INCOME TAXThe main tax legislation in Mauritius is the Income Tax Act, 1995 as amended by subsequent Finance Acts. Corporate and personal taxes are grouped under one heading, income tax, and are payable by all resident companies and individuals on non-exempt income from Mauritius and other sources. The profits of all resident companies are taxable in the hands of the partners in proportion to their profit sharing rate. A non-resident company is subject to income tax as if it were a corporation. “Resident”, in relation to one year of income, means: • a company incorporated in Mauritius or whose central management and control is in Mauritius • a natural person who: (a) has his domicile in Mauritius unless his permanent place of residence is outside Mauritiusb) has been present in Mauritius during this income tax year for a period of 183 days or more or has been present in Mauritius during this income year and both years of previous income for a total period period of 270 days or more • a company which has its registered office in Mauritius and includes a company which has at least one partner resident in Mauritius • a trust – where the trust is administered in Mauritius and where the majority of trustees are residents of Mauritius or where the settlor of the trust was resident in Mauritius at the time of signing the deed creating the trust • any other association – an association or group of persons which is managed or administered in Mauritius. Personal income tax As of January 1, 2010, the financial year is based on a calendar year. Income tax is payable by residents on non-exempt income derived from Mauritius, less permitted deductions, including interest on housing loans, subject to losses of the parent company; and there are special provisions in the sugar industry. Conditions of declaration and payment of tax: The tax year extends from January 1 to December 31. There is a self-assessment system, based on the previous year; a company must submit its tax return six months after the end of its financial year. The declarations must be accompanied by full payment of the tax due. The Income Tax Commissioner can issue his own assessment if he disagrees with the company's valuation. There is an appeal procedure which ultimately ends up before the Supreme Court. The 2007/8 Budget introduced an Advance Payment Scheme (APS) for businesses, whereby they are required to make an interim quarterly payment of tax based on the previous year's taxable income. tax declaration. Final reconciliation of tax liability will be carried out upon submission of the annual tax return for that year..