| Individuals |
Personal Taxation |
Emoluments
(PAYE) |
M9455LL/AM9457LL/A |
Business Income
(CPS) |
Current Payment System (CPS)
concerns self-employed persons with income derived from trade,
business, profession and rent. Is also included share of income
from société and succession deriving income from trade, business
and rent. |
Other Income
(Income NOT falling
under PAYE and CPS) |
Income such as interest,
royalty, foreign dividends, charges (including alimony), annuity. |
| Companies (including Trusts and Unit Trust Schemes) |
Corporate Taxation :
|
| Income such as trade
profits, interest, royalty, foreign dividends and rent. |
6. Rate of annual allowance
| Capital expenditure incurred on |
Rate of annual allowance -% of |
| |
|
Base Value |
Cost |
| 1 |
Industrial premises excluding hotels |
- |
5 |
| 2 |
Commercial Premises |
- |
5 |
| 3 |
Hotels |
30 |
- |
| 4 |
Plant or Machinery |
|
|
| (a) |
costing 30,000 rupees or less |
- |
100 |
| (b) |
costing more than 30,000 rupees |
|
|
| |
|
20 |
- |
| |
- Aircrafts and aircraft simulators leased by a company engaged in aircraft leasing
|
- |
100 |
| |
|
25 |
|
| |
- Electronic and high precision machinery or equipment, computer hardware and peripherals and computer software
|
50 |
- |
| |
|
20 |
- |
| |
|
35 |
- |
| 5 |
Improvement on agricultural land for
agricultural purposes |
25 |
- |
| 6 |
Scientific research |
25 |
- |
| 7 |
Golf courses |
15 |
- |
| 8 |
Acquisition or improvement of any other item of
a capital nature which is subject to depreciation under the
normal accounting principles |
- |
5 |
7. Unauthorised deductions
| The following deductions are not allowable: |
| (a) |
any investment, expenditure or
loss to the extent to which it is capital or of a capital
nature; |
| (b) |
any expenditure or loss to the extent to which
it is incurred in the production of income which is exempt
income; |
| (c) |
any reserve or provision of any kind; |
| (d) |
any expenditure or loss recoverable under a
contract of insurance or of indemnity; |
| (e) |
any expenditure incurred in providing business
entertainment or any gift; |
| (f) |
any tax payable under the Land (Duties and
Taxes) Act 1984; |
| (g) |
income tax or foreign tax; |
| (h) |
any expenditure or loss to the extent to which
it is of a private or domestic nature. |
| 9. Pay As You Earn (PAYE) |
| Employers are required to withhold tax from the emoluments
of their employees who have a chargeable income in respect
of a pay period. |
| (a) |
Employer Registration |
| |
In order to be able to operate PAYE, an employer should
register with the MRA by filling in an Employer Registration Form (ERF) within 14 days of his
becoming an employer. |
| (b) |
Employee Declaration Form (EDF) |
| |
Every employee should submit to his/her
employer (normally in July/August each year) an Employee Declaration Form to claim income exemption
threshold to which he/she is entitled in respect of the income
year concerned. |
| (c) |
Requirement for employer to join electronic system |
| |
Every employer who has in his employment 50 or more
employees is required to submit his PAYE return and remit the
tax withheld to the MRA electronically. |
| (d) |
Statement of Emoluments and Tax Deductions |
| |
Every employer is required, not later than 31 July in every
year, to give to every employee, a Statement of Emoluments
and Tax Deduction in duplicate showing the salary/wages,
overtime, fees, allowance etc., and any tax withheld under
PAYE relating to the preceding income year. |
| (e) |
Annual Return by Employers |
| |
Every employer is required, not later than 31 August in
every year to submit to the MRA, a return specifying in
respect of every employee whose emoluments for the preceding
year exceed Rs 215,000 - |
| |
- the full name;
- the National Identity Number;
- the Tax Account Number (TAN);
- the particulars of emoluments and any exempt income
- the amount of the income exemption threshold claimed
in his EDF; and
- the total amount of tax withheld and remitted to the
MRA, if any.
|
| (f) |
Refund of tax under PAYE |
| |
Where tax has been withheld in excess by the employer, the
employee is entitled to claim a refund of the tax overpaid
by submitting a return of income duly filled in and
supported by relevant documents and receipts. The law
requires the refund to be effected within a maximum period
of three months as from the date the return is submitted,
otherwise interest at bank rate will have to be paid to the
taxpayer by the MRA. |
| (g) |
Penalty for failure to join electronic system |
| |
Where an employer fails to submit his PAYE return and remit
the tax withheld electronically, he is liable to a penalty of Rs
5,000 for every month or part of the month up to a maximum
penalty of Rs 50,000. |
| (h) |
Penalty and interest for late payment of tax by employer |
| |
Where an employer fails to remit the tax required to be
withheld by the due date to the MRA, he is liable to a penalty
of 5% of the tax due and to interest at the rate of 1% per month
or part of the month during which the tax remains unpaid. |
| 11. Tax Deduction at Source (TDS) |
| Under the system of TDS,
the payer is required to deduct tax at the time the payment is
made to or credited to the account of the payee. |
| (a) |
Types of payments
subject to TDS |
| |
The following types of
payments are subject to deduction at source - |
| |
- Interest
- Royalties
- Rent
- Payments to architects,
engineers, land surveyors, project managers in construction
industry, property valuers and quantity surveyors as
consideration for services rendered by them
- Payments to contractors
and sub-contractors.
|
| (b) |
Persons to deduct
tax at source |
| |
From interest: |
- any bank including the Bank of Mauritius;
- any non-bank deposit
taking institution;
- any person, other
than an individual, issuing debentures and any other loan
instrument.
|
| |
From royalties: |
- any company or socit other than companies holding a Category 1 Global Business Licence.
|
| |
From rent: |
- any person excluding
individuals.
|
| |
From fees to providers
of specified services: |
- any person excluding
individuals.
|
| |
From payments to
contractors and
sub-contractors:
|
- any person excluding
individuals
|
| (d) |
Rate of tax
deduction at source |
| |
Nature of payment |
Rate of tax(%) |
| |
Rate of tax(%) |
15 |
| |
Royalties |
10 |
| |
Rent |
5 |
| |
Payments to
providers of specified services |
3 |
| |
Payments to contractors
and sub-contractors |
|
| (d) |
Statement of Income
Tax Deduction |
| |
The payer is required
to issue a statement of income tax deduction to the payee by
31st July every year showing the total payments made to the
payee and the total amount of tax deducted at source. |
| (e) |
Statement to the MRA |
| |
The payer is required
to submit by 31st July every year to the MRA a statement giving
particulars of the payee, the amount made available to the payee
and the tax deducted at source. |
| (f) |
Penalty and interest
for late payment of tax to the MRA |
| |
Where a payer fails to
remit to the MRA by the due date the tax required to be deducted
at source, he is liable to a penalty of 5% of the tax due and to
interest at the rate of 1% per month or part of the month during
which the tax remains unpaid. |
