Close

The tax system in Mauritius

Recommend

To encourage foreign investment, Mauritius has, over the years, introduced numerous tax incentives while adhering to international standards. An OECD-compliant (Organisation for Economic Cooperation and Development) jurisdiction, Mauritius is renown for its continued commitment implementing international measures of transparency.

Tax benefits

Tax residency is an essential requirement for anyone who hopes to claim tax benefits in Mauritius.

Corporations that meet the relevant set of criteria can benefit from the following advantages:

  • No taxation on dividends
  • No capital gains tax
  • No inheritance tax for direct descendants
  • Repatriation of funds (profits and dividends) from a foreign company at a tax rate of 15%
  • Tax Rate of 15%
  • Full tax exemption on import-export activities
  • Tax rate of 15% on manufacturing activities
  • Exemption from customs’ duties for all goods imported through the Freeport

Income tax

The main taxation system on the island is the "PAYE" (Pay As You Earn) system. Income tax is deducted directly from salaries and remitted to the Mauritius Revenue Authority by the employer. In order to protect employees from paying taxes twice, double taxation agreements exist between Mauritius and numerous countries including the UK, South Africa, Germany, Australia, China, and India.

Personal taxes

Revenue from salaries, wages, and pension funds is deducted at source under the PAYE system by the employer. Current practice requires that the employer provides the employees with an Employee Declaration Form (EDF), on which the employee must declare any other income aside from their salary (e.g. interests, royalties, dividends from a foreign source, etc.) so that the employer can calculate the income tax and deduct the amount.

The employee will then submit his annual income tax return to the Mauritius Revenue Authority (MRA). A tax resident in Mauritius benefits from the Income Tax Threshold Exemption (IET), starting at Rs. 300,000 up to Rs. 550,000 (for 2018), depending on the number of dependents and the category into which that individual falls. The IET allows for any revenue of the individual, below or equal to their determined threshold to be exempt from taxation.

Individuals are taxed at a fixed rate of 15%.

Solidarity levy

A solidarity levy exists for individuals who are tax residents in Mauritius and have a leviable income exceeding Rs. 3.5 million. An additional levy of 5% is imposed on the leviable income in excess of the Rs. 3.5 million threshold and is payable at the time of the submission of the individual’s tax return.

Corporate income tax

Corporate income tax is at the fixed rate of 15%. This relates to:

  • profit derived from the business activities interests received
  • foreign dividends received
  • rent received

Where an individual derives income from rent or business activities, it is subject to filing his tax returns quarterly under the Current Payment System unless that income is less than Rs. 4 million for the preceding year or the tax payable under the CPS is not greater than Rs. 500.

Similarly, corporations that are tax residents in Mauritius, are required to follow the Advance Payment System (APS) and submit quarterly returns to the MRA unless their gross income for the preceding accounting year was less than Rs. 10 million or there was no chargeable income.

Financial year

The financial year begins on July 1st and ends on June 30th of the following year.

Tax returns must be submitted to the MRA by the 30th of September (by way of post or hand) or electronically by the 15th of October at the latest.

VAT

The VAT rate in Mauritius is fixed at 15%.

 Useful links:

Mauritius Revenue Authority
MRA – Personal tax
MRA – Corporate tax
Double taxation agreements signed by Mauritius

We do our best to provide accurate and up to date information. However, if you have noticed any inaccuracies in this article, please let us know in the comments section below.
Recommend
expat.com Your favourite team
Member since 01 June 2008
Small earth, Mauritius
2 Comments
richdaddy
richdaddy
7 years ago

Actually the tax info needs to be updated, since individual & corporate income tax are at max 15% flat rate and deduction threshold for individual starts at rs225,000 per year (rs21250/month). http://www.gov.mu/portal/sites/mra/ptax.htm

Reply
Guest
Guest
8 years ago

Anyone knows what are the rules for Mauritians living abroad who want to invest, are they exempt ?

Reply

See also

Mauritius is a popular retirement haven for expatriates from all around the world. Here's how to obtain a resident permit to retire in Mauritius.
Public holidays are usually the days when you will get to discover more about your host country. Here is a list of public holidays in Mauritius.
As a developing island State, Mauritius is recognised by many regional and international organisations. Find out more in this article.
An island State in the Indian Ocean, Mauritius has a diversified and growing economy. Find out more about the Mauritian economy in this article.
Moving to an island involves adapting to a new climate. Here is what you need to know about the climate in Mauritius, seasons, and cyclones.

Would you like to live in Mauritius?

Find useful information in our expatriate guide.