Summary of Tax measures

Personal Taxation

• Introduction of a  Solidarity Income Tax (SIT) at the rate of 10% on exempt income by individuals earning more than Rs2m 
• Treatment of interest income as exempt income with effect from 1 January 2010
• Tax relief of up to Rs120,000 for interest paid in respect of mortgage loans provided certain conditions met
• Tax relief for children following university courses allowed to persons on certain conditions
• Abolition of the National Residential Property Tax with effect from 1 January 2010
• Tax exemption on the first 60 tonnes of sugar reintroduced
• Income derived from transactions in land and other immovable property taxed at the rate of 10% subject to an exemption of Rs2m
• Sociétés in real estate business will henceforth be taxed at 15%
• The exemption on lump-sum on retirement and severance increased to Rs1.5m
• Individual submitting returns and paying tax electronically will have 15 additional days

Corporate Taxation

• Exemption to companies in the freeport zone extended for another 2 years
• Companies holding a Category 1 Global Business Licence (‘GBC 1’) allowed to conduct business in Mauritius and taxed at the same rate as the domestic entities on their domestic operations
• Cooperative Credit Societies exempt from tax on their surplus generated from sugar operations
• Capital allowances claimed on motor car limited to Rs3m
• Extension of the increase in the special levy rate of 3.4% of profits and 1% of turnover of profitable banks for the two next financial years
• Introduction of a supplementary charge on Segment A banking activities consisting of 1.25% of profits plus 0.5% of turnover. Banks contributing to the new Private Equity Fund will be able to offset the amount subscribed against the additional charge
• The special solidarity levy on the providers of fixed and mobile telephony services will be maintained for the next two financial years at the rates are 5% on book profit and 1.5% on turnover of the preceding year

VAT

• VAT will henceforth be payable on goods and services supplied by the Mauritius Turf Club and horse stables, and on the management services to tote operators
• Exemption provided to Private Health Institutions relating to cosmetic surgery is removed
• Wheat, oils, milk products, live chickens and chicks, animal feed and fertilizers will henceforth be exempt

Other

• Customs duty on cosmetic products and pharmaceuticals imported as samples for testing purposes in Mauritius removed
• Duty exemption on double cab vehicles  for small  planters and other eligible persons is reintroduced
• The various license fees payable in respect of liquor and alcoholic products under the Excise Act doubled and the rates of excise duty on rum and liquor, on other alcoholic products, on spirit cooler and on cigarettes and tobacco increased considerably
• The specific rates of excise duty on petroleum products increased by 10%
• The rate of excise duty on PET bottles, plastic bags and cans is doubled
• License fees of casinos and gaming houses  ‘A’ are increased from Rs500,000 to Rs3.5m. License fees of gaming houses ‘B’ have increased to Rs50,000
• Bookmakers to pay an increase of 67% on their horseracing license fees
• License fees of all other betting outlets, including totalisators, football betting outlets and bookmakers operating through remote control communications increased by 100%
• License fees of sweepstake organizers, local pool promoters, agents of foreign pool and operators of dart games increased by 50%
• The pool betting duty on foreign football matches is raised from 10% to 12%
• The rate of tax on fixed odds betting on football matches and horse racing is raised from 8% to 10%
• No registration duty payable on first-time purchase of a house or bare residential land if the total annual income of purchaser is below Rs2m. The exemption will be limited on the first Rs1.5m of the price of a house, or the first Rs750,000 of the price of bare land