Taxation

• Solidarity Levy on telephony service providers will be made permanent 
  

• Profitable companies will continue to be liable to levy at 5% of accounting profit + 1.5% of turnover

• Non-profitable companies will now be liable to levy of 1.5% of turnover

• Companies carrying out life insurance business will be liable to tax under the existing system or under AMT, whichever is the higher
  

• AMT will be calculated at 10% on the profit attributable to shareholders adjusted for capital gains or losses

Accelerated depreciation available on assets acquired as follows:

• 15% ITC available to all manufacturing companies over 3 years

• 50% refund on the costs of certification, testing and accreditation of local laboratories

• Double deductions on: 
  • Plant and machinery acquired by companies affected by COVID-19 during the period 01 March 2020 to 30 June 2020 
  • Cost of acquisition of patents and franchises including associated costs to comply with international quality standards and norms
  • R&D expenditures incurred by Medical R&D centres

Double deductions on: 

• 8 year tax holiday for companies engaged in:
  • Inland aquaculture scheme
  • Manufacture of nutraceutical products subject to operations started on or after 04 June 2020
  • Manufacture of pharmaceutical products, medical devices or high-tech products if the company has started operations on or after 08 June 2017
• Worldwide institution setting up branch campuses in Mauritius will also benefit from the 8 year tax holiday

• 80% partial exemption regime on interest income does not cover the following:
  • Non-bank deposit taking institutions;
  • Money changers;
  • Foreign exchange dealers;
  • Insurance companies; 
  • Leasing companies; and
  • Companies providing factoring, hire purchase facilities or credit sale facilities

• Companies under the Deferred Duty and Tax Scheme and the Mauritius Duty Free Paradise will be allowed to sell their goods on the local market provided they pay taxes

• Exemption value of article imported by post or courier services reduced from Rs3,000 to Rs1,000.
  

• Rate of customs duty on import of sugar will be increased from 80 percent to 100 percent.

• The scheme regarding exemption from registration duty on acquisition of a newly-built dwelling will be extended to 30 June 2022 and value of the property will be raised to Rs7m. The exemption will also cover purchases on the basis of a plan or during construction but has certain exclusions
  
  

• Exemption from land transfer tax to a promoter undertaking construction of housing projects of at least 5 residential units for Mauritians will be extended to 31 December 2020. No registration and land transfer tax will be payable on the transfer of freehold bare land for the construction of housing projects provided the land is transferred by 31 December 2020 and construction completed by 31 December 2021. Exemption of land transfer tax will be granted on sale of residential unit  made to a Mauritian before 30 June 2022.
  

• A person is now eligible to first-time buyer registration duty exemption if he or his spouse is or was the:
  • owner of an immovable property acquired by inheritance where the land is less than 20 perches
  • co-owner of an immovable property acquired by inheritance where their share in that property is less than 20 perches of land

• Income tax refund by the MRA

Time limit to effect income tax refunds standardised to 60 days for all taxpayers as from the date all necessary documentation pertaining to the application is received by the MRA

• E-services platform

MRA to further develop its e-services platform to improve efficiency and transparency in service delivery to taxpayers 

• Market value of the supply will be taken as the taxable value where a transaction is not at arm’s length
  
  

• VAT-registered person making both taxable and exempt supplies may apply for an alternative basis to apportion input tax where he is engaged in a project spanning over several years
   

• Administrator, executor, receiver or liquidator to inform the MRA within 15 days of his appointment for the management or winding up of the business of a taxable person
  
  

• Provisions will be made to allow a claim for VAT refund below Rs25,000 in respect of a residential building subject to the amount of VAT paid during a quarter and preceding three quarters does not exceed Rs25,000
  
  

• Introduction of a VAT e-invoicing at business level on a pilot basis

• Principal Officer of a private company (may be the executive director or any other person who is entitled to exercise the powers of the Boards of directors) will be liable for any taxes due by the company
  

• The time frame of 28 days to settle underpayment of duties, excise duties, taxes and penalties by an importer/manufacturer extended to cover the following:

  • default on deferred payment facilities

  • non-submission of cargo report for an aircraft or ship

  • importation of selected prohibited goods

• Goods imported in multiple consignments or shipments to be assembled into a complete finished good such as a photovoltaic system or a greenhouse will be classified under the same category as the finished products for tariff purposes
  

• Customs declarations (Bill of Entry) made in respect of imports will be deemed to be a self-assessment

• A penalty Rs500 per day of non-compliance up to a maximum of Rs5000 will be imposed on master, owner or duly authorised agent of an aircraft or ship failing to give a cargo report in respect of the aircraft or ship, its craft and passengers. 

• Qualified person from a Freight Forwarding Agent company will be authorised to act as broker by the MRA

• Public notice will be given where the MRA customs suspends the clearance of imported goods or detains goods on the local market 

• No future suspension of the clearance of imported goods or detention of goods on  local market will be made by the MRA unless and until the right holder initiates legal proceedings

Rate of exchange to be used for valuation purposes will now be posted on the MRA’s website