Section 67S: Tax credit on corporate nurseries

67S. Tax credit on corporate nurseries (1) Subject to this section, where a company has incurred in an income year, capital expenditure in respect of a crèche or the cost of setting up a Child Day Care Centre for the benefit of its employees, it shall be allowed a tax credit by way of deduction from the income tax otherwise payable by it in that income year of an amount equal to 25 per cent of the expenditure so incurred. (2) Subject to subsection (3), where the deduction under subsection (1) in respect of an income year exceeds the amount of income tax otherwise payable for that income year, the excess may be carried forward to the following income year. (3) No deduction under subsection (2) in respect of an expenditure shall be carried forward beyond a period of 5 consecutive income years starting from the income year in which the expenditure was made. (4) Where a tax credit under subsection (1) has, for any income year, been allowed and within 5 years following that income year – (a) the company ceases the operation of the crèche or the Child Day Care Centre; or (b) the company sells or otherwise transfers the crèche or the Child Day Care Centre, an amount equal to the tax credit or the proportionate part of the tax credit allowed under this section shall be included in the income tax payable by the company in the income year in which the cessation, sale or transfer takes place. (5) The tax credit allowed under this section shall be in addition to the allowances to which the company is entitled under section 63 and the deduction under section 67. (f) in section 116B, by inserting, after subsection (1), the following new subsection – (1A) (a) Subject to paragraph (b), a person shall not submit an amended return under subsection (1), with respect to an income year where an assessment has been made under section 129,129A or 131. (b) A person who has been informed of the intention of the Director-General to issue an assessment to tax under section 129, 129A or 131 may make a written declaration to the Director-General requesting for changes to be made to a return that has already been submitted by him before the issue of the assessment, provided that the changes to be made do not relate to matters forming part of the basis of assessment. (c) The Director-General shall, within 6 months of the date of a declaration made under paragraph (b), inform the declarant of the outcome of the declaration. (g) in section 122A(1), by deleting the words “not later than 5 months” and replacing them by the words “not less than 3 months”; (h) in section 123D – (i) in subsection (1) – (A) by repealing paragraph (a) and replacing it by the following paragraph – (a) Subject to this section, every bank or non-bank deposit taking institution under the Banking Act shall furnish to the Director-General, on or before 15 August in every year, a statement of financial transactions with respect to bank accounts other than those specified in paragraph (aa) held by – (i) an individual in his own name or jointly with any other person, a société or a succession where a deposit exceeding 250,000 rupees or deposits exceeding 2 million rupees in the aggregate in the preceding year have been made; or (ii) a person, other than an individual, a société or succession, where a deposit exceeding 500,000 rupees or deposits exceeding 4 million rupees in the aggregate in the preceding year have been made. (B) by inserting, after subparagraph (a), the following new paragraph – (aa) ividual in his own name or jointly with any other person, a société or a succession where a deposit exceeding 250,000 rupees or deposits exceeding 2 million rupees in the aggregate in the preceding year have been made; or (ii) a person, other than an individual, a société or succession, where a deposit exceeding 500,000 rupees or deposits exceeding 4 million rupees in the aggregate in the preceding year have been made. (B) by inserting, after subparagraph (a), the following new paragraph – (aa) Subject to this section, every bank or non-bank deposit taking institution under the Banking Act shall furnish to the Director-General, on or before 15 August in every year, a statement of financial transactions with respect to credit card accounts or prepaid card accounts held by – (i) an individual in his own name or jointly with any other person, a société or a succession where a deposit exceeding 100,000 rupees or deposits exceeding one million rupees in the aggregate in the preceding year have been made; or (ii) a person, other than an individual, a société or succession, where a deposit exceeding 250,000 rupees or deposits exceeding 2 million rupees in the aggregate in the preceding year have been made. (ii) in subsection (4), in paragraph (b)(ii), by deleting the word “transactions” and replacing it by words “transactions, other than those credited in a credit or prepaid card account”; (i) in Part XIID – (i) in the heading, by deleting the words “COMPENSATION 2021, 2022 AND 2023” and replacing them by the words “COMPENSATION 2021, 2022, 2023 AND 2024”; (ii) in section 150EA – (A) in subsection (1), by inserting, in the appropriate alphabetical order, the following new definitions – “apparel industry” means the cutting of fabrics and other materials and sewing them together to create apparel products, including outerwear, pants, and tops; “textile industry” means the processing of raw materials such as wool and cotton to make yarn, and includes the use of yarn to make and create fabrics; (B) by inserting, after subsection (2), the following new subsections – (2A) Subject to this Part, the Director-General shall, for each of the months of April 2024 to June 2024, pay to an employer, in respect of each eligible full-time employee drawing the national minimum wage for that month, an allowance equivalent to 1,000 rupees. (2B) Subject to this Part, the Director-General shall pay the allowance referred to in subsection (2A) for such other months as may be prescribed during the period from July 2024 to December 2024. (2C) No allowance shall be paid under subsections (2A) and (2B) unless the employer is an export enterprise operating in the textile or apparel industry. (j) by inserting, after section 150EA, the following new section – 15OEB. Financial assistance for payment of national minimum wage and salary compensation 2024 (1) In this section – “accounting loss” means the loss made by an employer from all his activities and computed in accordance with the International Financial Reporting Standards; “accounting profit” means the profit derived by an employer from all his activities and computed in accordance with the International Financial Reporting Standards; “additional remuneration” means the additional remuneration payable to an employee as from 1 January 2024 under the Workers’ Rights (Additional Remuneration) (2024) Regulations 2024; “apparel industry” means the cutting of fabrics and other materials and sewing them together to create ap e International Financial Reporting Standards; “accounting profit” means the profit derived by an employer from all his activities and computed in accordance with the International Financial Reporting Standards; “additional remuneration” means the additional remuneration payable to an employee as from 1 January 2024 under the Workers’ Rights (Additional Remuneration) (2024) Regulations 2024; “apparel industry” means the cutting of fabrics and other materials and sewing them together to create apparel products, including outerwear, pants, and tops; “basic wage or salary” – (a) has the same meaning as in the Workers’ Rights Act 2019; and (b) includes any payable additional remuneration; “eligible employee” – (a) means an employee employed on a full-time basis and deriving at least the national minimum wage for the year 2024 – (i) from an export enterprise; (ii) from a manufacturing company whose turnover for the year of assessment 2022-2023 did not exceed 500 million rupees; (iii) from a SME deriving gross income from business; (iv) from a bus operator providing public transport; (v) from a charitable institution; (vi) from a religious body; (vii) from an enterprise, other than an export enterprise, a manufacturing company and a SME, whose turnover for the year of assessment 2022-2023 did not exceed 750 million rupees and operating in the – (A) Business Process Outsourcing sector; (B) security or cleaning services sector; or (C) construction industry; (viii) from a trade union; (ix) from a non-government organisation registered with and eligible for grants from the National Social Inclusion Foundation; (x) from such other category of employer as may be prescribed; and (xi) whose basic wage or salary does not exceed 50,000 rupees; but (b) does not include – (i) an employee employed by a Ministry, a Government department, a local authority, a statutory body or the Rodrigues Regional Assembly; (ii) an employee employed by such category of employer as may be prescribed; or (iii) such category of employees as may be prescribed; “export enterprise” has the same meaning as in the Export Enterprises (Remuneration) Regulations 2019; “registered religious body” means an entity which has been exempted from payment of surcharge under section 45A(3) of the National Pensions Act; “SME” means a small or medium enterprise, whose turnover for the year of assessment 2022-2023 did not exceed 100 million rupees; “textile industry” means the processing of raw materials such as wool and cotton to make yarn, and includes the use of yarn to make and create fabrics; “trade union” has the same meaning as in the Employment Relations Act. (2) Subject to this Part, the Director-General shall, for each of the months of year 2024, pay to an employer, in respect of each of its eligible employee – (a) an allowance equivalent to 2,000 rupees; and (b) an allowance equivalent to the additional remuneration payable to the employee, where the employer is – (i) an export enterprise; (ii) a manufacturing company which, for the year of assessment 2022-2023 had a turnover not exceeding 100 million rupees and had for that year of assessment – (A) an accounting loss; or (B) an accounting profit that would be reduced by more than 50 per cent if the additional remuneration and increase in National Minimum Wage payable as from January 2024 to its employees who were in employment as at December 2023, were deducted from that accounting profit. (3) (a) Subject to this Part, the Director- ) a manufacturing company which, for the year of assessment 2022-2023 had a turnover not exceeding 100 million rupees and had for that year of assessment – (A) an accounting loss; or (B) an accounting profit that would be reduced by more than 50 per cent if the additional remuneration and increase in National Minimum Wage payable as from January 2024 to its employees who were in employment as at December 2023, were deducted from that accounting profit. (3) (a) Subject to this Part, the Director-General shall, for each of the months of April 2024 to June 2024, pay to an employer, in respect of each of its eligible employee, an allowance equivalent to 1,500 rupees in addition to the allowance payable under subsection (2)(a). (b) Subject to this Part, the Director-General shall in addition to the allowance payable under subsection (2)(a), pay the allowance referred to in paragraph (a) for such other months as may be prescribed during the period from July 2024 to December 2024. (c) No allowance shall be paid under paragraphs (a) and (b) unless the employer is an export enterprise operating in the textile or apparel industry. (4) Subject to this Part, the Director-General shall, for each of the months of year 2024, pay to an employer, in respect of each of its eligible employee – (a) an allowance equivalent to 1,000 rupees; and (b) an allowance equivalent to fifty per cent of the additional remuneration payable to the employee, where the employer is a manufacturing company which, for the year of assessment 2022-2023 – (i) had a turnover not exceeding 100 million rupees; and (ii) had for that year of assessment an accounting profit that would be reduced by more than 10 per cent if the additional remuneration and increase in National Minimum Wage payable as from January 2024 to its employees who were in employment as at December 2023, were deducted from that accounting profit. (5) Subject to this Part, the Director-General shall, for each of the months of year 2024, pay to an employer, in respect of each of its eligible employee – (a) an allowance equivalent to 1,000 rupees; and (b) an allowance equivalent to the additional remuneration payable to the employee, where the employer is – (i) a manufacturing company which, for the year of assessment 2022-2023 – (A) had a turnover not exceeding 500 million rupees; and (B) had for that year of assessment an accounting profit that would be reduced by more than 50 per cent if the additional remuneration and increase in National Minimum Wage payable as from January 2024 to its employees who were in employment as at December 2023, were deducted from that accounting profit; (ii) a SME, which had for the year of assessment 2022-2023 – (A) an accounting loss; or (B) an accounting profit that would be reduced by more than 50 per cent if the additional remuneration and increase in National Minimum Wage payable as from January 2024 to its employees who were in employment as at December 2023, were deducted from that accounting profit; (iii) a charitable institution; (iv) a registered religious body; (v) a non-government organisation registered with and eligible for grants from the National Social Inclusion Foundation. (6) Subject to this Part, the Director-General shall, for each of the months of year 2024, pay to an employer, in respect of each of its eligible employee – (a) an allowance equivalent to 500 rupees; and (b) an allowance equivalent to 50 per cent of the additional remuneration payable to the empl ounting profit; (iii) a charitable institution; (iv) a registered religious body; (v) a non-government organisation registered with and eligible for grants from the National Social Inclusion Foundation. (6) Subject to this Part, the Director-General shall, for each of the months of year 2024, pay to an employer, in respect of each of its eligible employee – (a) an allowance equivalent to 500 rupees; and (b) an allowance equivalent to 50 per cent of the additional remuneration payable to the employee, where the employer is – (i) a manufacturing company which, for the year of assessment 2022-2023 – (A) had a turnover not exceeding 500 million rupees; and (B) had for that year of assessment an accounting profit that would be reduced by more than 10 per cent if the additional remuneration and increase in National Minimum Wage payable as from January 2024 to its employees who were in employment as at December 2023, were deducted from that accounting profit; (ii) a SME, which had for the year of assessment 2022-2023 an accounting profit that would be reduced by more than 10 per cent if the additional remuneration and increase in National Minimum Wage payable as from January 2024 to its employees who were in employment as at December 2023, were deducted from that accounting profit; (iii) an enterprise which, for the year of assessment 2022-2023, had a turnover not exceeding 750 million, operating in the Business Process Outsourcing sector and had for that year of assessment – (A) an accounting loss; or (B) an accounting profit that would be reduced by more than 50 per cent if the additional remuneration and increase in National Minimum Wage payable as from January 2024 to its employees who were in employment as at December 2023, were deducted from that accounting profit. (7) Subject to this Part, the Director-General shall, for each of the months of year 2024, pay to an employer, in respect of each of its eligible employee – (a) an allowance equivalent to 250 rupees; and (b) an allowance equivalent to 25 per cent of the additional remuneration payable to the employee, where the employer – (i) is an enterprise which, for the year of assessment 2022-2023, had a turnover not exceeding 750 million; (ii) is operating in the Business Process Outsourcing sector; and (iii) had for that year of assessment an accounting profit that would be reduced by more than 10 per cent if the additional remuneration and increase in National Minimum Wage payable as from January 2024 to its employees who were in employment as at December 2023, were deducted from that accounting profit. (8) Subject to this Part, the Director-General shall, for each of the months of January 2024 to June 2024, pay to an employer, in respect of each of its eligible employee – (a) an allowance equivalent to 500 rupees; and (b) an allowance equivalent to 50 per cent of the additional remuneration payable to the employee, where the employer – (i) is an enterprise which, for the year of assessment 2022-2023, had a turnover not exceeding 750 million rupees; (ii) is operating in the – (A) security or cleaning services sector; or (B) construction industry; and (iii) had for that year of assessment – (A) an accounting loss; or (B) an accounting profit that would be reduced by more than 50 per cent if the additional remuneration and increase in National Minimum Wage payable as from January 2024 to its employees who were in employment as at December 2023, were deducted from that accounting profit. -2023, had a turnover not exceeding 750 million rupees; (ii) is operating in the – (A) security or cleaning services sector; or (B) construction industry; and (iii) had for that year of assessment – (A) an accounting loss; or (B) an accounting profit that would be reduced by more than 50 per cent if the additional remuneration and increase in National Minimum Wage payable as from January 2024 to its employees who were in employment as at December 2023, were deducted from that accounting profit. (9) Subject to this Part, the Director-General shall, for each of the months of January 2024 to June 2024, pay to an employer, in respect of each of its eligible employee – (a) an allowance equivalent to 250 rupees; and (b) an allowance equivalent to 25 per cent of the additional remuneration payable to the employee, where the employer – (i) is an enterprise which, for the year of assessment 2022-2023, had a turnover not exceeding 750 million rupees; (ii) is operating in the – (A) security or cleaning services sector; or (B) construction industry; and (iii) had for that year of assessment an accounting profit that would be reduced by more than 10 per cent if the additional remuneration and increase in National Minimum Wage payable as from January 2024 to its employees who were in employment as at December 2023, were deducted from that accounting profit. (10) Subject to this Part, the Director-General shall pay the allowance referred to in subsection (8) or (9), as the case may be, for such other months as may be approved during the period from July 2024 to December 2024. (11) Subject to this Part, the Director-General shall, for each of the months of July 2024 to December 2024, pay to a bus operator, approved by the Minister and providing public transport, in respect of each of its eligible employee, an allowance equivalent to the additional remuneration payable to the employee. (12) (a) Subject to this Part, the Director-General shall, for the month of December 2024, in respect of every eligible employee, pay to his employer, in addition to the allowance payable under subsection (2) to (11), an additional sum equivalent to that allowance. (b) Where the eligible employee started employment with the employer after January 2024, the allowance payable under paragraph (a) shall be calculated proportionately as follows – (A/B) x C where – A = the number of months the eligible employee was employed by the employer in the year 2024; B =12; and C = the allowance payable under subsections (2) to (11) for the month of December 2024. (13) No allowance shall be payable under – (a) subsections (2)(a), (3)(a), (4)(a), (5)(a), (6)(a), (7)(a), (8)(a) and (9)(a); and (b) subsection (10) in so far as it relates to subsections (8)(a) and (9)(a), with respect to a month unless the eligible employee derives the National Minimum Wage for that month. (14) No allowance shall be payable under subsection (5) in respect of an eligible employee where – (a) the employee is employed by a non-government organisation registered with the National Social Inclusion Foundation; and (b) the salary of the employee is funded by the Ministry of Social Integration, Social Security and National Solidarity or the National Social Inclusion Foundation. (15) Where an eligible employee drawing the National Minimum Wage in a month is paid a basic salary which is lower than the National Minimum Wage for that month on grounds of – (a) leave without pay; or (b) the eligible employee taking up emp a non-government organisation registered with the National Social Inclusion Foundation; and (b) the salary of the employee is funded by the Ministry of Social Integration, Social Security and National Solidarity or the National Social Inclusion Foundation. (15) Where an eligible employee drawing the National Minimum Wage in a month is paid a basic salary which is lower than the National Minimum Wage for that month on grounds of – (a) leave without pay; or (b) the eligible employee taking up employment after the beginning of that month; or (c) the eligible employee leaving his employment before the end of that month, the allowance payable under subsections (2), (3), (4), (5), (6), (7), (8), (9), (10) and (11) shall be calculated on a proportionate basis, as follows – (A/B) x C where – A = basic salary paid for the month B = national minimum wage C = the allowance payable under subsections (2) to (11). (16) Where an employer is eligible to an allowance under more than one subsection, the employer shall be paid the allowance which is more favourable to him. (17) An application for the allowance payable under subsections (2) to (9) and (11) shall be made electronically to the Director-General in such form and manner as he may determine. (18) Section 150D(4)(a) to (c) and section 150D(5) to (7) shall apply to this section with such adaptations and modifications as may be necessary to enable the Director-General to pay the allowance. (k) in section 150F – (i) in subsection (1) – (A) by deleting the definition of “COVID-19 Solidarity Fund”; (B) by inserting, in the appropriate alphabetical order, the following new definition – “Solidarity Fund” means the Solidarity Fund established under the Finance and Audit (Solidarity Fund) Regulations 2020; (C) in the definition of “qualifying employee”, in paragraph (a) – (I) by inserting, after subparagraph (ii), the following new subparagraph – (iia) is employed on a part-time basis by an eligible employer and works for a minimum of 20 hours in a week; (II) in subparagraph (iii), by deleting the words “is above the age” and replacing them by the words “, subject to subparagraph (iiia), is above the age”; (III) by inserting, after subparagraph (iii), the following new subparagraph – (iiia) is, during the period from 17 November 2023 to 30 June 2024 under the age of 62 years on the date of being employed by the eligible employer; (IV) in subparagraph (iv), by deleting the words “one year” and replacing them by the words “3 months”; (ii) by deleting the words “COVID-19 Solidarity Fund” wherever they appear and replacing them by the words “Solidarity Fund”; (iii) in subsection (2) – (A) in paragraph (aa), by deleting the words “30 June 2024” and replacing them by the words “30 June 2025”; (B) by inserting, after paragraph (aa), the following new paragraph – (ab) Where an eligible employer terminates the employment of any employee, he shall be required to wait at least 3 months prior to making an application under the scheme. (iv) in subsection (4) – (A) in paragraph (aa), by deleting the words “qualifying employee” and replacing them by the words “qualifying employee who is employed on a full-time basis”; (B) by inserting, after paragraph (aa), the following new paragraph – (ab) Subject to this Part, the Director-General shall, in respect of every approved qualifying employee who is employed on a part-time basis, pay to his employer an allowance equivalent to the basic wage or salary of that employee for t e scheme. (iv) in subsection (4) – (A) in paragraph (aa), by deleting the words “qualifying employee” and replacing them by the words “qualifying employee who is employed on a full-time basis”; (B) by inserting, after paragraph (aa), the following new paragraph – (ab) Subject to this Part, the Director-General shall, in respect of every approved qualifying employee who is employed on a part-time basis, pay to his employer an allowance equivalent to the basic wage or salary of that employee for that month, not exceeding 7,500 rupees, in the month he is employed and in the next 23 consecutive months immediately following the month of employment. (v) in subsection (5) – (A) by inserting, after paragraph (aa), the following new paragraph – (ab) in respect of every approved qualifying employee taking employment during the period starting on 1 July 2024 and ending on 31 December 2024 with an eligible employer, pay, in addition to the allowance payable under subsection (4) – (i) an additional sum for the month of December 2024 which is equivalent to one twelfth of the allowance payable to the qualifying employee under subsection (4) for the period starting on 1 July 2024 and ending on 31 December 2024; (ii) an additional sum for the month of December 2025 which is equivalent to one twelfth of the allowance payable to the qualifying employee under subsection (4) for the period starting on 1 January 2025 and ending on 31 December 2025; and (iii) an additional sum for the month of December 2026 which is equivalent to one twelfth of the allowance payable to the qualifying employee under subsection (4) for the period starting on 1 January 2026 and ending on 31 December 2026; (B) by adding the following new paragraph, the word “and” at the end of paragraph (b) being deleted and the semicolon at the end of paragraph (c) being deleted and replaced by the words “; and” – (d) in respect of every qualifying employee taking employment after 31 December 2024, in addition to the allowance payable under subsection (4), pay – (i) an additional sum for the month of December 2025 which is equivalent to one twelfth of the allowance payable to the qualifying employee under subsection (4) for the period starting on 1 January 2025 and ending on 31 December 2025; (ii) an additional sum for the month of December 2026 which is equivalent to one twelfth of the allowance payable to the qualifying employee under subsection (4) for the period starting on 1 January 2026 and ending on 31 December 2026; and (iii) an additional sum for the month of December 2027 which is equivalent to one twelfth of the allowance payable to the qualifying employee under subsection (4) for the period starting on 1 January 2027 and ending on 31 December 2027. (ka) in section 150G – (i) in subsection (3), by deleting the words “June 2024” and replacing them by the words “June 2025”; (ii) by repealing subsection (11) and replacing it by the following subsection – (11) When an application is made by an individual under the Scheme, the Director-General may pay the allowance for 12 consecutive months immediately prior to the month in which the application is made, provided that the allowance is not paid for any month prior to the month of July 2023. (iii) in subsection (12), by deleting the words “30 September 2024” and replacing them by the words “31 December 2025”;” (l) in section 161A(58A) – (i) in paragraphs (a) and (ab), by deleting the words “new plant and machinery” wherever they appear and r vidual under the Scheme, the Director-General may pay the allowance for 12 consecutive months immediately prior to the month in which the application is made, provided that the allowance is not paid for any month prior to the month of July 2023. (iii) in subsection (12), by deleting the words “30 September 2024” and replacing them by the words “31 December 2025”;” (l) in section 161A(58A) – (i) in paragraphs (a) and (ab), by deleting the words “new plant and machinery” wherever they appear and replacing them by the words “new plant and machinery, artificial intelligence and patents”; (ii) in paragraph (b), by inserting, in the appropriate alphabetical order, the following new definition – “artificial intelligence” has the same meaning as in the Financial Services (Robotic and Artificial Intelligence Enabled Advisory Services) Rules 2021; (m) in the Second Schedule, in Part II – (i) in Sub-part A – (A) in item 6, by deleting the words “2.5 million” and replacing them by the words “3 million”; (B) by adding the following new item –