 1999]; [ Act No. 25 of 2000]

96. Ascertainment of chargeable income
(1) Where an employee has submitted an Employee Declaration For
m under section 95, his chargeable income in respect of each pay period shall, subject to
subsections (3) and (4), be the difference between his emoluments fo
r that pay period and the sum of –
(a) the deductions allowable under sections 28 and 29 and which are at
tributable to that pay period; and
(b)
such appropriate fraction as may be prescribed of the total amount of de
ductions claimed by the employee in his Employee Declaration Form.
(2)(a) Where an employee has not submitted an Employee
Declaration Form under section 95, his chargeable income in respect of each pay period shall,
subject to subsections (3) and (4), be the difference between his em
oluments for that pay period and the total amount of the deductions allowable under sections 28
and 29 attributable to that pay period.

(b) Where any fees are payable – (i) by a company to any of its directors; or
(ii) by a statutory body to any member of its Board, Council, Commissi
on, Committee or by whatever name called,
whether or not the director or member, as the case may be, is an exempt
person, and that director or member does not receive any other emoluments from that
company or statutory body, the chargeable income of the director or memb
er shall be the difference between the fees payable and the amount of the deduction
allowable under section 28.
(c) Where emoluments are derived from Mauritius by expatriate pilots and flight engineers approved by the Minister, the
chargeable income of the pilot or flight engineer in respect
of each pay period shall, subject to subsections (3) and (4)
be the difference between his emoluments for that pay period
and the total amount of the deductions allowable under
sections 28 and 29 attributable to that pay period.
(d)
Notwithstanding item 12 of Part II of the Second Schedule, a seaman who
is employed on a vessel registered in Mauritius or on a foreign vessel may, by notice
in writing given simultaneously to the Commissioner and to his employer,
elect that his chargeable income shall, in respect of each pay period, be the amount of his
emoluments for that pay period.
(e) Where, in respect of an employee, tax has been withheld in an inco
me year under section 93 on the chargeable income determined under paragraphs (c) or (d), the
amount of tax so withheld shall be deemed to be the final amount of tax
payable by that employee for that income year and in relation to, that chargeable income, the
provisions of Sub-Part C of PART VIII shall not apply.

Amended by [
Act No. 10 of 1998]; [ Act No. 20 of 2002]

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INCOME TAX ACT 1995
(3) Where an end-of-year bonus and leave pay prescribed by an e
nactment is received or made available to an employee other than an exempt person, the chargeable
income on that bonus and leave pay shall be equal to the chargeable inco
me on the emoluments exclusive of the bonus and leave pay for the month in which the bonus and
the leave pay is received provided that the end-of year bonus represents
one month bonus.
(4) Where the end-of-year bonus referred to in subsection (3)
either exceeds or is less than one month bonus, the chargeable income shall be calculated proportionately.
Amended by [
Act No. 13 of 1996]

97. Direction not to withhold tax
Where income tax is required to be withheld from the emoluments of an em
ployee under this Sub-Part during an income year and the employee proves to the satisfaction of the
Commissioner that he is not chargeable to income tax for that income yea
r, the Commissioner may, by written notice under his hand to the employer, direct that no tax shall be
withheld from the emoluments of that employee.

98. Decision as to whether an amount is emoluments
Where any question arises in relation to an employer or an employee as t
o whether any amount is or is not emoluments to which this Sub-Part applies, the question shall be
decided by the Commissioner, whose decision shall be notified to the emp
loyer or employee in writing.

99. Obligation of employer to withhold tax
The obligation of an employer to withhold tax under section 93 shall pre
vail over –
(a) any right or obligation to withhold any other amount from s
uch payment; or
(b) any law providing that the amount of any such payment shall
not be reduced or be subject to attachment.

100. Payment of tax by employer
(1)
An employer who has withheld tax under this Sub-Part shall pay the tax s
o withheld within 20 days from the end of the month in which the tax was withheld in such manner
as maybe prescribed.

(1A) Every person registered as an employer for the purposes of PA
YE who, at any time, has in his employment 50 or more employees shall, unless otherwise
authorised, submit his PAYE return and remit the tax withheld electronic
ally through such computer system as may be approved by the Commissioner under
section 128A(1).
(1B) Every employer, irrespective of the numbe
r of employees in his employment, who submits his PAYE return and remits the tax withheld in the
manner specified in subsection (1A), shall –
(a) notwithstanding subsection (1), pay the
tax so withheld on or before the end of the month immediately following the month in which the
tax was withheld; and
(c)
continue to submit his PAYE return and remit the tax withheld electronic
ally until such time as he ceases to be an employer.
Amended by [
Act No. 18 of 2003] (2) An employer who has not withheld tax as required by this Su
b-Part shall be liable to pay to the Commissioner the amount of tax which has not been so withheld but
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INCOME TAX ACT 1995
the employer shall be entitled to recover that amount from the employee.

101. Penalty for late payment of tax by employer
(1) Where an employer fails to pay the amount of tax required t
o be withheld under this Sub-Part, he shall be liable to pay to the Commissioner, in addition to the tax, a
penalty representing 2 per cent of the amount of the tax, excluding the
penalty under this section, for each month or part of the month during which the tax remains unpaid.
(2) The penalty under this section shall not; in the aggregate,
exceed the amount of income tax remaining unpaid.

102. Priority over tax withheld
(1) Notwithstanding any other enactment tax withheld by an empl
oyer under this Sub-Part –
(a) shall be held on behalf -of the Government of Mauritius; and
(b) shall not be subject to attachment in respect of any debt or liabi
lity of the employer.
(2) In the event of the liquidation or bankruptcy of the employ
er, the amount withheld under this Sub-Part shall not form part of the estate in liquidation or bankruptcy and
shall be paid in full to the Commissioner before any distribution of pro
perty is made.

103. Tax withheld deemed to be tax paid by employee
Any amount withheld as tax under this Sub-Part shall be deemed to be –
(a)
received by the employee at the time it was withheld; and

(b) paid by him,
and shall be credited against the income tax liability of the employee f
or the income year in which the emoluments were paid.

104. Non-disclosure of information by employer
(1) Subject to subsection (2), no employer shall disclose to
any person other than the Commissioner, any information contained in the Employee Declaration Form
submitted by an employee or any matter relating to this Sub-Part and con
cerning the employee.
(2) Nothing in this section shall prevent the disclosure to an
employee, or with his written consent to any other person, of any information or matter relating to this section
concerning the employee.

SUB-PART B – CURRENT PAYMENT SYSTEM (CPS)

105. Application of Sub-Part B
(1) Subject to subsection (2), this Sub-Part shall apply to t
he gross income specified in section 10(1)(b), and rent specified in section 10(1)(c), derived by an individual.
(2)
This Sub-Part shall not apply to an individual –
(a) who is an exempt person;
(b) who derives gross income exclusively from rent of an amount not ex
ceeding the amount specified in the Sixth Schedule; or
(c) who derives rent of an amount referred to in paragraph (b) and o
ther gross income consisting exclusively of emoluments.
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106. Statement of Income and payment of tax
(1) Every person, other than an exempt person, who, in a CPS qu
arter, derives gross income failing under this Sub-Part –
(a) which exceeds the CPS threshold, whether or not he has a chargeabl
e income for that quarter; or
(b) which does not exceed the CPS threshold but he has a chargeable in
come for that period;
shall submit to the Commissioner, not later than 31 March immediately fo
llowing that period, a Statement of Income in such manner and in such form as may be approved by
the Commissioner and at the same time pay the tax if any, in accordance
with the statement of income.

Amended by [
Act No. 9 of 1997].
(2) The Statement of Income under subsection (1) shall show t
he gross income, the allowable deductions, the net income, the personal reliefs and deductions, the
chargeable income and the tax payable thereon, if any.
(3) Where a resident société or the estate of a deceased
person derives gross income referred to in section 105, the associate of the société or the beneficiary in the
estate shall include in his Statement of Income his share of income from
that gross income.
Amended by [
Act No. 13 of 1996]; [ Act No. 9 of 1997]

107. Ascertainment of chargeable income
(1)
Subject to subsection (2), the chargeable income of a person in respec
t of the CPS period in an income year shall, at the option of the person, be –
(a) the difference between –
(i) 50 per cent of the net income for the year preceding that income y
ear uplifted by 10 per cent or such other percentage as may be prescribed; and
(ii) 50 per cent of the personal reliefs and deductions to which thew
person is entitled under sections 28A, 30, 31, 32, 33, 34, 36, 36B, 37, 37A, 37B, 37C, 38, 39,
40, 41, 41A, 42 and 42A in respect of that income year; or
(b) the difference between –
(i) the gross income for that period; and
(iv)
the sum of –
(A) the amount of allowable deductions for that period including any l
oss brought forward from the year preceding that income year that relates to the
derivation of the gross income; and
(B)
50 per cent of the personal reliefs and deductions to which the person i
s entitled under sections 38A, 30, 31, 32, 33, 34, 36, 36B, 37, 37A, 37B,
37C, 38, 39, 40, 41, 41A, 42 and 42A in respect of that income year.
(2) The relief by way of deductions under sections 32, 33 and 3
4 shall be subject to the limit under section 35.
(3) Where any of the reliefs or deductions referred to in subse
ction (1) has been claimed, that relief or deduction shall not be claimed for the purposes of Sub-Part A of
PART VIII.
Amended by [
Act No. 13 of 1996]; [ Act No. 9 of 1997] [ Act No. 10 of 1998]; [ Act No. 18 of 1999]; [ Act No. 25 of 2000]

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INCOME TAX ACT 1995
108. Calculation of tax
The income tax payable under this Sub-Part shall be calculated on the ch
argeable income ascertained under section 107 and in accordance with the Seventh Schedule.

109. Penalty for late submission of Statement of Income
Where a person fails to submit a Statement of income under section 106,
he shall be liable to pay to the Commissioner a penalty representing 5000 rupees per month or part of the
month or such other amount as may be prescribed, until such time as the
Statement of Income is submitted, provided that the total penalty payable shall not exceed 50,000 rupees.

[
Act No. 9 of 1997]; [ Act No. 20 of 2002]

110. Penalty for late payment of tax under CPS
Where a taxpayer fails to pay any income tax due on or before the last d
ay on which it is payable under section 106, he shall be liable to pay to the Commissioner, in addition to the
tax, a penalty representing 25 per cent of the amount of tax remaining u
npaid.

111. Return and payment of tax at end of income year
(1) Every person who is required to submit a Statement of Incom
e under section 106 shall, at the end of the income year, submit to the Commissioner the return required
to be submitted under section 112.
(2) Where the amount of tax payable on the chargeable income in
accordance with the return referred to in subsection (1) exceeds the sum of –
(a) the amount of any tax paid under this Sub-Part excluding any penal
ty under sections 109 and 110; and
(b) any amount of tax withheld under Sub-Part A,
the person shall pay the difference at the time the return is submitted
together with the penalty specified in subsection (3), if any.

Amended by [
Act No. 9 of 1997] (3) Subject to subsection (4), where the amount of tax pay
able on the income falling under this Sub-Part exceeds the amount of any tax paid in accordance with the
Statement of Income by more than 60 per cent of the amount of tax payabl
e, the person shall, at the time the return under section 112 is submitted, pay, in addition to the
difference referred to in subsection (2), a penalty representing 25 pe
r cent of the amount in excess of the 60 per cent.
Amended by [
Act No. 9 of 1997] (4) The penalty under subsection (3) shall not apply where, i
n respect of the CPS period in an income year, the taxpayer has opted to compute his net income in
accordance with section 107 (1)(a)(i).

Amended by [
Act No. 9 of 1997]

Sub-Part C – Returns

112. Return and payment of tax by individuals
(1) Subject to the other provisions of this Act, every individu
al who, whether or not he is a taxpayer, derives during an income year gross income failing under –
(a) section 10(1)(a) exceeding 400,000 rupees; or
(b) Sub-Part B of Part VIII exceeding the CPS threshold,

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INCOME TAX ACT 1995
shall submit to the Commissioner, not later, than 30 September following
that income year, a return in such manner and in such form as may be approved by him specifying –
(i) all income derived by the individual during that income year;
(ii) the personal reliefs and deductions to which he is entitled in re
spect of that income year; and
(iii) such other particulars as may be required by the Commissioner; a
nd
at the same time pay any tax payable in accordance with his return.
(2) The relief by way of deductions under sections 32, 33 and 3
4 shall be subject to the limit under section 35.
(3) Where, at the end of an income year, a person has a chargea
ble income for that income year, he shall submit the return required to be submitted under subsection
(1) and at the same time pay any tax payable.
Amended by [
Act No. 13 of 1996]; [ Act No. 9 of 1997]; [ Act No. 25 of 2000]; [ Act No. 23 of 2001]; [ Act No. 20 of 2002]

113. Power to require returns
(1) For the purposes of ascertaining for any income year the ch
argeable income of a person –
(a) who has not submitted a return under section 112 and the Commissio
ner has reason to believe that the person is a taxpayer; or
(b) who is not required to submit a return under section 112 (3),
the Commissioner may, by notice in writing, require that person to submi
t to him a return in such manner and in such form as may be approved by him giving the particulars
specified in section 112 (1).
(2) A person who has been required to submit a return under sub
section (1) shall, not later than the date specified in the notice, submit to the Commissioner the return of
income and at the same time pay any tax payable in accordance with that
return together with the appropriate penalty under sections 121 and 122, if any.
Amended [
Act No. 25 of 2000]

114. Time limit to require returns
(1) Subject to subsection (2), the Commissioner shall not, in
a year of assessment, require an individual to submit a return required to be submitted under section 113 in
respect of a period beyond 4 years of assessment preceding that year of
assessment.
(2) Where the Commissioner considers that a return under sectio
n 113 is required to be submitted in respect of a period beyond the time limit specified in subsection
(1), he shall, by notice in writing to the person give reasons for whi
ch such return is required to be submitted.
(3) Any person aggrieved by a notice under subsection (2) may l
odge written representations with the Secretary, Assessment Review Committee, in accordance with
section 8E of the Unified Revenue Act 1983.

Amended by [
Act No. 23 of 2001]

115. Return by persons leaving Mauritius
Where a person, other than an exempt person, is about to leave Mauritius
and his absence is unlikely to be temporary, he shall, before leaving, submit to the Commissioner in
respect of the relevant income year a return in such manner and in such
form as may be approved by him giving the particulars specified in section 112 and at the same time –
(a) pay any tax payable in accordance with the return together
with the appropriate penalty under sections 121 and 122, if any; or
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INCOME TAX ACT 1995
(b) give security to the satisfaction of the Commissioner for t
he payment of the income tax payable.

116. Return of income by companies
(1) Subject to the other provisions of this Act, every company
non-resident société, trust other than a trust to which section 46(3) applies, or trustee of a unit trust
scheme, whether or not it is a taxpayer, shall submit to the Commissione
r, not later than the date specified in subsection (2), a return in such manner and in such form as
may be approved by him specifying –
(a) all income derived by it during the preceding income year; and
(b) such other particulars as may be required by the Commissioner, and
at the same time pay any tax payable in accordance with its return.

(2) For the purposes of subsection (1), the date specifie
d shall be –
(a) where the company, non-resident société, trust or trustee of
a unit trust scheme, as the case may be, has an approved return date, not later than 30 September
following the income year; or
(b) in any other case, not later than 31 January following the income
year.

(3) Where a company is an employer submitting PAYE return and r
emitting tax withheld electronically under Sub-Part A of Part VIII, it shall, unless otherwise
authorised, submit its return and pay any tax payable under subsection (
1) electronically through such computer system as may be approved by the Commissioner.

Amended by [
Act No. 13 of 1996]; [ Act No. 9 of 1997]; [ Act No. 14 of 2001]; [ Act No. 18 of 2003]

117. Return of income in special circumstances
Where –

(a) a person –
(i)
has ceased to derive gross income;
(ii) has ceased to carry on business in Mauritius;
(iii) is about to discontinue carrying on business in Mauritius; or
(iv) who is a non-resident trader;
(b) a person is liable to income tax under section 83 on the de
ath of a taxpayer in respect of all income derived by that taxpayer in his lifetime,
he shall forthwith submit to the Commissioner in respect of the relevant
income year a return in such manner and in such form as may be approved by him giving the
particulars specified in section 112 or 116, as the case may be, and at
the same time pay any tax payable in accordance with that return together with the appropriate penalty
under sections 121 and 122, if any.

117A. Basis of assessment on commencement of business
(1) Any person engaged in business and required to submit a return und
er section 112 or 116 shall, in respect of the commencement year of income,
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INCOME TAX ACT 1995
submit a return for a period not exceeding 12 months ending with the dat
e of the annual balance of his accounts.
(2) Where the annual balance of the accounts ends on a date other than
30 June, that date shall be deemed to be an approved return date for the purposes
of section 116(2) and the return submitted under subsection (1) shal
l be deemed to have been made in relation to the income year ending on 30 June
following that date.
(3) For the purposes of this section, “commencement year of income”
means the income year in which the business of a person commences.
Added by [
Act No. 14 of 2005]

118. Approved return date
(1) Any person engaged in business opting for bona fide commercial rea
sons to change his return date shall apply to the Commissioner, within 3 months of the
date of his last balance sheet, for approval of the change.
(2) The Commissioner shall not approve any change under this section w
here no return has been submitted under section 112 or 116 in respect of any of the
last 3 income years.
(3) The Commissioner may approve or refuse to approve the change under
this section and shall give notice of his decision to the applicant within 30 days of the
date of receipt of the application under subsection (1).

(4) Where a change in return date is approved under this section, the basis
on which the profit derived by the applicant from his business in the income year in
which the return date is changed shall be computed in such manner as may
be prescribed.
Amended by [
Act No. 14 of 2005]

119. Return in respect of a trust or a resident société
(1) Where, in an income year, the trustee of a trust other than
a trust to which section 46(3) applies has distributed to its beneficiaries under the terms of the trust deed
any amount out of income of the trust, the trustee shall submit to the C
ommissioner, not later than 30 September following that income year, a return in such manner and in
such form as may be approved by the Commissioner specifying –
(a) the full name of the beneficiaries and the amount distributed to e
ach of them; and
(b) such other particulars as may be required by the Commissioner.
(2) Every resident société shall, in respect of an income
year, submit to the Commissioner, not later than 30 September following that income year, a return in such
manner and in such form as may be approved by him specifying –
(a) all income derived by it during that income year;
(b) the full name of the associates and the share of income
accruing to each of them; and
(c) such other particulars as may be required by the Commissioner.

Amended by [
Act No. 13 of 1996]; [ Act No. 14 of 2001]

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INCOME TAX ACT 1995
120. Return in respect of the estate of a deceased person
(1) Subject to subsection (4), where the estate of a deceased
taxpayer has not been distributed, any person liable to income tax under section 83 shall submit to the
Commissioner, not later than the date specified in subsection (2), a r
eturn in such manner and in such form as may be approved by him specifying –
(a) all income derived by the estate during the preceding income year;
(b) the full name of the beneficiaries and the respective share of the
ir income in the estate; and
(c) such other particulars as may be required by the Commissioner.

(2) For the purposes of subsection (1), the date specifie
d shall be –
(a) where the estate has an approved return date, not later than 30 Se
ptember following the income year; or
(b) in any other case, not later than 31 December following the income
year.
(3) Every beneficiary of the estate shall be liable to income t
ax on his chargeable income including his share of the income derived from the estate.
(4) The Commissioner may by notice in writing, exempt the perso
n from submitting the return under subsection (1) on such conditions as he thinks fit.

121. Penalty for late submission of return of income
(1) Where –

(a) a person deriving gross income –
(i) falling under section 10(1)(a) exceeding 400,000 rupees; or
(ii) specified in section 10(1)(b) and rent specified in section 1
0(1)( c),
fails to submit a return under section 112; or
(b) a company, société, trust or trustee fails to submit a retur
n under section 116,
the person shall be liable to pay to the Commissioner a penalty represen
ting 5,000 rupees per month or part of the month or such other amount as may be prescribed, until
the time the return is submitted, provided that the total penalty payabl
e shall not exceed 50,000 rupees.
(2) Where a company, société, trust, or trustee submits a
return under section 116 but does not attach to the return its profit and loss account and balance sheet or in the
case of a trust or trustee such other appropriate statement of account,
it shall be deemed not to have submitted a return under section 116 and shall be liable to pay to the
Commissioner the penalty specified in subsection (1).
(3) Where a person deriving gross income specified in section 1
0(1)(b) and rent specified in section 10(1)(c) submits a return under section 112 but does not attach to
the return his profit and loss account and balance sheet or such other s
tatement of account as maybe necessary to, ascertain his net income, he shall be deemed not to have
submitted a return under section 112 and shall be liable to pay to the C
ommissioner the penalty specified in subsection (1).
Amended by [
Act No. 9 of 1997]; [ Act No. 25 of 2000]; [ Act No. 20 of 2002]

122. Penalty for late payment of tax
(1) Subject to subsection (2), where a taxpayer fails to pay
any income tax due on or before the last day on which it is payable under section 112 or 116, he shall be
liable to pay to the Commissioner, in addition to the tax, a penalty rep
resenting 2 per cent of the amount of tax, excluding any penalty imposed under this section and under
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INCOME TAX ACT 1995
section 109, 110, 111 or 121, as the case may be, for each month or part
of the month during which the tax remains unpaid.
(2) The penalty under this section shall not, in the aggregate,
exceed the amount of income tax remaining unpaid excluding any penalty imposed under this section and
under section 109,110, 111 or 121.

Amended by [
Act No. 9 of 1997]

122A. Publication of names of companies not submitting returns
(1) Notwithstanding section 8A of the Unified Revenue Act l983
and section 154 of this Act but subject to subsection (2), where a company fails to submit a return under
section 116, the Commissioner may, without prejudice to any action he ma
y take under this Act, with the approval of the Authority established under the Unified Revenue Act
l983, cause to be published, not later than 5 months after the due date,
in 2 newspapers in circulation in Mauritius, the name of the company, the name and address of its
directors and the year of assessment in respect of which the return has
not been submitted.
(2)
The Commissioner shall, prior to the publication referred to in subsecti
on (1), notify the company in writing of his intention to publish the name of the company in
accordance with subsection (1), unless the company submits the return
due within 7 days of the date of the notice.

Added [
Act No. 18 of 1999]

122B. Automatic tax claim in case of non submission of return
(1) Where, in respect of a year of assessment –
(a) a person deriving gross income falling under Sub-Part B of Part VI
II who is required to submit a return under section 112 or 113; or
(b) a company which is required to submit a return under section 116;
does not submit such return, the Commissioner may, without prejudice to
the other provisions of this Act, automatically issue a tax claim for that year of assessment to the
person specifying the amount of income tax payable.
(2) The amount claimed under subsection (1) shall be payable
within 28 days of the date of issue of the tax claim.
(3) Any person who disagrees with the amount of income tax clai
med under subsection (1) shall, within the time limit specified in subsection (2) –
(a) give written notice of his disagreement; and
(b) at the same time –
(i) submit the return of income for the relevant year of assessment; a
nd
(ii) pay the income tax in accordance with the return of income, if an
y; and
(iii) pay the appropriate penalties.
(4) Where a person complies with subsection (3), the tax clai
m under subsection (1) shall automatically lapse.
(5) Where a person fails to comply with subsection (2) or (3
), the Commissioner shall proceed –
(a) to enforce payment of the tax claimed under Part XI; and
(b) to institute legal proceedings for failure to submit a return unde
r section 112, 113 or 116.

Added [
Act No. 20 of 2002] PART IX – GENERAL POWERS OF COMMISSIONER

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INCOME TAX ACT 1995
123. Power to require information
(1) Every person shall, when so required by notice in writing,
furnish to the Commissioner in such manner and in such form as may be approved by him, within the time
specified in the notice, information and particulars relating to –
(a) contract for the provision of goods and services;
(b) rent or premium on property;
(c) dividends and interest paid;
(d) emoluments payable; and
(e) such other transactions,
which the Commissioner considers necessary or relevant for the purposes
of this Act and which may be in the possession or custody or under the control of that person.
(2) Subject to subsection (3), any person shall, when so requ
ired by notice in writing, furnish to the Commissioner, within the time specified in the notice, information as
to any money, funds or other assets which may be held by that person for
, or of any money due by that person to, any other person.
(3) Subsection (2) shall not apply to any person –
(a) who, under any other enactment, is prohibited from communicating a
ny information relating to any other person, but only in so far as that information is concerned; or
(b) who carries on a banking business, but only in so far as informati
on relating to transactions made by any person with the bank are concerned.
(4) Notwithstanding subsection (3) (b), section 64 of the B
anking Act 2004 and any other enactment, the Commissioner may require from any person information relating
to –
(a) any amount paid as interest to depositors;
(b) any account or deposit operated, made or opened, as the case m
ay be, by any client, customer or patron of that person, whether such account or deposit is in his
own name, in a fictitious name or in the name of any other person, upon
the Commissioner stating in writing that –
(i)
he has reason to believe that the client, customer or patron has been co
nvicted of an offence relating to dangerous drugs or has been or is illicitly in
possession of or has been or is illicitly dealing in dangerous drugs or
dangerous weapons; and
(ii) he reasonably requires the information in order to prevent any ev
asion of income tax or any fraud on the public revenue.

Amended by [
Act No. 35 of 2004] (5) Where any person who is required to furnish any information
under subsection (4)(b) considers that the Commissioner’s request is unreasonable, he may lodge
written representations with the Secretary, Assessment Review Committee,
in accordance with section 8E of the Unified Revenue Act 1983.
(6) At the hearing on the representations before the Committee,
it shall be sufficient for the Commissioner to satisfy the Committee that he has reasonable grounds to
request the disclosure of the information.
(7)
For the purposes of this section, “Commissioner” includes the Directo
r-General appointed under the Unified Revenue Act 1983.
(8) Every person who fails to comply with a request made by the
Commissioner under subsection (4) (b) shall, unless the request of the Commissioner has been
cancelled following the hearing on the representations before the Commit
tee, commit an offence and shall, on conviction be liable to a fine which shall not exceed one million
rupees.
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INCOME TAX ACT 1995

Amended by [
Act No. 10 of 1998]; [ Act No. 18 of 1999]; [Act No. 23
of 2001]; [
Act No. 17 of 2003]

124. Obligation to furnish information
(1) Notwithstanding section 27(6) of the Financial Services D
evelopment Act 2001, every person, when so required by the Commissioner, shall, within the time fixed by
the Commissioner, give orally or in writing, as may be required, all suc
h information as may be demanded of him by the Commissioner for the purpose of enabling the
Commissioner –
(a) to make an assessment or to collect tax; or
(b) to comply with any request for the exchange of information under a
n arrangement made pursuant to section 76.

Amended by [
Act No. 25 of 2000]; [ Act No. 13 of 2001]

(2) Any person, when so required by notice in writing, shall fu
rnish to the Commissioner, within the time specified in the notice –
(a) a certified copy of the profit and loss account and balance sheet,
or such other statement of account as may be required, duly audited by a qualified auditor;
(b) a statement analysing all moneys or value received and payments ma
de by the person, his spouse and minor children;
(c) a statement of all assets and liabilities of the person
, his spouse and minor children; and
(d) where the request relates to subsection (1)(b), such informati
on as may be specified in the notice for the purpose of satisfying the request under that subsection.
Amended by [
Act No. 13 of 2001]

125. Production of books and records
The Commissioner may, for the purposes of ascertaining the tax liability
of any person, require that person –

(a) to produce for –
(i) examination, at such time and place as may be specified, books, ac
counts, records, registers, bank statements and other, documents whether on computer or
otherwise, which the Commissioner considers necessary and which may be i
n the possession or custody or under the control of that person;
(ii) retention for such period as the Commissioner considers necessary
any book, account, record, register, statement or document specified in subparagraph (i) and for
taking copies or extracts therefrom;
(b) to attend, at such time and place as the Commissioner may s
pecify, for the purpose of being examined in respect of any transaction or matter relating to the income
tax liability of that person.

Amended by [
Act No. 28 of 2004]

126. Power of inspection
(1) For the purposes of ascertaining the tax liability of any p
erson or the tax paid or payable or for making any assessment under this Act or for the purpose of
administering this Act, the Commissioner or any officer authorised by hi
m may –
(a) at all reasonable times, enter any business premises or
place where any business is carried on or anything is done in connection with the business;
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INCOME TAX ACT 1995
(b) inspect any information, book, record or other document
, whether these are recorded in a computer system or otherwise, and retain any such information,
book, record or document and take copies or extracts therefrom; and
(c) require the person carrying on the business or any of h
is employees or any other person on those premises or at that place to give him all reasonable
assistance and to answer all proper questions either orally or in writin
g.

(2) Any person who –
(a) fails to provide such assistance or to answer such questions as ma
y be required under subsection (1);
(b) obstructs the Commissioner or any officer in the exercise of his p
owers under subsection (1),
shall commit an offence.

Amended by [
Act No. 28 of 2004]

126A. Power to access computers and other electronic devices

(1) For the purposes of
ascertaining the tax liability of any person under this Act, the Commissioner may, subject to subsection (2), at any reasonable
time –

(a) have ac
cess to –
(i) any computer, computer software, whether installed in t
he computer or otherwise, electronic till or any other device, used in connection with any
document which the person is required to produce for the purpose of asce
rtaining his tax liability;
(ii) any information, code or technology which has the capa
bility of retransforming or unscrambling encrypted data contained or available to such
computers or devices into readable and comprehensive format or text;

(b) inspect
and check the operation of any such computer, electronic till or other device and make extracts of any computer software, compute
r
output or such other document used in connection therewith;

(c) require
any person by whom or on whose behalf the computer or other electronic device is operated, or any person concerned with the opera
tion
of the equipment, to give such assistance as is necessary for the purpos
es of this section;

(d) require
any person in possession of decryption information to grant him access to such decryption information necessary to decrypt data
required for the purposes of this section.

(2) Subsection (1) shall not apply to any banking busines
s regulated by the Banking Act.

Added by [
Act No. 28 of 2004]

127. Time limit to require information and production of books and r
ecords
(1) Subject to subsections (2) and (3), the Commissioner sh
all not, in a year of assessment, require a person –
(a) to furnish the information required to be furnished under sections
123 (1) and124; or
(b) to produce the books and records required to be produced under sec
tion 125,in respect of a period beyond 4 years of assessment preceding that year of
assessment.

(2) Where the Commissioner, in a year of assessment, requires a
person to furnish information under section 124, or to produce books and records under section 125,
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INCOME TAX ACT 1995
for the purposes of examining a return submitted by that person under se
ction 112, 113 or 116, the time limit under subsection (1) shall be a period of 4 years of assessment
following the year of assessment in which the return is submitted.
(3) Where the Commissioner considers that the information or th
e books and records referred to in subsection (1) or (2) are required to be furnished or produced in
respect of a period beyond the time limit specified in that subsection,
he shall, by notice in writing to the person give reasons for which such information or such books and
records are required.
(4) Any person aggrieved by a notice under subsection (3) may
lodge written representations with the Secretary, Assessment Review Committee, in accordance with
section 8E of the Unified Revenue Act 1993.
Amended by [
Act No. 23 of 2001]; [ Act No. 20 of 2002]

128. Power to waive penalty
The Commissioner may waive the whole or part of any penalty imposed unde
r this Act where he is satisfied that failure to comply with this Act was attributable to adjust or
reasonable cause.

128A. Use of computer system
(1) Notwithstanding, the other provisions of this Act and subje
ct to section 8D of the Unified Revenue Act 1983, the Commissioner may authorise a return, document and
payment of income tax or any act or thing which is required to be done i
n relation thereto, to be made, submitted or done electronically through such computer system as may
be approved by him.
(2) A person who submits a return of document and pays income t
ax in the manner specified in subsection (1) shall continue to submit returns of documents and pay tax
in that manner unless otherwise authorised by the Commissioner.
(3) Where, immediately before the commencement of this section,
a person has been submitting, a return or document and has been paying income tax electronically,
the computer system of that person shall be deemed to have been approved
by the Commissioner for the purposes of subsection (1).
(4) With effect from such date as may be notified in the Gazett
e, the Commissioner may direct that any matter, act or thing referred to in subsection (1) shall be made,
submitted or done electronically unless otherwise authorised.

Added by [
Act No. 23 of 2001]

PART X – ASSESSMENTS, OBJECTIONS AND REVIEW OF ASSESSMENTS

129. Commissioner may make assessments
(1) Where, in respect of a year of assessment, the Commissioner
–
(a) is not satisfied with the return submitted by a person under secti
on 112, 113 or 116, as the case may be; or
(b) has reason to believe that a person who has not submitted a return
of income is a taxpayer,
he may, according to the best of his judgement, make an assessment of th
e amount of chargeable income of, and income tax payable by, including any penalty under
sections 109, 110, 111, 121 and 122, that person for that year of assess
ment and give him written notice of the assessment.
(2) Where the Commissioner has given written notice to any pers
on of an assessment under subsection (1), that person shall pay the income tax within 28 days of the
date of the notice of assessment.

(3) –
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INCOME TAX ACT 1995
Amended by [
Act No. 9 of 1997]; [ Act No. 23 of 2001]; [ Act No. 20 of 2002]

130. Time limit to make assessments
(1) Subject to subsection (2), the Commissioner shall not, in
a year of assessment, make an assessment under section 129 in respect of a period beyond 4 years of
assessment preceding the year of assessment in which a return under sect
ion 112, 113 or 116, as the case may be, is made.

(2) The Commissioner may, at any time, make an assessment under
section 129 –
(a) where a return of income under section 112 or 116, as the case may be, i
n respect of a year of assessment has not been made; or
(b) in case of fraud or wilful neglect.

Amended by [
Act No. 20 of 2002]

131. Special assessments
(1) Where the Commissioner is not satisfied with the return sub
mitted by a person under section 115 or 117, as the case may be or has reason to believe that a person
who has not submitted a return under those sections is a taxpayer, he ma
y make an assessment of the amount of chargeable income of and income tax payable by, including
any penalty under section 109, 110, 111, 121 or 122, as the case may be,
that person and give him written notice of the assessment.
(2) Notwithstanding section 112 or 116, where the Commissioner
has made an assessment under subsection (1), he may in the notice require that person –
(a) to pay the income tax assessed within such time as may be specifie
d in the notice; or
(b) to give security to the satisfaction of the Commissioner for the p
ayment of the income tax.

(3) –

Amended by [
Act No. 9 of 1997]

131A. Objection to assessments
(1) Subject to subsection (6), where a person who has been as
sessed to income tax under section 129 or 131 is dissatisfied with the assessment, he may, within 28 days
of the date of the notice of assessment, object to the assessment by let
ter sent to the Commissioner by registered post.

(2) Where a person makes an objection under subsection (1), h
e shall –

(a) specify in his letter of objection, in respect of each of the items in t
he notice of assessment, the detailed grounds of the objection; and
(b) at the same time pay 30 per cent of the amount of income tax claimed in
the notice of assessment.
(3) Subsection (2)(b) shall not apply where a person object
s exclusively to the amount of gross income assessed as emoluments or to the amount of personal reliefs and
deductions under Sub-Part C of Part III allowed as deductions in the not
ice of assessment.
(4) Where a person who has made an objection under subsection (
1), has not for the relevant income year, submitted his Statement of Income under section 106 or his
return of income under section 112, 115, 116 or 117, he shall within 28
days of the date of the notice of assessment comply with the provisions of those sections as
appropriate.

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INCOME TAX ACT 1995
(5) Any objection under this section and section 131B shall be
dealt with independently by an objection unit set up by the Commissioner for that purpose.

(6) Where –
(a) the Commissioner considers that the person has not complied with t
he provisions of subsection (2); or
(b) the person has not complied with the provisions of subsection (4)
,
the objection shall be deemed to have lapsed and the Commissioner shall
give notice thereof.
(7) (a) Where it is proved to the satisfaction of the Commissi
oner that, owing to illness or other reasonable cause, a person has been prevented from making an
objection within the time specified in subsection (1), the commissione
r may consider the objection on such terms and conditions as he thinks fit.
(b) Where the Commissioner refuses to consider a late objection
under this subsection, he shall, within 28 days of the days of
receipt of the letter of objection, give notice of the refusal
to the person.
(8) Where a notice under subsection (6) or (7)(b) is give
n the tax specified in the notice of assessment together with any penalty under section 133 shall be paid within 28
days of the date of the notice under subsection (5) or (6)(b), as
the case may be.
(9) Any person who is aggrieved by a decision under subsection
(6) or (7)(b) may lodge written representations with the Secretary Assessment Review Committee in
accordance with section 8E of the Unified Revenue Act 1983.

Added [
Act No. 9 of 1997]; Amended by [ Act No. 23 of 2001]; [ Act No. 20 of 2002]

131B. Determination of objections
(1) Subject to subsection (3), where the Commissioner does no
t refuse to consider an objection under section 131A, he shall –
(a) review the assessment;
(b) disallow or allow it in whole or in part; and
(c) where appropriate, amend the assessment to conform with his determ
ination.
(2) The Commissioner shall give notice of the determination to
the person.
(3) For the purposes of considering an objection and reviewing
an assessment, the Commissioner may by notice, require the person, within the time fixed by the
Commissioner, to comply with any of the provisions of sections 124 and 1
25.

(4) Where the person fails to comply with a notice under subsec
tion (3) within the time specified in the notice, the Commissioner may determine due the objection has
lapsed and he shall give notice thereof.
(5) Where a notice of determination under subsection (2) or (
4) is given, the tax specified in the notice of determination together with any penalty under section 133 shall
be paid within 28 days of the date of the notice of determination.

(6) Where the objection is upheld in whole or in part, any amou
nt of income tax paid under section 131A in excess of the amount determined to be properly payable, shall
be refunded together with interest at the prevailing Bank rate, free of
income tax, from the date the payment is received by the Commissioner to the date it is refunded.
(7) A notice of determination under subsection (2) or (4) i
n respect of an assessment made on or after 1 July 1997, shall be given to the person within 6 months of the
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INCOME TAX ACT 1995
date on which the objection is lodged.
(8) Where the objection is not determined within the period spe
cified in subsection (7), the objection shall be deemed to have been allowed by the Commissioner.
(9) Any person who is aggrieved by a determination under this s
ection may lodge written representations with the Secretary Assessment Review Committee in
accordance with section 8E of the Unified Revenue Act 1983.
Added [
Act No. 9 of 1997]; Amended by [ Act No. 23 of 2001]; [Act No.
20 of 2002]

131C. Objection to determination of loss

(1) Where a person is dissatisfied with a dete
rmination by the Commissioner of the quantum of losses available for set-off or carried forward under
section 20 or 59, he may, within 28 days of the date of the notice of de
termination, object to the determination by letter sent to the Commissioner by registered
post specifying in his letter of objection the detailed grounds of the o
bjection.
(2) An objection under subsection (1) shall
be dealt with by an objection unit set up by the Commissioner for that purpose.
(3) (a) Where it i
s proved to the satisfaction of the Commissioner that, owing to illness or other reasonable cause, a person has been
prevented from making an objection within the time specified in subsecti
on (1), the Commissioner may consider the objection on such terms and conditions as he
thinks fit.
(b) Where the Commissioner
refuses to consider a late objection under paragraph (a), he shall, within 28 days of the date of receipt of the
letter of objection, give notice of the refusal to the person.
(4) Section 131B(1) to (4), (7), (8) a
nd (9) shall apply in all respects for the determination of objections under this section as they apply for the
determination of objections under section 131A.
Added by [
Act No. 18 of 2003]

32. Time limit to amend assessments
(1) Subject to subsection (2), the Commissioner may amend an
assessment made under section 129 or 131.
(2) An assessment shall not be amended after 4 years of assessm
ent from the year of assessment to which the assessment relates.

133. Penalty for non-payment of income tax assessed
(1) Subject to subsection (2), where a person fails to pay an
y income tax payable on or before the last day on which it is payable under section 129 or 131, he shall be
liable to pay to pay to the Commissioner, in addition to the tax, a pena
lty representing 2 per cent of the amount of tax, excluding any penalty imposed under this section and
under section 109, 110, 111 or 121, for each month or part of the month
during which the tax remains unpaid.

(2) The penalty under this section and section 122 shall not, i
n the aggregate, exceed the amount of income tax, excluding any penalty imposed under this Act, remaining
unpaid under section 129 or 131.
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INCOME TAX ACT 1995
Amended by [
Act No. 9 of 1997]; [ Act No. 18 of 1999]; [ Act No. 23 of 2001]; [ Act No. 20 of 2002]

134. Representations to Assessment Review Committee Any person who is aggrieved by a decision, or determination, under secti
ons 98, 114(2), 123(4), 127(2), 131A, 131B and 131C may lodge written representations with the
Secretary, Assessment Review Committee, in accordance with section 8E of
the Unified Revenue Act 1983.
Amended by [
Act No. 9 of 1997]; [ Act No. 18 of 1999]; [Act No. 23 of
2001]; [
Act No. 18 of 2003]

135. Conclusiveness of assessment
Except in proceedings on objection to assessments under section 131A or
on the hearing of representations under section 134 –
(a) no assessment, decision or determination under this Act sha
ll be disputed in any court or in any proceedings either on the ground that the person affected is not liable
to income tax or the amount of tax due and payable is excessive or on an
y other ground; and

Amended by [
Act No. 18 of 1999]; [ Act No. 23 of 2001] (b) every assessment, decision or determination shall be final.
and conclusive and the liability of the person so affected shall be determined accordingly.
PART XI – RECOVERY OF TAX

136. Application of Part XI
This Part shall apply to any tax which has not been paid in accordance w
ith section 100, 101, 106, 109, 110, 111, 112, 113, 115, 116, 117, 121, 122, 122B, 129, 131, 131A, 131B,
133 or 149 or a decision of the Assessment Review Committee under sectio
n 6 of the Tax Appeal Tribunal Act.
Amended by [
Act No. 9 of 1997]; [ Act No. 25 of 2000]; [ Act No. 23 of 2001]; [ Act No. 20 of 2002]

137. Recovery of tax in arrears from emoluments
(1) The Commissioner may for the purpose of securing and enforc
ing payment of income tax in arrears payable by an employee, issue a notice to the employer requiring
him to make deductions from the emoluments of that employee on account o
f income tax payable by him.
(2) The deductions shall be made at such times and in such amou
nt as the Commissioner may, specify in the notice.
(3) The aggregate of the amount of tax deducted under this sect
ion and tax withheld under Sub-Part A of Part VIII shall not, except at the employee’s request, exceed
one third of his emoluments.
(4) An employer to whom a notice under subsection (1) has bee
n issued shall pay the tax deducted under this section to the Commissioner within 20 days from the end
of the month in which the tax was deducted.
(5) The provisions of sections 100, 101, 102, 103 and 104 shall
apply to this section and shall be construed with such modifications, adaptations, qualifications and
exceptions as may be necessity to bring them into conformity with the pr
ovisions of this section.

138. Recovery of tax by attachment
The Commissioner may, without prejudice to any other remedy which he may
have, enforce payment of any tax under this Act by attachment in the same manner as is provided in
the Attachment (Rates and Taxes) Act.

139. Recovery of tax by distress and sale
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INCOME TAX ACT 1995
(1) The Commissioner may issue a warrant in a form specified in
Part I of the Eighth Schedule to an usher of the Supreme Court to recover income tax by distress and
sale of the goods, chattels and effects of the person charged or of the
person answerable for its payment.
(2) Three days’ notice of such sale shall be given in the Gazet
te.

140. Contrainte

(1) Where any income tax is due under this Act, the Commissione
r may apply to a 11judge in Chambers for an order (Contrainte) to issue against the debtor.
(2) Any order issued under subsection (1) shall –
(a)
be served on the debtor; and
(b) be executory.
(3) Any debtor aggrieved by an order issued under subsection (
1) may within l0 days of the service of the order appeal to the Supreme Court.
(4) No costs shall be awarded against an unsuccessful party exc
ept disbursement for-
(a) stamp duty under the Stamp Duty Act 1990;
(b)
service of the order; and
(c)
execution of the order.

140A. Proceedings for temporary closing down of business
(1) Where a person fails to pay any amount of income tax assess
ed under this Act, the Commissioner may notify the person in writing of his intention to close down part
or the whole of the business of that person for a temporary period not e
xceeding 14 days, unless the person, within a period of 7 days of the date of the notice –
(a) pays the amount of income tax unpaid; or
(b) gives security to the satisfaction of the Commissioner for payment
of the amount of the income tax unpaid.
(2) (a) Where the person fails to comply with the notice issued un
der subsection (1), the Commissioner may, with the concurrence of the Revenue Authority
established under the Unified Revenue Act, make an application under oat
h, in such form as may be prescribed, to a District Magistrate for an order to close down part
or the whole of the business of that person for a period not exceeding 1
4 days.

(b) Where an application under oath is made to a Magistrate in the man
ner specified in paragraph (a), the Magistrate may forthwith grant the application.

(c) Upon granting an application under paragraph (b), the Magistrate shall
issue an order to an Usher, in such form as may be prescribed, to close down the business of
the person in accordance with the provisions of this section.
(3) Where an usher executes an order under subsection (2), he
shall affix in a conspicuous place on the front of the premises of the business or part of the business
which has been closed, a notice duly certified by the Commissioner beari
ng the words “CLOSED TEMPORARILY FOR NOT PAYING INCOME TAX”.
(4) Where an order under subsection (2) has been executed and
the person –
(a) effects payment of the amount of income tax unpaid; or
(b) gives security to the satisfaction of the Commissioner for payment
of the amount of the income tax unpaid,
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INCOME TAX ACT 1995
the order shall lapse and the Commissioner shall, in writing, notify the
person accordingly.
(5) Any person who, contrary to the order, carries on the busin
ess or part of the business concerned or who commits any act in breach of the order under this section,
shall commit an offence.
Added [
Act No. 20 of 2002]

141. Privilege
(1) The Government shall have, in respect of any income tax due
and so long as the income tax is not paid in full, a privilege on all immovable properties belonging to the
person by whom the income tax is payable.
(2) Where the Commissioner thinks it necessary for securing the
recovery of any income tax due to inscribe the privilege provided for under subsection (1), he shall
deposit with the Conservator of Mortgages 2 identical memoranda in the f
orm specified in Part II of the Eighth Schedule and shall forthwith notify the person by whom the
income tax is payable of the deposit of the memoranda.
(3) The Conservator of Mortgages shall, upon deposit of the mem
oranda, inscribe the privilege generally on all immovable properties belonging, or which may
subsequently belong, to the person by whom the income tax is payable, an
d shall return one of the memoranda to the Commissioner with a statement written or stamped on
it to the effect that the privilege has been duly inscribed.
(4) Where a privilege is inscribed under this section, it shall
take effect from the date of the inscription.
(5) Where any income tax in respect of which an inscription has
been taken under this section is paid in full or the tax liability is discharged, the Commissioner shall
forthwith send to the Conservator of Mortgages a request in the form spe
cified in Part III of the Eighth Schedule to erase the inscription.
(6) The inscription of a privilege under this section shall be
erased by the Conservator of Mortgages at the request of the Commissioner.
(7) Any inscription or erasure which is required to be taken or
made under this section shall be free from stamp duty under the Stamp Duty Act 1990 or registration dues
leviable under the Registration Duty Act or any other costs.

142. Uninscribed privilege

(1) Notwithstanding section 141, but subject to subsection (2)
, the privilege for the recovery of direct taxes under Articles 2148 and 2152 of the Code Napoléon shall
operate on account of income tax payable under this Act independently of
and without the necessity for inscription, upon –
(a) personal property wherever found;
(b) the proceeds of the sale of immovable property; and
(c) the crops, fruits, rents and revenues, belonging to the person owi
ng the tax.
(2) The privilege conferred under subsection (1) shall operat
e only in respect of tax payable in any one year of assessment, at the discretion of the Commissioner, and
shall rank immediately after the privilege for judicial costs.

143. Security
(1) The Commissioner may, for the purposes of securing payment
of any income tax order a person to furnish security in such manner and in such amount as the
Commissioners.
(2) Any person who fails to comply with an order under subsecti
on (1) shall commit an offence.
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INCOME TAX ACT 1995

144. No limitation of action for recovery of tax
No law relating to the limitation of action shall bar or affect any acti
on or remedy for recovery of income tax.
PART XIA – COMMISSIONER, LARGE TAXPAYER DEPARTMENT

144A. Interpretation of Part XIA

In this Part – “Commissioner, Large Taxpayer Department,” means the Commissioner, Large

Taxpayer Department, referred to in section 8B of the Unified Revenue Ac
t
1983,
“large taxpayer” has the same meaning as in section 8B of the Unified
Revenue Act 1983.

144B. Administration of Income Tax enactments by Commissioner, Large Ta
xpayer
Department
(1)
Notwithstanding the other provisions of this Act or any regulations
made thereunder, the Commissioner, Large Taxpayer Department,
shall administer the Income Tax enactments in so far as they relate to large taxpayers.
(2)
Where, according to the records of the Commissioner of Income Tax, a
person qualifies as a large taxpayer –

(a) the Commissioner of I
ncome Tax shall – (i)
transfer all accounts, returns, assessments and other
documents in respect of that person, to the Commissioner, Large Taxpayer
Department; and
(ii)
as from the date of transfer under subparagraph (i),
cease to administer income tax in relation to that person; and
(b) the Commissioner, Large Taxpayer Department
shall, as from the date of the transfer, administer income tax in respect of that person.
(3) Where in respect of an income year, a person qualifies as a
large taxpayer, he shall –
(a) immediately notify in writing the Commissio
ner of Income Tax of that fact;
(b) in respect of that income year and subseque
nt income years, submit his return of income and pay the income tax due, if any, to the Commissioner,
Large Taxpayer Department, and
(c) discharge all his obligations under the Inc
ome Tax enactments towards the Commissioner Large Taxpayer Department.
Amended by [
Act No. 18 of 1999]; [ Act No. 25 of 2000]; [ Act No. 23 of 2001] PART XII – OFFENCES

145. Offences relating to PAYE

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INCOME TAX ACT 1995
(1) Any person who –
(a) fails to register as an employer;
(b) fails to pay the amount of tax required to be withheld;
(c) fails to pay the amount of tax in arrears required to be deducted;
(d) fails to give the Statement of Emoluments and Tax Deduction to his
employee; or
(e) submits to his employer an Employee Declaration Form which is inco
rrect or false in any material particular,
shall commit an offence and shall, on conviction, be liable to a fine no
t exceeding 5,000 rupees and to imprisonment for a term not exceeding 6 months.

(2) Any person who –
(a) gives a Statement of Emoluments and Tax Deduction which is false o
r misleading in any material particular;
(b) without lawful authority discloses any information concerning his
employee, shall commit an offence and shall, on conviction, be liable to a fine not exceeding 50,000
rupees and to imprisonment for a term not exceeding 2 years.

146. Offences relating to CPS
(1) Where a person fails to submit a Statement of Income under
section 106, he shall commit an offence and shall, on conviction, be liable to a fine not exceeding 5,000
rupees and to imprisonment for a term not exceeding 6 months.
(2) Where a person furnishes a Statement of Income under sectio
n 106 which is false or misleading in any material particular, he shall commit an offence and shall, on
conviction, be liable to a fine not exceeding 50,000 rupees and to impri
sonment for a term not exceeding 2 years.

147. Offences relating to returns, books and records
(1)
Any person who wilfully and with intent to evade income tax-
(a)
submits a false return of income;
(b) gives any false information;
(c) prepares or maintains or authorises the preparation or maintenance
of any false books, records or documents or falsifies or authorises the falsification of any books,
records or documents;
(d) produces for examination any false books, records or documents;
(e) makes default in the performance of any duty imposed on him under
this Act;
(f) refuses or fails, to attend and give evidence when required by the
Commissioner or to answer truly and fully to any question put to him or to produce any document
required of him; or
(g) misleads or attempts to mislead the Commissioner, in relation to a
ny matter or thing affecting his own or any other person’s liability to income tax,
shall commit an offence and shall, on conviction, be liable to a fine no
t exceeding 50,000 rupees and to imprisonment for a term not exceeding 2 years.
(2) Where a person is convicted under subsection (1), he shal
l, in addition to any penalty imposed under subsection (1), be ordered by the court to pay an amount which
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INCOME TAX ACT 1995
shall be equivalent to 3 times the difference between –
(a) the income tax to which he is liable; and
(b) the income tax paid or payable in terms of any return of income su
bmitted.

148. Other offences

(1) Any person who –
(a) fails to submit a return of income;
(b) fails to furnish information and particulars required for the purp
oses of this Act; 122
(c) fails to keep books and records;
(d) fails to produce books and records for examination;
(e) fails to pay any tax payable under this Act; or(D otherwise contr
avenes this Act,
shall commit an offence and shall, on conviction, be liable to a fine no
t exceeding 5,000 rupees and to imprisonment for a term not exceeding 6 months.
(2) Any person who commits an offence in respect of which no sp
ecific penalty is provided shall, on conviction, be liable to a fine not exceeding 5,000 rupees.
(3) Where a person is convicted under subsection (1) (a) fo
r failure to furnish a return of income, he shall, in addition to any penalty imposed under subsection (1), be
ordered by the court to furnish the return within such time as the court
may order.

148A. Prosecution by Commissioner

(1)
The Commissioner may institute criminal procee­dings against any
person for failure to submit a return under section 112, 113, 116, 119 or 120.
(2)
In any proceedings under this section, a certificate in writing
signed by the Commissioner certifying that the return so requ
ired has not been received from the person shall, in the absence of proof to the contrary, be evidence of
the fact stated therein.

Amended by [
Act No. 10 of 1998]

149. Compounding of offences

(1) The Commissioner may, with the concurrence of the Revenue A
uthority established under the Unified Revenue Act 1983, compound any offence committed by a
person under this Act, where such person agrees in writing to pay such a
mount acceptable to the Commissioner representing –
(a) any income tax unpaid; and
(b) an amount not exceeding maximum pecuniary penalty imposable under
this Act for such offence.
(2) Every agreement under subsection (1) shall be made in wri
ting under the hand of the Commissioner and the person and witnessed by an officer.
(3) Every agreement under this section shall be final and concl
usive and a copy thereof shall be delivered to the person.
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INCOME TAX ACT 1995
(4) Where the Commissioner compounds an offence in accordance w
ith this section –
(a) the amount for which the offence is compounded shall be deemed to
be tax assessed under this Act and shall be recoverable as income tax; and
(b) no further proceedings shall be taken in respect of the offence so
compounded against the person.

Amended by [
Act No. 10 of 1998]

150. Fax payable notwithstanding prosecution
Any person convicted of an offence under this Act or who has agreed to t
he compounding of an offence under section 149 shall not be relieved of his liability for payment of any
income tax due.

PART XIII – MISCELLANEOUS

151. Ascertainment of income tax in certain cases
(1) Where, for any of the purposes of this Act, including the a
pplication of the provisions of any double taxation arrangement, it is necessary to ascertain the amount of
income tax payable by a taxpayer in respect of any income of a particula
r nature or from a particular source derived by him in an income year, the amount of income tax shall
be the product of the formula set out in subsection (2).
(2) The formula referred to in subsection (1) shall be –

a x c
b
where a is the amount in respect of which it is
necessary to ascertain the amount of tax;

b is the amount of the income that was take
n
into account in calculating c;

c is the amount of income tax payable by th
e
taxpayer before allowing any credit for
foreign income tax in respect of income
derived by him in that income year.
(3) Any reference to ‘income’ in subsection (2) shall be cons
trued as a reference to income reduced by any deduction, allowance or relief that may properly be regarded
as referring to that income, in particular,
(a) income derived by way of emoluments reduced by emoluments relief;
(b)
income derived from any business including agricultural activities, redu
ced by –
(i)
the amount of interest paid on capital employed in the course of those a
ctivities; and
(ii)
allowances allowed for assets used for the purposes of those activities.

152. Refund of excess income tax

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INCOME TAX ACT 1995
(1) Where, in respect of an income year, an employee whose gros
s income consists exclusively of emoluments, has, under PAYE suffered tax of an amount in excess of
the income tax liability on his chargeable income, he may claim a refund
of the tax so paid or suffered or of the excess amount, as the case may be, by submitting a return of
Income tax that income year in accordance with section 112.
(2) (a) A refund under subsection (1) shall be made within 3 mon
ths of the date of submission of the return of income.
(b) Where the refund is made after 3 months from the date the return o
f income is submitted, the refund shall carry interest free of income tax at the prevailing Bank
rate.
(3) Any person may make a claim to the Commissioner for a refun
d of tax paid in excess within 4 years of assessment after the end of the year of assessment in respect
of which the tax was overpaid.
(4) Where a claim is made under subsection (3) and the Commis
sioner is satisfied that the claimant is entitled to the refund, he shall refund the amount of tax so paid in
excess.
(5) No refund under this section shall be made where the amount
claimed does not exceed 25 rupees.

Amended by [
Act No. 23 of 2001]

153. Keeping of books and records
(1) Every person carrying on business or deriving income other
than emoluments shall keep a full and true record, whether on computer or otherwise, in the English or
French language, of all transactions and other acts engaged in by him th
at are relevant for the purpose of enabling his gross income and allowable deductions under this Act
to be readily ascertained by the Commissioner.

(2) Every employer shall keep –
(a) records showing emoluments paid to each employee and tax withheld
from those emoluments; and
(b) the Employee Declaration Forms furnished by his employees.
(3) Every book, record or document required to be kept under th
is section shall be kept for a period of at least 5 years after the completion of the transaction, act or
operation to which it relates.

Amended by [
Act No. 28 of 2004]

154. Secrecy
(1) Subject to subsection (4) and section 76, every officer s
hall –
(a) before he begins to perform his duties under this Act, take an oat
h of fidelity and secrecy in conformity with this section;
(b) maintain and aid in maintaining the confidentiality and secrecy of
any matter relating to this Act which comes to his knowledge.

(2) Except for the purposes of –

(a) this Ac
t;

(b) any oth
er revenue law;
(c) the National Pensions (Registration of Employers) Reg
ulations 1977;

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INCOME TAX ACT 1995
(d) the Pre
vention of Corruption Act 2002; or

(e) the Dan
gerous Drugs Act,

or where he is authorised in writing to do so by the Minister, no office
r shall communicate to any person any matter relating to this Act.
(3) Except where it is necessary to do so for the purpose of ad
ministering this Act or any other revenue law, or the National Pensions (Registration of Employers)
Regulations 1977, no officer shall be required to produce in any court a
ny document or to divulge or communicate to any court any matter coming to his knowledge in the
performance of his duties as an officer.
(4) Nothing in this section shall prevent the disclosure to a t
axpayer or, with his written consent, to any other person of –
(a)
a document submitted to the Commissioner by the taxpayer;
(b) an assessment made upon the taxpayer; or
(c) the amount of income tax paid or due by the taxpayer.

(5) Any officer who, without lawful excuse, contravenes this se
ction shall commit an offence and shall, on conviction, be liable to a fine not exceeding 5,000 rupees and
to imprisonment for a term not exceeding 2 years.

Amended by [
Act No. 25 of 2000]; [ Act No. 28 of 2004]

155. Service of documents
(1) Any return, Statement of income, payment or other document
required or authorised to be served on or given or made to the Commissioner shall be sent by post to or
left at the office of the Commissioner.
(2) Where any return, Statement of Income, payment or other doc
ument is sent by post to the Commissioner, the date of the postmark shall be deemed to be the date on
which the return, Statement of Income, payment or other document has bee
n served, given or made.
(3) Any notice of assessment, determination or other notice req
uired to be served on or given to any person by the Commissioner may be served or given by –
(a) delivering it personally to him; or
(b) leaving it at or sending it to his usual or last known business or
private address.

(4) Where a person –
(a) refuses to accept delivery of a letter addressed to him; or
(b) fails to take delivery of such a letter which he has been informed
awaits him at a post office,
the document shall be deemed to have been served on him on the date on w
hich he refused to accept the letter or was informed that the letter was at the post office.

Amended by [
Act No. 28 of 2004]

156. Validity of notice of assessment or determination
The validity of a notice of assessment or a determination made under thi
s Act shall not be affected by reason of an error or mistake or omission as to –
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INCOME TAX ACT 1995
(a)
the name or address of the person;

(b) the date or period;
(c) the description of any income; or

(d) the amount of income tax assessed,
if the person intended to be assessed or affected is sufficiently design
ated and the error or mistake or omission is not likely to deceive or mislead that person.

157. Power to write off arrears of tax
Notwithstanding section 144 the Commissioner may, subject to the approva
l of the Revenue Authority established under the Unified Revenue Act 1983, write off any arrears of tax
which, in his opinion, are required to be written off.

Amended by [
Act No. 10 of 1998]

158. Remission of tax
The Minister may remit or order the refund of the whole or part of any i
ncome tax other than the tax payable under section 149.

159. Rulings
(1) Any person who derives or may derive any income may apply t
o the Commissioner for a ruling as to the application of this Act to that income.
(2) An application under this section shall be in writing and s
hall –
(a) include full details of the transaction relating to the income tog
ether with all documents relevant to the transaction;
(b) specify precisely the question as to which the ruling is required;
(c) give a full statement setting out the opinion of that person as to
the application of this Act to that income; and
(d) be accompanied by such fee as may be prescribed.
(3) The Commissioner shall, within 30 days of the receipt of an
application under this section, give a ruling on the question to the applicant.
(4) Subject to subsection (5), a ruling under this section sh
all be binding upon the Commissioner.
(5) Where there is any material difference between the facts re
lating to the transaction and the details contained in the application, the ruling shall not be binding upon
the Commissioner.
(6) A ruling under this section shall be published by the Commi
ssioner in such manner as he thinks fit except that the identity of the person to whom it relates shall not be
indicated.
(7) Subject to subsection (8), any person may rely upon a rul
ing published under subsection (6) as a statement binding on the Commissioner as to the application of this
Act to the facts set out in that ruling.
(8) The Commissioner may by publication in the Gazette notify t
hat a ruling which has been published shall cease to be binding with effect from a date which shall not be
earlier than the date of the notice.

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INCOME TAX ACT 1995
159A. Statement of Practice
The Commissioner shall, from time to time, issue a
nd publish Statements of Practice in relation to the application of specific provisions of this Act.
Added by [
Act No. 14 of 2005]

160. Jurisdiction of Magistrate
Notwithstanding –

(a) section 114(2) of the Courts Act; and
(b)
section 72(5) of the District and Intermediate Courts (Criminal Juris
diction) Act, a Magistrate shall have jurisdiction to try an offence under this Act or any regulations
made under this Act and may impose any penalty provided by this Act.

161. Regulations

(1) The Minister may –
(a) make such regulations as he thinks fit for the purposes of this Ac
t;
(b) by regulations, amend the Schedules, other than Part I, Part II an
d Part III of the First Schedule, the Fifth Schedule and the Seventh Schedule.
(2) Any regulations made under this section may provide for the
levying of fees and charges.
Amended by [
Act No. 13 of 1996]; [ Act No. 25 of 2000]

161A. Transitional provisions
Taxation of qualified corporations
(1) (a) subject to paragraphs (c), a qualified corp
oration may, at any time, by
irrevocable notice in writing given simultaneo
usly to the Commissioner, and to the Commission, or the Bank of Mauritius as the case may be elect
to be governed by this Act.
(b) Where a qualified corporation has made an election under paragrap
h (a), it shall be liable to income tax in the same manner as a tax incentive company in respect
of its income as from the income year in which the notice is given.
(c) Subject to paragraphs (d) and (e), where a qualified corporati
on has not made an election under paragraph (a) it shall, notwithstanding section 162(l) of this Act, be
governed by the Income Tax Act 1974 in relation to –
(i) the ascertainment of its chargeable income;
(ii) the rate at which income tax is calculated;
(iii) the exemption from income tax of interest and of any dividends p
aid out of its income; and
(iv) the submission of its annual return of income.
(d) Where a qualified corporation which is a société does not el
ect to be governed by this Act, the société may, by notice in writing given simultaneously to the
Commissioner and to the Corporation, opt not to be liable to income tax.

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INCOME TAX ACT 1995
(e) Where a société has exercised an option under paragraph (d)
, every associate of the société shall be liable to income tax in respect of his share of income in that
société at the rate specified in paragraph 6 of the First Schedule
to the Income Tax Act 1974.
(f) A company holding a management licence shall –
(i) notwithstanding this Act, be governed by the Income Tax Act 1974 i
n respect of its income prior to 1 July 1998; and
(ii) be liable to income tax in the same manner as a tax incentive com
pany in respect of its income as from 1 July 1998.
(g) “Commission” means the Commission established under the Fina
ncial Services Development Act 2001;
“Company holding a management licence” means a company holding a m
anagement licence under the Financial Services Development Act 2001;

“qualified corporation” mean
s -(a) a corporation holding a Category 1 Global Business Licence under t
he Financial Services Development Act 2001; or
(b) a bank holding a banking licence under the
Banking Act 2004 in so far as its banking transactions with non-residents and corporations
holding a Global Business Licence under the Financial Services Developme
nt Act 2001 are concerned,

and having been in operation before 1 July 1998.
(h) Where a qualified corporation does not make an election under para
graph (a) by 30 June 2002, the qualified corporation shall be deemed to be liable to income tax
in the same manner as a tax incentive company in respect of its income f
or the year of assessment commencing on 1 July 2003 and for every subsequent year of
assessment.

Amended by [
Act No. 13 of 2001]; [ Act No. 20 of 2002];
[
Act No. 35 of 2004] Tax credits for companies
(2)(a) Notwithstanding this Act, relief in respect of investme
nts made in certain companies under section 34A of the Income Tax Act 1974, or in respect of capital
expenditure incurred under section 54J of the Income Tax Act 1974, prior
to 1 July 1995 shall continue to be allowed as tax credits.
(b) Any tax credit allowable under sections 69 and 70 shall, in respec
t of investments made or capital expenditure incurred, prior to 1 July 1995, not betaken into
account for the purposes of calculating the limitation to tax credits un
der section 72.

(c) Tax credit in respect of any amount paid prior to 1 Jul
y 2004 as subscription in the share capital of a company which is a tax incentive company shall
continue to be allowed, provided that the requirements of section 69 are
satisfied.

Added by [
Act No. 28 of 2004] Investment tax credits for individuals
(3) Notwithstanding this Act, relief in respect of investments
made in certain companies under section 34A of the Income Tax Act 1974 prior to 1 July 1996 shall continue
to be allowed as investment tax credit.
Savings
(4) Notwithstanding section 162 and subject to the other provis
ions of this section, the Income Tax Act 1974 and the Income Tax (collection, Recovery and Repayment)
Act shall remain in force until the coming into operation of this Act.
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INCOME TAX ACT 1995
Interest Relief
(5) Any credit facility obtained by way of bank overdraft prior
to 1 July 2001 shall qualify as a loan until 30 June 2002 for the purposes of section 30, provided that the
requirements of the provisions of that section are satisfied.

(6) Section 30(2) and (3) shall not apply in respect o
f loans raised prior to 1 June 1996.
(6A) Subject to subsections (2), (3), (4)
and (5) of section 30, any interest paid in respect of a loan raised during the period 1 June 1996 to 30 June
1999 and –
(a)
secured by mortgage or fixed charge on immovable property;
(b)
raised on the security of an insurance policy on his life or on the life
of his dependent spouse or on the life of his dependent children;
(c)
raised on the security of a standing crop or the proceeds of a crop; or
(d)
raised on the pledge of shares or debentures,

shall qualify as a deduction under that section.

Added by [
Act No. 18 of 2003]

Exempt income

(7) The amendments made –
(a) to item 3 of Part III of the Second Schedule to the Act by the Inc
ome Tax (Amendment of Schedule) Regulations 2000; and
(b) to regulation 3(2) of, and the First Schedule to, the Income Tax
Regulations 1996 by the Income Tax (Amendment) Regulations 2000,
shall not apply to bonds and debentures, the prospectus in respect of wh
ich was issued prior to 31 March 2000.
Contributions to superannuation fund
(8)(a) Where the terms of the instrument establishing a supera
nnuation fund established prior to 27 February 1999 do not contain the provisions of regulation 5(2)(c)
(xvii) and (xviii) of the Income Tax Regulations 1996, the employer
shall, not later than 30 June 2001, apply to the Commissioner under regulation 5(4) of those
regulations to vary the terms of the instrument in order to incorporate
therein those provisions.
(b) Where an employer –
(i) makes an application under subparagraph (a), the Commissioner sh
all approve the variation with effect from the commencement date of the fund in respect of
employees in the service of the employer as at 1 July 2000; or
(ii) fails to make an application under subparagraph (a), the Commis
sioner shall direct the employer to include the provisions of regulation 5(2)(c)(xvii) and (xviii)
of the Income Tax Regulations 1996 in the terms of the instrument of the
fund with effect from the commencement date of the fund.
(c) Where a direction is issued under subparagraph (b)(ii), the pr
ovisions of regulation 5(2)(c)(xvii) and (xviii) of the Income Tax Regulations 1996 shall be deemed to
have been included in the terms of the instrument of the fund with effec
t from the commencement date of the fund in respect of employees in the service of the
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INCOME TAX ACT 1995
employer as at 1 July 2000.
Investment relief

(9) Relief in respect of any amount paid prior to 1 July 2004 a
s subscription in the share capital of a company which is a tax incentive company shall continue to be
allowed provided that the requirements of section 36 are satisfied.

Amended by [
Act No. 25 of 2000]; [ Act No. 13 of 2001]; [ Act No. 28 of 2004]

162. Repeal and savings
(1) Subject to section 161A of the Finance Act 1995, the Income
Tax Act and the Income Tax (Collection, Recovery and Repayment) Act are repealed.
(2) Notwithstanding the repeal of the Income Tax Act and the in
come Tax (Collection, Recovery and Repayment) Act, any act or thing done under those Acts shall be
deemed to have been done under this Act.

Amended by [
Act No. 25 of 2000]

163. Commencement
Subject to section 161A of the Finance Act 1995, this Act shall come int
o operation –
(a) in relation to an individual, on 1 July 1996 in respect of
the income year commencing on 1 July 1996 and in respect of every subsequent income year; and
(b) in relation to any other person, on 1 July 1996 in respect
of the year of assessment, commencing on 1 July 1996 and in respect of every subsequent year of
assessment.

Amended by [
Act No. 25 of 2000]

———————-
FIRST SCHEDULE
(section 4)
Rates of income tax
PART I – INDIVIDUALS

Chargeable income Rate of tax

On the first 25,000 rupees
10 per cent
On the next 25,000 rupees
20 per cent
On the next 450,000 rupees
25 per cent
On the remainder
30 per cent

Amended by [
Act No. 18 of 1999]; [ Act No. 25 of 2000]; [ Act No. 28 of 2004]

————
PART II – TAX INCENTIVE COMPANIES

The rate of tax on chargeable income shall be 15 per cent.
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INCOME TAX ACT 1995

Amended by [
Act No. 10 of 1998]; [ Act No. 25 of 2000] ————
PART III – OTHER COMPANIES
The rate of tax on chargeable income shall be 25 per cent.

Amended [
Act No. 25 of 2000] ————-
PART IV – LIST OF TAX INCENTIVE COMPANIES

1. A company holding an investment ] certificate in respect of an ] export enterprise ]

2. A company holding an investment ] certificate in respect of a ] strategic local enterprise ] ]

3. A company holding an investment ] certificate in respect of ] modernisation and expansion ] enterprise other than a company ] under the engaged in the ] under
manufacture of ] Investment excisable goods under the ] Promotion
Excise Act 1994 ] Act 2000

4. A company holding an investment ] certificate in respect of an ] industrial building enterprise ]

5. A company holding an investment ] certificate in respect of a ] pioneer status enterprise ] 6. A company registered with the Small and Medium Industries
Development Organisation
7. A company holding an export service certificate under the Exp
ort Service Zones Act 1981
8. A company operating an aerodrome.
9. A company holding an investment certificate in respect of hot
el development under the Investment Promotion Act 2000
10. An investment trust company listed on the Stock Exchange or de
signated as an approved investment institution under section 50A of the Stock Exchange Act 1988

11. An authorised mutual fund under the Companies Act 1984

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INCOME TAX ACT 1995
12. A trustee of a unit trust scheme
13. A company holding a housing development certificate issued by
the Minister
14. A polyclinic holdings an investment certificate in respect of
health services under the Investment Promotion Act 2000

15. A manufacturing company
16. A corporation holding a Category I Global Business Licence und
er the Financial Services Development Act 2001.

Amended by [
Act No. 20 of 2002]; [ GN No. 124 of 2002]; [ Act No. 35 of 2004]

17. A société which opts to be liable to income tax under se
ction 47(6).
18. A company engaged wholly in the management of –

(a) a venture capital fund;
(b)
a company holding an investment certificate in respect of a strategic lo
cal enterprise under the Investment Promotion Act 2000:

Amended by [
GN No. 4 of 1998];[ Act No. 23 of 2001]

19. A venture capital fund
20. A bus company operating a bus or a fleet of buses and holding
a road service licence in respect of those buses
21.
A company engaged in the agro-based industry and holding in that respec
t,
an investment certificate under the Investment Promotion Act or a
certificate under Part VIII of the Industrial Expansion Act, as the c
ase
may be.

Amended by [
GN No. 124 of 2002]

22. A company deriving at least 75 per cent of its gross income fr
om agriculture, fishery and livestock
23. A company whose main activity is provide lease financing, as m
ay be approved by Financial Services Commission established under the Financial Services Development
Act 2001.

Amended by [
GN No. 124 of 2002] 24.
A company deriving at least 75 per cent of its gross income from constru
ction activities in Mauritius.
Amended by [
Act No. 28 of 2004]

25. A company duly authorized by the Financial Services Commission
established under the Financial Services Development Act 2001, to conduct business in – (a)
actuarial services and related activities;
(b)
investment management expertise and services;
(c)
investment management and advisory services;
(d)
investment management, pension fund management’ investment advice and
portfolio and asset management;
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INCOME TAX ACT 1995
(e) investment advisory and management services to funds and other corpus in
relation to portfolio investments;
(f)
treasury management within the same group.

Amended by [
GN No. 124 of 2002]

26. A company holding an investment certificate in respect of fish
ing development under the Investment Promotion Act.
Amended by [
GN No. 124 of 2002]

27. A company holding an investment certificate in respect of leis
ure development under the Investment Promotion Act.

Amended by [
GN No. 124 of 2002] 28. A company holding an investment certificate under the Investme
nt Promotion (Regional Development Scheme) Regulations 2001.

Amended by [
GN No. 124 of 2002]

29. A company engaged in the hotel industry.
30. A ICT company.
Amended by [
GN No. 124 of 2002]

31. A company operating a duty free shop, other than a duty free s
hop at the port or airport, under the Customs Act.
32.
A company approved by the Minister responsible for the subject of educat
ion or by the Tertiary Education Commission established under the Tertiarv Education Commission
Act 1988, as a company engaged in the provision of pre-primary, primary,
secondary or tertiary education, as the case may be.
Amended by [
Act No. 18 of 2003]

33. A company holding an investment certificate under the Investme
nt Promotion (Regional Headquarters Scheme) Regulations 2001.

Amended by [
GN No. 124 of 2002]; [ Act No. 28 of 2004]

34. Deleted by [
GN No. 124 of 2002]

35. A company deriving at least 75 per cent of its gross income fr
om the provision of training and registered as such with the Industrial and Vocational Training Board

36. A company duly licensed to carry on the business of restaurant

37. A company carrying on business –
(a) tour operator;

(b) scuba diving centre or helmet diving centre;
(c) cruise or boat house operator;

(d) big game-fish operator,

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INCOME TAX ACT 1995
(e) musical and other entertainment services provider,
and registered as such with the Ministry responsible for the subject
of tourism.

Amended by [
GN No. 124 of 2002]

38. A company set up to operate the Stock Exchange established und
er the Stock Exchange Act 1988

39. A company set up to provide a central depository, clearing and
settlement service to the Stock Exchange established under the Stock Exchange Act 1988

40. A company holding a management licence under the Financial Ser
vices Development Act 2001.
41.
A company managing an equity fund.
Added by [
GN No. 124 of 2004]

42. A company licensed under section 14 of the Financial Services Developmen
t Act 2001 to conduct business activity in the financial services sector, other than insurance
business.
Added by [
Act No. 18 of 2003] 43. A guarantee fund established under section 3(8))a) of the
Securities (Central Depository, Clearing and Settlement) Act.
Amended by [
Act No. 13 of 1996]; [ Act No. 9 of 1997]; [ Act No. 10 of 1998]; [ Act No. 18 of 1999]; [ Act No. 25 of 2000]; [ Act No. 13 of 2001]; [ Act No. 23 of 2001]; [ GN
No. 79 of 1996]; [ GN No. 4 of 1998]; [ GN No. 55 of 2000]; [ GN No. 124 of 2002]; [ Act No. 18 of 2003]; [ Act No. 28 of 2004] —————
SECOND SCHEDULE (section 7)
Exempt Income
PART I – INCOME DERIVED BY –
1.
A charitable institution or a charitable trust.
2.
A société de secours mutuels.
3.
A benevolent association.
4.
A trade union.
5.
A co-operative society registered under the Co-operative Societies
Act.
6. A local authority. 7. The National Pensions Fund established under the National Pensions Ac
t.
8. The registered owner of a foreign vessel from the operation of the
vessel.

9. The registered owner of a local vessel registered in Mauritius
provided the income is derived from deep sea international trade only
.

10. The Agricultural Research Fund.

11. The Food and Agricultural Research Council.
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INCOME TAX ACT 1995

12. The Mauritius Sugar Authority.

13. The Mauritius Sugar Industry Research Institute.

14.The Mauritius Sugar Terminal Corporation.

15. The Sugar Employees Fund.

16. The Sugar Industry Pension Fund.

17. The Sugar Insurance Fund.

18. The Sugar Planters Fund.

19. The Sugar Investment Trust.

20. A trust in respect of a superannuation fund.

21. A superannuation fund.

22. An investment club formed in accordance with the Stock Exchange Act
1988.
23. A non-citizen who is approved by the Minister or is a member o
f a class approved by the Minister, from personal or professional services performed by him within Mauritius,
where in the opinion of the Minister –
(a) the services rendered or to be rendered by the non-citizen
are primarily and principally directed at assisting the Government in the development of Mauritius; and
(b) the income derived by the non-citizen is liable to income t
ax in another country.
24. A non-citizen who is approved by the Minister or is a member o
f a class approved by the Minister –
(a) from personal or professional services performed by him in
Mauritius for or on behalf of an employer who is also a non-citizen; or
(b) from any maintenance allowance, scholarship or
bursary provided for or paid to him, where the income is derived by him during and in respect of his presence
in Mauritius for the purpose of providing professional or expert advice
or assistance, teaching or lecturing, making investigations, or receiving education, training or
experience, under an arrangement for assistance entered into by the Gove
rnment of Mauritius with the government of any other country or with an international organization
for the purpose of providing, on any basis, professional, expert, educat
ional, economic, technical or cultural assistance or administrative or other training, or the means or
facilities for investigations.
25. A non-resident expatriate engineering and support service pers
onnel required by a pioneer status enterprise or by any company engaged in electronics and high-technology
activities for the installation and maintenance of equipment and trainin
g of local staff
26. Deleted by [
Act No. 28 of 2004]

27. An international organization approved by the Minister.
28. (a) A company holding a Human Resource Development Ce
rtificate provided that –
(i) the company starts operations within a period not excee
ding 3 years of 1 July 2001; and

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INCOME TAX ACT 1995
(ii) the period of exemption of the income of the company d
oes not exceed 5 income years as from the income year in which the company starts operations.
(c)
Notwithstanding the other provisions of this Act, any loss incurred by a
company under paragraph (a) during the period of exemption of its income shall be available for
carry forward under section 59.

29. (a) A company holding an investment certificate under the Inv
estment Promotion (ICT Scheme) Regulations 2002, provided that the period of exemption of the income
of the company shall, subject to the other paragraphs of this item, be l
imited up to the income year ending 30 June 2012.
(b) Where during the period of exemption referred to in paragraph (a)
, a company provides services to residents, the net income derived therefrom shall be subject to
income tax at the rate specified in Part II of the First Schedule to the
Act.
(c) Where on or after 1 July 2008 a company holding an investment cert
ificate issued on or before 30 June 2005 does not satisfy the requirements of regulation 5 of the
Investment Promotion (ICT Scheme) Regulations 2002, the net income of
the company shall, notwithstanding paragraph (a), be subject to income tax at the rate
specified in Part II of the First Schedule to the Act.
(d) A company holding an investment certificate issued prior to 1 July
2008 in respect of business process outsourcing/back office operations, call centres or
contact centres may, within 60 days of the date of the investment certif
icate, by irrevocable notice in writing to the Commissioner, elect to have two-thirds of its net
income exempted.
(e) Where a company has made an election in accordance with paragraph
(d), two-thirds of its net income shall be exempted from income tax.
(f) Paragraph (b) shall not apply to the net income derived up to 30
June 2008 by a company holding an investment certificate issued on or before 30 June 2005.
(g) Notwithstanding the other provisions of this Act, any loss incurre
d by a company referred to in this item during the period of exemption of its net income shall be
available for carry forward under section 59.

Amended by [
GN No. 124 of 2002];[ GN No. 150 of 2002]; [ Act No. 18 of 2003]; [ GN No. 100 of 2005]

30. Deleted by [
Act No. 18 of 2003] 31.
An equity fund.
Added by [
GN No. 124 of 2002] 32.
A non-citizen from outside Mauritius and who is resident in Mauritius.
Added by [
GN No. 124 of 2002] 33. (a) A company set up for the purpose of operating a sp
inning, weaving or dyeing factory, provided that –
(i) the company starts operations by 30 June 2006, and
(ii) the period of exemption of the income of
the company does not exceed 10 income years as from the income year in which the company starts
operations.
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INCOME TAX ACT 1995
(b) Notwithstanding the other provisions of thi
s Act, any loss incurred by a company under paragraph (a) during the period of exemption of its income shall be
available for carry forward under section 59.
34. A trust set up under the Trusts Act 2001 to administer an empl
oyees’ share scheme.
35. The Employees’ Real Estate Investment Trust referred to in
section 10A of the Employees’ Welfare Fund Act.

Amended by [
Act No. 10 of 1998]; [ Act No. 23 of 2001]; [ GN No. 124 of 2002]; [ Act No. 18 of 2003]; [ Act No. 28 of 2004]; [ Act No. 14 of 2005]

———-
PART II – EMOLUMENTS
1. Emoluments derived from the office of the President or Vic
e-President.
2. Any lump sum or gratuity paid under a pension law.
3. Income derived b way of basic retirement pension payable unde
r the National Pensions Act.
4. The first 1,400,000 rupees of any sum received by way of seve
rance allowance determined in accordance with the Labour Act.

Amended by [
Act No. 9 of 1997]; [ Act No. 18 of 2003]

5. The first 1,400,000 rupees of any sum received by way of retiring allowance by a person who has attained the appropriate retiring age and
retires after completing not less than 10 years’ employment on such conditions as may be prescribed.
Amended by [
Act No. 18 of 2003]

For the purposes of this item –

“employment” includes any employment of the taxpayer –

(a) with any company which in the opinion of the Commission
er-
(i) consisted wholly or substantially of the same shareholders; or
(ii) was under the control of the same persons, as the company from wh
ose employment the taxpayer retired;
(b) with the same employer whether or not the business of the e
mployer was the same;
(c) in the same business, whether or not there had been a chang
e of ownership of the business; or
(d) which, in the opinion of the Commissioner, was substant
ially the
same employment as that from which the taxpayer retired.
Amended by [
GN No. 158 of 1998];
6. Any lump sum received by way of death gratuity or as consolid
ated compensation for death or injury or as commutation of pension and paid–

(a) by virtue of any enactment;
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INCOME TAX ACT 1995

(b) from a superannuation fund; or

(c) under a personal pension scheme approved by the Commiss
ioner.
7. That portion of any sum payable by the Government of Mauritiu
s by way of a gratuity in relation to a public officer employed on a contract which is equivalent to 7n per cent
of the basic salary payable under the contract in respect of the contrac
t period.
8. Any rent allowance payable to a person appointed to an office
in –

(a) the Police Force;

(b) the Fire Services;
(c) the Forests Division of the Ministry of Agriculture and Nat
ural Resources;

(d) the Prisons and Industrial School Service;

(e) the Ministry of Fisheries;

(f) the Department of Civil Aviation; and

(g) the Fire Unit of the Mauritius Marine Authority.
9. Any housing allowance not exceeding 100 rupees per month paya
ble by an employer to an employee under any enactment or by virtue of an award made under an
enactment.
10. Any transport allowance payable by an employer to an employee
by virtue of the terms and conditions of service equivalent to –

(a) the return bus fare between residence and place of work
;
(b) commuted travelling allowance and travel grant payable by t
he Government of Mauritius and the local authority to their employees;
(c) the actual allowance paid or 25 per cent of the monthly bas
ic salary up to a maximum of 6,200 rupees, whichever is the lesser, provided that the employee makes use
of a private car registered in his own name for attending duty and for t
he performance of the duties of his office or employment.
Amended by [
Act No. 9 of 1997]; [ Act No. 23 of 2001]; [ Act No. 18 of 2003]

11. Any reimbursement of medical expenses to home-based staff of o
verseas missions.
12. The emoluments derived by a seaman who is employed on a vessel
registered in Mauritius or on a foreign vessel.
13. That portion of the emoluments of an expatriate employee or of
a specified Mauritian employee of a pioneer status enterprise, an export enterprise, a company engaged in
electronics and high-technology activities, or a company engaged wholly
in the management of a venture capital fund, that will, in respect of an income year, reduce his tax liability
otherwise payable on the emoluments derived by him from the enterprise o
r company to 50 per cent, provided that the number of employees entitled to the exemption shall not
exceed 2 for each enterprise or company, as the case may be and that the
period of exemption granted to the expatriate employee and specified Mauritian employee does not
exceed, in the aggregate, 4 income years for each enterprise or company.

Amended by [
Act No. 18 of 1999]

14. (a) That portion of the emoluments of an expatriate employee or of a specifi
ed Mauritian employee of a company-
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INCOME TAX ACT 1995
(i) operating in the freeport zone; (ii) duly authorised by the Financial Services Commission
established under the Financial Services Development Act 2001, to conduct any of the business
activities referred to in item 25 of Part IV of the First Schedule.
,
(iii)
holding a Category 1 Global Business Licence under the Financial Service
s Development Act 2001;

(iv) holding a banking licence unde
r the Banking Act 2004 and who is employed by that company to carry out banking transactions with non-
residents and corporations holding a Global Business Licence under the F
inancial Services Development Act 2001; or

(v)
managing an equity fund, that will, in respect of an income year, reduce
the tax liability of the employee otherwise arising from the emoluments derived
by him from the company to 50 per cent, provided that the period of exem
ption granted to the employee does not exceed, in the aggregate, 4 income years for
each company; or
(vi)
engaged in spinning activities.
Amended by [
Act No. 13 of 2001]; [ GN No. 124 of 2002]; [ Act No. 28 of 2004]; [ Act No. 35 of 2004]

(b) For the purposes of paragraph (a) and item 13 –
(i) “specified Mauritian employee” means an employee who is a citizen
of Mauritius and who has, immediately before taking up employment in Mauritius, been abroad
for a period of, or an aggregate period of, 270 days or more in each of
the ten income years immediately preceding the income year in which he is employed in
Mauritius;

(ii) “company” means a company which is resident in Mauri
tius.

Amended by [
Act No. 18 of 1999]; [ Act No. 25 of 2000]; [ Act No. 13 of 2001] 15. Emoluments of a non-citizen who holds office in Mauritius
as an official of a Government other than the Government of Mauritius and is posted to Mauritius for that
purpose.
16. Directors’ fees payable to a non-resident director of a c
ompany.
17. Any advantage in money or in money’s worth received as lump su
m by an employee voluntarily terminating his contract of employment in the context of a factory closure
pursuant to the Cane Planters and Millers Arbitration and Control Board
Act or under the Voluntary Retirement Scheme under the Sugar Industry Efficiency Act 2001.

Added [
Act No. 20 of 2001]

18. (a) That portion of the emoluments of an expatriate employee or ofa specified Mauritian employee of a company holding an investment certif
icate in respect of specified information and communication services under the Investment
Promotion (I CT Scheme) Regulations 2002 that will, in respect of an i
ncome year, reduce the tax liability of the employee otherwise arising from the emoluments
derived by him from the company to 50 per cent provided that the number
and the full names of the expatriate employees or specified Mauritian employees and the
period of the exemption in respect of each of the employees are specifie
d by the Board of Investment published under the Investment Promotion Act.
(c)
For the purposes of paragraph (a), “specified Mauritian employee” has
the same meaning as in item 14(b)(i).
Added by [
GN No. 124 of 2002]

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INCOME TAX ACT 1995

—————
PART III – DIVIDENDS, INTEREST AND ROYALTY

1. Dividends
(a) paid by a company resident in Mauritius;
(b) paid by a co-operative society registered under the Co-oper
ative Societies Act; or
(c) receivable from outside Mauritius by a company holding a re
gional development certificate.

Amended by [
Act No. 10 of 1998];[ Act No. 25 of 2000] 2. (a) The first 100,000 rupees receivable in any incom
e year by an individual personally or as an associate in a société or as a beneficiary in the estate of a
deceased person in respect of interest on –
(i) Government securities;
(ii) bills issued by the Mauritius Civil Service Mutual Aid Associatio
n Ltd;
(iii) fixed deposit or savings accounts in Mauritius with a bank or ot
her institution authorised by any other enactment to a accept money on fixed deposit or savings
accounts and to pay interest on it in Mauritius; or

(iv) Bank of Mauritius Bills issued under the Bank of Mauri
tius Act. Amended by [
GN No. 31 of 2004] (b) Where, in the case of a couple, the interest re
ceivable referred to in paragraph (a) is in the joint name of the spouses and neither spouse is a dependent
spouse, the exemption under paragraph (a) shall be allowed in any prop
ortion as may be claimed by the spouses, provided that, in the aggregate, the exemption does not
exceed 200,000 rupees.

Amended by [
Act No. 9 of 1997]; [ Act No. 25 of 2000]; [ Act No. 28 of 2004]

3. Interest payable on –
(a) a tax reserve certificate issued under the Tax Reserve Cert
ificates Act;
(b) a debenture issued under the Loans Act or a loan chargeable
on the Consolidated Fund where the debenture was issued or the loan was made with the condition
that the interest on it would be so exempt;
(c) a balance maintained in a bank holding a banking licence un
der the Banking Act 2004 by an individual who is not a resident in Mauritius;

Amended by [
Act No. 25 of 2000]; [ Act No. 35 of 2004] (d) a deposit made and maintained for a continuous period
of not less than 3 years by an individual in a bank holding a banking licence, or in a non-bank financial
institution authorised to carry on deposit-taking business in Mauritius,
under the Banking Act 2004;
Amended by [GN 184 of 1998]; [
Act No. 35 of 2004] (e) such bonds, bearing interest at progressive or variable rat
e and
issued by the Bank of Mauritius, as may be approved by the
Minister;
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INCOME TAX ACT 1995

Amended by [
GN No. 43 of 2000]

(f) call and deposit accounts held with any bank under the Ban
king Act 2004 by a corporation holding a Category 1 Global Business Licence under the Financial
Services Development Act 2001;
Amended by [
GN No. 43 of 2000]; [ Act No. 13 of 2001]; [ Act No. 14 of 2005] (g)
bank deposits held as guarantee by a company engaged in aircraft leasing
and approved by the Minister;

(i)
the Special Savings Scheme for Public Officers administered by the Accou
ntant-General;

Amended by [
GN No. 43 of 2000]; [ Act No. 28 of 2004]; [ GN No. 100 of 2005] 4. Any interest and bonus derived from the Housing Savings Schem
e of the Mauritius Housing Corporation Ltd.
5. Interest paid to a non-resident not carrying any business in
Mauritius by a corporation holding a Category 1 Business Licence under the Financial Services Development
Act 2001 or by a bank holding a banking licence under the Banking Act 20
04 in so far as the interest is paid out of gross income derived from its banking transactions with non-
residents and corporations holding a Global Business Licence under the F
inancial Services Development Act 2001.

Amended by [
GN No. 124 of 2002]; [ Act No. 35 of 2004]

6. Royalty payable to a non-resident by a corporation holding a
Category 1 Global Business Licence under the Financial Services Development Act 2001 or by a bank holding a
banking licence under the Banking Act 2004 in so far as the royalty is p
aid out of gross income derived from its banking transactions with non-residents and corporations holding a Global
Business Licence under the Financial Services Development Act 2001 or a
trust, as the case may be.

Amended by [
Act No. 18 of 1999]; [ Act No. 13 of 2001]; [ Act No. 20 of 2002];
[
Act No. 35 of 2004] 7. Dividends or other distributions paid by a company holding
a Category 2 Global Business Licence under the Financial Services Development Act 2001 to any person.

Amended by [
Act No. 15 of 2001]

8. Interest paid by a company holding a Category 2 Global Busine
ss Licence under the Financial Services Development Act 2001 to a non-resident.
Amended by [
Act No. 15 of 2001]

Amended by [
Act No. 18 of 1999]; [ Act No. 25 of 2000];[ GN No. 43 of 2000]; [ Act No. 13 of 2001]; [ Act No. 15 of 2001];[ Act No. 20 of 2002]

————–
PART IV – MISCELLANEOUS
1.
Gains or profits derived from the sale of units or of securities.
2. –

3. The income derived from a sugar growing unit –
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INCOME TAX ACT 1995
(a) in the case of a couple, where the income is in their joint
names, in respect of the first 120 tonnes of sugar accruing, provided that the exemption is allowed in the
same proportion as the income is declared by the couple in their tax ret
urns; or
(b) in any other case, in respect of the first 60 tonnes of sug
ar accruing,
on such conditions as may be prescribed.

Amended by [
Act No. 9 of 1997] 4. Payments to a planter in respect of bagasse for uses other
than the manufacture of sugar.
5. Deleted by [
Act No. 28 of 2004] 6. Deleted by [
Act No. 28 of 2004]

Amended by [
Act No. 18 of 1999] 7. 50 per cent of the premium paid by the Mauritius Sugar Syndic
ate to millers producing such types of sugar as may be approved by the Mauritius Sugar Authority.
8. 50 per cent of the incremental net income obtained through an
increase in output from a sugar growing unit after at least 50 per cent of the land cultivated in cane are
incorporated in one or more Land Area Management Units, on such conditio
ns as may be prescribed.
9. Profits derived from the cultivation of sugar cane on new lan
ds certified by the Sugar Insurance Fund Board to have been brought under cultivation during the calendar
years 1996 and 1997 for a period of 6 consecutive years as from the year
following the year in which the new lands were brought under cultivation.

For the purposes of this item –

“new land” –
(a) means any land which at any time during the period 1 June 1
991 to 31 May 1995 was not registered by a planter under the Sugar Insurance Fund Act as being sugar
cane plantation; but

(b) does not include –
(i) sugar cane land between 2 sugar cane cycles; and
(ii) land authorised to be put under cane cultivation under section 5
of the Sugar Industry Efficiency Act 1988.
10. Income derived by a planter and by a person with whom the plan
ter has entered into a management contract duly registered with the Mauritius Sugar Authority for the
cultivation of sugar cane on lands owned by the planter.
11. Income derived by a holder of a gaming house licence under the
Gaming Act from the operation of his gaming house.
12. Income derived by any person in the form of maintenance allowa
nce or other benefit provided in respect of his attendance at a university, college, school or other
educational institution in terms of a scholarship, bursary, exhibition o
r other education award.
13. Income which is expressly exempt from income tax by any other
enactment to the extent of the exemption so provided.
14. Value of equity shares in a start-up company received in consi
deration for legal, accounting, advertising and other professional services rendered in connection with the
setting up of the company provided that the shares are held for a period
of at least 3 years.
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INCOME TAX ACT 1995

Added by [
Act No. 25 of 2000] 15. Income derived by a company holding a Category 2 Global Busine
ss Licence under the Financial Services Development Act 2001.

Added by [
Act No. 15 of 2001]

16. Rents, royalties, compensations an other amounts paid by a com
pany holding a Category 2 Global Business Licence under the Financial Services Development Act 2001 to
a non-resident.

Added by [
Act No. 15 of 2001]

17. Gains or profits derived from the sale of shares, debt obligat
ions or other securities of a company holding a Category 2 Global Business Licence under the Financial
Services Development Act 2001 to a non-resident.

Added by [
Act No. 15 of 2001]

. 18. Gains derived by a planter, miller or servic
e provider from the sale of land provided that the proceeds are used exclusively for the implementation of the
Voluntary Retirement Scheme under the Sugar Industry Efficiency Act 2001
or used exclusively by a miller in compliance with the conditions imposed under section 24 of the Cane
Planters and Millers Arbitration and Control Board Act, as the case may
be.

Added by [
Act No. 20 of 2001]; [ GN No. 124 of 2002] 19. Gains derived by any person from the sale of land previously a
cquired by him from a planter implementing the Voluntary Retirement Scheme under the Sugar Industry
Efficiency Act 2001.

Added by [
Act No. 20 of 2001] 20. Gains derived by the Trust established under the Sugar Industr
y Efficiency Act 2001 or a body controlled by the Trust from the sale of land acquired pursuant to sections 10
and 12 of that Act.
Added by [
Act No. 20 of 2001]

21. Gains derived from the sale of land converted pursuant to sect
ion 29(1)(c)(ii)(B), (e) or (f) of the Sugar Industry Efficiency Act 2001 provided that the proceeds are used
exclusively for the implementation of the schemes specified in that sect
ion.
Added by [
GN No. 124 of 2002]

22. (a) That portion of the gross income of a company holding a
n investment certificate under the Investment Promotion (Regional Headquarters Scheme)
Regulations 2001 that is derived from a related company incorporated out
side Mauritius and not registered in Mauritius or holding a Category 1 Global Business Licence under the
Financial Services Development Act 2001, provided that –
(i) the company derives at least 80 per cent of its gross i
ncome from those related companies; and
(ii) the period of exemption in respect of its gross income
from those related companies shall not exceed 10 consecutive income years as from
the income year in which the company starts operations.

(b) Notwithstanding the other provisions of this Act, any l
oss incurred
by a company under paragraph (a) during the period of exemption of its
income shall be available for deduction and carry forward under section 59.
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INCOME TAX ACT 1995
Amended by [ Act No. 28 of 2004] 23. (a) Subject to paragraph (b), value of shares to t
he extent of 200,000 rupees received by an employee from an employees’ share scheme.

(b) Where any of the shares referred to under p
aragraph (a) are disposed of, other than on death of the employee, within a period of 3 years of the date on which the
shares are offered to the employee, the value of the shares so disposed
of shall be deemed to be the gross income of the employee in the income year in which the disposal occurs.

24. Value of units received by an employee under the National Savi
ngs Fund Act from, or any distributions made by, the Employees’ Real Estate Investment Trust referred to in
section 10A of the Employees’ Welfare Fund Act.

Amended by [
Act No. 13 of 1996]; [ Act No. 9 of 1997]; [ Act No. 25 of 2000]; [ Act No. 13 of 2001]; [ Act No. 15 of 2001]; [ Act No. 20 of 2001]; [ GN No. 76 of 1996]; [ GN No.
158 of 1998]; [ GN No. 184 of 1998]; [ GN No. 55 of 2000]; Added by [ GN No. 124 of 2001]; [ Act No. 18 of 2003]; [ Act No. 28 of 2004]

———-
THIRD SCHEDULE
(section 38, 39, 41, 42 and 42A))

Section Amount
(Rupees)
1.
2.
3.
4.
5. Basic personal deduction
Deduction for dependent spouse
Basic deduction for dependent child
Deduction for dependent handicapped child
Deduction for other handicapped person 38
39
41
42
42A85,000
85,000
30,000
70,000
70,000

For the purposes of items 1, 2 and 3 of this Schedule, where a taxpayer,
his dependent spouse, or any of his dependent children in respect of whom a deduction has been allowed under
item 3, is handicapped, the taxpayer shall, in addition to the deduction
to which he is entitled under section 38, 39, or 41, be allowed a deduction of 50,000 rupees in respect of the
handicapped person.
Amended by [
Act No. 9 of 1997]; [ Act No. 10 of 1998]; [ Act No. 18 of 1999]; [ Act No. 25 of 2000]; [ Act No. 23 of 2001]; [ Act No. 20 of 2002]; [ Act No. 18 of 2003];
[
Act No. 28 of 2004]; [ Act No. 14 of 2005]

—————-
FOURTH SCHEDULE
(section 2)
PART I – EMOLUMENTS
Amount

1. In respect of an employee 8,000 rupees per
month
2. In respect of a field worker 6,000 ru
pees per month during
or a non-agricultural worker the int
er-crop season, and
in the sugar industry 9,500 rupees per month du
ring
the crop seas
on, and end-of-
year bonus an
d leave pay
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INCOME TAX ACT 1995
prescribed in
any enactment in
his favour.

Amended by [
Act No. 9 of 1997]; [ Act No. 10 of 1998];
[
Act No. 18 of 1999]; [ Act No. 18 of 2003]; [ Act No. 28 of 2004] ———-
PART II – TAX LIABILITY

Tax liability for a CPS period 500 rupees or less

Amended by [
Act No. 9 of 1997]; [ Act No. 10 of 1998]

———-
FIFTH SCHEDULE (section 93)
PART A – METHOD TO CALCULATE TAX TO BE VITHHELD FROM MONTHLY PAY
(Applicable to an employee who has submitted an Employee Declaration Fo
rm to his employer)

Chargeable Income Tax (Rs)
Rs
1 to 1923
1924 to 3846
3847 to 38461
38462 and over Rs
–
193
577
9230
10 per cent of chargeable income
+ 20 per cent of excess over Rs 1923
+ 25 per cent of excess over Rs 3846
+ 30 per cent of excess over Rs 38461

PART B – METHOD TO CALCULATE TAX TO BE WITHHELD FROM FORTNIGHTLY PAY
(Applicable to an employee who has submitted an Employee Declaration Fo
rm to his employer)

Chargeable Income Tax (Rs)
Rs
1 to 893
894 to 1785
1786 to 17857
17858 and over Rs
–
89
267
4285
10 per cent of chargeable income
+ 20 per cent of excess over Rs 893
+ 25 per cent of excess over Rs 1785
+ 30 per cent of excess over Rs 17857

PART C – METHOD TO CALCULATE TAX TO BE WITHHELD FROM WEEKLY PAY
(Applicable to an employee who has submitted an Employee Declaration Fo
rm to his employer)

Chargeable Income Tax (Rs)
Rs
1 to 446
447 to 892
893 to 8928
8929 and over Rs
–
44
133
2142
10 per cent of chargeable income
+ 20 per cent of excess over Rs 446
+ 25 per cent of excess over Rs 892
+ 30 per cent of excess over Rs 8928

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INCOME TAX ACT 1995
PART D – TAX WITHHOLDING AT FLAT RATE

Chargeable Income
Rs Tax (Rs)
Rs
under section 96(2)(a)
under section 96(2)(b)
under section 96(2)(c)
under section 96(2)(d) 20 per cent
20 per cent
10 per cent
5 per cent

Amended by [
Act No. 13 of 1996]; [ Act No. 10 of 1998]; [ Act No. 18 of 1999];[ Act No. 25 of 2000]; [ Act No. 28 of 2004]

—————
SIXTH SCHEDULE
(sections 2 and 106)
GROSS INCOME SPECIFIED IN SECTION 10 (1) (B) AND
RENT SPECIFIED IN SECTION 10 (1) (C)
CPS threshold

Turnover 500,000 for the CPS period

Gross Income from 300,000 rupees for the CPS period
profession, vocation or
occupation

Rent 6,000 rupees per month

Amended by [
Act No. 9 of 1997] ————————-
SEVENTH SCHEDULE
(section 108)
METHOD TO CALCULATE TAX UNDER THE CURRENT PAYMENT SYSTEM (CPS)

Chargeable Income Tax (Rs)
Rs
1 to 12500
12501 to 25000
25001 to 250000
250001 and over Rs
–
1250
3750
60000
10 per cent of chargeable income
+ 20 per cent of excess over Rs 12500
+ 25 per cent of excess over Rs 25000
+ 30 per cent of excess over Rs 250000

Amended by [
Act No. 9 of 1997]; [ Act No. 18 of 1999]; [ Act No. 25 of 2000]; [ Act No. 28 of 2004] ——————

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INCOME TAX ACT 1995
EIGHTH SCHEDULE
(sections 139 and 141)

PART I
Office of the
Commissioner of income
Tax Port Louis
Date ……………..
Income Tax Account No . ……….
Financial Year ………………
Year of Assessment ……………
Account Reference ……………
DISTRESS WARRANT

Under section 139 of the Income Tax Act 1995.

To Usher of the Supreme Court
Where as……………………… ………………………
………………………………………………
………………………………..
is…………………………………..……………………
………………………………………………
………………………….
indebted to the Commissioner of Income Tax in the sum of…………
………………………………………………
………………………………………………
…………
being income tax due and payable by the foresaid……………………
………………………………….
………………………………………………
………………………………………………
………………………………………………
………………………………………………
………………………….
particulars of which are set out in the Annex.

And whereas default has been made in the payment of the aforesaid amount
to the Commissioner of Income Tax and the aforesaid amount is still due.

These are therefore to authorise and order you forthwith to make distres
s of the goods, chattels and effects of the said person and if within the period of 3 clear days next after the
making of such distress the amount of the tax due and payable including
the charge of taking and keeping the distress is not paid, you shall sell the goods, chattels and effects of the
said person up to the amount mentioned in the distress including the cos
ts and that you certify to me on or before the …… day … of 20 … what you shall have done by virtue of this
warrant.

Given under my hand at Port Louis, this …… day of …… 20…
…………………………….
Commissioner of Income Tax

RETURN OF THE ABOVE WARRANT

In execution of the above warrant, I certify that I have this day seized
the goods, chattels and effects of the herein named and have made and signed an inventory of the same hereunto
annexed, and have appointed as guardian of the same.

Date ……………. 20…

…..User of the Supreme Court

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INCOME TAX ACT 1995
PART II
FORM OF MEMORANDUM OF INSCRIPTION
Privilege inscribed under section 141 of theIncome Tax Act 1995 by the
Commissioner of Income Tax
electing his legal domicile in his Office in Port Louis against

………………………………….. (names in full)
of …………………………. … (address in full)
………………………………… (occupation)
and

Mrs ……… …………. (Christian and maiden names in full)
of …. ……………… (address in full) his
wife, hereinafter called the debtor/s

for the sum of ………………………. rupees (in words)

upon all immovable property belonging to the debtor/s including
……………………………………
…………………………………….
…………………………………….
………………….. …………

Drawn up in Port Louis on the ……. of ……… 20 …

I certify that this memorandum is an exact copy of the other original wi
th which it has been duly collated.

………………………….
Commissioner of Income Tax

PART III

The Conservator of Mortgages is hereby requested to erase in his registe
rs the privilege inscribed by the Commissioner of Income Tax on the …… of …… 20 … in Vol … No … against:
………………………………………………………………
. ………………………………………….. ………………………………………………………..
……..
upon all immovable property which belonged to the latter, including…..
…………………………..

Dated, signed and sealed in Port Louis on the …… of …… 20 …

………………………………
………………………………………………
….
Commissioner of In
come Tax

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INCOME TAX ACT 1995
Related documents:
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