Taxation in Mauritius

Corporate tax

The Income Tax Act defines company as a corporate body (except local authority) whether incorporated in Mauritius or elsewhere. Companies, trusts, trustees of Unit trust schemes and partnerships under the ‘société’ configuration.

All income (from trade, rent, property, dividends, etc) are subject to tax. Companies incorporated in Mauritius are liable to Income Tax on its worldwide income while those incorporated abroad are liable to income tax derived or deemed to be derived from Mauritius.

Basic corporate tax, previously 25% of profits is being reduced gradually to reach 15% in year 2009. The general strategy is to implement a uniform rate applicable in all industries. The actual rate for year 2007 is at 22.5%, with a scheduled decrease of the rate as follows:

• Special rates:

Tax incentive companies (incorporated before 1 October 2006) 15%

Listed companies without incentive certificate 22.5%

Listed companies with incentive certificate 15%

Trusts 22.5%

Partnerships (sociétés) 22.5%
Or 15% with
incentive certificate

Global business entities

Global business licence – Cat 1 15%
With a tax credit of 80%

Global business licence - Cat 2 Exempt

Banks 22.5%

• Tax returns and submission dates

Companies having accounting year end of 30 June need to submit their returns by 30 September of the same year of assessment

Companies with financial year end other than 30 June may submit their returns by 31 January in the same year of assessment.

Individual tax

The taxable income of individuals includes gross incomes received from all sources, while applying, however, a deduction threshold which is determined by the number of dependents under the responsibility of the taxpayer. The current annual deduction threshold stands as follows:

Dependent means either spouse, child under the age of 18, or child above 18 but pursuing full-time higher education or who cannot earn a living due to physical or mental disability.

• Rate of tax
Income tax will be charged at a flat rate of 15% within 3 years. The actual rate is as follows:

2006-2007	22.5% top rate
2007-2008	20%
2008-2009	17.5%
1st July 2009	Single rate of 15%

 

• Deduction at source
All salary and wages earners, pension earners and other incomes related to employment are taxed at source through the Pay As You Earn scheme, on a cumulative basis. Employers are held responsible to carry out the necessary deduction, and remittance to the Income Tax department of the Mauritius Revenue Authority.

• CPS
The Current Payment System (CPS) relates to self-employed persons having income derived from business, profession, trade or rent. CPS returns are effected on a quarterly basis, and is accompanied by a Statement of Income and the remittance of tax payable amount.

More information about taxation in Mauritius, in Ebizguides Mauritius.