As per our tax legislation a company whether in operation or not was required to submit its corporate tax return to the tax administration. This meant that a company even not in receipt of any income had to submit a nil corporate tax return, as non-submission of return is subject to penalty.

To ease the return filing burden of such companies, relevant amendment was brought to tax legislation. Indeed, where a company (a) has not started business; or (b) ceased business, and has not derived any income in an income year, it shall submit only a ‘Declaration of Company not in operation’ within 3 months after the expiry of that income year. This declaration is available on our website at http://www.mra.mu/index.php/e-services/declaration-of-company-not-in-operation.

Where a company submits its declaration statement within the specified time, it has no obligation to submit the annual corporate tax return. However, it is to be noted that the declaration by ‘company not in operation’ is not applicable to a company holding a Global Business Licence and a trust.