Section 24B: Expenditure incurred on medical research and

24B. Expenditure incurred on medical research and development (1) Subject to subsection (2), where, in an income year, a person engaged in medical research and development incurs expenditure on medical research and development, he may deduct from his gross income twice the amount of that expenditure in that income year provided the research and development is carried out in Mauritius. (2) Where a deduction has been claimed under paragraph (1), no deduction shall be allowed in respect of the same expense under section 24 or section 161A(55). (g) in section 27 – (i) by inserting after subsection (4), the following new subsection – (4A) Where, in an income year, a person claims a bedridden next of kin as a dependent, no other person shall claim that bedridden next of kin as a dependent in that income year. (ii) in subsection (5) – (A) in paragraph (c), by deleting the words “50,000 rupees” and replacing them by the words “85,000 rupees”; (B) in paragraph (d), by deleting the words “50,000 rupees” and replacing them by the words “80,000 rupees”; (iii) in subsection (6), by deleting the words “50,000 rupees and 50,000 rupees” and replacing them by the words “85,000 rupees and 80,000 rupees”; (vi) in subsection (7) – (A) in the definition of “dependent”, by adding the following new paragraph – (d) a bedridden next of kin; 234 Acts 2020 (B) by inserting, in the appropriate alphabetical order, the following new definition – “bedridden next of kin”, in respect of a person, means the bedridden father, mother, grandfather, grandmother, brother or sister of that person or of his spouse, provided that the bedridden next of kin is – (a) eligible to the carer’s allowance payable under the National Pensions Act; and (b) under the care of that person. (h) in section 50, by inserting, after subsection (1), the following new subsections – (1A) Notwithstanding the other provisions of this Act, but subject to subsection (1B), the tax payable by a company deriving income from life insurance business, shall be – (a) the normal tax payable; or (b) 10 per cent of the relevant profit, whichever is the higher. (1B) In this section – “normal tax payable” means the tax payable on the net income calculated under regulation 17 of the Income Tax Regulations 1996; “relevant profit” means profit attributable to shareholders in respect of an income year – (a) as reduced by capital gain attributable to shareholders where such gain has been credited to the income statement of the company; and (b) as increased by any capital loss attributable to shareholders where such loss has been debited to the income statement of the company, for that income year. Acts 2020 235 (i) in section 50B(1) – (i) by inserting, after the word “submit”, the word “electronically”; (ii) by deleting the words “and manner”; (j) in section 50I – (i) by deleting the definition of “book profit”; (ii) by inserting, in the appropriate alphabetical order, the following new definition – “accounting profit” means the profit derived by an operator from all its activities and computed in accordance with the International Financial Reporting Standards; (k) in section 50J – (i) in subsection (1), by deleting the word “book” and replacing it by the word “accounting”; (ii) by inserting, after subsection (2), the following new subsection – (2A) The levy under subsection (1) shall be calculated at the rate of 5 per cent of the accounting profit and 1.5 per cent of the turnover of the operator in respect of the year profit derived by an operator from all its activities and computed in accordance with the International Financial Reporting Standards; (k) in section 50J – (i) in subsection (1), by deleting the word “book” and replacing it by the word “accounting”; (ii) by inserting, after subsection (2), the following new subsection – (2A) The levy under subsection (1) shall be calculated at the rate of 5 per cent of the accounting profit and 1.5 per cent of the turnover of the operator in respect of the year of assessment commencing on 1 July 2020 and in respect of every subsequent year of assessment. (l) in section 50L (13), by deleting the words “a company which is exempt under items 11, 11A, 13, 26, 28 to 32 and 34 to 38 of Part II of Sub-part C of the Second Schedule and its net income shall be deemed to be its” and replacing them by the words “the exempt income of a company under items 11, 11A, 13, 26, 28 to 32 and 34 to 38 of Part II of Sub-part C of the Second Schedule and any other items in the Second Schedule as may be prescribed and that exempt income shall be included in its”; 236 Acts 2020 (m) in section 57, by deleting the words “and 24A” and replacing them by the words “, 24A and 24B”; (n) by inserting, after section 67J, the following new section –