Mauritius: Offshore Trusts Guide
In most respects, the 2001 Act inherited tax privileges granted under previous acts, and Section 46 of the Income Tax Act 1995 was amended accordingly:
- Subject to section 7 and subsections (2) and (3) of this section, every trust shall be liable to income tax on its chargeable income at the rate specified in Part III of the First Schedule.
- A trust of which
(a) the settlor is a non-resident; and
(b) all the beneficiaries appointed under the terms of the trust are, throughout an income year, non-resident, or hold a Category 1 Global Business Licence or a Category 2 Global Business Licence under the Financial Services Development Act 2001
shall be liable to income tax on its chargeable income at the rate specified in Part II of the First Schedule.
- Where a trust which qualifies under subsection (2) deposits a declaration of non-residence for any income year with the Commissioner within 3 months after the expiry of the income year, it shall be exempt from income tax in respect of that income year.
- The chargeable income under subsections (1) and (2) shall be the difference between:
(a) the net income derived by the trust; and
(b) the aggregate amount distributed to the beneficiaries under the terms of the trust.
- Any amount distributed to the beneficiaries under the terms of the trust shall be deemed to be a charge under section 10(1)(d) and shall be liable to income tax in the hands of the beneficiaries.
- Notwithstanding subsection (5), a non-resident beneficiary of a trust shall be exempt from income tax in respect of his income under the terms of the trust.