Section 49A: Foundations

49A. Foundations (1) Subject to subsection (2), every Foundation shall be liable to income tax on its chargeable income at the rate specified in the First Schedule. (2) A Foundation of which— (a) the founder is a non-resident or holds a Category 1 Global Business Licence under the Financial Services Act; and (b) all the beneficiaries appointed under the terms of a charter or a will are, throughout an income year, non-resident or hold a Category 1 Global Business Licence under the Financial Services Act, shall be exempt from income tax in respect of that year. I5 – 35 [Issue 9] Income Tax Act (3) For the purpose of the exemption specified in subsection (2), any Foundation which qualifies under subsection (2) shall deposit a declaration of non-residence for any income year with the Director-General within 3 months from the expiry of the income year. (4) Any distribution to a beneficiary of a Foundation shall be considered to be a dividend to the year. [S. 49A inserted by s. 51 (d) of Act 8 of 2012 w.e.f. 1 July 2012.]