Cap. 123 Art. 49Married couples.

(1) The income of a married couple, where both spouses are living together, shall be charged to tax in the name of the responsible spouse so elected by the spouses themselves for the purposes of the Income Tax Acts and any return and any declaration relating to a year of assessment for which the income is so chargeable shall be signed by both spouses:

Provided that if the return or declaration is signed only by the responsible spouse or the other spouse on behalf of the responsible spouse, it shall in all cases be presumed juris et de jure to have been made with the consent of both spouses:

Provided further that if the spouses fail to appoint the responsible spouse, the Commissioner shall at his discretion decide who of the spouses shall be the responsible spouse.

(2) Where a joint return is required to be filed by a married couple in accordance with the provisions of sub-article (1), both spouses will be jointly and severally responsible for the performance of all obligations pursuant to the provisions of the Income Tax Acts, and in default the Commissioner shall be entitled, at his discretion, to take such action to enforce performance of those obligations against either or both of the spouses: Provided that in no case may any criminal action be taken against a spouse for any act or omission for which he or she may not be directly responsible.

(3) Where a married couple elects that one of the spouses is to be the responsible spouse, such election shall remain effective for a minimum period of five successive years unless the Commissioner, at his sole discretion and for a reasonable cause, authorises a change following a petition signed by either spouse and filed with the Commissioner not later than six months before the first day of the year of assessment in respect of which such change is requested. 49A.* (1) In the case of a married couple, where both spouses are living together, any of the spouses may make an election for the purposes of this article (hereinafter referred to as "a separate return election") where:

(a) during the year in which the election is made, each of the spouses derives income that is subject to tax under the provisions of article 4(1)(a) or (b), insofar as it does not refer to any fees derived from the holding of an office of a director, or of article 4(1)(d) insofar as it refers to a pension which is received in view of a past employment; or

*Applicable from year of Assessment 2021.

(b) in terms of a public deed concluded by the spouses, the property they acquire during their marriage is governed by the system of separate property or by the system of community of residue with separate administration as provided in article 1237(2) of the Civil Code or in terms of a foreign law that may be applicable to the property of the spouses that provides for any similar system, and that system still applies to them at the time that the election is made.

(2) A separate return election shall be made on such form and in such manner as the Commissioner may direct.

(3) Unless the Commissioner approves otherwise, a separate return election shall have effect in respect of the year of assessment commencing on 1 January of the year immediately following that in which the election is made and shall continue to have effect in respect of each subsequent year of assessment unless and until it is revoked:

Provided that an election submitted to the Commissioner before 1 January 2020 shall have effect as from the year of assessment 2021.

(4) Notwithstanding the provisions of article 49, and subject to the other provisions of this article, for any year of assessment in respect of which a separate return election is effective:

(a) the income of each spouse shall be charged to tax in the name of the respective spouse separately from the income of the other spouse, and each spouse shall be responsible for complying with the provisions of the Income Tax Acts relating to the submission of returns of his or her income and the ascertainment of that income;

(b) the income of a spouse shall comprise all income derived by that spouse regardless of any right which the other spouse may have in respect of that income in virtue of the provisions of any law regulating the rights of the spouses over their property and income;

(c) in the application of the provisions of this Act relating to the deductions allowable against the income of a spouse, expenses shall be deemed to have been incurred by the spouse in whose name the relative receipt is issued, and where a receipt is issued in the joint name of the spouses, the relative expense shall be deemed to have been incurred by the spouses in equal portions; and

(d) any amounts of unabsorbed losses, unabsorbed capital allowances or unabsorbed tax credits brought forward from any year of assessment preceding that as from which a separate return option becomes effective shall be accounted for in the computation of the income of the spouse in whose name the income derived from the source that had given rise to the losses, capital allowances or tax credits in question is chargeable:

Provided that any unabsorbed capital loss that had been incurred in a transfer made by a spouse shall be available as a deduction from any capital gains that may be derived by that spouse, and if the transfer had been made by the spouses jointly, the unabsorbed capital loss shall be available to the two spouses in proportion to the undivided shares transferred by them respectively.

(5) (a) when, in the year immediately preceding a year of assessment in respect of which a separate return election is effective:

(i) a spouse derives rental income to which article 31D applies, that spouse shall be deemed to have exercised the option for the final tax as provided for in sub-article (2) of article 31D and shall consequently be liable for the payment of the final tax in accordance with sub-article (7) of article 31D; or

(ii) a spouse derives investment income as defined in article 41(a) without deduction of tax, that spouse shall be required to report that income in his tax return for the said year of assessment and to pay tax on that income at the rate or rates determined in accordance with article 33, which tax shall be payable in such manner and by not later than such time as may be prescribed;

*

(b) the provisions of article 31D and the investment income provisions shall apply without regard to paragraph (a) if the chargeable income of the spouse for that year of assessment, disregarding the rental and investment income in question, is not less than the amount on which tax is chargeable at the rate of zero per cent (0%) in accordance with the provisions of article 56(1)(b) that are applicable to the chargeable income of the said spouse.

(6) A married couple living together may revoke a separate return election by means of a notice in writing to the Commissioner

*Amendment applicable from the year of assessment 2027. Vide Article 13(2) of Act III of 2026. subject to the following conditions:

(a) the notice of revocation shall be made on such form and in such manner as may be approved by the Commissioner and shall be signed by both spouses; and

(b) unless the Commissioner approves otherwise, the separate return election shall cease to have effect as from the year of assessment commencing on 1 January of the year immediately following that in which the notice of revocation is delivered to the Commissioner, and shall not be available again to the spouses in respect of that year or any one of the four (4) succeeding years of assessment.