No Match Found
On 8 June 2023, the Mauritius Revenue Authority (“MRA”) issued a Communiqué to provide further details on the changes announced in the budget speech on the personal tax system. These are summarised below:
1. Replacement of Income Exemption Thresholds (“IET”)
The exemption currently available in the form of IET has been replaced by a deduction for dependants, where applicable, coupled with a tax rate of 0 percent on the first Rs 390,000 chargeable income.
The overall effect is that each individual will benefit from an additional exemption of Rs 65,000.
2. Personal reliefs and deductions
The personal reliefs and deductions to which an individual is entitled remain unchanged. This implies that interest relief, deduction for children attending university, contribution to approved pension plans etc. are still available.
3. Introduction of a progressive tax system
A progressive tax system has been introduced with eleven tax brackets as follows:
4. Abolition of solidarity levy
Solidarity levy has been abolished. As a result, local dividends received are tax exempt.
5. Effective date
The changes will apply to income received by an individual as from 1 July 2023.
PwC comments: As shown in examples 1 and 2 below, the reform of the personal tax system will result in significant tax savings for all individuals.
Office: +230 404 5469
Senior Manager - Tax
Office: +230 404 5039
Anthony Leung Shing, ACA, CTA
Country Senior Partner, PwC Mauritius
Tel: +230 404 5071
Dheerend Puholoo, ACCA
Tax Leader, PwC Mauritius
Tel: +230 404 5079