Section 4: Levy of land transfer tax

4. Levy of land transfer tax (1) Subject to subsections (2), (3), (4) and (5), there shall be levied on the registration of a deed of transfer or a deed witnessing the transfer of property, a tax, to be known as land transfer tax, on— (a) the value of any property transferred; (b) the value of any property allocated on the dissolution of a partnership or in any other manner to any person other than the one who brought the property into the partnership; (c) where the property transferred is a share in a partnership or successive partnerships, the value of any freehold or leasehold immovable property comprised in the assets of the partnership or successive partnerships calculated in accordance with the First Schedule; (ca) where the property transferred is a share in a company or successive companies, the value of the shares transferred where the transfer of the shares results in a change of control or any increase in shareholding of the controlling shareholder within a period of 12 months from the date of the change of control; (d) in the case of the distribution of property by a trustee to a beneficiary under the terms of the trust, the value of the property so distributed; (e) in the case of a transfer– (i) following the vente à terme under article 1601-2 of the Code Civil Mauricien, the consideration stated in the deed; or L4 – 7 [Issue 5] Land (Duties and Taxes) Act (ii) by way of a vente en l’état futur d’achèvement under article 1601-3 of the Code Civil Mauricien, the consideration stated in the deed together with the value of the immeuble à l’achèvement; (f) in the case of the withdrawal (désintéressement) of a partner from a partnership which another partner previously joined, the value of any freehold or leasehold immovable property comprised in the assets of the partnership calculated in accordance with the First Schedule; (g) in the case of the withdrawal (désintéressement) of a partner from a partnership which another partner previously joined and which is entitled to shares, whether directly or indirectly, by the constitution of successive partnerships, in another partnership, the value of any freehold or leasehold immovable property comprised in the assets of that other partnership calculated in accordance with the First Schedule; (h) in the case where an immovable property is transferred to a company and the transferor holds shares in the company the value of which is less than the value of the immovable property transferred, the difference between the value of the immovable property transferred and the value of the shares held by the transferor in the company; (i) in the case where there is a transfer of shares in a company or issue of shares by a company or transfer of part sociale in a société which gives right of ownership, occupation or usage in an immovable property or any part thereof, the value of the immovable property or any part thereof. (1A) (a) Land transfer tax shall be levied on the registration of a deed of transfer witnessing a transfer of shares, referred to in paragraph (1) of the definition of “deed of transfer”, at the appropriate rate specified in Part B of the Second Schedule— (i) on the value of the shares transferred; or (ii) at the option of the transferor and transferee jointly, in such proportion as the number of shares transferred bears to the total number of shares issued by the company, without taking into account the number of shares, if any, issued to the transferee during the period of 3 y witnessing a transfer of shares, referred to in paragraph (1) of the definition of “deed of transfer”, at the appropriate rate specified in Part B of the Second Schedule— (i) on the value of the shares transferred; or (ii) at the option of the transferor and transferee jointly, in such proportion as the number of shares transferred bears to the total number of shares issued by the company, without taking into account the number of shares, if any, issued to the transferee during the period of 3 years immediately preceding the date of transfer, on the open market value of the immovable property comprised in the assets of the company or on the value of the shares transferred, whichever is the lower. (b) For the purposes of paragraph (a), where the value of the shares transferred exceeds 200,000 rupees, the transferor shall submit a certificate from a professional accountant as to the value of the shares transferred. (1B) Where the open market value of the immovable property excluding the value of any building thereon exceeds 50 million rupees, subsection (1A) (b) shall apply and land transfer tax shall be levied at the appropriate rate specified in Part B of the Second Schedule. [Issue 5] L4 – 8 Revised Laws of Mauritius (2) Where a person withdraws from a partnership as a partner without taking back any property which he originally brought into the partnership (apport), the deed witnessing his withdrawal (acte de désintéressement) shall be deemed to constitute sufficient evidence for the purposes of subsection (1) that he has transferred the property to the partnership on the date on which the withdrawal takes place. (3) Notwithstanding any other enactment where— (a) property owned by a company is attributed on winding up, liquidation or dissolution of the company or in any other manner, to any of its shareholders; (b) property brought into a partnership by way of an apport by any of its partners prior to its constitution and registration or thereafter, is attributed, on its dissolution or in any other manner, to any person other than the one who brought the property into the partnership; (c) property acquired by a partnership prior to its constitution and registration or thereafter is, on dissolution of the partnership or in any other manner, attributed to a person who joined the partnership after the date of such acquisition; (d) a partner withdraws (se désintéresse) from a partnership owning property, which another partner previously joined; (e) a partner withdraws (se désintéresse) from a partnership which another partner previously joined and which is entitled to shares, whether directly or indirectly, by the constitution of successive partnerships, in another partnership; (f) property is distributed by a trustee under the terms of a trust to any beneficiary of that trust, the deed witnessing such attribution, withdrawal or distribution shall be deemed to constitute sufficient evidence for the purposes of subsection (1) that the property owned by the company, partnership or trust has been duly transferred to that shareholder, other partner, partner that previously joined the partnership or beneficiary, as the case may be, irrespective of the date on which the attribution, withdrawal or distribution takes place. (4) The tax shall be— (a) paid by the transferor; (b) at the rate specified in the Second Schedule. (4A) (a) Where a person sells a property, he shall make in the deed a declaration of any sale made by him in the 3 years immed by the company, partnership or trust has been duly transferred to that shareholder, other partner, partner that previously joined the partnership or beneficiary, as the case may be, irrespective of the date on which the attribution, withdrawal or distribution takes place. (4) The tax shall be— (a) paid by the transferor; (b) at the rate specified in the Second Schedule. (4A) (a) Where a person sells a property, he shall make in the deed a declaration of any sale made by him in the 3 years immediately preceding the present sale and the value of the property sold, excluding the value of any building thereon. (b) Where the aggregate value of the property sold during the 3-year period referred to in paragraph (a) exceeds 50 million rupees, he shall, subject to subsection (6), pay land transfer tax at the appropriate rate specified in Part A of the Second Schedule. L4 – 8 (1) [Issue 6] Land (Duties and Taxes) Act (c) For the purpose of paragraph (b), the aggregate value of the property shall not include the value of any building existing thereon. (d) This subsection shall apply only to sales of property effected on or after 19 July 2008. (5) — (6) Where the transfer is made by way of— (a) a vente à terme under article 1601-2 of the Code Civil Mauricien by a company holding an investment certificate in respect of a project under the Real Estate Development Scheme prescribed under the Investment Promotion Act; or (b) a vente en l’état futur d’achèvement under article 1601-3 of the Code Civil Mauricien, the rate shall, notwithstanding subsection (4), be 5 per cent. (6A) Where the transfer under the Real Estate Development Scheme prescribed under the Investment Promotion Act is made in accordance with subsection (6) (b), the land transfer tax leviable on the transfer may be paid in 4 consecutive equal 6-monthly instalments, the first instalment being payable at the time of registration of the deed of transfer. (6B) Where payment is made in accordance with subsection (6A), the transferor shall furnish to the Registrar-General, at the time of registration of the deed of transfer, a bank guarantee equivalent to the remaining balance of the land transfer tax leviable. (7) Notwithstanding subsections (4) and (6), where the transfer is made by the owner of an immovable property, other than by an IRS Company, RES Company or IHS Company in respect of a stand-alone villa under the Real Estate Development Scheme, pursuant to subsection (6), the amount of land transfer tax shall— (a) in the case of a non-citizen or company registered as a foreign company under the Companies Act— (i) where the property transferred is under the IRS, be at the rate specified in Part A of the Second Schedule, or 50,000 US dollars, or its equivalent in any other hard convertible foreign currency, whichever is the higher; or (ii) where the property transferred is under the RES, be at the rate specified in Part A of the Second Schedule, or 25,000 US dollars, or its equivalent in any other hard convertible foreign currency, whichever is the higher; or (b) in the case of a citizen of Mauritius or company incorporated under the Companies Act— (i) where the property transferred is under the IRS, be at the rate specified in Part A of the Second Schedule, or 50,000 US dollars, or its equivalent in any other hard convertible foreign currency or in Mauritius currency, whichever is the higher; or [Issue 6] L4 – 8 (2) Revised Laws of Mauritius (ii) where the property transferred is under hard convertible foreign currency, whichever is the higher; or (b) in the case of a citizen of Mauritius or company incorporated under the Companies Act— (i) where the property transferred is under the IRS, be at the rate specified in Part A of the Second Schedule, or 50,000 US dollars, or its equivalent in any other hard convertible foreign currency or in Mauritius currency, whichever is the higher; or [Issue 6] L4 – 8 (2) Revised Laws of Mauritius (ii) where the property transferred is under the RES, be at the rate specified in Part A of the Second Schedule, or 25,000 US dollars, or its equivalent in any other hard convertible foreign currency or in Mauritius currency, whichever is the higher. [EDITORIAL NOTE: The amendments to this section by section 11 of Act 18 of 1999 do not, by virtue of section 15 (f) of Act 25 of 2000, apply to a partnership formed before 1 August 1999.] (8) (a) Where the Registrar-General is notified in writing by the ERCP Committee that the proceeds of the sale of the immovable property referred to in item (r) (iii) of the Eighth Schedule have not been invested in the company within the prescribed period, he shall, by written notice sent by registered post, claim from the transferor the land transfer tax exempted together with a penalty equal to 20 per cent of the amount of the land transfer tax exempted. (b) For the purpose of paragraph (a)— “ERCP Committee” means the ERCP Committee under the Economic Restructuring and Competitiveness Package, referred to in the Ministry’s document entitled “Facing The Euro Zone Crisis and Restructuring for Long Term Resilience” and dated August 2010 and published as a General Notice in the Gazette of Thursday 9 December 2010. [S. 4 amended by s.4 of Act 20 of 1988 w.e.f. 16 July 1988; s. 7 (b) of Act 22 of 1989 w.e.f. 1 July 1989; s. 4 (3) of Act 17 of 1991 w.e.f. 1 July 1991; s. 3 (a) of Act 25 of 1993 w.e.f. 1 July 1993; s. 11 (c) of Act 18 of 1999 w.e.f. 1 August 1999; s. 72 (3) (b) of Act 14 of 2001 w.e.f. 1 December 2001; s. 14 (b) of Act 23 of 2001 w.e.f. 11 August 2001; s. 17 (b) of Act 20 of 2002 w.e.f. 10 August 2002; s. 12 (c) of Act 28 of 2004 w.e.f. 26 August 2004; s. 19 (c) of Act 15 of 2006 w.e.f. 7 August 2006; s. 18 of Act 18 of 2008 w.e.f. 19 July 2008; s. 11 (a) of Act 1 of 2009 w.e.f. 1 January 2009; s. 24 (b) of Act 14 of 2009 w.e.f. 30 July 2009; s. 13 (b) of Act 20 of 2009 w.e.f. 19 December 2009; s. 10 (a) of Act 10 of 2010 w.e.f. 4 January 2011; s. 14 (c) of Act 26 of 2012 w.e.f. 22 December 2012; s. 11 (a) of Act 26 of 2013 w.e.f. 1 January 2014.] 5. – 7. — [Ss. 5 to 7 repealed by s. 12 (d) of Act 28 of 2004 w.e.f. 26 August 2004.] PART IV [Part IV repealed by s. 19 (d) of Act 15 of 2006 w.e.f. 7 August 2006.] 8. – 11. — [Ss. 8 to 11 repealed by s. 19 (d) of Act 15 of 2006 w.e.f. 7 August 2006.] PART V – CAMPEMENT TAX