Taxation

+ Corporate Tax

  • Accelerated depreciation/Annual allowance
    • Change in the rate of annual capital allowance on the acquisition of patents from 5% (on cost) to 25% (reducing balance)
  • Special Levy on banks
    • The levy on banks will now be calculated on 10% of chargeable income instead of 3.4% on book profit and 1% on operating income, in respect of returns submitted for 2014 and 2015
  • Shipping income
    • Exemption of income derived by the registered owner of a foreign ship  from the charter of the ship
  • Private Freeport Developer
    • Exemption from income tax for holders of a Private Freeport Developer License; the exemption excludes income derived from sale on the local market or any specified manufacturing or processing activities
  • Fees paid to non-residents
    • Taxation of all fees derived by non-residents from Mauritius, whether the services are provided in Mauritius or not; the provisions of Double Taxation Agreement will continue to apply
  • Corporate Social Responsibility
    • Corporate Social Responsibility (CSR) at 2% applicable to resident société on their net profits adjusted for income tax purposes

 

+ Personal Tax

Income Exemption Thresholds

  • Increase in exemption thresholds of Rs5,000 across all categories:
Individuals with no dependent Rs 275,000
Individuals with one dependent Rs 385,000
Individuals with 2 dependents Rs 445,000
Individuals with 3 dependents Rs 485,000
Retired person with no dependent Rs 325,000
Retired person with one or more dependent Rs 435,000

Car benefit

  • Increase in monthly taxable fringe benefit as follows:
  From To
Up to 1600 cc Rs9,000 Rs9,500
1601 to 2000cc Rs10,125 Rs10,750
Above 2000cc Rs11,250 Rs12,000

 

Accommodation benefit

  • Increase in monthly taxable amount of accommodation benefit provided by hotels as follows:
Full Board and Lodging From To
Single Rs11,000 Rs11,500
Married Rs15,000 Rs15,700
Managing and supervisory staff Rs4,200 Rs4,400
Other Staff Rs2,100 Rs2,200

Tax Deduction at Source

  • Extension of Tax Deduction at Source (TDS) to cover:
    • certain consultancy and management services, and
    • interest receipts from  financial institutions and  companies where the interest is taxable

 

+ Value Added Tax

VAT Refund Schemes

  • Refund of VAT of up to Rs300,000 on construction costs of residential units costing less than Rs 2.5m charged by VAT registered building contractors to households with monthly income not exceeding Rs50,000 ; the Scheme is also extended to the purchase of an apartment
  • Permanent  extension of existing VAT Refund Schemes for Small Planters, Fishermen, Breeders, Apiculturists, and Bakers 

Collection of VAT at Wholesale Level

  • VAT on mineral waters, aerated waters, soft drinks and alcoholic drinks will be collected at the wholesale level, as in the case of petroleum products

Clawback of VAT on building

  • The provision on clawback of VAT applicable on building sold before the twentieth year is now being reviewed where a transfer is made between VAT registered persons

Abolition of VAT

The following items are now exempt from VAT:

  • Photovoltaic panels
  • Importation and acquisition of new semi low floor buses or chassis used for public transport 
  • Medical, surgical or laboratory sterilizer
  • X-ray film and photographic plates for medical purposes 
  • Bio-pesticides 
  • Growing medium for plants, i.e coco peat and substrate 
  • Credit or debit cards services provided by non-banking financial institutions to a company engaged wholly and exclusively in the provision of e‐commerce services to non-residents

Reclassification of supplies

The following are reclassified from exempt to zero-rated supplies:

  • Meat (pork, beef, mutton etc.), fresh or frozen 
  • Canned or preserved meat and fish 
  • Sausages 
  • Milk, buttermilk, curdled milk 
  • Butter 
  • Cheese and curd 
  • Honey 
  • Soya bean 
  • Tea 
  • Spices 
  • Rice

 

+ Other Taxes

Property taxes

  • Extension of the Construction of Housing Estates Scheme for another year:
    • Exemption of payment of both Land Transfer Tax and Registration duty on the purchase of land for the project
    • Exemption of Land Transfer Tax on the transfer of a residential unit where the selling price is Rs4 million or lower
  • The general rate of Land Transfer Tax (LTT) set at a single rate of 5% effective from 1 January 2014
  • Harmonisation of the rates of Registration Duty on acquisition of an IRS/RES residence and Land Transfer Tax on resale:
    • IRS - LTT on resale of residential property: USD50,000 or 5% whichever is the higher
    • RES – Registration duty on acquisition of residential property: USD25,000 or 5% whichever is the higher
    • RES – LTT on resale of residential property:USD25,ooo or 5% whichever is the higher
  • Effective 8 November 2013, increase in the residential morcellement fee from Rs10 per m2 to Rs15 per m2 for of less than 8 lots; for more than 8 lots, increase from Rs10 per m2  t0 Rs30 per m2
  • Transitional provision for transfer of immovable property through a ‘Societe Civile Immobiliere d’Attribution’ formed prior to 22 December 2012

Environment Taxes

  • Effective from 1 January 2014, refund for the collection and export of plastic P.E.T bottle waste: 
    • Rs15 per kilo exported in excess 1,000 tons; and
    • Rs20 per kilo exported in excess of 1,500 tons
  • Extension of the 25% excise duty rate on energy inefficient products to cover household room air conditioners, tumble dryers and electric lamps, effective from 1 January 2014
  • Introduction of a 30% excise duty on firecrackers and fireworks from 1 January 2014
  • Increase of 40% to Rs70 in the Environment Protection Fee (EPF) on a mobile/smart phone; full exemption from the EPF for a mobile/smart phone with an import value below Rs1,000; both effective from 1 January 2014
  • Removal of the 45% rate of excise duty on motor cycles of cylinder capacity between 201 to 250 c.c. with immediate effect
  • Under the CO2 levy/rebate scheme for motor cars, the following are effective from 9 November 2013:
    • decrease in the CO2 threshold from 158g/km to 150g/km,
    • lower rates of rebate applicable where the CO2 measurement is not in conformity with Regulation No.101,
    • transitional provision available where the motor car will be cleared from Customs on, or before 31 January 2014
  • Effective from 9 November 2013,  increase of 30% in Registration Duty on transfer of ownership of motor vehicles, except for a motor vehicle of 250 c.c. or less 
  • From 1 July 2014, the National Transport Authority (NTA) will be the sole authority dealing with the registration of car ownership

Customs Duty

  • Effective from 1 January 2014, removal of customs duty on products originating from a SADC country:
    black tea, spices, flour, salt, edible oil, margarine, electric filament and discharge lamps, safety glass, toilet paper in rolls, soap, trays, dishes, plates, cups of paper, dog and cat food, tubes, pipes of iron and steel, napkins and napkins liners for babies, doors, windows and their frames, tableware and kitchenware, paint, school stationary (box, files), printed postcards, iron bars and furniture
  From To
Cigars (rs per Kg) 12,236 12,845
Cigarillos (Rs) 12,236 per kilo 7,500 per thousand
Cigarettes (Rs per thousands) 3,540 3,717
  • Increase of 5% in excise duty on alcoholic products with immediate effect
  • Increase of 1 cent to 3 cents per gram in the rate of excise duty on sugar content of soft drinks with immediate effect

Gambling & Betting Duties

  • Application of betting duty to bets on football matches.; rate per outlet Rs24,000 per week
  • Increase in fixed gambling registration duty from Rs200 to Rs300
  • Merging of stamp duty and transcription fee and increase of 30% in rate
  • Increase in shooting and fishing lease tax by 100%

 

+ Tax Administration

  • Introduction of Tax Administration Bill to consolidate, streamline and incorporate common and repetitive administrative provisions under revenue laws into a single piece of legislation
  • Re-assessment of  Customs Administrative Penalty System to simplify process:
    • No penalty in case of voluntary revision of original declaration due to an error by the declarant prior to detection by MRA
    • Appropriate administrative arrangements to deal with  waiver of penalty and interest under the Customs Act, Customs Tariff Act and Excise Act
    • Penalty of 50% imposed  in case of underpayment of duties and taxes will now be payable only after the final determination of the case
    • The schedule relating to compoundable offences is being revisited
  • Simplification of income tax return  and  record keeping requirements for corporate businesses with a turnover of up to Rs10m
  • Submission of corporate tax returns for companies having accounting year ending 30 June by 15 January of the following year where no tax is payable
  • Harmonisation of payment dates for various taxes and remittance to the MRA to enable block payments, thus simplifying electronic transfers
  • Introduction of an Arrears Payment Scheme at the Registrar-General’s Department whereby
    • any payment owed to the department as at 8 November 2013 can be settled free of any penalty on or before 30 June 2014
    • cases pending before the Objection Unit or the Assessment Review Committee may be removed and settled  free of penalty
  • Harmonisation of penalties in connection with registration duty and stamp duty for late submission of documents