Mauritius encourages foreign investment and consequently has introduced various tax incentives while adhering to international standards. An OECD-compliant (Organisation for Economic Cooperation and Development) jurisdiction, Mauritius adheres to standards of international measures of transparency.
The income tax system in Mauritius 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. Double taxation agreements exist between Mauritius and numerous countries including the UK, South Africa, Germany, Australia, China, and India, whereby citizens of those countries do not have to pay taxes in their country of origin as well as in Mauritius.
Revenue from salaries, wages, and pension funds is deducted at source under the PAYE system by the employer. The employee must declare any income aside from their salary (e.g. interests, royalties, dividends from a foreign source, etc.) on an Employee Declaration Form (EDF) which is provided by the employer so that the latter can calculate the income tax and deduct the relevant amount.
Once a year the employee has to submit his income tax return to the Mauritius Revenue Authority (MRA). A tax resident in Mauritius can benefit from the Income Tax Threshold Exemption (IET) which starts at Rs. 300,000 and goes up to Rs. 550,000 (for 2018). This depends on the category of the individual, including how many dependents the individual has. The IET allows for any revenue of the individual, below or equal to their determined threshold, to be exempt from taxation.
The fixed rate for taxes for individuals is 15%.
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 if submitting in person or by mail, or electronically by the 15th of October at the latest.
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 if submitting in person or by mail, or electronically by the 15th of October at the latest.