Section 2: Interpretation

2. Interpretation In this Act— “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 Mauritius at which it carries on business in its own name; or (c) a company not incorporated in Mauritius which is declared by the Director-General to be an absentee by notice given to that company or to its agent in Mauritius; “accounting year”, in sections 50B, 50C and 50D, means a period of 12 months ending with the date of the annual balance of the accounts of a company; I5 – 5 [Issue 9] Income Tax Act “agent” includes a person deemed by section 81, 82, or 83 to be an agent; “allowable deduction” means— (a) in the case of an individual, any expenditure, loss or allowance which is deductible under Sub-part B of Part III; or (b) in any other case, any expenditure, loss, or allowance which is deductible 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 Director-General, the principal objects of which are to invest in the securities of companies generally; “approved return date” means a date approved by the Director-General under section 118; “APS” means the Advance Payment System referred to in Sub-part AA of Part IV; “APS quarter” means the quarter referred to in section 50B; “associate” includes— (a) a general partner or limited partner of a limited partnership; and (b) a partner of a limited liability partnership; “authorised mutual fund” means a collective investment scheme under the Securities Act; “Authority” means the Mauritius Revenue Authority established under the Mauritius Revenue Authority Act; “base value” means the cost to the owner of any fixed asset or other capital expenditure incurred for the production of gross income after deducting therefrom any amount allowed by way of annual allowance; “benevolent association” means an association registered under the Registration 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; “Board” has the same meaning as in the Mauritius Revenue Authority Act; “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; [Issue 9] I5 – 6 Revised Laws of Mauritius “chargeable income” means— (a) for the purpose of section 107, the amount of income ascertained in accordance with that section; (b) for the purpose of Sub-part C of Part VIII— (i) in the case of an individual, the amount remaining after deducting from the net income the income exemption threshold to which that individual is entitled; and (ii) in any other case, the net income; “charitable Foundation” has the same meaning as in the Foundations Act; “charitable institution” means an institution approved by the DirectorGeneral, the objects of which— (a) are of a public character; (b) do not yield any profits to its members; (c) are exclusively— (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; or (vi) the promotion of any other public object as in the Foundations Act; “charitable institution” means an institution approved by the DirectorGeneral, the objects of which— (a) are of a public character; (b) do not yield any profits to its members; (c) are exclusively— (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; or (vi) the promotion of any other public object beneficial to the community; and (d) are to be carried out in Mauritius or elsewhere; “charitable trust” has the same meaning as in the Trusts Act; “child”, in section 27, means— (a) an unmarried child, stepchild or adopted child of a person; (b) an unmarried child whose guardianship or custody is entrusted to the 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; “CIS manager” means a person holding a CIS manager licence under the Securities Act; “collective investment scheme” has the same meaning as in the Securities Act; “company”— (a) means a body corporate, other than a local authority, incorporated in Mauritius or elsewhere; and I5 – 7 [Issue 9] Income Tax Act (b) includes a non-resident société, a cell of a protected cell company, a Foundation, a trust or a trustee of a unit trust scheme; “consideration” means the price in money or money’s worth paid or given in return for any benefit; “CPS” means the Current Payment System; “CPS quarter” means the quarter specified in section 106; “credit”, in relation to foreign tax, means the amount deductible from income tax under section 77; “CSR programme” means a programme having as its objects the alleviation of poverty, the relief of sickness or disability, the advancement of education of vulnerable persons or the promotion of any other public object beneficial to the Mauritian community; “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, carried out outside the territorial waters of Mauritius; “Director-General” means the Director-General of the Authority; “disabled person” means a person suffering from permanent disablement; “disincorporation”, in sections 16 and 56, means the transfer of all 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 Directors 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 sections 45 (3), 45A (4), 46 (4) and 49A (4); but (c) does not include interest deemed to be dividends under section 84 and a benefit referred to in section 86A; “emoluments”— (a) means any advantage in money or in money’s worth referred to in section 10 (1) (a); and (b) includes— (i) remuneration to the holder of any office and fees payable to the director of a company; [Issue 9] I5 – 8 Revised Laws of Mauritius (ii) an allowance under the National Assembly Allowances Act or a pension under the National Assembly (Retiring Allowances) Act; (iii) remuneration payable to a Mayor, Chairperson of a District Council or Chairperso t referred to in section 86A; “emoluments”— (a) means any advantage in money or in money’s worth referred to in section 10 (1) (a); and (b) includes— (i) remuneration to the holder of any office and fees payable to the director of a company; [Issue 9] I5 – 8 Revised Laws of Mauritius (ii) an allowance under the National Assembly Allowances Act or a pension under the National Assembly (Retiring Allowances) Act; (iii) remuneration payable to a Mayor, Chairperson of a District Council or Chairperson of a Village Council under the Local Government Act; (iv) an allowance payable to an apprentice; (v) an allowance under the Rodrigues Regional Assembly (Allowances and Privileges) Act; “employee” means a person who receives or is entitled to receive emoluments; “employees’ share scheme” means a scheme or fund established for the benefit of the employees of an employer under the Companies Act; “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 Services Commission established under the Financial Services Act; “exempt income” means any income specified in the Second Schedule; “exempt person”(cid:179)(cid:3) (a) means an employee whose emoluments in a month do not exceed one thirteenth of the Category A Income Exemption Threshold specified in the Third Schedule; but (b) does not include a director or a member referred to in section 96 (3); “foreign source income”— (a) means income which is not derived from Mauritius; and continued on page I5 – 9 I5 – 8 (1) [Issue 9] Revised Laws of Mauritius (b) includes— (i) in the case of a corporation holding a Category 1 Global Business Licence under the Financial Services Act, income derived from its transactions with non-residents or corporations holding a Global Business Licence under the Financial Services Act; and (ii) in the case of a bank holding a banking licence under the Banking Act, income derived from its banking transactions with— (A) non-residents; or (B) corporations holding a Global Business Licence under the Financial Services Act; “foreign tax” means any tax of every kind and description imposed by the law of another State; “foreign vessel”, in relation to item 9 of Sub-part C 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; “Foundation” has the same meaning as in the Foundations Act; “Government securities” has the same meaning as in the Public Debt Management Act; “gross”, in relation to an amount, means without any deduction from 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 (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; “hotel” means any building in which— (a) not less than 9 bedrooms appropriately furnished together with necessary 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; I5 – 9 [Issue 7] Income Tax Act “household employee” means any person employed by a person, other than 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; “ICT company”— (a) means a company deriving at least 75 per cent of its gross income from information and communication services as defined in the Information and Communication Technologies Act; but (b) does not include public paid or mobile telecommunication network and service including value added services and mobile internet; “income tax”— (a) means the income tax imposed by section 4; and (b) includes— (i) — (ii) the levy imposed by Sub-part AB or Sub-part AC of Part IV; (iia) the CSR charge under Sub-part AD of Part IV; (iib) the one-off charge on turnover and book profit under section 50M; (iic) — (iii) any penalty or interest imposed under this Act; but (c) does not include 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 company 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 any extension thereto, used— (a) for the purpose 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 of goods or materials to any process; or (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 subject consideration of the issue of shares in that company; “industrial premises” means any building or structure, including any extension thereto, used— (a) for the purpose 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 of goods or materials to any process; or (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 purpose of a transport, dock or electricity undertaking; (c) for the purpose of a hotel; (d) for the provision of education or training; (e) for the purpose of operating an aerodrome; (f) for the welfare of workers employed in a trade or undertaking specified in paragraphs (a) to (e); [Issue 7] I5 – 10 Revised Laws of Mauritius but does not include— (i) any building or structure in use as, or part of, a dwelling house or used for any purpose ancillary to the purposes of a dwelling house; or (ii) any land, tree, plant, garden or earthworks; “lease” means a tenancy of any duration, whether in writing or otherwise, and includes a sublease or a contract of hire; “limited liability partnership” has the same meaning as in the Limited Liability Partnerships Act 2016; “limited partnership” means a limited partnership registered under the Limited Partnerships Act; “listed company” means a company the securities of which are listed on a securities exchange; “local authority” has the same meaning as in the Local Government Act; “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 equipment or other product; “manufacturing company”— (a) means a company which derives at least 75 per cent of its gross income from manufacturing activities in Mauritius; but (b) does not include— (i) a company engaged in the manufacture of alcoholic drinks or cigarettes and other tobacco products; or (ii) a company engaged in carrying on the business of restaurant; “mineral” includes oil, clay, stone, gravel or sand; “Minister” means the Minister to whom responsibility for the subject of finance is assigned; “net income” means the aggregate amount remaining after deducting all allowable deductions from the gross income; “non-citizen” means an individual who is not a citizen of Mauritius; “non-resident”— (a) for the purposes of sections 6 (4) (b), 161A (1) (g) and items 4 and 5 of Sub-part B of Part II of the Second Schedule, and the I5 – 11 [Issue 9] Income Tax Act Income Tax (Foreign Tax Credit) Regulations 1996 in so far as they apply to a bank holding a banking licence under the Banking Act— (i) in the case of an individual, means a person— (A) whose permanent place of abode is outside Mauritius; and (B) who is outside Mauritius at the time the services are supplied; (ii) in the case of any other person— (A) means a person whose centre of economic interest is located outside Mauritius; and (B) includes a company incorporated in Mauritius in so far as its banking transactions carried out through a permanent establishment outside Mauritius are concerned; but (C) does not include a company incorporated outside Mauritius in so far as its banking transact place of abode is outside Mauritius; and (B) who is outside Mauritius at the time the services are supplied; (ii) in the case of any other person— (A) means a person whose centre of economic interest is located outside Mauritius; and (B) includes a company incorporated in Mauritius in so far as its banking transactions carried out through a permanent establishment outside Mauritius are concerned; but (C) does not include a company incorporated outside Mauritius in so far as its banking transactions carried out through a permanent establishment in Mauritius are concerned; (b) in any other case, 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” has the same meaning as in the Mauritius Revenue Authority Act; “other income earning activity” means any activity from which income of a kind specified under section 10 (1) (c), (d), or (3) is derived; “owner”, in relation to a foreign vessel, has the same meaning as in the Merchant Shipping Act; “pay” means pay, distribute, transfer, credit or deal with in the interest 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 Subpart A of Part VIII; “person” shall be deemed to include a trust; “planter”, for the purposes of— (a) items 1 and 2 of Sub-part C of Part II of the Second Schedule— (i) means any person or group of persons growing sugar cane in one or more factory areas; and (ii) 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; [Issue 9] I5 – 12 Revised Laws of Mauritius “premises” includes land or buildings; “protected cell company” has the same meaning as in the Protected Cell Companies Act; “qualified auditor” has the same meaning as in the Companies Act; “registered owner”, in relation to items 9 and 10 of Sub-part C of Part II of the Second Schedule, means a person who has been registered as the owner of a ship under the Merchant Shipping Act; “related company” has the meaning assigned to it in section 2 (2) of the Companies Act; “relative”, in relation to a person, means any other person connected with him by— (a) blood relationship as parent, grandparent, brother, sister, or brother 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 paragraph (a) other than the adopted child of his nephew or niece; or (d) natural relationship, through a mother who has acknowledged her child; “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, gratuity 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; “Revenue Law”, in relation to section 76, has the same meaning as in the Mauritius Revenue Authority Act; “royalty” means payment of any kind received as a consideration for t o it in section 73; “retiring allowance” means a lump sum payment by way of a bonus, gratuity 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; “Revenue Law”, in relation to section 76, has the same meaning as in the Mauritius Revenue Authority Act; “royalty” means payment of any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work, including cinematograph films, any patent, trademark, design or model, plan, secret formula or process, or for information concerning industrial, commercial or scientific experience; “securities”, in item 1 of Part IV of the Second Schedule— (a) has the same meaning as in the Securities Act; but (b) does not include Treasury Bills and Bank of Mauritius Bills; “sell” includes transfer; I5 – 13 [Issue 9] Income Tax Act “share”— (a) in relation to a company, includes an interest in the capital of the company; and (b) in relation to a collective investment scheme, means an interest in the scheme as defined in the Securities Act; “shareholder” includes— (a) a member of a company whether or not the capital of that company is divided into shares and, in sections 84, 85 and 86; (b) 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; (iA) a limited partnership; (iB) a limited liability partnership; (ii) a joint venture; or (iii) a société or partnership formed under the law of a foreign country; “société commerciale” means a société commerciale within the meaning of article 18 of the Code de Commerce; “société de secours mutuels” means an association registered under the Registration of Associations Act, whose main activity is to provide welfare benefits; “solidarity levy” means the solidarity levy imposed under the Value Added Tax Act; “stock exchange” means a securities exchange licensed under the Securities Act; “superannuation fund”— (a) means a fund or scheme which is set up for the benefit of the employees of an employer and is licensed or authorised under the Private Pension Schemes Act; and (b) includes such other fund or scheme as the Director-General may approve; “Tax Account Number” means the Tax Account Number (TAN) allotted to a person for the purpose of sections 99A to 105A; “tax avoidance” includes, directly or indirectly— (a) altering the incidence of income tax; (b) relieving any person from liability to pay income tax; and [Issue 9] I5 – 14 Revised Laws of Mauritius (c) avoiding, reducing, or postponing any liability to pay income tax; “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 trade; “trade union” means a trade union of employees registered under the Employment Relations Act; “trust” means a trust recognised under the laws of Mauritius; “trustee”, in relation to a unit trust scheme, means the person holding property as trustee in relation to the scheme; “unit”, in relation to unit trust scheme, means a unit into which the beneficial interest of the Unit Trust Fund for the scheme is divided; “Unit T agent; “trade” means any trade, adventure, or concern in the nature of trade; “trade union” means a trade union of employees registered under the Employment Relations Act; “trust” means a trust recognised under the laws of Mauritius; “trustee”, in relation to a unit trust scheme, means the person holding property as trustee in relation to the scheme; “unit”, in relation to unit trust scheme, means a unit into which the beneficial interest of the Unit Trust Fund for the scheme is divided; “Unit Trust Fund” means the fund comprising the income and other property held by the trustee for the scheme; “unit trust scheme” has the same meaning as “unit trust” in the Securities Act; “unit holder” means a person who holds a unit in a unit trust scheme; “venture capital fund” means a venture capital fund approved by the Minister; “year” means a period of 12 months commencing on 1 July; “year of assessment” means the year in and for which tax is payable under section 4. [S. 2 amended by s. 72 (2) (a) of Act 14 of 2001 w.e.f. 1 December 2001; s. 35 (3) (a) of Act 20 of 2001 w.e.f. 17 September 2001; s. 11 (a) of Act 23 of 2001 w.e.f. the income year commencing on 1 July 2000, the income year commencing on 1 July 2001 and on 11 August 2001; s. 14 (a) of Act 20 of 2002 w.e.f. 1 July 2002; s. 9 (a) of Act 18 of 2003 w.e.f. 8 October 2002, the income year commencing on 1 July 2003 and the year of assessment of commencing on 1 July 2003; s. 27 (10) (a) of Act 33 of 2004 w.e.f. 1 July 2006; s. 11 (a) of Act 28 of 2004 w.e.f. 1 July 2004; s. 19 (a) of Act 14 of 2005 w.e.f. 1 July 2006; s. 156 (3) of Act 22 of 2005 w.e.f. 28 September 2007; s. 18 (a) of Act 15 of 2006 w.e.f. 1 July 2006; s. 17 (a) of Act 17 of 2007 w.e.f. 1 July 2007, 22 August 2007 and 1 July 2008; s. 15 (a) of Act 18 of 2008 w.e.f. 1 July 2008; s 21 (a) of Act 14 of 2009 w.e.f. 30 July 2009; s 9 (a) of Act 10 of 2010 w.e.f. 1 January 2011; s. 13 (a) of Act 20 of 2011 w.e.f. 1 January 2011; s. 82 (1) of Act 28 of 2011 w.e.f. 15 December 2011; s. 8 (a) of Act 37 of 2011 w.e.f. 5 November 2011; 15 December 2011; s. 51 (a) of Act 8 of 2012 w.e.f. 1 July 2012; s. 57 (2) of Act 15 of 2012 w.e.f. 1 November 2012; s. 12 (a) of Act 26 of 2012 w.e.f. 1 November 2012; 1 January 2013; s. 9 (a) of Act 26 of 2013 w.e.f. 1 November 2012; 21 December 2013; s. 24 (a) of Act 9 of 2015 w.e.f. 14 May 2015 and 1 July 2015 in respect of the year of assessment commencing on 1 July 2015 and in respect of every subsequent year of assessment; s. 27 (a) of Act 18 of 2016 w.e.f. 7 September 2016; s. 69 (2) of Act 24 of 2016 w.e.f. 3 January 2017.]