MAURITIUS Law and Practice Contributed by: Sameer K. Tegally, Sonia Xavier and Ashvan Luckraz, Venture Law
is, in relation to the terms and conditions of employ - ment or rights pertaining to any procedure agreement.
tax is overpaid, a refund of the excess tax is made to the taxpayer. Every month, every employer shall pay the amount of contribution to the MRA in respect of every employ - ee who was employed during the preceding month. Currently, the CSG and National Solidary Fund (NSF) contributions are payable at the prescribed rate on an employee’s basic wage/salary. An employer is required to contribute 2.5% of remu - neration to the NSF and to pay a monthly rate of 1.5% of the basic salary of every employee. Under the CSG: • employees earning MUR50,000 or less monthly will be subject to a contribution of 1.5%, and 3% for the employers; • employees earning more than MUR50,000 monthly will be subject to a contribution of 3%, and 6% for the employers; • a public sector employee earning MUR50,000 or less monthly will not be subject to the contribution, and 4.5% for the employers; • a public sector employee earning more than MUR50,000 monthly will not be subject to the con - tribution, and 9% for the employers; and • an employee who is in domestic service earn - ing MUR3,000 or less monthly, from one or more employers, shall not be subject to the contribution, and 3% for the employers. Fair Share Contribution (Individuals) Every individual whose fair share contribution income threshold exceeds MUR12 million in an income year shall, in addition to income tax, be liable to pay a fair share contribution to the Director-General. The con - tribution is computed at the rate of 15% on leviable income exceeding the threshold of MUR12 million. The measure applies to income derived for the income year commencing 1 July 2025 and will remain in force for the following two income years, up to 30 June 2028. The fair share contribution income thresh - old comprises an individual’s net income, dividends received from resident companies and co-operatives,
5. Tax Law 5.1 Taxes Applicable to Employees/ Employers
Resident individuals are subject to Mauritian income tax on their worldwide income from all sources except that income derived from outside Mauritius is taxa - ble only to the extent that it is remitted in Mauritius. Income from employment duties performed in Mauri - tius is deemed to have been derived from Mauritius. A non-resident is taxable on income derived from Mauritius; for instance, income derived from any busi - ness carried on wholly or partly in Mauritius. Employees Currently, individuals’ incomes are taxed incremental - ly; ie, the chargeable incomes are divided into different revenue brackets. Each bracket has a specific tax rate starting at 0% and is capped at a maximum of 20%. The progressive tax bands are as follows: • 0% on the first MUR500,000 of chargeable income; • 10% on the next MUR500,000; and • 20% on the remaining income. Moreover, individuals aged 18–28 earning up to MUR1 million/year are exempt from income tax on salary or business income. An individual (employed or self-employed) has to file income tax returns for the preceding income year, declaring their income and deductions to the Mauri - tius Revenue Authority (MRA). Employers are required to operate a cumulative sys - tem of pay as you earn (PAYE) whereby tax with - held from emoluments that are made available to an employee has to be remitted to the MRA within 20 days. If tax is underpaid under the PAYE system, the unpaid balance becomes payable on or before 30 September following the end of the income year. If
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