Taxation
Key tax measures:
Investment Tax Credit
- Extended to AI and patents
80% exemption
- Applicable to a company holding a Robotic and AI licence
CSG Income Allowance
- Increased across salary bands
Lump sum threshold
- Tax exemption threshold on lump sum increased to Rs3m
Private school deduction
- Tax deduction of Rs60,000 per child per annum
Extension of TASS
- Waiver of interests and penalties
Corporate Climate Responsibility Levy
- Levy of 2% of company’s profits introduced.
Virtual Assets/Tokens
- Exemption on profits/gains.
The tax exemption for virtual assets and virtual tokens can be a game changer to attract investment opportunities through Mauritius.
Corporate Tax
- Partial exemption
- Corporate Climate Responsibility (CCR) levy
- Medical, Biotechnology or pharmaceutical sector
- Exemptions and reliefs
- Tax deduction
- Premium Investor Certificate
- Investment Tax Credit (ITC)
- Captive insurance
Partial exemption
80% exemption now applicable to a company holding a Robotic and Artificial Intelligence Enabled Advisory Services licence, subject to substance requirements.
80% exemption available to a licensed closed-end fund now extended to income from sale of money market instruments or debt instruments.
80% exemption granted to licensed CIS administrator not applicable to administrative services provided by management company to a CIS licence holder.
Corporate Climate Responsibility (CCR) levy
CCR levy now applicable at 2% on the profits of companies with a turnover of Rs50m or more.
Medical, Biotechnology or pharmaceutical sector
- Income derived from intellectual property assets by a manufacturing company in medical, biotechnology or pharmaceutical sector now taxed at 15% instead of 3%.
Exemptions and reliefs
The following income will be tax exempt:
Interest income derived from a bond issued by a public sector company to finance infrastructure projects provided the exemption is approved by the Minister of Finance, Economic Planning and Development.
Income received as compensation from the government or a public sector body for losses suffered due to a natural disaster.
Profits or gains derived from sale of virtual assets and virtual tokens.
Tax deduction
- Companies granted double deduction on costs incurred to support a registered artist.
Premium Investor Certificate
Investors engaged in the development of the creative industry (including concert venues and theatres) now eligible for the Premium Investor Certificate and will get tax incentives.
Investment Tax Credit (ITC)
A 15% ITC over 3 years granted to Artificial Intelligence and patents.
Captive insurance
- 8-year income tax holiday granted to a captive insurer will start from the date it has started its activities.
Personal Tax
- Lump sum tax exemption threshold
- Income tax deduction
- Allowances
- Exemptions and reliefs
Lump sum tax exemption threshold
- The tax exemption threshold on lump sum received as pension, retiring allowance or severance allowance will be increased from Rs2.5m to Rs3m.
Income tax deduction
- A tax deduction of Rs60,000 per child per annum will be available to parents having children in full time education in fee-paying private schools.
Allowances
- The CSG Income Allowance will be increased as follows:
Exemptions and reliefs
Income derived from the sale of virtual assets and virtual tokens will be exempt from tax.
An allowance paid by Government to an individual under a financial assistance scheme will be exempt from tax.
Value Added Tax
- Removals, exemptions & extensions
- Services provided by Management Companies
- VAT invoice in foreign currency
Removals, exemptions & extensions
Zero-rated VAT on services provided by a Management Company to:
trusts whose settlor and beneficiaries are non-residents; or
foundations whose founder and beneficiaries are non-residents.
Zero-rated VAT extended to vegetable, fruit and flower seeds, roasted coffee, baby lotions, etc.
VAT exemption on entrance fee to digital art galleries.
VAT exemption on the construction of a purpose-built building for the provision of primary, secondary and tertiary education will be extended to pre-primary and Technical and Vocational Education and Training, with retrospective effect.
VAT exemption on motor vehicles, linked to construction, will be granted to approved contractors engaged in the construction of social housing units under a contract with New Social Living Development, with retrospective effect.
VAT, customs duty and excise duty exemption on the procurement of goods and services for a project where 50% funding is by way of a grant or concessionary loan from a donor organisation.
Diplomatic missions and agents will benefit from VAT exemption or refund on services provided.
Services provided by Management Companies
Zero-rated where provided to trusts and foundations.
VAT invoice in foreign currency
Where a supplier issues a VAT invoice stating the value of the supply in foreign currency, he will be required to specify the conversion rate into rupees.
Other Taxes
- Property Taxes and schemes
- Excise Duty
- Customs Duty
Property Taxes and schemes
Transfer of social housing units by the New Social Living Development Ltd will be exempted from the payment of registration duty, land transfer tax and tax on transfer of leasehold rights in State land.
Refund under ‘vente en l’état futur d’achèvement’ (VEFA) extended for properties reserved after 30 June 2024 if the deed of transfer is signed and registered not later than 30 June 2025.
Refund under Home Ownership Scheme will be made for properties acquired under ‘vente à terme’ when the buyer pays the purchase price for the property not later than 30 June 2025.
A person contracting a secured housing loan under the home loan payment scheme to construct his residence will continue to benefit from a refund of 5% of the loan amount. This has been extended for loans contracted after 30 June 2024 and for amounts disbursed up to 30 June 2025.
Excise Duty
Extension of the negative excise duty scheme for the purchase of electric vehicles up to 30 June 2025.
Exemption of the excise duty on plastic bottles made from plant–based materials and used in the beverages industry.
Introduction of an Excise Licence for the storage and maturation of alcoholic products meant for export or transfer to another excise licensee.
Customs Duty
Removal of customs duty on milk beverages obtained from nuts such as walnut and chestnut.
Excise and customs duty rebates on motor vehicles will phase out on 30 June 2024 and the rebate rates will be incorporated in the statutory excise and customs duty rates on conventional petrol and diesel driven vehicles.
Tax Administration
- Amended return
- Statement of Financial Transactions
- Tax Arrears Settlement Scheme (TASS)
- Communication to e-tax account
Amended return
Where an objection has been made with the MRA against an assessment or a representation lodged with the Assessment Review Committee, an amended return shall not be permitted.
Statement of Financial Transactions
- A bank will have to report on information pertaining to deposits made by a bank account holder in his credit cards or prepaid cards account to the MRA
Tax Arrears Settlement Scheme (TASS)
Extension of TASS providing full waiver of penalties and interests for tax arrears outstanding under the Income Tax Act, the Value Added Tax Act and the Gambling Regulatory Authority Act, provided the taxpayer registers by 31 December 2024 and pays the tax in full by 31 March 2025.
TASS also applicable to assessments pending before the Assessment Review Committee (ARC), the Supreme Court or Judicial Committee of the Privy Council.
Communication to e-tax account
- Where a notice has been sent by the MRA to the e-tax account of a person, the notice will be deemed to have been served on the date it was sent provided the person has been informed of this communication, both through an SMS and an email.
Tax Administration: Value Added Tax (VAT)
- Claim of input tax as from date of voluntary registration
- Time limit for MRA to request information to examine a VAT return
- Change in time limit for MRA to raise an assessment
Claim of input tax as from date of voluntary registration
A person who has voluntarily registered for VAT can claim input tax on goods and services acquired as from the date of his voluntary registration.
Time limit for MRA to request information to examine a VAT return
- The time limit for the MRA to request information for the purpose of examining a return will be 4 years following the taxable period in which the return is submitted.
Change in time limit for MRA to raise an assessment
- The MRA is now empowered to raise a VAT assessment over a maximum of 4 years prior to the taxable period in which a return is submitted.
Immigration
- Occupation Permit Application
- Work Permit Application
- Repatriation of migrant worker
Occupation Permit Application
Basic monthly salary threshold for professionals reduced from Rs30,000 to Rs22,500.
Introduction of Temporary Occupation Permit of 3 months for professionals with a minimum of 10 years experience to allow them to work pending final approval.
Introduction of 10-year Expert Occupation Permit for those in the wealth management, family office, virtual assets and virtual tokens.
Holders of Residence Permit as Retired Non- Citizens allowed to work without applying for additional Work or Occupation Permit.
Work Permit Application
Timeframe to deliver or renew a work permit will be set at 3 weeks.
Maximum renewal period extended to 10 years for those in the manufacturing sector.
Removal of quotas on foreign labour in the following sectors: manufacturing, jewellery, freeport and ICT/BPO.
The Non-Citizens Restriction Act will be amended to clarify the criteria for a Work Permit application to be determined as complete.
Repatriation of migrant worker
- Failure to notify the supervising officer of the Ministry responsible of the proposed repatriation of a migrant worker will be an offence.
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