Cap. 123 Art. 50Separate computation on certain income derived by married couples.

(1) Notwithstanding the provisions of article 49, where in any year immediately preceding the year of assessment the spouse not being the responsible spouse, derives income subject to tax under the provisions of article 4(1)(a) or (b) in so far as it does not refer to any fees derived from the holding of an office of a director or of paragraph (d) of the said sub-article in so far as it refers to a pension which is received in view of the past employment the responsible spouse may elect in writing that the tax on the chargeable income in respect of such income derived by the other spouse be computed separately. In such a case the spouse’s income shall not be aggregated with the responsible spouse’s total income for that year of assessment:

Provided that where such an election is made, then, notwithstanding anything contained in this Act, any income of the spouses, other than income referred to in this sub-article and subject to tax under the provisions of article 4(1)(a), (b) and (d), shall be aggregated with the total income of the spouse having the higher income subject to tax under the said provisions or where such total income of the spouses is equal, it shall be aggregated with the total income of the responsible spouse, and the tax charged shall be computed accordingly.

(2) The tax computed separately for each year of assessment in respect of the income referred to in sub-article (1) hereof shall be charged in the name of the responsible spouse.

(3) No election referred to in sub-article (1) may be made in respect of income which is subject to tax under any of the provisions of article 4(1)(b) or (d) where such income consists solely of income which is deemed to constitute a benefit provided by reason of employment or office in terms of the regulations referred to in article 4(1)(b)(ii).

(4)* The responsible spouse may not make an election under this article for any year of assessment in respect of which an election made by any of the spouses for a separate return for the purposes of article 49A is effective.

*Applicable from year of assessment 2021.