Section 67K: Expenditure incurred on patents and franchises

67K. Expenditure incurred on patents and franchises (1) Where, in an income year, a company incurs – (a) expenditure for the acquisition of patents and franchises; and (b) costs to comply with international quality standards and norms, it may deduct, from its gross income, twice the amount of such expenditure incurred in that income year. (2) Where a company claims a deduction in respect of patents and franchises under this section, it shall not be entitled to annual allowance in respect of those patents and franchises under section 63. (o) in section 93 – (i) in subsection (1), by inserting, after the words “income tax”, the words “, including the solidarity levy under section 16C,”; (ii) in subsection (4A)(b), by deleting the words “, by registered post,”; (p) in section 96 – (i) in subsection (2), by deleting the word “Where” and replacing it by the words “Subject to subsection (2A), where”; (ii) by inserting, after subsection (2), the following new subsection – (2A) Where the emoluments referred to in subsection (2) exceeds 230,769 rupees in a month, the employer shall withhold an additional tax on the amount exceeding 230,769 rupees at the rate of 25 per cent, provided that the additional tax withheld does not exceed 10 per cent of total emoluments. Acts 2020 237 (q) in section 106(1) – (i) by inserting, after the word “submit”, the word “electronically”; (ii) by deleting the words “and at the same time pay tax, if any,” and replacing them by the words “and pay tax, if any, electronically,”; (r) in section 111A(1), in the definition of “work”, by deleting the words “(a) and (j)” and replacing them by the words “(b) and (k)”; (s) in section 111K(4A)(b), by deleting the words “, by registered post,”; (t) in section 112 – (i) by repealing subsection (1) and replacing it by the following subsection – (1) Subject to this Act, every person who, in an income year – (a) derives – (i) total net income of an amount exceeding the Category A Income Exemption Threshold specified in the Third Schedule; (ii) gross income, derived from any business, exceeding 2 million rupees; (iii) emoluments in respect of which tax has been withheld under section 93; (iv) income which has been subject to tax deduction at source under section 111C; or 238 Acts 2020 (b) has leviable income under section 16B or chargeable income, shall, in respect of that income year, submit electronically to the Director-General, not later than 15 October following that income year, a return in such form and manner as the Director-General may determine, specifying – (i) the income exemption threshold to which the person is entitled under section 27; (ii) the interest relief allowable under section 27A; and (iii) such other particulars as may be required in the form of the return and, at the same time, pay electronically any tax payable in accordance with the return. (ii) by repealing subsections (3) and (4); (u) in section 116B(3), by deleting the words “by a company or a société”; (v) in section 119, in subsections (1) and (2), by inserting, after the word “submit”, the word “electronically”; (w) in section 120(1), by inserting, after the word “submit”, the word “electronically”; (x) in section 129A(3)(a), by deleting the words “registered post” and replacing them by the words “registered post or electronically”; (y) in section 152, by repealing subsection (2) and replacing it by the following subsection – (2) (a) Subject to paragraph (b), a refund under subsection (1) shall be m ection 119, in subsections (1) and (2), by inserting, after the word “submit”, the word “electronically”; (w) in section 120(1), by inserting, after the word “submit”, the word “electronically”; (x) in section 129A(3)(a), by deleting the words “registered post” and replacing them by the words “registered post or electronically”; (y) in section 152, by repealing subsection (2) and replacing it by the following subsection – (2) (a) Subject to paragraph (b), a refund under subsection (1) shall be made within a period of 60 days of the due date for the submission of the return or the date of receipt of the claim, whichever is the later. Acts 2020 239 (b) Where the Director-General requests a person to submit any document or information in respect of a claim for refund of excess income tax under this section, the time limit for the refund shall run from the date of receipt of all such documents and information requested. (z) in section 161A – (i) in subsection (45) – (A) by deleting the words “30 June 2019” wherever they appear and replacing them by the words “31 December 2020”; (B) in paragraph (b), by deleting the words “30 June 2020” and replacing them by the words “30 June 2022”; (ii) in subsection (46) – (A) in paragraph (c), by deleting the words “December 2019” and replacing them by the words “December 2021”; (B) in paragraph (d), by adding the following new subparagraph, the full stop at the end of subparagraph (ii) being deleted and replaced by the words “; or” and the word “or” at the end of subparagraph (i) being deleted – (iii) from 1 July 2020 to 31 December 2020, not exceed 7 million rupees. (iii) in subsection (57)(b), by deleting the words “as may be prescribed” and replacing them by the words “as the Director-General may determine”; (iv) by inserting, after subsection (58), the following new subsection – (58A) (a) Subject to paragraph (b), where, during the period 1 July 2020 to 30 June 2023, a manufacturing company incurs capital expenditure on 240 Acts 2020 new plant and machinery, it shall be allowed, in the year of acquisition and in each of the 2 subsequent income years, a tax credit of an amount equal to 15 per cent of the cost of the new plant and machinery. (b) In this subsection – “plant and machinery” does not include motor cars. (v) by adding the following new subsections – Additional investment allowance to companies affected by COVID-19 (64) (a) Subject to paragraph (b), where a company has, during the period 1 March 2020 to 30 June 2020, incurred capital expenditure on the acquisition of new plant and machinery, it shall, in addition to the deduction to which it may be entitled under section 63, be allowed a deduction of 100 per cent of the capital expenditure so incurred by way of investment allowance in respect of the income year in which the expenditure is incurred. (b) A company shall be entitled to the additional allowance under paragraph (a) provided that it satisfies the Director-General that it has been adversely affected by COVID-19. (c) In this subsection – “COVID-19” has the same meaning as in section 150B(1); “plant and machinery” does not include motor cars. Extension of time for payment of corporate income tax for companies operating in the tourism industry (65) Notwithstanding this Act or section 21R(2) of the Mauritius Revenue Authority Act, any company engaged in an activity in the tourism industry specified in Part I of the Twelfth Schedule of the Income Tax Acts 2020 241 Regulations 1996 is a affected by COVID-19. (c) In this subsection – “COVID-19” has the same meaning as in section 150B(1); “plant and machinery” does not include motor cars. Extension of time for payment of corporate income tax for companies operating in the tourism industry (65) Notwithstanding this Act or section 21R(2) of the Mauritius Revenue Authority Act, any company engaged in an activity in the tourism industry specified in Part I of the Twelfth Schedule of the Income Tax Acts 2020 241 Regulations 1996 is and having an accounting period ending on any date during the period September 2019 to June 2020 shall pay the tax due in accordance with its annual return of income submitted under section 116 as follows – (a) half of the tax on or before 29 December 2020; and (b) the remainder on or before 28 June 2021. (66) Notwithstanding this Act, where a company specified in Part I of the Twelfth Schedule of the Income Tax Regulations 1996 is required to pay tax under Sub-part AA for any quarter and the due date for payment falls during the calendar year 2020, it shall pay the tax as follows – (a) half of the tax on or before 29 December 2020; and (b) the remainder on or before 28 June 2021. (aa) in the Second Schedule – (i) in Part I – (A) by deleting the following item –