Section 46: Trusts

46. Trusts (1) Subject to subsections (2) and (3) and section 7, every trust shall be liable to income tax on its chargeable income at the rate specified in 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 Act or another trust which qualifies under this subsection; and (b) (i) of which all the beneficiaries appointed under the terms of the trust are, throughout an income year, non-residents or hold a Category 1 Global Business Licence or a Category 2 Global Business Licence under the Financial Services Act; or (ii) which is a purpose trust under the Trusts Act and whose purpose is carried out outside Mauritius, shall be liable to income tax on its chargeable income at the rate specified in the First Schedule. (3) Where a trust which qualifies under subsection (2) deposits a declaration of non-residence for any income year with the Director-General within 3 months after the expiry of the income year, it shall be exempt from income tax in respect of that income year. (4) Any distribution to a beneficiary of a trust shall be deemed to be a dividend to the beneficiary. I5 – 33 [Issue 7] Income Tax Act (5) – (6) — [S. 46 repealed and replaced by s. 72 (2) (b) of Act 14 of 2001 w.e.f. 1 December 2001; amended by s. 9 (f) of Act 18 of 2003 w.e.f. the year of assessment commencing on 1 July 2003; s. 18 (p) of Act 15 of 2006 w.e.f. 1 July 2007 in respect of the year of assessment commencing on 1 July 2007 and in respect of every subsequent year of assessment; s. 17 (i) of Act 17 of 2007 w.e.f. 1 July 2008 in respect of the year of assessment commencing on 1 July 2008 and in respect of every subsequent year of assessment; s. 8 (h) of Act 37 of 2011 w.e.f. 15 December 2011.]