Patricia Piper Properties ltd

Income tax must be paid for:
•    income from employment, including allowances, bonuses, commissions, gratuities (in cash or in kind);
•    pensions and annuities resulting from past employment;and compensation for loss of office;
•    dividends;
•    interest;
•    rents;
•    business income

Of course, there are certain expenses that can be deducted.

You are not required to pay any capital gains tax on residential property in Mauritius.

Capital Gains Tax applies to gains realised by the owner of immovable property who divides it into five or more lots for sale, and is charged at between 20% and 30% depending on the dates of purchase and sale.
This 'parcelling out' of land is also subject to Land Development Tax at MR 2.50 per square metre of land parcelled out, except when it takes place between co-heirs.

1.     HISTORY BEHIND THE GRANT OF CAMPEMENT SITE LEASES

 1.1     Campement sites as per existing Law in Mauritius (The Land (Duties and Taxes) Act 1984 means any land, which is situated wholly or partly within 81.21 m from the High Water Mark and has a sea frontage or a private access to the sea. All campement sites lies within the strip of State land of the width of 81.21 m running all round the island and which is commonly known as the Pas Geometriques; and which is governed by the Pas Geometriques Act.

2.      POLICY

      Under the Pas Geometriques Act, it was the policy of Government to grant campement site leases by private contract or public auction. Most of campement site leases were granted in the sixties to individuals/ associations and societies (with regards to Societies, the members should be of the same family and should be empowered to take on a lease). Presently no new site is being granted for campement site leases.

3.     CONDITIONS

 3.1     The extent of land being the subject of leases for campement site should not exceed 1A25p unless any portion of Pas Geometriques which exceeds the 1A25p is so situated that it cannot be conveniently divided and in the opinion of the Government it is desirable to lease the whole of that portion.    

 3.2     Any person/association/society shall hold only one campement site lease.     

 3.3     Campement site leases are not normally granted to Companies.     

 3.4     Campement site leases were granted for a period of 20 years with option for renewal for two consecutive periods of twenty years.     

 3.5     Rental initially claimed were those agreed upon at the time of auction sale or as embodied in the lease agreement.     

 3.6     Prior to any development carried out on the site, the plans should to be approved by this Ministry. The lessee shall obtain all necessary permits and clearances from all relevant authorities before construction of any building on the land leased.     

 3.7     The lessee shall complete the construction of his buildings within one year as from the date of commencement of the lease.     

 3.8     The land is to be used solely as a campement site.     

 3.9     In some Lease Agreement the lessee was allowed to let the buildings standing on the site leased but he will  nevertheless be personally responsible for the payment of rent of the land and for compliance with the terms of the lease.     

 3.10     At the end of the last period of the lease or upon its cancellation , the lessee shall yield up the lands hereby leased nowise deteroriated in value as they stand without any claim whatever for indemnity other than permission to remove the buildings to the lessee . Such buildings shall be removed within a period to be fixed by the lessor, and failing their removal within such period, the buildings shall become the property of the lessor.     

4.     TRANSFER OF CAMPEMENT SITE LEASES

      Requests for transfer of campement site leases are also considered by the Ministry. These requests are classified in three categories.     

 4.1      Application for transfer made by the lessee .

This application is receivable if it is jointly signed by the lessee and the proposed transferee. Transfer of such campement site lease is normally being effected on same terms and conditions including the rental. On approval by the Ministry for the said transfer, the sitting lessee shall produce a Notarial Deed witnessing the sale of the buildings and the transfer of the leasehold rights in the lease in favour of the new lessee following which a formal lease agreement will be drawn and signed between Government and the new lessee.

 4.2    Application for transfer made by Heirs of Late lessee .

Whenever a campement site lessee has passed away, the lease may be transferred in the name of one of the heirs of the late lessee or in the name of the Succession and Heirs of the late lessee on same terms and conditions. The application for the transfer of the lease should be supported by all legal documents (i.e. affidavit, power of attorney etc).

 4.3    Application for transfer made by unpaid creditors .

Application for transfer should be forwarded by the attorney in charge of the sale. The application should be accompanied by supporting documents.

5.     SUBDIVISION OF CAMPESITE SITE

 5.1      Request for subdivision of campement site is also considered by this Ministry provided that the extent of the parceled plots is as per prevailing planning guidelines and also provided that all the parceled plots are built up.     

 5.2     An individual lease with new terms and conditions including new rental will then be drawn up in favour of the beneficiaries of the parceled plots. This exercise will also be subject to the production of a Notarial Deed witnessing the sale of the building together with the transfer of the leasehold rights in favour of each of the new lessee following which a formal lease agreement will be drawn and signed between Government and each of the new lessee(s).      

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